IB Business Management –Business Organisation and Environment 1.4B: Stakeholders: Activity IB Business Management: www.BusinessManagementIB.com 1.4 STAKEHOLDERS: ACTIVITY B Read the case study information below and answer the questions that follow. GLOBAL BEHEMOTH CREATED BY CHILEAN AND BRAZILIAN AIRLINE MERGER The merger of South America’s two largest airlines will inevitably lead to job losses said Gabriella Christie, CEO of Brazil’s largest airline, TAM. The merger of TAM Plc and LAM Plc –Chile’s largest airline –will result in a business well over $3 billion. The long term plans are to offer more routes and cheaper prices to passengers. The merger has the support of both governments as low airfare will keep inflation down and boost South American tourism to the benefits of Brazil and Chile. Unprofitable routes to small regional airports are to be closed, together with LAM’s headquarters in Santiago, Chile. More than 500 staff are expected to lose their jobs, resulting in annual savings of over $10 million. Trade union leaders are threatening to take industrial
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