Airline mergers sweep Brazil, too

After a delayed negotiating process, Brazil’s two largest airlines –Varig and TAM- have finally signed a agreement to merge together. Both carriers have set a 120-day deadline to whip the alliance into shape, a period that could stretch out to 90 more days, sources close to the two companies reported.

With over 60 percent of the domestic market in its hands, the new company doesn’t exclude the possibility of making the Brazilian government join the bandwagon as one of its top shareholders.