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| Founded | January 7, 1961 (as Taxi Aéreos Marília)[1] | |||
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| Frequent flyer program | TAM Fidelidade Multiplus Fidelidade |
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| Member lounge | VIP Lounge | |||
| Alliance | Star Alliance (future) | |||
| Fleet size | 137 (+77 orders) | |||
| Destinations | 61 | |||
| Company slogan | Portuguese: Paixão por voar e servir English: Passion to fly and serve |
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| Headquarters | São Paulo, SP, Brazil | |||
| Key people | Líbano Barroso (CEO) | |||
| Website | tam.com.br | |||
TAM Airlines[2] (Portuguese: TAM Linhas Aéreas) (BM&F Bovespa: TAMM3, TAMM4 / NYSE: TAM) is the biggest Brazilian airline and the Southern Hemisphere's busiest airline (in terms of fleet[3], passengers enplaned and flights operated[4]). It is headquartered in the city of São Paulo,[5] and operates scheduled services to destinations within Brazil, as well as international flights to Argentina, Chile, Bolivia, Uruguay, Paraguay, Peru, Venezuela, the United States, the United Kingdom, France, Spain, Italy and Germany. The company is traded on the São Paulo Exchange (BM&F Bovespa) and New York Stock Exchange as "TAM S.A."[6].
According to the National Civil Aviation Agency of Brazil (ANAC), between January and December 2009, TAM had 45.60% of the domestic and 86.47% of the international market shares in terms of passengers/km and in relation to the same period in 2008, it increased its share in the domestic market in 6.46% and in the international market it increased in 14.24%. In February 2010, its shares were of 42.42% for the domestic and 81.95% for the international markets.[7]. In both periods TAM was ranked first among Brazilian airlines.
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TAM was founded on January 7, 1961, by five former air-taxi pilots. The company was named Transportes Aéreos Marília, S.A. (Marília Air Transport) after the pilots' hometown of Marília, São Paulo.[1] It began operations with 4 Cessna 180 and a single Cessna 170, ferrying cargo and passengers across Paraná, São Paulo and Mato Grosso states.
In 1964, Orlando Ometto, owner of agricultural ventures in the region, purchased a 50% stake in the company, with the intent to use its aircraft and pilots to support an agricultural expansion project of his own in central Brazil. With the capital, TAM purchased aircraft. As the original pilot-owners left the company, Ometto purchased their share of the company, eventually owning 100% of the company.
In 1966, the company bought twin-engined aircraft models, including the Piper Aztec, Piper Navajo and the Rockwell Grand Commander. During this period, the company also relocated its offices from Marília to the state's capital, São Paulo.
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In 1971, Ometto was losing money. In his search for someone to turn TAM around, Ometto called Rolim Amaro, a former pilot of TAM who had left and had formed an air-taxi company. Amaro proposed to liquidate his company and purchase a portion of TAM. While this did not constitute 50% of TAM's capital, he proposed to Ometto that if he was able to make TAM profitable within one year, he would be given the remaining portion of the 50%. In case he failed, he would receive nothing. In April, 1972, the contract between Amaro and Ometto was signed, giving Amaro operational control over the company.
At the end of 1972, Amaro sold TAM's entire fleet. At the same time, he travelled to Cessna's Wichita, Kansas facility and after two months of negotiations with the company, he bought 10 Cessna 402 aircraft. Within one year, Amaro fulfilled his promise and was given 50% of TAM's capital.
In 1974, TAM added two Learjets to its fleet. In exchange for one of these jets, 33% of the company's stock was given to the jet's owner, Tião Maia. The three-way split between Maia, Ometto and Amaro would remain until 1975, when Maia sold his share to Ometto. This deteriorated the atmosphere between Amaro and Ometto. In 1976, after 9 months of negotiation for Ometto's 50%, Amaro wrote a check for $2 million, with the promise to pay it over a period of time.
Despite selling one of the jets and other assets, he was still unable to make the payments. For a period of time, Amaro went as far as cancelling insurance for his planes, in an attempt to reduce costs. The morning after insurance was reinstated, on September 24, 1977, one of TAM's Learjets crashed on approach to Santos Dumont Airport. Despite no injuries, the aircraft was a total loss. However, with the cash from the Lear's insurance and the proceeds of the sale of a farm, Amaro concluded his purchase of TAM.
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In 1976, prior to Amaro's takeover, and following a federal law thatin 1975 created 5 regional airlines in Brazil, TAM had participated in a joint-venture with VASP (then a state-owned airline) to create a regional airline that would fly between São Paulo and Mato Grosso. The company, dubbed TAM Transportes Aéreos Regionais S/A (IATA code KK)[8] (TAM Regional Airlines), flew Embraer EMB 110 Bandeirantes at first. These, however, proved grossly inadequate for the task at hand, and even at full capacity needed to be subsidized by the government in order to be profitable.
TAM went on to purchase three used Fokker F27 turboprops, which were then refurbished by Fokker in Holland. In order to obtain the import authorization for the aircraft, a deal was struck with the government where TAM was forced to maintain 3 Bandeirantes for every F27, as well as removing 5 seats from each one, bringing the F27's capacity down to 40 passengers. A fourth F27, previously owned by Air New Zealand, was incorporated in 1981. TAM would eventually own 10 F27s by 1983.
By 1981, TAM had flown 1 million passengers, and 2 million by 1984.
In August 1986 the company, under financial stress, went public and began floating stock in the market. The same year, TAM - Transportes Aéreos Regionais (KK) acquired another regional airline, VOTEC, which operated in areas of northern and central Brazil. VOTEC was renamed Brasil Central Linhas Aéreas. TAM and Brasil Central, were both regional airlines and operated in different designated areas. They however operated as a consortium with integrated networks and fleet, being the most notable differences the flight-number IATA codes, the color scheme of the aircraft and the areas where they were authorized to operate: whereas TAM - Transportes Aéreos Regionais flights had the IATA code KK, Brasil Central operated with the code JJ inherited from Votec; each one kept a different color scheme and operated in their own designated areas.
