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Old July 7th, 2010, 02:28 PM   #341
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TAP Air Portugal begins flying new route to Sao Paulo, Brazil

[ 2010-07-05 ]

Lisbon, Portugal, 5 Jul – Portuguese flag carrier TAP Air Portugal inaugurated last Saturday a new route to Brazil and will now fly three times weekly to Viracopos airport in Campinas, Sao Paulo state, for a total of 17 weekly flights to the Sao Paulo area.

TAP is the first international airline to operate at Viracopos, a destination chosen because no more slots are available at Sao Paulo’s international airport, an airline source said.

The Lisbon-Sao Paulo route was TAP Air Portugal’s top long-haul destination in 2009, with 201,000 passengers transported.

The same source said that inhabitants in the Sao Paulo state interior prefer to use Viracopos, where the company hopes to have a similar occupation rate, instead of the main Guarulhos airport, in order to keep away from the most congested airports.

In 2009, Viracopos Airport in Campinas recorded more than 3.3 million boarding/disembarking passengers, the best performance in its history, for growth of 210.34 percent over 2008.

TAP forecasts that the Brazilian market will account for 11 percent of revenues in 2010.

With the three new flights to Viracopos the Portuguese airline now operates 70 flights per week to various Brazilian cities. (macauhub)
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Old July 10th, 2010, 12:19 AM   #342
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Preparing To Capitalize On Next World Cup And Olympics

Aviation news: American Airlines seeks approval to fly from Dallas to Rio

Jul 08, 2010

FORT WORTH, Texas - Before long, South America will be the focus of two major international events - the next World Cup in 2014 and the 2016 Olympic Games. Hoping to capitalize on a demand for flights to the country, American Airlines applied today to the US Department of Transportation (DOT) for authority to fly nonstop from Dallas/Fort Worth International Airport (DFW) to Rio de Janeiro (GIG). Plans are to fly three times a week beginning November 18, 2010.

"We are pleased to offer flights from American's largest hub at DFW to the second largest city in South America," said Peter Dolara, American's senior vice president - Mexico Caribbean and Latin America. "Most existing service to Rio flies from gateways along the East Coast, and flights from DFW to Rio will provide substantial benefits to passengers and shippers, particularly because of the ability to make easy and convenient connections to and from dozens of cities via Dallas/Fort Worth.

"Brazil is an important Latin American marketplace and will host the 2014 World Cup. Rio is a cultural and commercial financial center that will be home to the 2016 Olympic Games. American offers more flights to more destinations in Latin America than any other carrier and is committed to investing its resources to serve this important part of the world."

"Strengthening the scope of service offered at DFW is important to Dallas, Fort Worth, and the Metroplex," said Dallas Mayor Tom Leppert. "We encourage the US Department of Transportation to grant American the right to offer these new flights, which will be very beneficial to travelers and boost economic ties between Dallas and South America."

"We support American in its bid to win approval for service between DFW and Rio," said Mayor Mike Moncrief of Fort Worth. "These new flights would be of great benefit to the travelers and shippers of North Texas and to those who make easy connections through DFW to Latin America."

American will fly the route using Boeing 767-300 aircraft configured with 28 Business Class and 191 Economy Class seats.

Here is the proposed schedule:

From DFW to GIG (Tuesdays, Thursdays, and Saturdays)
Depart: 7:45 pm
Arrive: 10:25 am (next day)

From GIG TO DFW (Wednesdays, Fridays, and Sundays)
Depart: 11:15 pm
Arrive: 6:25 am (next day)

Source: aa.com
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Old July 10th, 2010, 12:19 AM   #343
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Embraer Delivers 69 Planes In 2nd Quarter

July 8, 2010

Brazil's Embraer delivered 69 commercial and executive jets in the second quarter, up from 54 a year earlier, further evidence that the civil aviation market is gradually recovering.

The Sao Jose dos Campos-based company said in a securities filing on Thursday that it delivered 40 executive jets in the period, compared with 19 a year earlier. Deliveries of commercial aircraft fell to 29 from 35.

Embraer's pipeline of firm orders fell 5 percent to USD$15.2 billion as of June 30, a slower decline when compared to the first quarter. A year earlier, firm orders were USD$19.8 billion.

The numbers highlight chief executive Frederico Curado's success in increasing deliveries of executive jets amid one of the toughest periods for global commercial aviation. Selling more of Embraer's smaller yet pricier jets is helping the company weather a drop in revenue and prevent profit margins from plummeting further.

More planes were delivered in South America, the United States and Europe, underscoring a recovery in travel demand and activity in those regions.

"The recent significant increase in executive jet flight volume in Europe and the US is a likely indication that business jet sales will accelerate soon," Banco Santander analyst Caio Dias wrote in a recent report.

Embraer has forecast deliveries this year will total 90 commercial planes and 137 executive jets. The numbers do not include deliveries of defence aircraft.

In 2009, deliveries totalled 244 jets, two more than initially programmed.

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Old July 23rd, 2010, 11:29 PM   #344
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Brazil and Kenya plan relaunch of direct flights link

Foreign Affairs minister, Mr Moses Wetangula (right), and his Brazilian counterpart, Mr Celso Luiz Nunes Amorim, exchange documents after signing an agreement. Photo/PETERSON GITHAIGA


Posted Thursday, July 8 2010 at 00:00

Kenya and Brazil have opened talks to relaunch direct air flights between the two countries that came to an abrupt end five years ago with the collapse of Varig Airlines.

Direct flights between Rio and Nairobi was part of agenda of a meeting the Brazilian leader Luiz Inacio Lula da Silva held with President Kibaki on Tuesday in Nairobi.

“Since the flights stopped in 2005 there has not been any direct air connection available to our people. It is our expectation that the resumption of direct flights will act as a stimulus to boost trade and investment between the two countries,” President Kibaki said in his speech at a dinner held in honour of Mr Da Silva.

Brazil and Kenya are hoping that the bilateral agreement will facilitate faster movement of people, goods and services between the two economies and boost trade.

The Brazilian president was in Kenya to foster co-operation between the two countries.

Mr Kibaki and Mr Da Silva agreed to cooperate in bio-diesel, technology, agricultural research and development, information and communication.

Increased investments by Brazilians in the country will increase demand for air transport in the long run.

Kenya Airways has ties with Brazilian aircraft manufacturer Embraer, which is the third largest aircraft maker in the world after America’s Boeing and Europe’s Airbus.

The national carrier received two new Embraer’s last week, the E190s - and already had five E170’s in its fleet, two of which were delivered last month.

These planes are mainly used on regional flights. KQ has, however, not indicated plans to fly to the South American countries with most of its expansion efforts concentrated in Africa.

Previously the Kenya Brazil route was served by Varig , the Brazilian airline that has faced major financial difficulties that saw it file for bankruptcy in 2005.

The airline has been revived and is mainly serving South American cities.

To travel to Brazil today one has to travel through a major hub in Europe or the Middle East with airlines like Emirates, British Airways, Qatar Airways and Air France.

South African Airways is the only airline in Africa that connects the continent to the South American country.

Direct flights between the two countries would enable Kenya to receive more tourists from Brazil, which it has identified as one of its emerging markets due to the growth of the economy.
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Old July 23rd, 2010, 11:30 PM   #345
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JULY 21, 2010, 11:03 A.M. ET

Brazil Embraer To Sell Up To 24 Jets To Republic Airlines


SAO PAULO (Dow Jones)--Brazilian aircraft manufacturer Empresa Brasileira de Aeronautica SA (ERJ, EMBR3.BR), or Embraer, said Wednesday that it may sell as many as 24 jets to Republic Airlines, a subsidiary of Republic Airways Holdings Inc. (RJET).

