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Tag Archives: TAM Airlines

LAN is facing a possible mechanics strike on June 26 in Lima, LAN Cargo breaks ground on a new hangar at Miami

LAN Airlines (Santiago) may be somewhat impacted by a possible strike by 70 percent of its LAN Peru (Lima) mechanics maintaining  LAN and TAM aircraft. The mechanics are based in Lima, Peru.

The International Transport Workers’ Federation-ITF has issued this statement:

The ITF (International Transport Workers’ Federation) LATAM network reports that it is hearing of concerns from passengers due to fly on LAN and TAM planes during a strike expected to begin in Peru on June 26. Unions report that more than 200 mechanics – over 70 percent of all LAN Peru mechanics – will not be certifying airplane flights during the strike, which is expected to affect operations across Latin America, including during the World Cup.

LAN Peru aviation mechanics are responsible for the security of the flights of LAN and TAM Airlines (the LATAM Airline Group), and their function is fundamental to the maintenance of the aircraft and the safety of flights.

On June 26-27 a strike is likely to take place, called by the SITALANPE trade union, which represents 70 per cent of all those mechanics. This is expected to result in cancellations and delays across the region. The mechanics are unequivocal: their labor is not replaceable because they are certified to work on the aircraft. “We are the ones that review the planes each time that they land and if we do not sign the logbook of the aircraft, they do not leave. Without our approval, no plane will be able to fly and therefore the whole company will stop,” explained Juan Carlos Talavera, a LAN Peru aviation mechanic and press secretary of SITALANPE.

Lima, Peru, is the central hub for maintenance work in the holding company that includes both the LAN and TAM Airlines. The Peruvian mechanics maintain the cargo and passenger aircraft for LAN Argentina, LAN Chile, LAN Ecuador, LAN Peru, and TAM and LAN Cargo.

Dario Castillo Alfaro, the leader of the LAN Chile mechanics’ union, commented: “Our mechanics’ union is supporting the Peruvian workers and is ready to express its solidarity and support. As Chileans, we are depending on our Peruvian co-workers to protect the aviation sector in Latin America from the kind of cost cutting in operations that threatens the security of our passengers. As LAN and TAM workers we know that on behalf of passengers and aviation workers, it is our obligation to inform customers of potential problems and risks. The future of aviation in South America is being threatened by the company’s refusal to negotiate in Peru and Argentina.”

In other news, LAN Cargo (Santiago), an affiliate of LATAM Airlines Group, S.A. and part of South America’s largest airline group comprised of LAN Airlines and its affiliates and TAM Airlines, officially broke ground on a new 98,242-square-foot state of the art maintenance hangar facility at Miami International Airport. The hangar will be LATAM Airlines Group’s first maintenance hangar in the United States. The project represents an investment of more than $15 million dollars and is estimated to create more than 300 new direct and indirect jobs in the first five years, further increasing LATAM Airline Group’s participation and commitment to economic growth in Miami-Dade County and the State of Florida.

The new facility includes state of the art design, technology, and meets the highest standards of environmental compliance. The innovative roof design with the tail cupola will accommodate Boeing 777-300 and Airbus A350 size aircraft, and still meet the applicable structure height requirements.

On June 23 ITF issued this subsequent announcement:

This week, the aviation unions of the ITF (International Transport Workers’ Federation) Network of LATAM Unions in Chile, Argentina, Ecuador, Peru and Colombia will be taking action to support the mechanics of LAN Peru and the flight attendants of LAN Argentina. The workers will inform passengers in the airport about the actions.

The passengers need to know that the demands of the LAN and TAM Airline workers are fair and that the company has the resources to resolve the conflicts. Aviation labour conditions impact the quality of life of workers and potentially the high standards of service on flights.

LAN Peru Mechanics

On June 26th and 27th, a planned strike of the mechanics union (SITALANPE), who represent 70 percent of the workforce, would affect flights in the country and the region. Licensed aviation mechanics are required to certify all aircraft.

LAN Argentina Flight Attendants

In Argentina, the flight attendants have suffered time and again delays in their collective rights. Since 2005, when the company began operations in Argentina, LAN has refused to sign a collective agreement to regulate the flight attendants’ working conditions.

