LAN-TAM alliance decision would give Star bigger benefits but oneworld favoured with more at stake
The stage is set for the biggest global alliance selection of the decade as new airline group LATAM is being forced by Chile's anti-trust court to choose a single grouping. The decision by LATAM, the new parent company for oneworld’s LAN and Star’s TAM, will have huge ramifications as the winning alliance will be guaranteed a leading position in the fast-growing and increasingly important Latin American market. The more likely outcome is a oneworld victory, which would result in its share of capacity in the region increasing to 30% compared to approximately 15% for Star and 11% for SkyTeam. However if Star wins, its share would reach nearly 40% with oneworld’s share dropping to only 7% and SkyTeam, which is not expected to be a serious contender in the battle for LATAM, retaining 11%. Losing LATAM would be unrecoverable for oneworld, unlike for Star who is poised to grow intra-region traffic with forthcoming members Avianca-TACA and Copa.