The two companies signed a letter of intent for the sale of 24 Embraer 190 aircraft, the Brazilian company said in a statement. Embraer said the total value of the potential sale is around $960 million.

-By Rogerio Jelmayer, Dow Jones Newswires; 55-11-3544-7071; [email protected]
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Old July 23rd, 2010, 11:31 PM   #346
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July 22nd, 2010 10:16 AM GMT-05:00

Azul Brazilian Airlines Orders a Second Embraer 190 Aircraft Simulator from FlightSafety and Explores the Joint Development of a Training Center in Brazil

FlightSafety International

FlightSafety International
Azul Brazilian Airlines orders a second EMBRAER 190 Simulator from FlightSafety and explores the joint development of a new Training Center in Brazil. Signing and seated left to right, Bruce Whitman, President & CEO FlightSafety and David Neeleman, Founder Azul Brazilian Airlines. Standing left to right. Rick Armstrong, Vice President Simulation, FlightSafety – Eric Hinson, Executive Vice President, FlightSafety – Gerald Lee, Vice President, Business and Corporate Affairs, Azul Brazilian Airlines - John Rodgerson, CFO, Azul Brazilian Airlines - Renato Covelo General Counsel, Azul Brazilian Airlines.

LA GUARDIA AIRPORT, NEW YORK (July 21, 2010) – FlightSafety International is pleased to announce that it has entered into an agreement with Azul Brazilian Airlines for the purchase of a second EMBRAER 190 aircraft simulator.

Azul and FlightSafety have also agreed to explore the joint development of a comprehensive Training Center in Brazil equipped with FlightSafety simulators and other advanced flight training devices.

“FlightSafety’s experience and expertise in aviation training, the quality and reliability of their simulators and ability to support our future requirements for more pilots, made them the ideal choice,” said David Neeleman, Founder of Azul Brazilian Airlines. “We are interested in creating a program in conjunction with FlightSafety designed to encourage and assist Brazilians to become professional pilots.”

“We are pleased that Azul Brazilian Airlines has purchased their second EMBRAER 190 simulator and look forward to expanding our relationship with Azul and FlightSafety’s presence in Brazil,” said Bruce Whitman, President & CEO, FlightSafety International. “This is a clear demonstration of our ability to manufacture, qualify and support advanced technology simulators and our experience in training professional pilots and those who have a desire to pursue a career in aviation.”

The new EMBRAER 190 simulator will be installed at Azul’s current Training Center in São Paulo, Brazil. It will be equipped with FlightSafety’s industry leading electric motion and control loading system and advanced VITAL X visual system and is expected to receive Level D qualification from the ANAC, Brazil’s National Civil Aviation Agency. The first EMBRAER 190 simulator was delivered to Azul by FlightSafety in June 2009.

Azul Brazilian Airlines started operations in December 2008, first connecting the Brazilian cities of Campinas to Porto Alegre and Campinas to Salvador, with daily nonstop flights. Azul now connects 21 of the largest cities in the country: Campinas, Porto Alegre, Curitiba, Maringá, Navegantes, Florianópolis, Rio de Janeiro, Belo Horizonte, Campo Grande, Vitória, Salvador, Recife, Maceió, Fortaleza, Natal, Manaus, Goiânia, Porto Seguro, São Paulo, Cuiabá and, in August, Brasília. Azul also offers bus lines to other key points, taking its number of cities served to 25. Its fleet is the youngest in the country, composed of 10 EMBRAER 190 and 8 EMBRAER 195 aircraft. The company recently announced the purchase of 20 new generation ATR 72-600 aircraft to be delivered starting in November 2011.

FlightSafety International is the world’s premier professional aviation training company and supplier of flight simulators, visual systems and displays to commercial, government and military organizations. The company provides more than a million hours of training each year to pilots, technicians and other aviation professionals from 154 countries and independent territories. FlightSafety operates the world’s largest fleet of advanced full flight simulators at Learning Centers and training locations in the United States, Canada, France, Japan, South Africa and the United Kingdom.
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Old July 23rd, 2010, 11:34 PM   #347
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Friday, July 23, 2010

Delta Air Lines Applies for Expanded Service to Brazil
Additional frequencies would allow airline to fly between Detroit, Sao Paulo five days weekly

By Delta Air Lines
Published: Friday, Jul. 23, 2010 - 12:11 pm

ATLANTA, July 23 -- /PRNewswire-FirstCall/ -- Delta Air Lines (NYSE: DAL) today submitted an application to the U.S. Department of Transportation (DOT) to expand its service between the United States and Brazil, which would allow increased flights between its Detroit hub and Sao Paulo.

Delta has received approval to begin twice-weekly service between Detroit and Sao Paulo Oct 21. If approved, the new flights will allow that service to be operated five days per week.

Detroit-Sao Paulo is an important business route for the industrial Midwest. Business customers require regular and frequent service, and Delta's proposed five weekly flights approach the daily service Delta would like to eventually provide. The three additional frequencies Delta has requested will significantly enhance the consumer benefits and competitiveness of the Detroit gateway.

Delta's service will create a new gateway to Brazil in the Midwest region, and continue Detroit's expansion as an international hub. In recent months, Delta has added service from Detroit to Seoul-Incheon and Hong Kong and expanded service to Shanghai. In January 2011, Delta will begin nonstop service from Detroit to Haneda Airport in Tokyo.

"This new service will enable us to connect Sao Paulo, South America's largest business market, and Delta's major international hub in Detroit five days each week," said Andrea Fischer Newman, senior vice president – Government Affairs. "Our expanded service will further strengthen business and trade opportunities and boost economic activity in both Detroit and Sao Paulo, while increasing competition by providing more options for U.S. travelers in the Midwest."

The flights will be operated with 216-seat Boeing 767-300ER aircraft, with 35 BusinessElite seats and 181 seats in Economy Class.

Delta's proposed Detroit-Sao Paulo winter schedule*:

In its application, Delta requested permission for three additional flight authorities between the U.S. and Brazil, specifically for service between Atlanta and Rio de Janeiro. If approved, Delta would shift three of its existing Rio de Janeiro authorities from Atlanta to Detroit for the expanded Sao Paulo service.

Delta's current service between Atlanta and Rio de Janeiro would be unaffected. The shift in flights from Atlanta to Detroit is necessary because the authorities Delta is using to operate its Atlanta-Rio de Janeiro service can be used between any cities in the U.S. and Brazil, while the new authorities cannot be used for service to Sao Paulo until that airport completes infrastructure improvements.

Delta currently serves 147 destinations from its Detroit hub, including 20 international destinations. Delta customers flying at Detroit Metropolitan Airport enjoy service at the state-of-the-art, 120-gate terminal designed specifically for international connections. Detroit's airport was recently ranked No. 1 among large airports in overall customer satisfaction by J.D. Power and Associates.

Delta currently offers service between Atlanta and Sao Paulo, Rio de Janeiro and Manaus; and service between New York-JFK and Sao Paulo. In December, Delta became the first U.S. airline to offer nonstop service to Brazil's capital city, with nonstop service between Atlanta and Brasilia.

