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Latam Airlines, the largest air transportation group in Latin America is planning to start a low-cost carrier, informed the Chilean newspaper El Mercurio.

Pressured by competition to enter the low cost sector, the carrier had not demonstrated interest, but only applied some “low-cost rules” to some of its domestic routes.

However, according to El Mercurio, LATAM sent a letter of intention to Chile’s aviation regulators (Direção Geral de Aviação Civil – DGAC) on March 23rd.

Questioned about the news, Latam has not confirmed, but said that “the company is always evaluating alternatives regarding air transport in the region”.

Still according to El Mercurio, the same model would be used in Argentina, but price controls could be a major obstacle in that market.

Based in Santiago, Chile, LATAM Airlines has operating units in Argentina, Brasil, Chile, Colômbia, Equador, Paraguai e Peru.