Company Watch - TAM Airlines.

Dec 4, 2006

TAM Director of Institutional Relations Paulo Castello Branco has thrown cold water on recent reports that TAM is set to join one of the three major airline alliances. Speaking to reporters at last week's ALTA Latin American Airline Leaders Forum in Cancun, Branco joked that "Everyone wants to marry TAM and we just want a date." He explained that the carrier is interested only in airline-to-airline agreements on specific routes and declined to speculate on when it might reconsider its opposition to joining oneworld, SkyTeam or Star. Dec 4, 2006

TAM Director of Institutional Relations Paulo Castello Branco said he expects that a little relief is on the way for Brazil's airlines and customers, who have suffered through extensive ATC delays this fall owing to a work slowdown by controllers protesting the removal of some colleagues in the wake of the Sept. 29 midair collision between a Gol 737-800 and a business jet. Controllers also are concerned about rising workloads. Hirings have not kept pace with traffic growth and Brazil needs at least 300 new controllers in addition to the 3,000 currently working, he confirmed. As a temporary measure, the government will add 43 controllers this week and is inviting another 60 former controllers to return after currency training. Dec 4, 2006

TAM has seen average daily aircraft utilization fall from 13 to 11.3 hr, since the slowdown began in late October. It has not cancelled flights but is accepting 20-30-min. average delays "on each flight, every day," Branco said. He stressed that ATC problems are not owing to a lack of money--airlines will pay $500 million this year for ATC services--but the government has kept funding level despite double-digit traffic growth over the past few years, laying the groundwork for the current situation. Dec 4, 2006

TAM has changed its approach to ticketing, launching a new "fare profiles" system yesterday that will allow passengers to purchase tickets based on specific needs. For flights to Brazilian destinations, passengers "will be able to choose promotional prices or other benefits pertaining to a given profile," the carrier said in a statement. Each of the five profiles (Promo, Light, Flex, Max and Top) presents "clear characteristics and rules" from which customers can choose. Variables include change/cancellation fees, discounts for children and loyalty points. Dec 1, 2006

TAM placed an order for V2500s to power 11 A319s and four A321s, IAE partners Rolls-Royce and Pratt & Whitney announced yesterday. The deal includes a V2500Select aftermarket services package and is worth $160 million in business to each engine maker. Japanese Aero Engines Corp. and MTU Aero Engines also are part of IAE. The Brazilian carrier firmed an order for 37 Airbus aircraft and 12 options earlier this month. It currently operates 38 V2500-powered A320 family aircraft. Nov 29, 2006 Editor: Aram Gesar, eMail: [e-mail]

For more global news, reviews, features and analysis, please go to: http://www.airguideonline.com/onlinenews.htm

To Subscribe to our Newsletters: http://www.airguideonline.com/order_formsubs.htm#news

To Advertise: [e-mail]

Nov 13, 2006