Delta Air Lines serves more than 160 million customers each year. With its unsurpassed global network, Delta and the Delta Connection carriers offer service to 369 destinations in 67 countries on six continents. Headquartered in Atlanta, Delta employs more than 70,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. A founding member of the SkyTeam global alliance, Delta participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 13,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. The airline's service includes the SkyMiles frequent flier program, the world's largest airline loyalty program; the award-winning BusinessElite service; and more than 45 Delta Sky Clubs in airports worldwide. Customers can check in for flights, print boarding passes, check bags and review flight status at delta.com.

SOURCE Delta Air Lines
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Old July 24th, 2010, 05:39 PM   #348
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Old July 25th, 2010, 05:30 PM   #349
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Delta Air Lines expanding service to Brazil

July 24, 11:10 AMAviation and Aerospace ExaminerPierre A. Kandorfer

Delta to expand services to South America

Delta Air Lines applies for expanded service to Brazil

Delta Air Lines submitted an application to the U.S. Department of Transportation (DOT) to expand its service between the United States and Brazil, which would allow increased flights between its Detroit hub and Sao Paulo.

Delta has received approval to begin twice-weekly service between Detroit and Sao Paulo Oct 21. If approved, the new flights will allow that service to be operated five days per week.

Detroit-Sao Paulo is an important business route for the industrial Midwest. Business customers require regular and frequent service, and Delta's proposed five weekly flights approach the daily service Delta would like to eventually provide. The three additional frequencies Delta has requested will significantly enhance the consumer benefits and competitiveness of the Detroit gateway.

Delta's service will create a new gateway to Brazil in the Midwest region, and continue Detroit's expansion as an international hub. In recent months, Delta has added service from Detroit to Seoul-Incheon and Hong Kong and expanded service to Shanghai. In January 2011, Delta will begin nonstop service from Detroit to Haneda Airport in Tokyo.

"This new service will enable us to connect Sao Paulo, South America's largest business market, and Delta's major international hub in Detroit five days each week," said Andrea Fischer Newman, senior vice president – Government Affairs.

"Our expanded service will further strengthen business and trade opportunities and boost economic activity in both Detroit and Sao Paulo, while increasing competition by providing more options for U.S. travelers in the Midwest."

The flights will be operated with 216-seat Boeing 767-300ER aircraft, with 35 BusinessElite seats and 181 seats in Economy Class.
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Old July 28th, 2010, 02:54 AM   #350
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Brazil airport capacity lags as World Cup looms

Published July 27, 2010 | Reuters
By Alberto Alerigi Jr.

SAO PAULO (Reuters) - Brazil's airline industry is increasingly concerned that the country will not have adequate airport capacity for the 2014 soccer World Cup because of slow expansion and growing demand for travel.

Ample credit and rising household income have caused a surge in air traffic, leaving the nation's airports struggling to keep up with demand. Industry leaders say expansions are needed to deal with existing traffic and warn that travel in the 12 cities that will host World Cup games could suffer during the tournament.

"The World Cup is a unique opportunity for Brazil to present itself on the world stage, and the airport is the first impression that a tourist gets," said Constantino de Oliveira Jr., chief executive of Brazil's second-largest airline, Gol Linhas Aereas.

"Given the historical levels of (government investment)," he added, "the situation is worrisome."

For years, infrastructure bottlenecks have been one of Brazil's biggest problems as growing auto sales and airline travel, along with a furious expansion in commodities industries, have put strains on ports, highways and airports.

Brazil is already under fire for being behind on construction of stadiums and other World Cup infrastructure.

A report by the consulting firm McKinsey and Co said at the close of 2009, seven of Brazil's 20 principal airports were struggling with overcrowding in both passenger areas and plane berths that frequently led to delays or canceled flights.

The report says Brazil's airports had capacity for 126 million passengers per year, with existing demand of 111 million that is expected to rise to 146 million by 2014. During the Cup alone, McKinsey expects as many as 6 million additional travelers moving through Brazilian airports.


Airport problems range from insufficient parking for both planes and cars to cramped quarters for passengers awaiting flights.

Infraero, the government agency in charge of airport management, did not respond to requests for comment.

The government expects to invest 6.5 billion reais ($3.7 billion) in airports through 2014, including about 5.5 billion reais for those in the 12 host cities.

"We are worried about government investment, yes, but we are confident that the (funding) will be invested in a time frame that will allow for growth," said Pedro Janot, CEO of No. 3 Brazilian airline Azul.

The planned outlays will have to make up for years of underinvestment. Airport investments were 42 million reais in 2003 and 270 million reais in 2007, according to government statistics.

Brazil's airport safety conditions have improved since a 2007 crash that killed almost 200 people when a plane skidded off a runway in Sao Paulo's Congonhas airport.

But critics say investments have still not kept up with demand. Passenger traffic jumped 28 percent in the first half of 2010 from a year earlier, according to Brazilian civil aviation authorities.

"A good airport is one that's constantly under construction," said Paulo Castello Branco, a vice president for TAM, Brazil's largest air carrier.

($1=1.77 reais)

(Writing by Brian Ellsworth; Editing by Lisa Von Ahn)
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Old July 28th, 2010, 02:55 AM   #351
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TAM: TAM Airlines Authorized to Perform Maintenance on ATR-42s

Posted on: Tue, 27 Jul 2010 07:13:17 EDT

So Paulo,, Jul 27, 2010 (M2 PRESSWIRE via COMTEX) --

TAM Technological Centre, MRO (Maintenance, Repair and Overhaul) unit, has been certified by the Brazilian National Civil Aviation Agency (ANAC) to perform maintenance on ATR-42 aircraft. The authorization allows the company to perform maintenance on the Pantanal fleet, an airline acquired by TAM last December, and expands the offer of the maintenance centre's services for third-party clients.

ANAC has also authorized TAM to perform quick repairs to ATR-42 PW 120/121/121A engines and handle certain operational tests, in addition to nickel and silver electroplating.

We will be in charge of both heavy maintenance and routine services for Pantanals aircraft, offering what we call total care, explains Ruy Amparo, MRO Vice-President.

Having been granted the certification, the first Pantanal ATR-42 check has taken place at the TAM Technological Centre in So Carlos. In addition to heavy maintenance, the interior of the aircraft will also be reconfigured to TAMs visual standards, and various additional tasks will also be carried out. All five of Pantanals ATR-42s are expected to pass through the maintenance complex within the next 12 months.

TAM has already been certified by the aviation authorities of the United States (Federal Aviation Administration - FAA), Europe (European Aviation Safety Agency - EASA), Brazil (National Civil Aviation Agency - ANAC), and various South American countries, to perform all major scheduled maintenance procedures (C and D checks). The authorizations are valid for Airbus A318/319/A320/A321/A330s and Boeing 767s in its own fleet and those belonging to other airlines, as well as Fokker-100s. Since January 2007, TAM has also held IOSA certification (IATA Operational Safety Audit), the worlds most complete and widely recognized assurance of operational safety.

Established in the city of So Carlos, in the interior of the State of So Paulo, TAM Technological Centre occupies its own area of 4.6 million square meters. In addition to maintenance hangars, the complex houses workshops for maintenance in aeronautical components, with equipment ranging from navigational computers to complete landing gears.