LAN Peru union leader reports detention and threats in the Lima Airport

Juan Carlos Talavera Flores, the press secretary of the SITALANPE union of Peru, has reported that he was detained on Friday, June 20th. He reports that during his detention he was threatened by a security staff from the airport. The security staff introduced himself as being sent by LAN Peru. Mr. Talavera explained that this security staff member told him that LAN Peru was going to bring a legal notary to verify his assumed illegal actions.

Mr. Talvera explains that it was a confusing, frightening and strange action by LAN Peru to intervene with his detention. The leader of the mechanics union states that the police, and the security personnel of the airport sent by LAN Peru, detained him while he was distributing information to the passengers about delays and cancellations which would occur during the upcoming LAN Peru strike of June 26 and 27.

At the police station, the union leader reports that he was searched unfairly for drugs and incriminatory evidence. At the jail, he was threatened. Hours later he was released without charges.

Juan Carlos Talavera Flores, is a leader in the international solidarity campaign to protect aviation standards in South America. His detention was made while he was distributing information in the Jorge Chavez Airport in Lima and answering questions from passengers about the upcoming industrial actions and strikes in LAN and TAM airlines.

Copyright Photo: Bruce Drum/AirlinersGallery.com. LAN Cargo’s Boeing 767-316F ER CC-CZZ (msn 25756) approaches the runway at Miami International Airport (MIA).

LAN Cargo: AG Slide Show

LAN Airlines (Chile): AG Slide Show


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TAM Airlines doubles the number of overnight flights from New York to Sao Paulo

TAM Airlines (TAM Linhas Aereas) (Sao Paulo), part of LATAM Airlines Group, has just introduced seven weekly night frequencies between New York and São Paulo (Guarulhos). The new flight will double TAM’s overnight flights to Sao Paulo in August and replace the existing daytime flights JJ 8082 and JJ 8083.

The new flight JJ 8103 (New York – São Paulo/Guarulhos) will depart New York (JFK) at 10:00 p.m. (2200) and land in São Paulo at 8:50 a.m. (0850) with the return flight JJ 8102 departing São Paulo (Guarulhos) daily at 9:50 p.m.(2150) and arriving in New York (JFK) at 6:55 a.m. (0655).

The increase in these night services reflects customers’ preference for traveling overnight and arriving at their destinations in the early hours of the following day, either to participate in business meetings or to visit the city’s tourist attractions.

The new service will be operated by Boeing 767-300 aircraft (from LAN Airlines), whose interiors have been completely refurbished providing full-flat seats that recline 180o, as well as increased leg room in Business Class. Passengers in Business and Economy will also have access to individual on-board entertainment services in both cabins, with around 100 movies from diverse genres and TV series, and can listen to music and browse the duty free product catalog. Children can enjoy the exclusive entertainment package that consists of cartoons, movies and games.

The other seven night frequencies offered by TAM are currently operated by Boeing 777-300 aircraft under flight numbers JJ 8080 and JJ 8081. In line with the company’s objective of continuously improving its products, the Boeing 777-300 fleet will be refurbished starting in September (TAM is removing the first class section from the 777-300) and will be back in operation in March 2015 . During this period, the flights will be operated by TAM’s Airbus A330 aircraft.

Copyright Photo: Marcelo F. De Biasi/AirlinersGallery.com. Boeing 767-33A ER PT-MSU (msn 27376) completes its final approach back to the Sao Paulo (Guarulhos) base.


LATAM Airlines Group reports first quarter net income of $80.7 million, will phase out its Airbus A330s, A340s, Boeing 737s and Bombardier Q400s

LATAM Airlines Group (LAN Airlines and TAM Airlines) (Santiago) reported operating income of $146.7 million (US) for first quarter 2014 excluding non-recurring costs related to fleet restructuring. The increase of 28.5% as compared to the first quarter 2013 was driven by strong improvements in the results of LATAM’s passenger operations in most markets, especially in the Brazilian domestic operations, offset by the 18.5% depreciation of the Brazilian real over this period as well as by weaker results in the cargo business. Operating margin excluding fleet restructuring costs reached 4.6%, an increase of 1.2 points compared to 3.4% in 2013.

