Gonzalo From Chile, joined Aug 2005, 1674 posts, RR: 0 Reply 1, posted (9 months 1 week 4 days 19 hours ago) and read 2771 times:
The answer is a big, BIG NO.
Both airlines will continue under they own brand. And from several weeks now, they already ARE Latam, is not like they have to "become" Latam.
jfk777 From United States of America, joined Aug 2006, 7345 posts, RR: 7 Reply 4, posted (9 months 1 week 4 days 9 hours ago) and read 2146 times:
TAM has lots of brand equity in Brazil, switching to LAN would do away with that. The airlines along the west coast of South America within the LAN group are "LAN" branded. They were started from scratch or were weaker brands like "aires" in Colombia.
jumpjets From United Kingdom, joined Apr 2012, 471 posts, RR: 0 Reply 5, posted (9 months 1 week 4 days 8 hours ago) and read 2075 times:
This is a bit like the IAG scenario. The parent company chooses a name that is not directly associated with the brand names of the underlying airlines - that way it easier for the airlines to maintain their own 'personal' identities and also allows for further acquisitions/mergers without the group name becoming 'redundant'.
Though clearly both Lufthansa and Airfrance/KLM didn't feel the need to take this approach.
A388 From Netherlands Antilles, joined May 2001, 9073 posts, RR: 13 Reply 6, posted (9 months 1 week 4 days 8 hours ago) and read 1999 times:
Quoting Gonzalo (Reply 1): The answer is a big, BIG NO.
Both airlines will continue under they own brand. And from several weeks now, they already ARE Latam, is not like they have to "become" Latam.
Rgds.
G.
Yes indeed, it would be stupid of them if they chose to drop the JJ and LA brands. Those brands are just too well known in the Americas.
acontador From Chile, joined Jul 2005, 1392 posts, RR: 33 Reply 7, posted (9 months 1 week 4 days 7 hours ago) and read 1903 times:
Well, I would stick to "never say never" !
If LAN has been known for anything in the past is that they do what's needed to earn more money, period. So, if for some reason in the future they reach the conclusion that they have to merge LAN/TAM operations and call the combined operation LATAM (or whatever else), I don't think they would doubt even a second to do it.
Time being, seeing how they are playing the alliance field, it looks like LATAM is taking things slow with the merger, which actually doens't seem to be that stupid considering the rough times all of the airline industry is facing. So, most probably you can count on the following timescale development:
- Short-term: LAN and TAM are operated and kept as separated brands (ABSA, which was LANCargo Brasil, has already been renamed TAM Cargo). LAN stays within OW, and TAM may stay unaligned for a while (to make the most out of their former and new alliance connections).
- Medium-term: Route and fleet consolidation, complete inter-company flight and sales integration, maintenance consolidation; TAM could join OW, or maybe even between themselves can found a new alliance???
- Long-term: Who knows....
Cheers,
Andres
Just sit back, relax and have a glass of Merlot...enjoy your life!
A388 From Netherlands Antilles, joined May 2001, 9073 posts, RR: 13 Reply 8, posted (9 months 1 week 4 days 6 hours ago) and read 1826 times:
Quoting acontador (Reply 7): Well, I would stick to "never say never" !
If LAN has been known for anything in the past is that they do what's needed to earn more money, period. So, if for some reason in the future they reach the conclusion that they have to merge LAN/TAM operations and call the combined operation LATAM (or whatever else), I don't think they would doubt even a second to do it.
Time being, seeing how they are playing the alliance field, it looks like LATAM is taking things slow with the merger, which actually doens't seem to be that stupid considering the rough times all of the airline industry is facing. So, most probably you can count on the following timescale development:
- Short-term: LAN and TAM are operated and kept as separated brands (ABSA, which was LANCargo Brasil, has already been renamed TAM Cargo). LAN stays within OW, and TAM may stay unaligned for a while (to make the most out of their former and new alliance connections).
- Medium-term: Route and fleet consolidation, complete inter-company flight and sales integration, maintenance consolidation; TAM could join OW, or maybe even between themselves can found a new alliance???
- Long-term: Who knows....
Cheers,
Andres
All well said, but I don't see yet another worldwide alliance being set up as there just is no room anymore for another worldwide alliance. All major airlines are already in one of the three worldwide alliances. If LATAM wants to set up a new alliance they will be on their own which is not competitive.
AA94 From United States of America, joined Aug 2011, 357 posts, RR: 0 Reply 10, posted (9 months 1 week 4 days 5 hours ago) and read 1690 times:
Quoting jumpjets (Reply 9): All well said, but I don't see yet another worldwide alliance being set up as there just is no room anymore for another worldwide alliance. All major airlines are already in one of the three worldwide alliances. If LATAM wants to set up a new alliance they will be on their own which is not competitive.
