Interpublic is forming a new agency group called Graphene, spearheaded by IPG Mediabrands and McCann Worldgroup, in order to manage the newly-combined LATAM Airlines account.

According to a report in Ad Week, the creative/media agency incarnation has been formed to handle the merged airline business of Chile’s LAN Airlines and Brazil’s TAM.

IPG, which won the business in March, will name its LATAM Airlines-dedicated agency team Graphene. The new entity will handle LATAM Airlines’ media and marketing business in the 24 countries in which TAM and LAN operate, spanning planning and buying, CRM, creative, and social media activity.

The newly-named LATAM Airlines becomes the region’s largest airline group and will see them two carriers operate under a single logo and identity, with the new brand also extending to both airlines’ affiliates, including LAN subsidiaries in Argentina, Colombia, Ecuador and Peru.

Graphene will be responsible for rolling out the new identity over three years.

According to Ad Week, McCann Erickson and Initiative will respectively lead the creative and media aspects of the account, while the IPG team will also include Worldgroup’s Reprise, Cadreon, and MRM//McCann; with IPG senior vice-president and managing director Terry Peigh overseeing Graphene.