BRAZIL: LATAM Airlines Group Merger

The merger of South American powerhouses LAN Airlines and TAM Airlines was set in motion. With an initial agreement signed on August 13, 2010, Chile-based LAN joined forces with Brazil’s TAM. Though that merger closed in 2012, both airlines have continued to operate under their own respective brands.
Similar to other airline mergers, a new parent company was formed, under which both TAM and LAN operated. LATAM Airlines Group has consolidated several administrative functions for its subsidiaries. However, the day to day operations have remained separate.

LATAM Airlines Group has made it no secret that eventually all the airlines would operate under a single brand. However what that brand would be was left wide open. They could have picked one of the existing brands. In addition to the original Chilean LAN, the airline also has subsidiaries throughout much of Spanish-speaking South America. There is LAN Ecuador, LAN Peru, and LAN Argentina, as well as LAN Cargo, just to name a few. Meanwhile, TAM is a powerhouse in Portugese-speaking Brazil. To pick one brand or the other risked alienating half of the combined airline’s customers.

There were other branding options however. An entirely new name and branding were one possibility. Alternatively, the combined name adopted by the parent company could become the name for the combined airline.

At a press conference in São Paulo earlier this morning, that is exactly what was announced. Beginning in early 2016, the LAN and TAM brands will combine into LATAM airlines. Not only does the new name combine the names of its predecessors, it evokes the company’s Latin American roots.

The whole integration process is expected to take approximately 3 years to complete and cost the airline $30-40 million USD. Much of that expense is the cost of repainting the combined fleet of aircraft.
While the combined airline’s name may be rooted in the names of its predecessors, the logo is completely different. LATAM has chosen a color palette of indigo and coral for the new branding. For a logo, the airline picked a stylized map of South America with lines that reach towards their global destinations.

While the new branding was announced this morning, it is not yet entirely complete. New crew uniforms are coming as part of this rebranding. A new livery for the airline’s aircraft is coming too. The new livery will be unveiled later, with the first aircraft in the new scheme being painted early in 2016.

Between LAN and TAM, LATAM Airlines Group has well over 100 aircraft on order. Notably, they will receive the first A350-900 in December of this year. Due to the complexities involved with painting newly manufactured aircraft, livery decisions must be finalized 12 to 18 months before delivery. As a result, the initial A350 deliveries will be in the current TAM livery.

With the announcement of a new name and logo, one of the final steps in the merger process is now in motion. The coming months should prove interesting as additional elements of the rebranding are put in place.

USA: LAN and TAM “Make Flight” During Art Basel Miami

Renowned local installation artist Ryan Farrell tapped to create interactive experience that captures magic of flight
LAN Airlines and its affiliates, and TAM Airlines, both part of LATAM Airlines Group, South America’s largest airline group, have enlisted internationally acclaimed South Florida based artist

Ryan Farrell to create “Make Flight,” an interactive experience that captures the passion of flight. Today, the piece will be unveiled during Art Basel Miami – when 15 bicycles will power three propellers that will cause a plane sculpture to “Make Flight.” The plane’s ‘take off’ will be a regular occurrence during Art Basel as visitors to the installation can participate in the interactive exhibit.

“LATAM Airlines Group is committed to innovation and we are passionate about the art of making flight, so our partnership with Ryan Farrell, an innovative and inventive sculptor, makes it possible for us to translate this passion into something that we can share with our passengers,” said Pablo Chiozza, Vice President, USA, Canada and the Caribbean, LATAM Airlines Group. “Farrell’s exhibit captures our passion for flight through a visionary combination of imagination, art and engineering.”

LAN Airlines recently merged with Brazilian carrier TAM to form the LATAM Airlines Group, offering passengers more flights to more destinations than any other airline group in South America. Through this collaboration with artist Ryan Farrell, the largest airline group in South America is able to translate its passion for flight and service into a unique interactive experience that puts the ability to make flight into the hands of the passenger.