LATAM Airlines Group’s net income reached $80.7 million (US)  for first quarter 2014, excluding non-recurring costs related to fleet restructuring, compared to net income of $42.7 million (US) for the same period 2013.

The group further stated:

Having concluded a thorough review of its post-merger fleet plan and fleet requirements, and the changes in the competitive environment, the Company is undertaking a broad fleet restructuring plan with the aim of reducing the number of models operated, phasing out less efficient models and allocating aircraft best suited to each one of its markets. As a result, the Company expects to redeliver a significant number of aircraft between 2013 and 2016, and to fully phase out its Airbus A330s, A340s, Boeing 737s and Q400s. During the first quarter of 2014, LATAM has provided for estimated penalties related to anticipated redeliveries and other redelivery expenses expected to be incurred as a result of this process, recognizing non-recurring costs of $147 million (US). Of this total amount, $34 million(US) are recorded as aircraft maintenance operating expenses and $112 million (US) are recognized as Other Non-Operating Costs.

During the first quarter of 2014, LATAM continues to rationalize capacity in both passenger and cargo operations. As a result, passenger ASKs declined by 4.3% and cargo ATKs declined by 6.6% as compared to the first quarter of 2013. In the passenger markets, capacity cuts were mainly driven by reductions on international routes, which decreased by 7.5% as compared to the same period in 2013, and the continued rationalization of our domestic Brazil operations. Load factors continue to increase in all markets, reaching record levels at 82.7%.

On March 31, 2014, TAM celebrated its official entrance into the oneworld alliance. This allows TAM to offer customers an improved network in regions that are most important to them, and represents a significant milestone for LATAM Airlines Group as it continues to develop its international connectivity.

Copyright Photo: Marcelo F. De Biasi/AirlinersGallery.com. TAM is phasing out its Airbus A330s and its A340s as the group concentrates around its Boeing 767/777/787 fleet for its long-range flights. Airbus A340-541 PT-MSN (msn 445) in the 1999 color scheme arrives back at TAM’s Sao Paulo (Guarulhos) hub.


LAN Airlines (Chile): AG Slide Show

TAM Airlines (TAM Linhas Aereas): AG Slide Show

TAM Airlines is coming to Canada

TAM Airlines (TAM Linhas Aereas) (Sao Paulo) has been granted authority by the Agencia Nacional de Aviacio Civil (ANAC) of Brazil seven weekly frequencies for conducting mixed air services between Canada and Brazil.

The route is unspecified but it is most likely Sao Paulo-Toronto in competition with Air Canada.

Copyright Photo: Wingnut/AirlinersGallery.com. Airbus A330-203 PT-MVK (msn 486) of TAM taxies across the tarmac at London’s Heathrow Airport.

TAM Aircraft Slide Show: CLICK HERE

TAM joins Oneworld today

TAM 777-300 Oneworld (TAM)(LR)

TAM Airlines (TAM Linhas Aereas) (Sao Paulo), the Brazilian carrier of the LATAM Airlines Group, today (March 31) joined Oneworld, an airline alliance currently undergoing the largest expansion in its history.

This is one of the most important steps to achieve the entry of all LATAM Airlines Group into Oneworld. LAN Airlines has been a member of Oneworld since 2000 as well as all of its affiliates, namely LAN Argentina, LAN Colombia, LAN Ecuador and LAN Peru, have already joined. TAM’s affiliated airline in Paraguay (TAM Mercosur), will also join Oneworld soon. As a result, all passenger airlines of the LATAM Airlines Group will be members of the same alliance.

To celebrate this moment, today TAM’s first aircraft bearing the Oneworld logo will be on display at Congonhas Airport in Sao Paulo with the presence of CEOs and representatives of all Oneworld member airlines, who traveled to Brazil especially for this event.

As a result of the merger with LAN Airlines, TAM left the Star Alliance to join Oneworld.

Image: TAM.

