A merger between Brazil's TAM and Chile's LAN airlines would generate synergies likely to add some $3 billion in value to the new group, LAN's chief executive was quoted as saying by a local paper on Saturday.

Both companies announced on Friday a proposed merger via a $2.7 billion all-stock transaction, which would create Latin America's top carrier and the No. 11 in the world in terms of passengers carried.
LAN CEO Enrique Cueto told Santiago-based La Tercera daily the merger is crucial for his carrier to compete in a more consolidated global airline industry, break into the booming Brazilian market and generate important savings.
If the merger is approved Cueto will be the CEO of the new LATAM Airlines Group while TAM's deputy chairman, Mauricio Rolim, will be the chairman.
""We believe that the $400 million in annual synergies has an additional value of $3 billion that in time will be reflected in our results,"" Cueto said. ""If you take the current price, without synergies, its (combined airline) value is around $11.5 billion.""
(Source: Reuters)