Quoting jumpjets (Reply 9): They could always give AI a call...
Choose a challenge over competence / Eleanor Roosevelt
strfyr51 From United States of America, joined Apr 2012, 488 posts, RR: 0 Reply 11, posted (9 months 1 week 4 days 5 hours ago) and read 1654 times:
LAN TAM will not be part if the Star Alliance because of the Government merger committe's edict as reported by Aviationweelk magazine so more than likely it's Oneworld as was said in the magazine, LAN is already a oneworld member.
and Tam is already in the Star Alliance. But since Copa is also a Star Alliance member. PLUS
Avianca and Taca. Were Lan and Tam to both be in Star Alliance? Star would Have South America Pretty well Locked up.
so I can see why LAN-TAM would have to be in te Oneworld Alliance. That's just TOO MUCH firepower to give One Alliance.
jumpjets From United Kingdom, joined Apr 2012, 471 posts, RR: 0 Reply 13, posted (9 months 1 week 4 days 4 hours ago) and read 1578 times:
Quoting strfyr51 (Reply 11): LAN TAM will not be part if the Star Alliance because of the Government merger committe's edict
My reading of the regulatory approvals for the merger was that if LATAM is in an alliance it must be:
a) one of the two alliances to which LAN and TAM belonged prior to the merger - thus ruling out Skyteam; and
b) cannot be in the same alliance as COPA/TACA - which now rules out Star.
So in the short term at least TAMs options seem to be go solo and not be in any alliance - or join Oneworld.
SCL767 From Chile, joined Feb 2006, 8265 posts, RR: 5 Reply 14, posted (9 months 1 week 4 days 4 hours ago) and read 1578 times:
Quoting acontador (Reply 7): LAN stays within OW, and TAM may stay unaligned for a while (to make the most out of their former and new alliance connections).
LATAM plans to announce its alliance decision within one month.
PezySPU From Croatia, joined Dec 2011, 281 posts, RR: 0 Reply 19, posted (9 months 1 week 4 days 1 hour ago) and read 1323 times:
Quoting jumpjets (Reply 13): My reading of the regulatory approvals for the merger was that if LATAM is in an alliance it must be: a) one of the two alliances to which LAN and TAM belonged prior to the merger - thus ruling out Skyteam; and
Hey, thanks for pointing that out. It looks like that part of the ruling went below the radar of many. Would you mind double-checking that?
Quoting Gonzalo (Reply 1): The answer is a big, BIG NO. Both airlines will continue under they own brand.
Actually, last thing I heard (and that was when the two merged) was that they are examining weather to implement a single brand, not necessarily LATAM.
Gonzalo From Chile, joined Aug 2005, 1674 posts, RR: 0 Reply 20, posted (9 months 1 week 3 days 23 hours ago) and read 1225 times:
Quoting PezySPU (Reply 19): Actually, last thing I heard (and that was when the two merged) was that they are examining weather to implement a single brand, not necessarily LATAM.
Check your source's credibility. LA and JJ are both brands of an immense value in the South American / Brazilian Market.
It will be suicidal, from a marketing point of view, to change that names for wathever option you can have in mind. Add to that the giant amount of money/time involved in changing all the hardware involved in the branding ( from airport stickers to new paint in the aircraft ) and you will see that a decision like that is absolutelly crazy. I'm not saying "never", sure, maybe if you have a couple of serious accidents or any sort of PR disaster, you can think "hey, let's change our names and corporate image for an all new start", but I don't see either LA or JJ in that position.
Really, I didn't say that it would be a smart idea, I'm just saying what I read. And I'm pretty sure it was a reliable source, but I just can't figure out which one it was, sorry.
By the way, the separate brands could live on until it's time to peel off the stickers or liveries and replace them with new ones. They don't have to be replaced the very same second the new brand is introduced. If they believe the economics behind unified marketing outweigh the one-off costs (I'm speaking long-term here), than so be it.
In terms of fleet consolidation will LATAM adopt LAN's policy of one manufacturer for narrowbody a/c and one manufacturer for widebody a/c? LAN will phase out the 6 B-737-700s at LAN Colombia and the 5 A343s by 2014. In fact, LATAM will phase out 2 A-340-500s and 3 A-340-313Xs next year.
Quote: Chile's newly merged regional carrier LATAM Airlines said on Monday it would spend USD$7.87 billion on its fleet by 2014.
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