About TAM:

TAM (www.tamairlines.com), a member of the Star Alliance, has been the domestic Brazilian market leader since July 2003, and ended June 2010 with a 42.9% market share. The airline services a total of 44 destinations in Brazil and a further 44 through commercial agreements with regional Brazilian carriers. In June TAMs market share among Brazilian companies that operate international flights stood at 86.5%. International operations include flights to 18 destinations in the United States, Europe and South America: New York, Miami and Orlando (USA), Paris (France), London (England), Milan (Italy), Frankfurt (Germany), Madrid (Spain), Buenos Aires (Argentina), La Paz, Cochabamba and Santa Cruz de la Sierra (Bolivia), Santiago (Chile), Asuncion and Ciudad del Este (Paraguay), Montevideo (Uruguay), Caracas (Venezuela) and Lima (Peru). TAM has code-share agreements that enable its passengers to travel to 78 additional destinations in the US, Europe, Asia and South America. As a member of the Star Alliance, TAM also offers flights to 1,172 airports in 181 countries. The airline was the first Brazilian company to launch a loyalty program ( TAM | PowerRating Fidelidade) and currently has 6.9 million members.

CONTACT: Christopher Pickard, Critical Divide Tel: +44 (0)7977 572 105 e-mail: [email protected] WWW: http://www.tam.com.br WWW: http://www.tamairlines.com

((M2 Communications disclaims all liability for information provided within M2 PressWIRE. Data supplied by named party/parties. Further information on M2 PressWIRE can be obtained at http://www.presswire.net on the world wide web. Inquiries to [email protected].

For full details on TAM S.A. ADR (TAM) TAM. TAM S.A. ADR (TAM) has Short Term PowerRatings at TradingMarkets. Details on TAM S.A. ADR (TAM) Short Term PowerRatings is available at This Link.
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Old July 28th, 2010, 06:20 PM   #352
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American Airlines seeks more flights to Brazil

updated 7/27/2010 1:51:40 PM ET

FORT WORTH, Texas — American Airlines said Tuesday it asked U.S. officials for permission to add flights to Brazil in place of slots that Delta Air Lines is giving up.

AMR Corp.'s American Airlines said it could use the openings to fly nonstop between Miami and Brasilia beginning Nov. 18, and between Dallas-Fort Worth and Rio de Janeiro.
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Old July 28th, 2010, 06:22 PM   #353
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From The Associated Press, July 28, 2010 - 09:48 AM

Brazil's TAM Airlines orders 25 Airbus aircraft, including five A350s

PARIS (AP) - European jet maker Airbus says Brazil's TAM Airlines has placed an order for 25 planes, including five of its A350-900 widebody aircraft being developing to compete with Boeing Co.'s 787.

The firm order from Brazil's largest airline brings TAM's total orders with Airbus to 176 aircraft, Airbus said in a statement Wednesday.

TAM Airlines also ordered 20 A320 single aisle aircraft.

The orders, which were originally announced in June at the Berlin Air Show, have a combined value of $3 billion at catalog list prices.

Earlier this month at Britain's Farnborough International Airshow, Airbus racked up deals totaling $13.2 billion, while Boeing's commitments came in at $12.8 billion.
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Old July 30th, 2010, 04:10 PM   #354
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TAM Airlines Brings Brazilian Flair and South American Heft to Star Alliance

by Contributing Editor on July 29, 2010
By Carole Shifrin, Contributing Editor**

Already the world’s largest airline grouping, Star Alliance continues to add members – Greek carrier Aegean Airlines was the latest, in June – but the induction of Brazil’s TAM Airlines in May is the plum, giving the alliance access to a fast-growing continent on which it has been poorly represented in recent years.

“We are proud to call Brazil … our home market again,” Star Alliance CEO Jaan Albrecht said in São Paulo as TAM was officially inducted into the club, “and we are excited about the opportunities … for all of us in South America.”

One of Star’s earliest members, in 1997, was Brazil’s once-elegant flag carrier Varig, but the airline’s slow and painful decline, then bankruptcy, left Star without a Latin American partner – officially since the beginning of 2007, but in truth long before that.

When TAM Airlines joined Star Alliance in May 2010, it gave the alliance renewed access to a continent in which the alliance had been poorly represented since the bankruptcy of VARIG in 2005 and the carrier's subsequent suspension from Star. This photograph shows a TAM A320 painted in the official Star Alliance livery

“Our joining member opens up a whole continent to our alliance,” Albrecht notes, bringing 36 additional South American destinations immediately to Star’s global route network, with more destinations expected as TAM continues to grow its domestic and international footprint.

Additionally, Albrecht and key Star Alliance carrier executives expect São Paulo to become a leading hub for the alliance’s network in the future, its first in Latin America – possibly in time for Brazil hosting the 2014 World Cup and 2016 Olympic Games.

Albrecht says Star officials will be working with key Brazilian, state and local government officials and Brazil’s aviation authorities – including Infraero Aeroportos, the country’s airports authority – to help put in place the necessary modern and cost-effective infrastructure to satisfy burgeoning air travel demand.

Brazilian officials already have been exploring possible expansion of São Paulo’s Guarulhos International Airport, including construction of a new, third passenger terminal and a third runway. The airport has the appropriate space to build a third terminal, officials say, which would relieve pressure on its already capacity-restricted terminals. A third terminal also could further Star’s “move under one roof” game plan, where all Star carriers seek to operate together from one terminal.

The passenger amenities in the cabins of TAM Airlines' new long-haul jets rival or exceed those of many of its Star Alliance partner airlines – particularly in TAM's business-class cabins

What TAM brings Star

TAM’s accession to Star is a significant addition to the alliance, filling in a good deal of what Albrecht has referred to as “white spots” on Star’s route map. As United Airlines’ Mark Schwab, senior vice president for alliances, international and regulatory affairs, explains, the “white spots” strategy involves superimposing the network systems of all Star carriers on a world map. “There is a lot of color” on the world map, he notes, but there also are white spots.

“So we focus on areas where the network could be stronger,” says Schwab – i.e., the white spaces. Africa continues to be the main focus for Star’s future expansion, with South America and the Caribbean also in its sights.

TAM’s inclusion in the Star Alliance comes at an auspicious time, with Latin American economies expected to grow at a faster pace than many others around the world, leading to continuing strong demand for air travel.

The latest Boeing market outlook predicts total air travel for Latin America will grow faster than the world average over the next 20 years, with travel within Latin America leading the region’s growth at a 7.1 per cent annual clip. Travel between Latin America and North America is forecast to rise an average 5.3 per cent a year, with travel between Latin America and Europe expected to grow 4.6 per cent annually.

TAM Airlines has a total of 116 Airbus A320-family aircraft in service and 64 more on order. The Brazilian carrier operates A319s, A320s and A321s, but operates more A320s than any other A320-family model

This reflects the continent’s strong economic growth, continued investment in aviation infrastructure, and liberalization of airline ownership and traffic rights, Boeing says. Air-travel growth rates forecast for Latin America are well above those expected in the more mature internal North American and European markets.

Brazil, the largest country in Latin America with a population of 190 million, is considered a particularly bright star, with its economy expected to grow by as much as 7 per cent this year, leading to air traffic growth estimated at more than twice that.

A high-quality addition

Besides TAM’s geographical desirability for the alliance, however, the airline brings to the table an undisputed level of quality surpassing that of many current and potential members. TAM operates a young fleet of the latest-technology aircraft; maintains a long-standing reputation for a commitment to customers; and offers passenger amenities – including lie-flat beds in business class, since 2005, and a top-notch inflight entertainment system – that rival or exceed many of its new partner airlines.

