Leading Chilean airline LAN is hopeful of finalizing its takeover deal of Brazilian airline TAM by March 2012. The takeover bid, however, depends on the resolution of regulatory issues.

Earlier, the merger of the two airlines was expected to conclude by the end of 2011. However, the formalizing of the deal was advance to early next year from Q3 2011 after an antitrust review by Chilean regulators.

The merger of the two airlines – LAN and TAM – will create Latin America’s biggest air carrier.

Media reports quoting analysts said that the Chilean authorities are likely to approve the deal with some restrictions during the second half of this year.

Maria Claudia Amaro, Chairwoman of TAM, said, “I am confident Chilean authorities will give the go-ahead to the deal.”