Brazil''s Varig and Tam a step closer to merger

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s80dude

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RIO DE JANEIRO, Brazil, Aug 3 (Reuters) - Brazil''s top two airlines came a step closer to sealing their long-awaited merger over the weekend after one of the carrier''s controlling shareholders approved the deal.

http://biz.yahoo.com/rf/030803/airlines_brazil_merger_1.html

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If VARIG is part of the Star Alliance, what will happen once the two carriers merge? AA and TAM have a strong marketing relationship. Will TAM go to Star or will it be the other way around. Star losing Varig would pretty much weaken their South American network, no?

This thread has been moved from the AA forum.

 

[FA Mikey]

The last I read Varig was going to control only 10% of the combined airline. Tam does have a code share with American. AA has more to offer a combined Brazilian carrier. Links from Miami and NY as well as other cities they choose to serve. As well, as offering access to cities they may not want to or be able to serve. It would also bring in more people to there network to cities beyond GIG, GRU. AA is no longer the 800 pound gorilla in South America. Its more like the 1600 pound one now.

 

[s80dude]

Apologies for posting on the wrong forum.

What can anyone speculate about the AA relationship with TAM after a merger wtih VARIG?

Thanks

 

[tadjr]

What type of relationship do they have now? Just codeshare? I would think that since Varig is heavily engaged with Star (more than Tam with OneWorld), that more than likely that would be the remaining alliance. Then again, it depends on who is in charge (Tam or Varig management) and if OneWorld were to offer a better partnership than Star with more $ in the agreements.
Do Star partners currently offer non-Star airlines codeshares on any of their flights? This might be an indicator of whether they would continue to offer codeshare service on routes where Star isnt big (DFW, etc) and might limit other cities (ORD, MIA). Not sure if the US/LH marketing agreement would be a valid example since US was rumored to become a Star partner eventually, but as of now isnt and the LH/US codeshare is progressing. Since UA and the rest of the other Star partners arent that big in South America, I could see where some type of AA/RG (postmerger) codeshare could still happen from certain cities.

 

[s80dude]

I hope oneworld can lure the new TAM/Varig creation. Star's advantage in LatAm would be virutally non-existant

 

[s80dude]

Brazil's Varig's Controller Approves Merger With Tam
Monday August 4, 5:25 pm ET


RIO DE JANEIRO -(Dow Jones)- Brazil's debt-saddled Viacao Aerea Rio Grandense SA , or Varig, took another step toward a merger with TAM Linhas Aereas over the weekend when its controller approved the legal groundwork for the tieup.

http://biz.yahoo.com/djus/030804/1725001125_1.html

 

[AAmech]

If AA loses their TAM code share then maybe they can partner up with GOL!!!!