LATAM Airlines Group achieved (11-Nov-2013) USD215 million to-date in LAN Airlines-TAM Airlines merger synergies, and is expecting to achieve USD300 million in synergies in 2013 and USD600-700 million overall by its target of Jun-2016. Synergy measures include "cost reduction and efficiency initiatives" focused on reducing fuel consumption, reducing cost per ASK by 4.2% year-on-year in 3Q2013, which was also achieved by a 6.5% decline in average fuel price paid per gallon. LATAM also reduced its headcount by 0.7% year-on-year as of Sep-2013, mostly at TAM, with ex-fuel cost per ASK-equivalent declining 1.4% year-on-year in 3Q2013. [more - original PR]
LATAM sees USD215m in merger synergies to-date, expecting USD300m in synergies in 2013
You may also be interested in the following articles...
The Trump presidency casts a long shadow over a tentative recovery in Latin America
After battling dismal economic conditions for the past two years, Latin America is poised to begin pulling itself out of fiscal decay in 2017. Near the end of 2016, forecasts tilted toward a return of modest GDP growth between 1.5% and 2% for 2017 after the region endured an economic recession for the prior two years.
CAPA Airport Finance & Privatisation Review 2015/2016. The day has come for PPPs
CAPA's 170-page "Global Airport Finance and Privatisation review 2016 – the day has come for the PPP" is is the fourth in a series of CAPA reports on airport privatisation and investment published since Jan-2015.
During that time a number of deals have been concluded and announced across the world though their volume remains below the levels prior to 2008. One of the key trends is an identifiable increase in activity in public-private partnerships (PPPs) globally.
In a world where obtaining a viable return on investment remains a difficult task it is evident that investor sentiment once again favours long term transport infrastructure. Airports are among the well tested models for investment.