TAM: AG Slide Show


LATAM Airlines Group’s 2013 operating profit increases by 605% to $643.9 million

LATAM Airlines Group (LAN Airlines and TAM Airlines) (Santiago) reported operating income of $234.9 million (US) for fourth quarter 2013, a 166% increase compared to the $88.3 million (US) operating income in fourth quarter 2012. Operating margin reached 6.9%, an increase of 4.4 points compared to 2.5% in 2012. This strong expansion in margins was driven by significant improvement in the financial results of the domestic Brazil operations and the rationalization of international passenger operations, as well as the continued progress of the integration process, synergy and efficiency initiatives.
During the fourth quarter of the year, and in line with the capacity cuts we had anticipated, we strongly decreased our total capacity as measured in ASKs by 4.5% as compared to the same period in 2012. This capacity rationalization was mainly a result of a strong decrease in capacity in our international network, which decreased by 6.5% as compared to the same period in 2012; and the continued rationalization of our domestic Brazil operations.
For full year 2013, LATAM reported operating income of $643.9 million (US), a 605% increase compared to the $91.4 million (US) in full year 2012 (pro forma). Operating margin reached 4.9% an increase of 4.2 points compared to 0.7% in 2012, in line with the guidance provided by the Company.

Read the full report: CLICK HERE

Top Copyright Photo: Alvaro Romero/AirlinersGallery.com. Airbus A320-233 CC-CQN (msn 3319) of Lan Airlines (Chile) arrives at Aeroparque (Jorge Newbery) (AEP) in downtown Buenos Aires.

LAN Airlines: AG Slide Show

TAM Airlines: AG Slide Show

Bottom Copyright Photo: Alvaro Romero/AirlinersGallery.com. Airbus A320-232 PR-MBH (msn 2904) taxies at Buenos Aires downtown airport, Aeroparque (Jorge Newbery).



TAM Airlines to start Fortaleza-Miami flights on May 31

TAM Linhas Aereas (TAM Airlines) (Sao Paulo) will introduce Fortaleza-Miami weekly flights with Airbus A330 aircraft starting on May 31 according to Airline Route.

Copyright Photo: Rolf Wallner/AirlinersGallery.com. Airbus A330-223 PT-MVO (msn 949) arrives in London (Heathrow).

TAM: AG Slide Show


LAN Colombia joins Oneworld, TAM to join on March 31, 2014

LAN Colombia (formerly AIRES Colombia) (Bogota) yesterday (October 1) joined the oneworld® alliance.


