SANTIAGO – LATAM Airlines, the largest air transport group in Latin America, would be looking to create a new low-cost airline, in the midst of the boom in flights in that segment, a newspaper from Santiago de Chile reported this weekend.
The report adds that LATAM has been pressured by the entry into the market of “low cost” firms but had ruled out joining the model. According to the newspaper El Mercurio, LATAM entered on March 23 a letter of intent to create an aero-commercial company before the Directorate General of Civil Aeronautics (Dinac), without providing details of the content.
When asked about it, the airline told the newspaper that they are always “evaluating alternatives for the development of air transport in the region.”
With this, LATAM – which goes through a strike of the union of crew members of a subsidiary – would enter to compete with the local Sky Airline and Jetsmart, of the American fund Indigo Partners.
LATAM was created in 2012 through a merger of Chile’s LAN and Brazil’s TAM. The group, headquartered in Santiago, has operating units in Argentina, Brazil, Chile, Colombia, Ecuador, Paraguay and Peru.