On May 15, 1990 the Brazilian Government lifted restrictions on operational areas of regional airlines allowing them to fly anywhere in Brazil. As a consequence, Brasil Central was renamed TAM - Transportes Aéreos Meridionais, acquired the same color scheme of TAM (KK) but maintained the IATA code JJ. In 2000 TAM (KK) was merged into TAM (JJ) and TAM (JJ) was renamed TAM Transportes Aéreos. The IATA code KK ceased to be used.
In 1988, TAM flew its 3 millionth passenger.
Despite TAM's success in the market, it was evident the airline would not last long when competing against airlines such as Varig and VASP which already possessed Boeing 737s in their fleet. Amaro then tried to buy VASP, about to be privatized, and called the project "Revolution". Having lost the bid, he opted for a slower growth with a gradual addition of new aircraft, re-dubbed "Evolution".
On September 15, 1989, TAM arranged for the acquisition of two Fokker 100 jets, which had originally been ordered by the now-bankrupt Pan American World Airways. Like the F27s before them, TAM did not actually purchase them, but used Amaro's credibility to arrange for a third-party asset management company, Guinness Peat Aviation to purchase them and subsequently lease them back to TAM. Two more were added in 1991. In 1992, TAM carried its eight millionth passenger. By 1993, through the use of the Fokker 100 fleet which now numbered at 14, TAM was serving 56 cities in Brazil.
In 1996, TAM bought another air company, Helisul, which used the trade name of TAM. In 1997, TAM ordered its first large jets; the airline ordered 45 planes from Airbus, including 10 A330s, 4 A319s, and 34 A320s. In 1997, the Airbuses began to be delivered and the airline flew its first international service, from São Paulo to Miami International Airport.
Two years later, in 1999, services to Europe were inaugurated through a code share service with Air France, to Paris-Charles de Gaulle Airport. In 2000 the airline was renamed TAM Linhas Aéreas in Portuguese. Long running discussions to merge with Varig ended in 2004. In 2008, TAM transported 30,144,000 passengers, with an average load factor of 71%.[1]
As of 2010, the airline is owned by the Amaro family (46.25%), Amaro Aviation Part (3.52%), treasury stocks (0.27%) and minority shareholders (49.96%). It employs 24,000 staff.[1]
On March of 2010, the brazilian newspaper Jornal do Commercio do Rio de Janeiro published an article about TAM in which the airline and it's president were written about negatively. The article, titled "TAM-Mudanças a vista?", was written by a member of an online page named contatoradar.com.br. The airline took legal measures, and the article's writer, identified as one Andres Rodrigues, was arrested by Brazilian police.[9]
TAM Airlines has an extensive networking covering Europe, South and North America.
Many other destinations are operated trough code-share agreements, most of them by its partners airlines from Star Alliance (as TAM will join the alliance April 12), but also from others airlines such as LAN Airlines and Pluna.
TAM Cargo provides cargo services.
TAM Airlines (Paraguay) a Paraguayan airline owned by TAM
TAM Viagens provides vacation package services for Brazilians, while TAM Vacations provides vacation package services for Americans.[10][11]
TAM Jatos Executivos provides air services for business executives.
Pantanal Linhas Aéreas a airline company owned by TAM
Cine TAM is a theater in São Paulo owned by the airline company.
The passenger fleet consists of the following aircraft (as of October 2010):[12]
| Aircraft | Total | Passengers (First/Business/Economy) |
|---|---|---|
| Airbus A319-100 | 24 | 144 (0/0/144) |
| Airbus A320-200 | 80 | 174 (0/0/174) 156 (0/12/144) |
| Airbus A321-200 | 5 | 220 (0/0/220) |
| Airbus A330-200 | 16 | 223 (4/36/183) |
| Airbus A340-500 | 2 | 267 (42/225) |
| Boeing 767-300ER | 3 | 205 (0/30/175) |
| Boeing 777-300ER | 4 | 362 (4/56/302) |
| Fokker 100 | 6 | 117 (0/0/117) |
| Total | 133 |
On June 16, 2005, TAM announced the purchase of 20 additional Airbus A320 family aircraft (including all the models A319, A320 and A321), plus an additional 20 options. These are expected to be delivered between late 2007 and 2010, adding to the already scheduled delivery of 6 A320s between 2006 and 2008. At the same time, the company signed a memorandum of understanding with Airbus stating its intent to buy 10 of the new Airbus A350-900 (plus 5 options), with deliveries due to commence at the end of 2012. These are expected to replace the A330 on the Paris and Miami routes as they become available.[citation needed]
TAM has signed a firm contract with Airbus to acquire 37 additional aircraft. The order comprises 12 A319s, 16 A320s, 3 A321s and 3 A330s and includes 12 unspecified extra options. This would bring TAMs fleet, acquired directly from Airbus to 115 aircraft [14] The commitments are separate from deals last year for 29 firm-ordered A320s and 20 options. The deliveries are to be concluded by 2010.
On October 31, 2006, TAM announced an order for 4 Boeing 777-300ER wide-body planes plus options for another 4 planes of the same type. Deliveries of the 370-seat 777s will commence in 2008. On June 19, 2007, TAM exercised its options for the last 4 777s, bringing the total number of firm orders to 8 aircraft.[15]
TAM announced that on November 30, 2007, it would offer a new daily flight to Frankfurt am Main, Germany after receiving its second Airbus A340-500.[16][17]
Fleet maintenance is partly conducted at the technology center at São Carlos Airport [18]
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