Chile's Lan and Brazil's Tam merge to create world's second biggest airline

  • Chile's Lan airline has completed a takeover of Brazil's Tam, creating the world's second biggest airline after Air China.

    The deal comes after two years of negotiations.

    The new airline, to be known as Latam, will be headquartered in the Chilean capital Santiago.

    The combined revenues of Lan and Tam last year were in excess of $13 billion.

    The takeover is expected to save $700 million in operating costs over the next four years.