Chile: LAN and TAM appeal a sentence

Chile: LAN and TAM appeal a sentence

Santiago : Chile | Oct 05, 2011 at 5:48 AM PDT
Views: Pending
People wait in line at the counter for LAN airlines at the airport in Lima

Both companies agreed to file an appeal with the highest body of Chilean Justice to challenge three of the 11 mitigation measures imposed by the Court of Defense of Free Competition (TDLC) in a ruling two weeks ago approved the merger to create LATAM Airlines, the largest air carrier in Latin America.

Of the 11 measures, the airlines questioned the three points relating to the obligation to consult some code sharing, to the duty to waive four frequencies to Lima, and powers, who consider "intrusive", the Economic Office to oversee the process.

Despite this, the companies said the merger will continue as planned. "LAN and TAM confirm its commitment to hold firm to effect the merger as soon as possible, which hopes to conclude by the end of the first quarter of 2012 , "said a statement from the Chilean airline.

They also considered that the failure of TDLC "will have no significant effect on estimated synergies and strategic development in LATAM Group", which will become the largest air carrier in Latin America, with an estimated value of about 14,500 million dollars and6% of global air transport.

On Monday, meanwhile, the Chilean airline PAL filed another petition before the Supreme Court of Chile against the failure of TDLC. The company, which has a small portion of the Chilean market and charter domestic flights in the Southern Cone, claims that the mitigation measures "does not safeguard the principles of free competition and ultimately harm consumers."

PAL had already suffered a setback when the Constitutional Court judicial de Chile dismissed a lawsuit accusing the alliance LAN-TAM to create a future monopoly on routes between Chile and Brazil.

In Brazil, meanwhile, still remains the ratification of the merger agreement by the regulatory agency competition, CADE (Administrative Council for Economic Defense).

1 of 2
Chile: LAN and TAM appeal a sentence
Challenge before the Supreme Court some of the mitigation measures imposed on the merger , which also will go ahead as planned
Vicky247 is based in Lahore, Punjab, Pakistan, and is a Reporter on Allvoices.
Report Credibility
  • Clear
  • Share:
  • Share
  • Clear
  • Clear
  • Clear
  • Clear

News Stories




More From Allvoices

Report Your News Got a similar story?
Add it to the network!

Or add related content to this report

Most Commented Reports

Use of this site is governed by our Terms of Use Agreement and Privacy Policy.

© Allvoices, Inc. 2008-2014. All rights reserved. Powered by PulsePoint.