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LATAM Airlines Group

Topic: Company

 From HandWiki - Reading time: 6 min

Short description: Latin American airline holding company
LATAM Airlines Group S.A.
TypeSociedad Anónima
  1. REDIRECTTemplate:Santiago Stock Exchange
    NYSE: LTM
IndustryAviation
Founded2012; 14 years ago (2012)
HeadquartersSantiago, Chile[1][2]
Key people
Ignacio Cueto,[3] (Chairman)
Enrique Cueto, (CEO)
ProductsPassenger flights.
Cargo activity
Aircraft maintenance
ServicesAirline Services
RevenueIncrease United States dollar 9.895 billion (2018)[4]
Increase United States dollar 758 million (2018)[4]
Increase United States dollar 213 million (2018)[4]
Total assetsDecrease United States dollar 17.566 billion (2018)[4]
Number of employees
43,000 (2017)
Subsidiaries
  • LATAM Argentina
  • LATAM Brasil
  • LATAM Chile
  • LATAM Colombia
  • LATAM Ecuador
  • LATAM Paraguay
  • LATAM Perú
  • Click LATAM
Websitewww.latam.com

LATAM Airlines Group S.A. is a Chile an airline holding company incorporated under Chile an law and headquartered in Santiago, Chile .[5][6] It is considered the largest airline in Latin America [7][8] with subsidiaries in Argentina , Brazil , Colombia, Ecuador, Paraguay and Peru.[9][10][11][12][13]

History

Merger

Chile's LAN Airlines and Brazil's TAM Airlines signed a non-binding agreement on 13 August 2010, a binding agreement on 19 January 2011,[14][15] and papers to close the merger on 22 June 2012, with TAM Airlines shareholders agreeing to the takeover by LAN Airlines.[16] Enrique Cueto, former CEO of LAN, is CEO of LATAM;[17] Mauricio Rolim Amaro, formerly vice-chairman of TAM, became LATAM chairman.[18]

Government approvals

The agreement to establish LATAM was approved by Chilean authorities on 21 September 2011, with 11 restrictions. These include transferring four landing slots at São Paulo-Guarulhos International Airport to competitors interested in operating flights to Santiago de Chile's Comodoro Arturo Merino Benítez International Airport, renouncing membership to either the Oneworld or Star Alliance airline alliance, restricting the increase in capacity on flights between Brazil and Chile, and opening code-share possibilities and fidelity program membership to interested competitors.[19] On 14 December 2011, Brazilian authorities approved the agreement, imposing similar restrictions as Chilean authorities: LATAM would have to choose an alliance by August 2012 and frequencies between São Paulo and Santiago de Chile would have to be reduced. At the time, TAM had two pairs of slots while LAN had four. LAN had to relinquish two pairs to competitors interested in using them.[20] On 7 March 2013, LATAM announced its final decision to choose Oneworld as its global airline alliance. As a result, TAM left Star Alliance during the second quarter of 2014 to join Oneworld.[21]

Rebranding

In August 2015, it was announced that all LATAM Airlines Group airlines would fully rebrand as LATAM, with one unified livery to be applied on all aircraft by 2018.[22][23] The first of these aircraft were repainted (or delivered new) in a new LATAM livery in April 2016.

LATAM Airlines Group is currently working on the rebranding process, which is expected to be completed by 2019. Changes are becoming gradually more evident in physical spaces, on aircraft, at business offices, airport service counters, web sites, uniforms among others. Some changes are already in place, mainly in passenger travel experiences, such as the new cabin interiors which have been incorporated into the fleet, new VIP lounges in São Paulo and Santiago currently open to the public and forming part of the largest network of frequent flyer lounges in the region, and digital platforms such as the onboard entertainment system for mobile devices.[24]

2019-2020: Delta stake, Oneworld departure, and Enrique Cueto steps down

On 26 September 2019, Delta Air Lines announced its plans to buy 20% of LATAM for $1.9 billion which will expand Delta's access to Latin America. Additionally, Delta is paying LATAM's exit fee from Oneworld and acquiring the remainder of LATAM's Airbus A350 XWB order book.[25][26][27] On 1 January 2020, it was reported that the Delta Air Lines acquisition of the 20% stake in LATAM group was completed.[28] Group CEO Enrique Cueto will step down on March 31, 2020, and will be succeeded by Roberto Alvo, the group’s current Chief Commercial Officer.[29]

Ownership

The company's shareholder structure as of 31 December 2018 is:

Shareholder Percentage
Chile Cueto Group 27.9%
Chile Administradoras de Fondos de Pensiones (AFP - Chilean Pension Funds) 22.7%
Qatar Qatar Airways 10%
Chile Eblen Group 5.9%
Chile Bethia Group 5.5%
United States American depositary receipts (ADR) 2.4%
Brazil Amaro Group 2.6%
Foreign investors 10.8%
Others 12.1%

Operations

A LATAM Chile Boeing 787-9 Dreamliner at John F. Kennedy International Airport in July 2016.