The airline also has a solid financial balance sheet, a first-class, environmentally friendly technological center at which it maintains its own and others’ aircraft, and a reputation for being technically advanced. In the next six months, TAM is expected to operate Latin America’s first biofuel demonstration flight using an Airbus A320 powered by a mixture of biofuels – including Brazilian vegetable biomass in the form of the Jatropha plant – with a view to reducing greenhouse gas emissions by up to 80 per cent in the future.

The business-class cabins of TAM Airlines' new long-haul jets feature lie-flat beds and a top-notch inflight entertainment system

For a long time TAM had a codesharing and frequent-flyer relationship with American Airlines, attracting connecting Brazilian-bound travelers to its New York and Miami flights from American flights and, in turn, feeding U.S.-bound travelers to American’s network. But while Varig was falling apart, TAM re-assessed its future under a number of scenarios: life without alliances, life with continuing bilateral alliances, or a merger. In the end, says Libano Miranda Barroso, president and CEO of TAM Airlines, all three had weaknesses and entry into a global alliance was deemed “the best option”.

“And in this scenario, Star Alliance was definitely the one that best fit the Brazilian market,” says Barroso, noting that as part of the “largest alliance” in the world, TAM is the seventh-largest of Star’s 28 member carriers.

What Star brings TAM

Barroso says TAM’s membership in Star is expected to generate an annual increase of about $60 million in revenues and an additional 3-to-5 per cent in passenger numbers over the next two years as it sees the “multiplying effect” from code-sharing and frequent-flyer agreements now being implemented. Calling the numbers a “very conservative” projection, Barroso says TAM already has seen revenue and passenger increases as a result of codeshares put in place prior to its official joining Star.

The Boeing 777-300ER is the flagship of TAM Airlines' long-haul fleet. By July 2010 the airline had ordered 10 of the type and had taken delivery of four of them

The airline has signed frequent-flyer agreements with all Star carriers, but is signing codeshare agreements with partners only where it sees synergies, according to Paulo Castello Branco, TAM’s vice president, commercial and planning.

For Star carriers flying into São Paulo and Rio de Janeiro, TAM has extensive services that can carry connecting travelers from their intercontinental flights to most places in Brazil and to an increasing number of cities throughout South America.

With a modern fleet of 143 Airbus and Boeing aircraft, TAM serves 43 domestic destinations directly – 82 points including its regional partners’ code-share flights – and 18 international destinations: three in the U.S., five in Europe and 10 within Latin America.

In August, TAM adds nonstop flights from Rio’s Antonio Carlos Jobim International Airport (Galeão), its second-largest international hub after São Paulo, to both London and Frankfurt with two new Airbus A330-200s. It already serves both European capitals from São Paulo, but has been seeing increasing numbers of passengers connecting to Rio from those flights, notes Castello Branco. Galeão also is TAM’s third-largest domestic hub, providing passengers with additional connecting options.

TAM also will put Bogota, Colombia, on its route map by the end of 2010, with daily nonstop service from São Paulo.

Attention to service

Many connecting passengers, especially US travelers used to being charged domestically for everything, will be pleasantly surprised at the quality and all-inclusiveness of the service on TAM’s domestic flights. During a recent 50-minute flight between São Paulo’s downtown Congonhas Airport and Rio’s in-town Santos Dumont Airport, free, take-home, ear-bud headsets were passed out for listening to music or television, and complimentary drinks – including alcoholic beverages – were served, along with an excellent barbecue sandwich.

Brazil's TAM Airlines has a deservedly strong reputation for the quality and all-inclusiveness of the service on its flights – even the 50-minute hop from Rio's in-town Santos Dumont Airport to São Paulo’s downtown Congonhas Airport, during which passengers are offered various complimentary service items

TAM’s attention to service has been a hallmark throughout its relatively short history, with officials often referring to the carrier’s “passion to fly and serve”, a vision of its venerated founder, Captain Rolim Adolfo Amaro. “It’s in our DNA,” says Barroso.

The airline’s roots date to 1961 with the formation of an air taxi company in Brazil by a group of young pilots. Ten years later, Amaro, a pilot who had worked at the company in its early years, became a minority partner, then expanded his ownership and took over the company. In 1976, TAM was born.

The larger-than-life Amaro, who died in a helicopter crash in 2001, is still revered at TAM and throughout Brazil for his farsightedness, business acumen, innovation and focus on the customer and quality of service. He created the airline’s “Red Carpet Service” concept – with a red carpet literally leading to the aircraft – and he was always at the aircraft door welcoming passengers onboard, a tradition many TAM pilots continue. The phrase “The Magic Red Carpet” is still emblazoned on the fuselage of TAM’s intercontinental aircraft.

Amaro’s vision plays an ongoing role in TAM’s modus operandi, and members of his family are still an integral part in the carrier as officials in the airline, on the holding company’s board of directors, and as shareholders.

In June, TAM reopened its own aviation museum in a new facility at São Carlos – the site of its maintenance center – that will inspire envy worldwide. With nearly 80 classic aircraft, it is the largest private museum kept by an aviation company in the world. The idea for the museum came from Captain Rolim and his brother, João Francisco Amaro, who is now the museum’s president.

TAM’s stunning growth

TAM’s recent growth has been stunning, with double-digit increases in both domestic and international capacity annually over most of the last decade. In the first six months of 2010, TAM’s domestic market share was 42.2 per cent, in the same ballpark as low-cost carrier Gol, its major competitor. TAM’s international market share among Brazilian carriers was a whopping 84.7 per cent.

TAM Airlines painted this Airbus A330-200 in a special livery to commemorate the Brazil national football team's appearance in the 2010 FIFA World Cup in South Africa

However, TAM did not take on all of Varig’s international routes and it doesn’t intend to, planning instead to capitalize on feed from its new partners, both in Brazil and at its international destinations. TAM also plans to offer its Brazil-originating passengers more connections around the world on flights operated by its Star partners.

With a TAM-United codeshare in operation since late 2007, for instance, United’s Schwab says his airline has been seeing increased connections to its network in both Miami and New York from TAM flights, even though neither city is a hub. United also is seeing increasing numbers of its U.S.-originating customers connecting to TAM flights in São Paulo and Rio, and greater numbers of connecting passengers from TAM’s Brazil services on United’s U.S.-bound flights. “There is a very definite boost to traffic,” says Schwab.

While it is slowly expanding international services, TAM has been more active in beefing-up its internal Brazilian services by adding new destinations and expanding frequencies on existing routes. In December, it acquired Pantanal Linhas Aéreas, a small carrier operating flights from São Paulo’s downtown Congonhas Airport to medium-sized cities within Brazil. TAM plans both to upgrade Pantanal’s fleet – currently five ATR 42-300 turboprops – and expand its services.

“The Brazilian economy is growing,” says Ruy Amparo, TAM’s vice president, operations and MRO, “and there are small cities that have no flights at all.” With air service, travel at these smaller cities is expected to grow above the national average, expanding Brazil’s air transportation base, as well as increasing connectivity to other TAM flights.

TAM Airlines operates a few Airbus A321-200s on domestic routes, in one-class, 220-seat configuration

TAM’s aircraft fleet

Should TAM decide to expand further, it will have the aircraft to do so. It has orders in place for 100 new aircraft over the next decade, valued at well over $11 billion at list prices. TAM’s orders include 64 new Airbus A320-family aircraft, 27 Airbus A350 XWBs, three more Airbus A330-200s and six more Boeing 777-300ERs. The airline’s average fleet age is about six years, and many of the new aircraft will be used to replace existing Airbus A320s to keep the fleet young, TAM officials say.

