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Will TAM And LAN Both Cease Ops. To Become Latam?  
User currently offlineaviacsa55 From , joined Dec 1969, posts, RR:
Posted (2 years 4 months 2 weeks 4 days 3 hours ago) and read 3846 times:

I have a new question. Since JJ and LA has announced they are merging, will they both merge operations, retire their names, and become LATAM Airlines?

22 replies: All unread, jump to last
 
User currently offlineGonzalo From Chile, joined Aug 2005, 1996 posts, RR: 2
Reply 1, posted (2 years 4 months 2 weeks 4 days 3 hours ago) and read 3892 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.

Rgds.

G.



80 Knots...V1...Rotate...Gear Up...DC-3 / EMB-110 / Fairchild-227 / Ab318-19-20 / B732 / B763
User currently offlineWingtips56 From United States of America, joined Dec 2010, 449 posts, RR: 0
Reply 2, posted (2 years 4 months 2 weeks 4 days 1 hour ago) and read 3647 times:

So as another alternative, would TAM become "LAN Brasil"?


Worked for WestAir, Apollo Airways, Desert Pacific, Western, AirCal and American Airlines
User currently offlinebmibaby737 From United Kingdom, joined Jun 2005, 1836 posts, RR: 9
Reply 3, posted (2 years 4 months 2 weeks 3 days 19 hours ago) and read 3377 times:

I guess it's very much like Air France - KLM, which is the name but they both operate individually...

User currently offlinejfk777 From United States of America, joined Aug 2006, 8517 posts, RR: 6
Reply 4, posted (2 years 4 months 2 weeks 3 days 17 hours ago) and read 3267 times:
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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.

User currently offlinejumpjets From United Kingdom, joined Apr 2012, 892 posts, RR: 0
Reply 5, posted (2 years 4 months 2 weeks 3 days 17 hours ago) and read 3196 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.


User currently offlineA388 From Netherlands Antilles, joined May 2001, 10010 posts, RR: 15
Reply 6, posted (2 years 4 months 2 weeks 3 days 16 hours ago) and read 3120 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.

A388


User currently offlineacontador From Chile, joined Jul 2005, 1421 posts, RR: 30
Reply 7, posted (2 years 4 months 2 weeks 3 days 16 hours ago) and read 3024 times:
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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!
User currently offlineA388 From Netherlands Antilles, joined May 2001, 10010 posts, RR: 15
Reply 8, posted (2 years 4 months 2 weeks 3 days 15 hours ago) and read 2947 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.

A388


User currently offlinejumpjets From United Kingdom, joined Apr 2012, 892 posts, RR: 0
Reply 9, posted (2 years 4 months 2 weeks 3 days 14 hours ago) and read 2873 times:

Quoting A388 (Reply 8):
If LATAM wants to set up a new alliance they will be on their own which is not competitive

They could always give AI a call...  


User currently offlineAA94 From United States of America, joined Aug 2011, 606 posts, RR: 2
Reply 10, posted (2 years 4 months 2 weeks 3 days 14 hours ago) and read 2811 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
User currently offlinestrfyr51 From United States of America, joined Apr 2012, 1420 posts, RR: 1
Reply 11, posted (2 years 4 months 2 weeks 3 days 14 hours ago) and read 2775 times:
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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.


User currently offlineA388 From Netherlands Antilles, joined May 2001, 10010 posts, RR: 15
Reply 12, posted (2 years 4 months 2 weeks 3 days 13 hours ago) and read 2702 times:

Quoting jumpjets (Reply 9):
They could always give AI a call...

Good one 

A388


User currently offlinejumpjets From United Kingdom, joined Apr 2012, 892 posts, RR: 0
Reply 13, posted (2 years 4 months 2 weeks 3 days 13 hours ago) and read 2699 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.


User currently offlineSCL767 From Chile, joined Feb 2006, 8862 posts, RR: 5
Reply 14, posted (2 years 4 months 2 weeks 3 days 13 hours ago) and read 2699 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.

Saludos,


User currently offlineA388 From Netherlands Antilles, joined May 2001, 10010 posts, RR: 15
Reply 15, posted (2 years 4 months 2 weeks 3 days 13 hours ago) and read 2661 times:

Quoting SCL767 (Reply 14):
LATAM plans to announce its alliance decision within one month.

Saludos,

That settles it, I guess OneWorld it will be  

A388


User currently offlineacontador From Chile, joined Jul 2005, 1421 posts, RR: 30
Reply 16, posted (2 years 4 months 2 weeks 3 days 13 hours ago) and read 2641 times:
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Quoting SCL767 (Reply 14):
LATAM plans to announce its alliance decision within one month.


Which might be:

Quoting acontador (Reply 7):
LAN stays within OW, and TAM may stay unaligned for a while


Of course it also can be moving TAM to OW, but I don't really see anything else possible.



Just sit back, relax and have a glass of Merlot...enjoy your life!
User currently offlineSCL767 From Chile, joined Feb 2006, 8862 posts, RR: 5
Reply 17, posted (2 years 4 months 2 weeks 3 days 12 hours ago) and read 2621 times:

Quoting acontador (Reply 16):

Which might be:

Quoting acontador (Reply 7):
LAN stays within OW, and TAM may stay unaligned for a while


Of course it also can be moving TAM to OW, but I don't really see anything else possible.

Or it could be that LAN Colombia will become a oneworld affiliate carrier...


User currently offlineA388 From Netherlands Antilles, joined May 2001, 10010 posts, RR: 15
Reply 18, posted (2 years 4 months 2 weeks 3 days 12 hours ago) and read 2537 times:

Quoting SCL767 (Reply 17):
Or it could be that LAN Colombia will become a oneworld affiliate carrier...

That makes much sense, yes. I've seen a lot of LAN aircraft operating from the domestic terminal in BOG.

A388


User currently offlinePezySPU From Croatia, joined Dec 2011, 283 posts, RR: 0
Reply 19, posted (2 years 4 months 2 weeks 3 days 9 hours ago) and read 2444 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.


User currently offlineGonzalo From Chile, joined Aug 2005, 1996 posts, RR: 2
Reply 20, posted (2 years 4 months 2 weeks 3 days 8 hours ago) and read 2346 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.



80 Knots...V1...Rotate...Gear Up...DC-3 / EMB-110 / Fairchild-227 / Ab318-19-20 / B732 / B763
User currently offlinePezySPU From Croatia, joined Dec 2011, 283 posts, RR: 0
Reply 21, posted (2 years 4 months 2 weeks 3 days 7 hours ago) and read 2306 times:

Quoting Gonzalo (Reply 20):

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.

But I understand your arguments.


User currently offlineSCL767 From Chile, joined Feb 2006, 8862 posts, RR: 5
Reply 22, posted (2 years 4 months 2 weeks 3 days 5 hours ago) and read 2160 times:

Quoting acontador (Reply 7):
Route and fleet consolidation

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.
LATAM To Spend USD$7.87 Bln On Fleet


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