With Varig’s Demise TAM Becomes Brazil’s Number One Airline

Brazilian Airline TAM. which was already Brazil’s largest domestic company, has now become also the country’s largest airline for international flights.

Data for July 2006, disclosed by Brazil’s National Civil Aviation Agency (ANAC), today, August 8, shows that TAM reached a market share of 52.6% in the international market and of 51.2% in the domestic market.

The company’s international share has grown 31.9% when compared to last year’s and 14.7% in relation to June’s numbers. As for the domestic share it grew 9.5% compared to the same period in 2005 and 3.6 percentage point compared to June 2006.

According to the ANAC, TAM registered a 21.6% growth in domestic demand compared to the same period last year, and an 18.8% increase in domestic supply. In July, market demand decreased by 0.9% and market supply decreased by 2.7%. In the international market, TAM registered a 38.2% growth in demand and 32.3% in supply, compared to July 2005.

TAM’s domestic load factor was 81.2%, a 1.8 percentage point growth compared to July 2005 and higher than the 80.2% market average. Regarding the international load factor, TAM reached 85.2%, a 3.7 percentage point growth, higher than the market average of 81.2%.

Varig’s participation in the domestic market fell to 3.5% in July against 24.8% one year ago. The once largest Brazilian airline has become smaller than BRA, a new comer, which has now 4.38% of the Brazilian domestic market.

In the international market Varig has shrunk 74.8% in one year. That company now has 29.9% of the passengers, or a total of 402,900 passengers that were flown overseas.


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