LAN Colombia, a company related to LATAM Airlines Group SA (LAN Airlines), has entered oneworld as an affiliate member.   LAN Airlines has been a full member of oneworld since 2000.  All its other passenger airline affiliates have subsequently joined the alliance as affiliate members – LAN Argentina, LAN Ecuador, LAN Peru and, from today, LAN Colombia – and, it was announced today, TAM will enter oneworld on 31 March 2014 with its Paraguayan affiliate to follow on a date yet to be confirmed.
This will bring all of the components of Latin America’s leading airline group into the world’s leading quality airline alliance, building on oneworld’s position as the first choice airline alliance for frequent international travelers within South America and worldwide.
LAN Colombia was welcomed into oneworld at a ceremony this morning at its Bogota base hosted by LAN Colombia’s Chairman Nicolás Cortázar, its Executive Director Hernán Pasman and its Corporate Director Maria Lara, with oneworld CEO Bruce Ashby, flying in from his New York base, LATAM Vice-President Strategic Alliances Soledad Berrios, from LAN Airlines’ Santiago head office, and senior representatives from the other oneworld airlines serving Colombia, led by American Airlines Managing Director Alliances Latin America Eduardo Marcos, from its Dallas-Fort Worth head office, and Iberia Country Manager María Consuelo Sánchez.
LAN Colombia’s Chairman, Nicolás Cortázar, said: “LAN Colombia is very proud to have joined oneworld.  For our company, it represents a significant milestone.  For our country, it significantly improves our access to the rest of the world, helping attract more business visitors and tourists, enabling Colombians to reach more of the world’s most important business centres worldwide and making it easier to travel the world from any of the destinations we serve throughout Colombia.”
Since its launch in December 2011, LAN Colombia has quickly established itself as the second biggest airline in South America’s second largest economy.  In total, it serves 24 airports in four countries with a fleet of 24 aircraft operating 130 departures a day.  It boarded 3.7 million passengers in 2012.
TAM Airlines (TAM Linhas Aereas) (Sao Paulo), a company related to LATAM Airlines Group, will join oneworld® with effect from March 31, 2014, adding the leading carrier in Brazil – Latin America’s biggest economy and largest market for air travel demand – to the world’s leading quality global airline alliance.
TAM’s entry into oneworld with effect from the first flights on March 31, 2014 will follow immediately upon its exit from the Star Alliance with effect from the final flights on March 30, 2014.
TAM serves 60 destinations in 16 countries in Latin America, the USA and Europe, with a fleet of 161 aircraft operating 800 departures daily.  It boarded 38 million passengers in 2012.
Three of oneworld’s existing members – American, Iberia and LAN – already serve three destinations in Colombia, in Bogota, Cali and Medellin.   LAN Colombia expands that to a total of 21 Colombian gateways.
Across South America, oneworld’s established member airlines already serve 71 destinations in 11 countries.  LAN Colombia and TAM add another 56 airports in the region to that network – with LAN Colombia bringing 18 airports on board and TAM.
Worldwide, with LAN Colombia, TAM and the other airlines lining up to join, oneworld will:
  • Serve almost a thousand airports in more than 150 countries, with 14,000 daily departures.
  • Carry 480 million passengers a year on a combined fleet of more than 3,200 aircraft.
  • Generate US$ 140 billion annual revenues.
The addition of LAN Colombia  and TAM from March 31, 2014 represents a cornerstone of oneworld’s biggest membership expansion yet.  Other elements elsewhere in the world include:
  • The addition of Malaysia Airlines, one of this industry’s most frequent award winners, six months ago, further strengthening oneworld’s position in South East Asia, one of the fastest growing regions for air travel demand.
  • The induction on October 30, 2013 of Qatar Airways, the only one of the “Gulf Big Three” carriers slated to join any of the global airline alliances and one of the world’s fastest growing and most highly rated airlines.  This will make oneworld the leading alliance in the Middle East, one of the world’s fastest growing regions for air travel demand.
  • The introduction early next year of SriLankan Airlines, as the first airline from the Indian subcontinent to join any global alliance, which, with Qatar Airways, will make oneworld the leading alliance in the region.
  • The proposed switch by US Airways from Star to oneworld as part of its planned merger with American Airlines, subject to necessary approvals.


Copyright Photo: Brian McDonough/AirlinersGallery.com. LAN Colombia’ Airbus A320-233 CC-CQN (msn 3319) prepares to land at Miami.

LAN and TAM take delivery of the first Airbus A320s with Sharklets

LAN (Chile) A320-200 WL D-AXAW (CC-BFK)(04)(Tko)(Airbus)(LRW)

LAN Airlines (Chile) (Santiago) and TAM Airlines (TAM Linhas Aereas) (Sao Paulo) (LATAM Airlines Group) each took delivery of their first Airbus A320s equipped with Sharklets. Powered by CFM, the LAN and TAM aircraft were delivered this week and will begin operating domestic routes within Chile and Brazil. The two airlines combined have ordered 380 aircraft and have more than 240 aircraft in operation. Their joint Airbus backlog totals nearly 180 aircraft.

Sharklets are made from light-weight composites and are 2.4 meters tall. They are an option on new-build A320 Family aircraft and allow Airbus’ airline customers to reduce fuel burn up to four percent over longer sectors and reduce approximately 1,000 tons of CO2 emissions per aircraft per year. Sharklets offer operators the flexibility of either adding an additional 100 nautical miles range or increased payload capability of up to 450 kilograms.

Top Copyright Photo: Airbus. A320-214 D-AXAW became CC-BFK (msn 5548) and was handed over to LAN on April 18 followed by CC-BFL (msn 5554) on the following day.