TAM’s current fleet includes 116 Airbus A320-family aircraft, 18 Airbus A330-200s and four Boeing 777-300ERs. It also operates two Airbus A340-500s and three Boeing 767-300ERs, acquired on lease in a hurry in order to operate some of Varig’s vacated routes. The five aircraft will be returned over the next two years as TAM takes delivery of new jets.

The three Boeing 767s, with an average age of 15 years, clearly do not have the amenities of TAM’s younger aircraft. A 15-year-old ex-Alitalia Boeing 767 that TAM flies on its Rio-Miami route, for instance, does not offer passengers the advanced inflight entertainment system installed on other long-haul aircraft, but has large TV monitors installed in the ceiling. TAM distributes hand-held devices with IFE options available on its normal system to business-class passengers, but passengers in economy, who ordinarily have access to the same IFE system, are limited to one movie shown on the overhead monitors.

“We don’t like the way we are not standardized,” Amparo admits, but notes those aircraft will be out of the fleet soon.

**Carole Shifrin has been a Washington-based freelance writer for ten years. Her career includes 15 years at Aviation Week & Space Technology, where she served as Dallas Bureau Chief, London Bureau Chief and Senior Transport Editor, and 13 years as a staff writer at The Washington Post. Carole is the recipient of numerous awards, including the prestigious Lauren D. Lyman Award for distinguished, career-long achievement in aviation journalism.
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Old August 12th, 2010, 06:16 PM   #355
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Mexicana suspends MEX-GRU flight!
Now Aeromexico is the only non-stop service between Mexico City and Sao Paulo


Troubled Mexicana Airlines suspends long-haul flights
August 9, 2010 | 10:38 am

Woes continue for Mexico's oldest airline, Mexicana, which announced on Monday the indefinite suspension of all but one of its long-haul international flights to destinations in Europe, North America and South America. Routes affected include direct connections between Mexico City and Buenos Aires; Sao Paolo, Brazil; Madrid; London; Caracas, Venezuela; Montreal and Vancouver, Canada. The airline's announcement of the suspensions is found here.

What the airline said were high labor costs and competition from newer low-cost airlines thrust Mexicana into disarray last week. Cash flow troubles led to the suspension of numerous routes to and from the United States, particularly affecting airports in Los Angeles and Northern California. The airline filed for bankruptcy protection in the U.S. and Mexico, and pilots and flight attendants staged protests at Mexicana's corporate headquarters in Mexico City. On Wednesday, the airline suspended new ticket sales.

The downward slide of Mexicana could have benefits for U.S. carriers but could leave Mexican travelers with fewer air-travel options overall, aviation sector analysts told financial news services.

The route suspensions and bankruptcy filings are now negatively affecting Mexicana's domestic affiliate airlines, Click and Link. Because the Federal Aviation Administration downgraded Mexico's air safety rating on July 30, Mexicana competitors such as Volaris or AeroMexico are temporarily barred from expanding into the U.S. and possibly picking up Mexicana routes. Meanwhile, U.S. carriers already present in Mexico may see an increase in business with Mexicana's absence, analysts said.

-- Daniel Hernandez in Mexico City

Photo: A Mexicana airliner flies over Mexico City. Credit: Agence France-Presse
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Old August 12th, 2010, 06:17 PM   #356
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Brazil’s Puma Air wants to fly to Angola [ 2010-08-12 ]

Sao Paulo, Brazil, 12 Aug – Brazilian airline Puma Air has announced it plans soon to launch daily flights to Angola, a company source said.

Jorge Vianna,vice-president of Puma Air said that the operation to Angola was justified because of, “the number of Brazilians now living in Luanda - around 50,000 people – and by the strong presence of Brazilian companies in the Angolan market.”

The airline which until recently operated only regionally, linking cities in the interior of the state of Pará to the state capital, Belém, started offering daily flights to Belém, Macapá and Guarulhos in the state of Sao Paulo.

In the first three months of its operations Puma Air became the fourth most popular out of the 11 regional airlines operating in Brazil.

Vianna also said that the airline projected to carry 1 million passengers in the first 12 months of business, including national and foreign flights, representing 1.5 percent of the domestic flight market and 2.5 percent of the international market. (macauhub)
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Old August 12th, 2010, 06:20 PM   #357
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TAM enhancing measures to increase demand

TAM (+0.4%) gained only marginally for the day. The carrier stated in the previous session it is introducing new products, selling tickets through the Casas Bahia retail chain, and conducting a new marketing campaign as part of new measures being taken to increase demand, especially to the new Brazilian middle class. The efforts are part of a new retail product, launched on 08-Aug-2010, which also involves the inauguration of TAM Viagens franchise offices. The carrier added that 75% of its passengers currently travel for business purposes.

See related CAPA Profile: Distribution and GDS

GOL net income plummets

GOL (-0.9%) was one of only two carriers down for the day after the carrier reported a net loss of BRL51.9 million (USD29.7 million) for 2Q2010, compared to a net profit of BRL353.7 million in the previous corresponding period.

See related report: Peanuts wrap

See related CAPA Profile: Low Cost Carriers (LCCs)

Elsewhere, Allegiant (+5.0%) was the biggest gainer of the day, with JetBlue (+4.2%) and United AIrlines (+4.1%) also performing well. Hawaiian Airlines (-0.4%) slipped.

North & South America selected airlines daily share price movements (% change): 09-Aug-2010
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Old August 13th, 2010, 06:39 PM   #358
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Brazilian Airport movement Statistic for June 2010
Comparing JUN/2010 with JUN/2009 statistics


AIRCRAFT MOVEMENT (landings + take offs):
01. Guarulhos (Sao Paulo Intl) = 118.769 (+20,8%)
02. Congonhas (Sao Paulo Domestic) = 99.847 (+7,0%)
03. Brasília = 84.617 (+8,8%)
04. Santos Dumont (Rio de Janeiro Domestic) = 61.741 (+47,6%)
05. Campo de Marte (Sao Paulo General Aviation) = 60.016 (+18,7%)
06. Galeão (Rio de Janeiro Intl) = 58.015 (-4,2%)
07. Salvador = 54.270 (+7,9%)
08. Porto Alegre = 43.132 (+12,9%)
09. Curitiba = 42.296 (+14,1%)
10. Confins (Belo Horizonte Intl) = 39.460 (+20,1%)
11. Recife = 36.250 (+12,5%)
12. Campinas (Viracopos) = 34.871 (+49,4%)
13. Pampulha (Belo Horizonte Domestic) = 32.549 (+17,8%)
14. Fortaleza = 29.569 (+20,7%)
15. Goiânia = 29.434 (+20,6%)
16. Vitória = 26.178 (+6,1%)
17. Cuiabá = 24.967 (+21,4%)
18. Manaus = 24.454 (+12,9%)
19. Florianópolis = 21.596 (+7,9%)
20. Belém = 20.566 (+6,5%)

