Chile's LAN to buy Colombia's Aires for $32.5 Million

Chile's LAN to buy Colombia's Aires for $32.5 Million

2010-10-28 09:06:21 GMT+7 (ICT)

SANTIAGO, CHILE (BNO NEWS) -- LAN Airlines on Wednesday announced that it signed a promise to purchase agreement for most of the actions of the Colombian carrier AIRES.

LAN, a Chilean airline, will purchase 98.9 percent of the actions of AIRES. The final sale is subjected to the fulfillment of mandatory regulations and processes requested by local governments, as well as the merger of Colombian partners and investors.

LAN will pay $32.5 million for the purchase of AIRES. However, the price will be adjusted to the debt amount of the AIRES board at the moment in which the transaction is finalized.

Both sides agreed on a period between 30 and 60 days since the day when the promise to purchase agreement was signed to fulfill the sale. After that, AIRES will become an affiliate of LAN Airlines.

AIRES is a Colombian air carrier founded in 1980. It is the second major local airline with a 22 percent of market participation. AIRES offers 27 domestic destinations as well as 3 international routes. Its fleet is composed by nine Boeing 737-700s, eleven Q200 and four Q400.

If the sale is completed, AIRES will also become member of the new group of Latin American air carriers, LATAM Airlines Group. Such partnership was proposed to LAN by the Brazilian TAM airlines.

The promise to purchase agreement will not interfere with LAN's business relation with the Colombian AEROASIS company. AEROASIS will provide technical support and services for LAN Airlines in order to obtain an operation permit for AEROASIS from the Colombian authorities.

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