MercoPress. South Atlantic News Agency

Brazil's TAM and Chile's LAN implement business alliance

Brazil's TAM Linhas Aéreas and Lan Chile, both airlines with a clear dominating position in their domestic markets have agreed to formalize a business alliance. The agreement to be implemented in the next three months aims to develop partnerships in routes operated in South America, broadening passengers' options to fly to several destinations.

TAM will expand its flight offer in South America to include a more complete and diversified network for its passengers. In addition, clients of LAN will enjoy the ease of traveling routes operated by TAM with multiple hours and frequency options. One of the benefits passengers will enjoy with this business alliance is being able to travel with a single ticket from the beginning to the end of the route, in addition to the possibility of using the companies' VIP areas. Another advantage is the accrual of the TAM Fidelity Program and the LANPASS, benefiting passengers who travel frequently. TAM's CEO, Marco Antonio Bologna said the alliance with LAN represents an important step towards the regional integration process in South America, thus stimulating the distribution of passengers in the Brazilian, Chilean, Argentinean, Peruvian, Venezuelan and other markets. "TAM and LAN passengers can rely on a wider variety of flights while enjoying all of the advantages of both companies' fidelity programs" said Bologna, who points out that the agreement also reinforces TAM's strategy of maintaining partnerships with leading companies in the markets where it operates. Enrique Cueto, LAN's vice-chief executive officer, said, "Thanks to this agreement, our passengers will enjoy an excellent network that will make their travels easier. This will encourage commercial agreements already existing between the countries, fomenting tourism and bilateral cooperation in the region." TAM has been the Brazilian domestic market leader since July 2003, and closed last April with a 50.72% market share. The company flies to 48 destinations throughout Brazil and with commercial agreements executed with regional companies, reaches 75 destinations outside the national territory. LAN is one of Latin America's leading airlines and is integrated by LAN Airlines, LAN Express, LAN Peru, LAN Ecuador, and LAN Argentina, as well as LAN Cargo and its affiliates. LAN Alliance serves 15 destinations in Chile, 12 in Peru, 10 in Argentina, two in Ecuador, 15 destinations in other Latin American countries and Caribbean, three in the United States two in Europe and four in the South Pacific, in addition to 52 additional international destinations through several code-share agreements.