As of 31 December 2017, LATAM Airlines Group is one of the largest airline groups in the world in terms of network connections, with its subsidiaries operating a combined fleet of 315 aircraft providing passenger transport services to 137 destinations in 24 countries; and 18 aircraft providing cargo services to 144 destinations in 29 countries.[30]

LATAM's main hubs are Santiago de Chile's Comodoro Arturo Merino Benítez International Airport, Jorge Chávez International Airport in Lima, São Paulo–Guarulhos International Airport and El Dorado International Airport in Bogotá. The company is exploring the creation of a new hub in northeastern Brazil with the objective of expanding operations between Europe and South America.[31] Bogota was recently announced as the new hub for the Caribbean.[32]

Subsidiary airlines of LATAM Airlines Group

A LATAM Brasil Airbus A320neo at Salgado Filho International Airport in 2016.
A LATAM Brasil Airbus A350-900 at Toulouse Blagnac International Airport in 2016.

The airlines majority- and minority-owned by LATAM Airlines Group through the primary airlines' various subsidiaries are as follows:

Country Airline
Argentina Argentina LATAM Argentina
Brazil Brazil LATAM Brasil
LATAM Cargo Brasil
Chile Chile LATAM Chile
LATAM Cargo Chile
LATAM Express
Colombia Colombia LATAM Colombia
LATAM Cargo Colombia
Ecuador Ecuador LATAM Ecuador
Paraguay Paraguay LATAM Paraguay
Peru Peru LATAM Perú

