Brazilian TAM Airline Reaches 58% of International and 51% of Domestic Markets

Brazil’s National Civil Aviation Agency (ANAC) announced that TAM Brazilian Airline registered 28.1% growth in domestic demand in October compared to the same period last year, and a 26.1% increase in domestic supply.

In the same period, market demand increased by 5.0% and market supply increased by 6.0%. In the international market, TAM registered 34.5% growth in demand and 43.7% in supply, compared to October 2005.

TAM’s domestic load factor was 71.8%, representing 1.1 p.p. growth compared to October 2005 and higher than the 70.7% market average. Regarding the international load factor, TAM reached 74.9%, higher than the market average of 70.6%.

TAM registered a domestic market share demand of 51.1%, a 9.2 p.p. growth compared to the same period in 2005. Regarding the international market, the company reached a market share of 58.2%, representing a 38.0 p.p. growth year on year.

Paris Flight

Starting January 12, Tam will offer a third daily flight to Paris. The new flight will operate at night and fly from Galeão Airport (Rio de Janeiro) directly to the Charles de Gaulle Airport in Paris.

This third flight to Paris was obtained by TAM pursuant to the increase in flights in the bilateral agreement authorized in October by the Brazilian and French governments.

Currently, TAM offers two daily flights to Paris from the Guarulhos International Airport in São Paulo. Once a week, one flight makes a stop in Recife. In Europe, the company also offers a daily flight from Guarulhos to London (Heathrow).

Other international destinations operated by TAM will have flights extended in the months to come. On December 15, the company will start offering a second daily flight to New York, the fifth daily flight operated by TAM to the United States.

There are three daily flights to Miami. In January 2007, TAM will start a second daily flight to Santiago (Chile) as well.

TAM’s operations in South America currently include non-stop flights to Santiago (7 weekly) and Buenos Aires (49 weekly). Five other destinations are reached through TAM Mercosur: Asuncion and Ciudad del Este (Paraguay), Montevideo (Uruguay), and Santa Cruz de la Sierra and Cochabamba (Bolivia). The company also offers a daily flight to Lima (Peru) operated in code-share with TACA.

TAM has been the leader in the Brazilian domestic market for more than three years. The company operates regular flights to 48 destinations throughout Brazil. It serves 74 different cities in the domestic market through regional alliances.

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