01. Guarulhos (Sao Paulo Intl) = 7.659.826 (+27,8%)
02. Congonhas (Sao Paulo Domestic) = 7.245.577 (+15,2%)
03. Brasília = 6.441.382 (+19,5%)
04. Galeão (Rio de Janeiro Intl) = 4.181.334 (-7,9%)
05. Santos Dumont (Rio de Janeiro Domestic) = 3.621.050 (+72,2%)
06. Salvador = 3.421.738 (+8,9%)
07. Confins (Belo Horizonte Intl) = 3.168.354 (+36,3%)
08. Porto Alegre = 2.832.183 (+18,4%)
09. Recife = 2.708.290 (+16,5%)
10. Curitiba = 2.560.581 (+20,1%)
11. Campinas (Viracopos) = 2.403.474 (+93,4%)
12. Fortaleza = 2.224.259 (+25,8%)
13. Vitória = 1.214.939 (+12,6%)
14. Florianópolis = 1.200.627 (+26,8%)
15. Manaus = 1.158.172 (+18,2%)
16. Belém = 1.095.415 (+12,2%)
17. Natal = 1.062.353 (+29,1%)
18. Goiânia = 1.050.770 (+35,1%)
19. Cuiabá = 960.825 (+30,1%)
20. Maceió = 691.556 (+39,1%)

01. Guarulhos (Sao Paulo Intl) = 4.821.140 (+21,6%)
02. Galeão (Rio de Janeiro Intl) = 1.432.573 (+11,6%)
03. Porto Alegre = 209.865 (+15,8%)
04. Salvador = 170.785 (+3,0%)
05. Florianópolis = 131.660 (+50,0%)
06. Confins (Belo Horizonte Intl) = 131.269 (+20,1%)
07. Fortaleza = 107.128 (+2,3%)
08. Recife = 97.358 (-10,6%)
09. Brasília = 81.906 (-2,5%)
10. Manaus = 74.960 (+9,6%)
11. Natal = 58.850 (-10,8%)
12. Curitiba = 48.094 (-1,8%)
13. Belém = 19.206 (+21,9%)
14. Maceió = 13.542 (+46,3%)

GENERAL PASSENGERS MOVEMENT (Domestic + International):
01. Guarulhos (Sao Paulo Intl) = 12.480.966 (+25,3%)
02. Congonhas (Sao Paulo Domestic) = 7.245.577 (+15,2%)
03. Brasília = 6.523.288 (+19,2%)
04. Galeão (Rio de Janeiro Intl) = 5.613.907 (-3,6%)
05. Santos Dumont (Rio de Janeiro Domestic) = 3.621.050 (+72,2%)
06. Salvador = 3.592.523 (+8,6%)
07. Confins (Belo Horizonte Intl) = 3.299.623 (+35,6%)
08. Porto Alegre = 3.042.048 (+18,2%)
09. Recife = 2.805.648 (+15,3%)
10. Curitiba = 2.608.675 (+19,6%)
11. Campinas (Viracopos) = 2.404.214 (+93,3%)
12. Fortaleza = 2.331.387 (+24,5%)
13. Florianópolis = 1.332.287 (+28,7%)
14. Manaus = 1.233.132 (+17,7%)
15. Vitória = 1.214.939 (+12,6%)
16. Natal = 1.121.203 (+26,1%)
17. Belém = 1.114.621 (+12,4%)
18. Goiânia = 1.051.630 (+35,1%)
19. Cuiabá = 961.449 (+30,1%)
20. Maceió = 705.098 (+39,2%)

01. Guarulhos (Sao Paulo Intl) = 71.135.215 (+1,2%)
02. Manaus = 43.423.642 (+17,2%)
03. Brasília = 21.475.835 (+29,5%)
04. Fortaleza = 20.289.576 (+39,8%)
05. Salvador = 15.187.009 (+13,6%)
06. Recife = 14.356.379 (-21,1%)
07. Congonhas (Sao Paulo Domestic) = 13.106.162 (-0,3%)
08. Belém = 9.275.786 (+12,8%)
09. Galeão (Rio de Janeiro Intl) = 8.374.738 (-26,9%)
10. Porto Alegre = 7.398.556 (-15,6%)
11. Confins (Belo Horizonte Intl) = 3.671.967 (-45,0%)
12. Curitiba = 3.573.586 (-5,5%)
13. Natal = 3.385.889 (-4,1%)
14. São Luís = 3.017.726 (+3,8%)
15. Goiânia = 2.883.984 (+5,1%)
16. Campinas (Viracopos) = 2.662.053 (-38,0%)
17. Cuiabá = 2.549.190 (+16,7%)
18. Vitória = 2.253.819 (-7,5%)
19. Santos Dumont (Rio de Janeiro Domestic) = 2.029.063 (+38,5%)
20. Teresina = 1.684.466 (+23,2%)

01. Campinas (Viracopos) = 121.372.664 (+51,3%)
02. Guarulhos (Sao Paulo Intl) = 103.528.962 (+11,7%)
03. Manaus = 32.216.571 (+83,7%)
04. Galeão (Rio de Janeiro Intl) = 27.963.732 (+7,8%)
05. Curitiba = 8.345.589 (32,8%)
06. Salvador = 3.070.709 (-29,5%)
07. Confins (Belo Horizonte Intl) = 2.162.626 (+32,4%)
08. Recife = 1.994.960 (-25,1%)
09. Porto Alegre = 1.941.140 (+168,2%)
10. Fortaleza = 1.320.683 (+54,7%)
11. Vitória = 1.320.226 (-1,8%)
12. Natal = 671.622 (-6,2%)
13. Petrolina = 583.331 (-6,3%)
14. Brasília = 403.369 (-15,8%)

GENERAL CARGO MOVEMENT (Domestic + International):
01. Guarulhos (Sao Paulo Intl) = 174.664.177 (+7,2%)
02. Campinas (Viracopos) = 124.034.717 (+46,8%)
03. Manaus = 75.640.213 (+38,6%)
04. Galeão (Rio de Janeiro Intl) = 36.338.470 (-2,8%)
05. Brasília = 21.879.204 (+28,3%)
06. Fortaleza = 21.610.259 (+40,6%)
07. Salvador = 18.257.718 (+3,0%)
08. Recife = 16.351.339 (-21,6%)
09. Congonhas (Sao Paulo Domestic) = 13.106.162 (-0,3%)
10. Curitiba = 11.919.175 (+18,4%)
11. Porto Alegre = 9.339.696 (-1,6%)
12. Belém = 9.300.212 (+12,6%)
13. Confins (Belo Horizonte Intl) = 5.834.593 (-29,8%)
14. Natal = 4.057.511 (-4,5%)
15. Vitória = 3.574.045 (-5,5%)
16. São Luís = 3.017.726 (+3,8%)
17. Goiânia = 2.883.984 (+5,1%)
18. Cuiabá = 2.549.190 (+16,7%)
19. Santos Dumont (Rio de Janeiro Domestic) = 2.029.063 (+38,5%)
20. Maceió = 1.690.332 (+6,0%)
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Old August 14th, 2010, 01:06 AM   #359
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LAN and TAM announce Intention to Combine



LAN | TAM to Combine

LAN and TAM announce Intention to Combine

New Latin American Airline Group Would Be Among The Leading Airlines In The World

Forward Looking Statements

This website contains forward-looking statements, including with respect to the negotiation, implementation and effects of the proposed combination. Such statements may include words such as “anticipate,” “estimate,” “expect,” “project,” “intend,” “plan,” “believe,” “would” or other similar expressions. Forward-looking statements are statements that are not historical facts, including statements about our beliefs and expectations.