Meanwhile TAM received Airbus A320-214 PR-MYY (msn 5591) on April 23.

LAN Airlines: AG Slide Show

TAM to join the Oneworld Alliance

LATAM Airlines Group (LAN Airlines and TAM Linhas Aereas) (Santiago) today confirmed its selection of oneworld® as the global alliance for all its passenger airlines.

The decision, announced at a meeting of the oneworld Governing Board held in Hong Kong today, means:
  • Brazil’s TAM Airlines will leave the Star Alliance to join oneworld, along with its Paraguay subsidiary.  Their transition is expected to be completed during 2014’s second quarter.
  • LAN Colombia, the latest part of LAN, will join oneworld as an affiliate member, in the fourth quarter of 2013.
With Chile’s LAN Airlines flying as a full member of oneworld since June 2000 and LAN Argentina, LAN Ecuador and LAN Peru added since as affiliate members, today’s announcement will bring all of Latin America’s top airline group into the same global airline alliance, alongside 11 of the other leading carriers from around the world and 30 of their affiliates.
An exact date for TAM’s departure from the Star Alliance will be announced in due course.  The intention is for it to become part of oneworld immediately after it exits Star.
Copyright Photo: Keith Burton. TAM Brasil’s (TAM Linhas Aereas) Boeing 777-32W ER PT-MUE (msn 38886) arrives at London (Heathrow).
LAN: AG Slide Show
TAM: AG Slide Show

American Airlines expands its partnership with the LATAM Airlines Group with new codeshare agreements with TAM and LAN Colombia

American Airlines (Dallas/Fort Worth), which offers more flights to more destinations in Latin America than any other U.S. airline, has signed agreements to codeshare with both TAM Airlines (TAM Linhas Aereas) (Sao Paulo) and LAN Colombia (Bogota), representing a solid stepping stone in building a stronger bilateral relationship between American and LATAM Airlines Group. Once approved, these new codeshare relationships will provide expanded opportunities for American to serve new markets in Brazil and Colombia and for TAM Airlines and LAN Colombia in the United States.

In addition, American plans to operate a new Dallas/Fort Worth (DFW) – Bogota (BOG) route beginning in late 2013. American will also add service to Curitiba (CWB) and Porto Alegre (POA), Brazil from Miami beginning in late 2013, demonstrating its mission to provide customers with expanded options through a growing network footprint in Latin America. With the addition of Curitiba and Porto Alegre, American will serve nine destinations in Brazil.

Once the codeshare agreements are approved, these new relationships will provide American’s customers seamless connecting service within Colombia and Brazil.  At the same time, this partnership will allow TAM and LAN Colombia’s customers access to new destinations in the U.S. such as Boston, Chicago, Dallas/Fort Worth, Las Vegas and Seattle.

TAM operates nearly 5,600 weekly flights to 42 destinations throughout Brazil as well as 18 international destinations in the United States, Latin America and Europe. LAN Colombia operates more than 930 weekly flights to cities throughout Colombia as well as destinations in Brazil and the United States. From its Bogota hub, LAN Colombia offers 134 daily flights, including service to 20 Colombian cities.

American offers codeshare service, with fellow oneworld® alliance member LAN Airlines, to cities throughout South America from LAN’s hubs in Chile, Argentina, Ecuador and Peru.

The new route between DFW and Bogota complements American’s existing service to Colombia through Miami (MIA), where it offers up to 35 nonstop flights per week to Bogota, Cali and Medellin. American’s MIA and DFW hubs allow it to serve 90 percent of U.S. – Latin America traffic more efficiently than any other airline’s combination of hubs. American offers more service to South America than any other U.S. airline.

American also offers the most service between North America and Brazil, American currently serves Brazil from Miami to Belo Horizonte, Brasilia, Manaus, Recife, Rio de Janeiro, Salvador and Sao Paulo; from New York JFK to Rio de Janeiro and Sao Paulo; and from Dallas/Fort Worth to Rio de Janeiro and Sao Paulo. In addition, early next year the Dallas/Fort Worth – Sao Paulo flight will be the first to feature the newest addition to American’s fleet, the Boeing 777-300 ER.

