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Brazil''s Varig one step closer to merger with TAM.....what does this mean for AA/TAM relationship?

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scot

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Topic moved to Foreign Air Carriers Board. Please continue the discussion there since it pertains to Foreign Carriers directly and indirectly to several US Carriers. Thanks.
 
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?
 
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