Farrell, a University of Miami, MFA Alum '11 and a South Florida College Professor, grew up with an appreciation for aviation and travel. The exhibit encompasses his three passions: bicycles, travel and all things social. “‘Make Flight’ is more than just 15 bikes, 3 propellers and a plane,” said Farrell. “It is a social experiment – participation and conversation are fundamental to the installation’s success.”

Visitors can help “Make Flight” by stopping by the installation, conveniently located at the MAPS Production House Backlot Studio and Event Space at 342 NW 24th Street right along the art walk in the Wynwood District. “Make Flight” opens to the public at 2pm on December 6 and will remain open through December 9. Admission is free. In addition, passengers can register and enter the “Make Flight” sweepstakes for the chance to win exciting prizes from bikes to flights to South America’s most sought after destinations on LAN and TAM. For more information and terms and conditions please visit www.letsmakeflight.com

ECUADOR: Quito Airport In Ecuador Traffic Growth Of 9.1% In 2014

Tame – that controls 37% and 40% of seats and flights respectively at Quito Airport – celebrated with a ribbon cutting ceremony and a press conference, the launch of daily flights to Fort Lauderdale, its second US destination after New York JFK.

Located in the Tababela parish, about 18 kilometres east of the capital of Ecuador, Quito Airport (perhaps better known as Mariscal Sucre International Airport) is the primary international gateway to the country. Established in February 2013 to replace the old gateway, the airport caters for a population of three million and serves as the largest hub of tame, the flag carrier of Ecuador that operates around 200 weekly departures this May. Operated by Quiport, the airport controls 46% of the country’s scheduled seat capacity (being followed by Guayaquil with 36%) and offers non-stop flights to 25 destinations in 11 countries within the Americas and Europe (according to OAG Schedules Analyser data for this May).

Analysis of data provided by the airport authority indicates that Quito’s traffic has grown impressively during the 2003-2014 timeframe, with an average annual growth rate (CAGR) of 18% over this period. The airport handled around six million passengers in 2014 (a new record high), a number that increased from the 800,000 recorded 12 years ago. In addition, when compared to 2013 figures, Quito’s traffic increased by 9.1%. Interestingly, the airport continued to grow even in the worst years of economic recession, experiencing a double-digit growth of 24% in 2010 when compared to the previous year.
tame controls 37% and 40% of seats and flights

Evaluation of OAG Schedules Analyser data for this May indicates that a total of 11 airlines are serving Quito, with tame maintaining its top position. The largest airline of Ecuador accounts for 37% and 40% of weekly seats and flights respectively and operates a total of 16 airport pairs from Quito, of which the domestic route to Guayaquil is the most frequently served airport pair with 64 weekly departures, being followed by the sector to Cuenca with 19 weekly flights. Ranking second with a weekly seat share of 19%, LAN Ecuador (LAN Airlines’ subsidiary established in July 2002) connects Quito to Guayaquil (67 times weekly), Cuenca (17 times weekly), Miami (daily) and Baltra Island (five times weekly).

Total weekly seat capacity at Quito has gone done 11%, with five of the top 11 carriers recording growth, when comparing data from this May with the same week last year, while American Airlines and Aeromexico saw their operations unchanged. Following the integration of Aerogal’s operations as part of their merger, Avianca is the fastest growing carrier, with a net increase of 2,310 weekly seats over the last 12 months. By comparison, LAN noted the greatest capacity decline (-51%), due to having reduced its frequency on the sector from Quito to Guayaquil from 10 times weekly to thrice-weekly, but also owing to having withdrawn its four times weekly departures to Medellin as well as thrice-weekly flights to Cali.

Furthermore, two European carriers (highlighted in bright green) are serving Ecuador’s capital, namely Iberia which links Quito to Madrid with thrice-weekly non-stop flights, and Quito to Guayaquil with eight weekly departures, with the latter being served as part of its 9,007-kilometre airport pair between Quito and Madrid via Guayaquil. Besides Iberia, KLM also flies daily from Quito to Amsterdam via Guayaquil, using its 318-seat 777-200s.