Top Copyright Photo: Bernardo Andrade. Boeing 767-323 ER N354AA (msn 24035) arrives at Rio de Janeiro ‘s Galeao Antonio Carlos Jobim International Airport.

American Airlines: AG Slide Show

TAM Linhas Aereas: AG Slide Show

Bottom Copyright Photo: Keith Burton. Airbus A330-223 PT-MVC (msn 247) of TAM Linhas Aereas arrives at London (Heathrow).

TAM Airlines to retire the Boeing 767-300 on December 17

TAM Linhas Aereas (TAM Airlines) (Sao Paulo) is planning to retire its last Boeing 767-300 on December 17 according to Airline Route. The venerable wide body is being replaced by newer Airbus A330-200s.

Copyright Photo: Bernardo Andrade. Boeing 767-33A PT-MSU (msn 27376) prepares to land at Rio de Janeiro (Galeao).

TAM Airlines: 

Frameable Color Prints and Posters: 


LATAM reports its first quarterly statement, a net profit of $49.7 million in the second quarter

LATAM Airlines Group S.A. (LAN Airlines and TAM Linhas Aereas) (Santiago) has announced a second quarter net profit of $49.7 million. This is the first financial report for the group. Here is the full statement.

“LATAM Airlines Group has announced its consolidated financial results for the second quarter and for the six months ended June 30, 2012. “LATAM” or “the Company” makes reference to the consolidated entity, which includes passenger and cargo airlines in Latin America. All figures were prepared in accordance with International Financial Reporting Standards (IFRS) and are expressed in U.S Dollars, except for TAM S.A. (“TAM”) second quarter 2012 Income Statement figures, which are expressed in Brazilian reais.


  •   LATAM Airlines Group S.A. today reported its first consolidated financial results for the second quarter and first half of 2012, following the successful completion of the exchange offer and mergers that combined the businesses of LAN Airlines S.A. and TAM S.A. (“TAM”). Because the transaction was completed on June 22, 2012, results for the period ended June 30, 2012 include the last eight days of TAM results, from June 23 to June 30, 2012.
  •   Net income of LATAM Airlines Group reached US$49.7 million in the second quarter 2012. Operating income reached US$23.2 million, resulting in a 1.5% operating margin for the second quarter 2012. Consolidated LATAM results include net income of US$46.3 million and an operating loss of US$13.9 million corresponding to the eight days of consolidation of TAM between June 23 and June 30, 2012. Non-operating results for this eight day period reflect a foreign exchange gain of US$57,4 million and a positive mark-to-market of fuel hedging derivatives in the amount of US$ 26,7 million, as a result of the appreciation of the Brazilian real and an increase in the price of fuel, respectively, during the last eight days of the quarter.
  •   The second quarter 2012 presented a challenging environment due to reduced cargo demand and the depreciation of local currencies, especially the Brazilian real. However, passenger demand in most of Latin America remains solid and the successful completion of the business combination between LAN and TAM provides the Company with a more diversified revenue base and significant growth and synergy opportunities. Furthermore, the domestic Brazil market has shown sustained capacity discipline, providing the basis for improved profitability.
  •   LATAM Airlines Group is advancing in the process of achieving the expected synergies from the business combination with TAM. Regarding its international passenger operations, the Company has established fare combinability between LAN and TAM, cross selling of LAN and TAM flights, and code shares on various international routes, such as Santiago – Orlando, Santiago – Madrid, and Santiago – London. Cross selling will assist the Company in capturing connectivity synergies by offering our customers a single network in a one- stop shop.
  •   In July 2012, the cargo divisions of LAN and TAM were integrated, taking advantage of the highly complementary nature of their operations.
  •   On September 4, 2012, LATAM Airlines Group will hold an Extraordinary Shareholders’ Meeting in order to reelect the Board of Directors of the Company, as well as to approve the placement, through a preemptive rights offering to LATAM shareholders, of the remaining 7,436,816 shares of the Company that were authorized for the TAM exchange offer, and that were not exchanged.