See also

  • List of airline holding companies

References

  1. ↑ "LATAM Airlines Group SA". August 17, 2018. https://www.reuters.com/finance/stocks/companyProfile/LFLy.BE. 
  2. ↑ "Latam Airlines Group SA Corporate Information". October 27, 2018. https://www.bloomberg.com/profiles/companies/LTM:CI-latam-airlines-group-sa. 
  3. ↑ "LATAM - Board of Directors". http://www.latamairlinesgroup.net/phoenix.zhtml?c=81136&p=irol-govBoard. Retrieved 15 May 2017. 
  4. ↑ 4.0 4.1 4.2 4.3 LATAM Airlines Group, Consolidated Financial Statements January 1, 2018 – December 31, 2018, retrieved 1 January 2020
  5. ↑ "LATAM Airlines Group SA". August 17, 2018. https://www.reuters.com/finance/stocks/companyProfile/LFLy.BE. 
  6. ↑ "Latam Airlines Group SA Corporate Information". October 27, 2018. https://www.bloomberg.com/profiles/companies/LTM:CI-latam-airlines-group-sa. 
  7. ↑ https://www.bloomberg.com/profiles/companies/LTM:CI-latam-airlines-group-sa
  8. ↑ http://brandz.com/admin/uploads/files/BrandZ_LatAm_2017_Download.pdf
  9. ↑ Webber, Jude; Lemer, Jeremy (15 August 2010), "LatAm airlines join consolidation trend", Financial Times, http://www.ft.com/cms/s/0/d73cff90-a89a-11df-86dd-00144feabdc0.html?ftcamp=rss, retrieved 16 August 2010 
  10. ↑ Sobie, Brendan (13 August 2010), "LAN and TAM to merge", Flight International, http://www.flightglobal.com/articles/2010/08/13/346154/lan-and-tam-to-merge.html, retrieved 14 August 2011 
  11. ↑ "Contact." LATAM Airlines Group. Retrieved on 25 January 2013. "Contact Pdte. Riesco 5711, 20th floor Las Condes Santiago, Chile "
  12. ↑ http://i.imgur.com/IvRaefc.jpg
  13. ↑ http://www.melhoresdestinos.com.br/wp-content/uploads/2015/08/logo_timeline_1024.jpg
  14. ↑ "TAM and LAN announce binding agreement". TAM Linhas Aéreas. 19 January 2011. http://www.tam.com.br/b2c/vgn/v/index.jsp?vgnextoid=28ef13aac9b9d210VgnVCM1000009508020aRCRD. Retrieved 14 August 2011. 
  15. ↑ "LAN says signs non-binding deal with TAM to merge". Reuters. 13 August 2010. https://www.reuters.com/article/idCNN1321787820100813?rpc=44. Retrieved 13 August 2010. 
  16. ↑ "BBC News - Chile's Lan and Brazil's Tam merge to create huge airline". Bbc.co.uk. 1970-01-01. https://www.bbc.co.uk/news/world-latin-america-18560343. Retrieved 2012-06-23. 
  17. ↑ "Enrique Cueto to be CEO of new LAN-TAM parent". Flight International. 13 August 2010. http://www.flightglobal.com/articles/2010/08/13/346155/enrique-cueto-to-be-ceo-of-new-lan-tam-parent.html. Retrieved 14 August 2011. 
  18. ↑ "LAN and TAM aim to complete merger by mid 2011". Flight Global. 14 August 2010. http://www.flightglobal.com/articles/2010/08/14/346158/lan-and-tam-aim-to-complete-merger-by-mid-2011.html. Retrieved 14 August 2011. 
  19. ↑ Seabra, Luciana (21 September 2011). "Tribunal chileno aprova fusão de TAM e LAN com 11 condições" (in Portuguese). Valor Econômico. http://www.valor.com.br/empresas/1013334/tribunal-chileno-aprova-fusao-de-tam-e-lan-com-11-condicoes. Retrieved 26 September 2011. 
  20. ↑ Rodrigues, Eduardo; Froufe, Célia (14 December 2011). "Com restrições, CADE aprova fusão TAM/Lan" (in Portuguese). O Estado de S. Paulo. http://economia.estadao.com.br/noticias/economia+geral,com-restricoes-cade-aprova-fusao-tamlan,95999,0.htm. Retrieved 15 December 2011. 
  21. ↑ "LATAM - News Release". http://www.latamairlinesgroup.net/phoenix.zhtml?c=81136&p=irol-newsArticleMedia&ID=1793569&highlight=. Retrieved 15 May 2017. 
  22. ↑ "LAN and TAM to operate as LATAM with a new livery" retrieved 9 August 2015
  23. ↑ "LATAM's entire fleet to have new livery by 2018" retrieved 9 August 2015
  24. ↑ Mutzabaugh, Ben (7 August 2015). "So long, LAN and TAM; Airlines will soon fly under LATAM brand". USA Today Online. https://www.usatoday.com/story/todayinthesky/2015/08/07/so-long-lan-and-tam-airlines--soon-fly-under-latam-brand/31293475/. Retrieved 31 August 2015. 
  25. ↑ https://www.reuters.com/article/latam-airlines-ma-delta-air/delta-to-buy-20-of-latam-for-1-9-billion-in-regional-shake-up-idUSL2N26H1U3
  26. ↑ Sider, Alison. "Delta Air Lines to Take 20% Stake in Latam Airlines for $1.9 Billion" (in en-US). https://www.wsj.com/articles/delta-air-lines-to-take-20-stake-in-latam-airlines-for-1-9-billion-11569535436. 
  27. ↑ "LATAM Intends To Leave The oneworld Alliance" (in en-US). 2019-09-27. https://simpleflying.com/latam-to-leave-oneworld/. 
  28. ↑ "Delta Air Lines Completes LATAM Acquisition". 1 January 2020. https://simpleflying.com/delta-latam-acquisition-complete/. Retrieved 1 January 2020. 
  29. ↑ "LATAM AIRLINES GROUP REPORTS A 21.8% IMPROVEMENT IN OPERATING INCOME AND A 10.1% OPERATING MARGIN FOR THE THIRD QUARTER 2019". https://latamairlines.gcs-web.com/static-files/1bf859c7-108c-4573-aba6-f9ec4f4d305b. Retrieved 9 December 2019. 
  30. ↑ http://www.latamairlinesgroup.net/phoenix.zhtml?c=81136&p=irol-reportsannual
  31. ↑ "LATAM Airlines Group has to undergo a delicate balance of short term pain for strategic gain". Centre for Aviation. http://centreforaviation.com/analysis/latam-airlines-group-has-to-undergo-a-delicate-balance-of-short-term-pain-for-strategic-gain-240165. Retrieved 4 September 2015. 
  32. ↑ Bohorquez Aya, Edwin (7 July 2015). "América Latina le habla duro a". El Espectador (Spanish). http://www.elespectador.com/noticias/economia/grupo-latam-le-habla-duro-avianca-articulo-571102. Retrieved 5 August 2015. 

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