These statements are based on current plans, estimates and projections, and, therefore, you should not place undue reliance on them. Forward-looking statements involve inherent risks and uncertainties. We caution you that a number of important factors could cause actual results to differ materially from those contained in any forward-looking statement. These factors and uncertainties include in particular those described in the documents we have filed with the U.S. Securities and Exchange Commission. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update publicly any of them, whether in light of new information, future events or otherwise.

This website relates to a proposed business combination between Lan Airlines S.A. (“LAN”) and TAM S.A. (“TAM”), which will become the subject of a registration statement and prospectus to be filed with the SEC by LAN and a new entity to be formed in connection with the combination. This website is not a substitute for the registration statement, prospectus and offering materials that LAN and the new entity will file with the SEC or any other documents that they may file with the SEC or send to shareholders in connection with the proposed combination. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, PROSPECTUS, EXCHANGE OFFER DOCUMENTS AND ALL OTHER RELEVANT DOCUMENTS FILED OR THAT WILL BE FILED WITH THE SEC AS THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED BUSINESS COMBINATION. All such documents, if filed, would be available free of charge at the SEC’s website (www.sec.gov) or by directing a request to LAN, through Gisela Escobar Koch, at 56-2-565-3944 or by e-mail at [email protected], or to TAM through Jorge Helito, at 55-11-5582-9715 or by e-mail at [email protected].

Highlights of the Transaction

LAN Airlines S.A. (LAN) and TAM S.A. (TAM) announced that they have entered into a non-binding Memorandum of Understanding (MOU) that outlines their intentions to combine their holdings under a single parent entity.

The combination of LAN and TAM would create a new Latin American airline group that would offer seamless passenger and cargo service across the continent and around the world.

The new group, to be known as LATAM Airlines Group, would include LAN Airlines and its affiliates in Peru, Argentina and Ecuador; Lan Cargo and its affiliates; TAM S.A.; TAM Mercosur and all other holdings of LAN and TAM.

LAN and TAM would continue to operate under their existing operating certificates and brands. Each airline within the group would maintain its current headquarters in Santiago and Sao Paulo.

Growth enabled by the transaction would reach new destinations, create more opportunities for employees of both companies and more value creation for shareholders and would foster economic development and job growth in the home countries of the group airlines and the countries they serve.

The group would be among the leading airline groups in the world in terms of size, profitability and market reach.

The transaction is subject to both parties entering into a binding definitive agreement and satisfaction of conditions, including corporate and shareholder approvals and actions and regulatory approvals.

PRESS RELEASE in PDF for donwload



By Andy Lau | August 13, 2010 5:31 PM EDT

Lan, Tam merge to create top Latin airline

Brazilian carrier TAM SA and Chile's LAN Airlines SA agreed to combine in an all-stock transaction, creating the biggest carrier in Latin America., the Wall Street Journal reported on Friday.

TAM shareholders would be offered 0.9 shares of common stock of LATAM for each share of TAM, which is Brazil's largest airline, the report said.

The new company, named LATAM Airlines Groups, will resent a market value of about $12 billion upon the completion of the deal.

Both airlines will continue to operate as "distinct airlines and independent brands" and keep their respective headquarters, they said in a statement released by PR Newswire.

Lan is based in Santiago and Tam in Sao Paulo.

The companies said they will add new markets and will provide service to 115 destinations in 23 countries.




Lan, Tam to Combine to Create Region’s Top Carrier

August 13, 2010, 5:03 PM EDT

By Eduardo Thomson and Alexander Cuadros

(Adds analyst comment in third paragraph.)

Aug. 13 (Bloomberg) -- Lan Airlines SA and Tam SA agreed to combine in an all-stock transaction that will create Latin America’s biggest air carrier with a market value of about $12 billion. Tam shares surged 28 percent, the most since December 2004.

Tam investors will receive 0.9 Lan shares for each Tam share, the companies said in a statement distributed by PR Newswire.

Lan’s Enrique Cueto would be chief executive officer of the new company, called LATAM Airlines Group SA, while Tam’s Mauricio Rolim Amaro will become chairman. Tam’s controlling shareholders will retain 80 percent of Tam’s voting shares and Lan will own the remaining 20 percent to comply with Brazilian regulations, the statement said. The agreement calls for the delisting of Tam in Brazil.

“They’ll have vast economies of scale between the two of them and will be able to dilute costs over a higher base of assets and increase margins,” Ed Kuczma, emerging markets analyst at Van Eck Associates, which manages $21 billion in New York including Tam shares, said in a telephone interview. “They could drive prices lower.”

Lan shares rose the most since 2008 before the announcement after Sao Paulo business magazine Exame reported the agreement. Lan jumped 7.7 percent to 13,900 pesos at 3:36 p.m. New York time before trading was halted. Tam rose 28 percent to 36.20 reais.

“From a geographic point of view it makes sense as it would allow Lan to enter the Brazilian market,” Felipe Mercado, an analyst at Banchile Inversiones, said by telephone from Santiago.

Both airlines said they will continue to operate as “distinct airlines and independent brands” and keep their respective headquarters. Lan is based in Santiago and Tam in Sao Paulo.

The companies said they will add new markets and said they will provide service to 115 destinations in 23 countries.

--Editor: Alan Mirabella.

To contact the reporter on this story: Eduardo Thomson in Santiago at [email protected].

To contact the editor responsible for this story: David Papadopoulos at [email protected].


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Old August 14th, 2010, 03:15 PM   #360
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UPDATE 2-LAN-TAM merger would create new LatAm airline giant

Fri Aug 13, 2010 4:42pm EDT

* Brazil's TAM, Chile's LAN unveil plans to merge

* Deal would create biggest airline in Latin America (Adds details of transaction, updates share prices)

Aug 13 (Reuters) - Brazil's largest airline TAM Linhas Aereas (TAMM4.SA)(TAM.N) plans to merge with Chilean rival LAN LAN.SN(LFL.N), a deal that would create the biggest carrier in Latin America.

The merger would create a new regional powerhouse to help meet booming demand for air travel in Latin America. The combined company would fly to 115 destinations in 23 countries and employ some 40,000 workers, TAM said.

TAM said in a regulatory filing on Friday the new entity, to be named Latam Airlines Group, would be created via an all-stock transaction that may include a share swap. The financial terms were not disclosed.

LAN also confirmed the agreement, which it said was non-binding.

LAN's Chief Executive Enrique Cueto will be the CEO of Latam Airlines, while TAM's deputy chairman Mauricio Rolim will be the chairman of the combined company. The airlines' brands will be kept separate, the statement said.

As part of the agreement, TAM said its shareholders will receive 0.9 shares of LAN for every TAM share in the form of Brazilian depositary receipts. TAM said it would then delist its shares in Sao Paulo and in New York.

TAM's controlling shareholders, Tam Empreendimentos e Participacoes, will retain control of the Brazilian company with an 80 percent voting stake and will also own an undisclosed stake in LAN, the filing said.

LAN's controlling shareholders, Costa Verde Aeronautica SA and Inversiones Mineras del Cantabrico will also retain control of the Chilean airline, TAM said.

TAM shares rose 27.6 percent to close at 36.20 reais in Sao Paulo. LAN rose 7.7 percent to 13,900 Chilean pesos in Santiago.

LAN is a member of the Oneworld alliance of airlines, which also has American Airlines (AMR.N), Mexicana and British Airways among its members. TAM is a member of Star Alliance. (Reporting by Guillermo Parra-Bernal and Elzio Barreto, Writing by Brian Winter. Editing by Robert MacMillan)
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