Surprisingly the Cueto family finally decided to purchase only 8.56% of the shares from president-elect Sebastián Piñera. Originally, 21.18% of LAN shares were offered by Piñera to the Cueto family worth  $US 1,230 million. The Cueto’s, who already owned 25.5% of the company, now own 34.04% of LAN.

The new President-Elect from Chile, billionaire Sebastian Piñera, delivered on campaign promises to relinquish his 26.3% stake in LAN, Chile’s flagship airline. The Cueto family (LAN’s owners) had priority to acquire Piñera’s shares, due to the existence of a shareholders’ pact. That deal stipulates that if one wants to sell its stake in LAN, the first option to buy falls to the other partner.

Piñera is released now to sell his remaining shares, which will leave room for the entry of new players. This includes the potential for an international airline to step in.

Will it be TAM? Will it be the Synergy Group, owner of Avianca-TACA?

And what would happen with the constructive relationship that TAM and LAN enjoy if GOL Linhas Aereas joins the Oneworld Alliance. Apparently, American Airlines would be in advanced negotiations to bring GOL Linhas Aereas to the alliance. Tom Horton, CFO of American, confirmed that the company is in talks with a company of Brazil. TAM, just joined Star Alliance.

As the shakeup continues, there will be an immense degree of activity within the Latin American air sector. These changes signify a new stage in the regional commercial aviation scenario.

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