LATAM Airlines Group S.A. 2Q12

  •   During the remainder of 2012, LATAM expects to receive 12 Airbus A320 family aircraft to operate domestic and regional routes, as well as 8 Boeing 767-300, 4 Boeing 777-300 and the first 3 Boeing 787-8 Dreamliners for long- haul routes. The Company will also take delivery of 2 Boeing 777 freighter aircraft.
  •   LAN Airlines S.A. (renamed LATAM Airlines Group S.A.) – excluding the consolidation of TAM – reported net income of US$5.2 million for the second quarter of 2012, a decrease of 67.5% compared to the US$15.9 million reported in second quarter 2011. Operating income reached US$37.1 million, a 33.5% decrease compared to the US$55.8 million in second quarter 2011. Operating margin reached 2.6%, a decrease of 1.6 points compared to 4.2% in 2011. The Company continued to show strong passenger revenue growth, despite a seasonally low quarter, partially offsetting the impact of a more challenging environment in the cargo business, as well as the ongoing development of LAN Colombia’s operations. In addition, operating results include a one-time cost of US$7.1 million related to the successful completion of the collective bargaining process with certain unions, as well as US$9.2 million in transaction costs related to the business combination with TAM.
  •   TAM reported a net loss of R$928.1 million, compared to net income of R$60.3 million reported in second quarter 2011. For the second quarter 2012, TAM reported an operating loss of R$284.2 million, compared to the R$8.8 million gain in second quarter 2011. Operating results were mainly impacted by a 23.0% depreciation of the Brazilian real and decreased revenues from Multiplus, resulting from accounting changes in the recognition of such revenues implemented in the first quarter 2012. Non-operating results reflect a foreign exchange loss of R$845.9 million, and the negative mark-to-market of fuel hedging derivatives in the amount of R$93.6 million, resulting from the depreciation of the Brazilian real and the decrease in fuel prices, respectively, as compared to March 31, 2012.”

    Copyright Photo: Michael B. Ing. Boeing 767-316 ER CC-CEB (msn 26327) climbs away from Los Angeles International Airport on a very clear day.

    LAN Airlines (Chile): 

    TAM Linhas Aereas: 

TAM to start daily nonstop Rio de Janeiro-Orlando service on October 29

TAM Linhas Aereas (TAM Airlines) (LANTAM Airlines Group) (Sao Paulo) will now launch the daily nonstop Rio de Janeiro (Galeao)-Orlando route with Airbus A330-200s on October 29 according to Airline Route.

In addition, the airline will upgrade the daily Sao Paulo (Guarulhos)-Miami route to the pictured Boeing 777-300 ER starting on September 19.

Copyright Photo: Nick Dean. Climbing beautifully, brand new Boeing 777-32W ER PT-MUD departs from the runway at Paine Field near Everett.


LAN and TAM announce new synergy estimate for LATAM Airlines Group

LAN Airlines S.A. (Santiago) and TAM S.A. (Sao Paulo) have announced a revised estimate of the synergies expected to be achieved through the merger of the two airlines to create LATAM Airlines Group S.A.

LAN and TAM estimate that the combined synergies arising from the proposed combination could increase LATAM Group’s annual operating income over time by between $600 million and $700 million, before depreciation and taxes, beginning four years after completion of the transaction. This represents a 50% to 75% increase over the initial synergy estimate of $400 million per year, which the companies announced in August 2010.

The new estimate, which is based on work performed by the companies together with consultants McKinsey & Company and Bain & Company over the past ten weeks, reflects further revisions and updates of the expected combined cost savings and revenue generating opportunities arising from the proposed combination and includes best practice sharing benefits that have been identified in certain areas. Of the total expected annual pre-tax synergies, between $170 million and $200 million may be achieved within the first year after completion of the transaction.

According to both airlines, approximately 40% of the total potential synergies will be generated from increased revenues from the passenger business, 20% will be generated from increased revenues from the cargo business and the remaining 40% of the potential synergies will be generated by cost savings. Beginning four years after the completion of the proposed combination, the breakdown of expected annual pre-tax synergies is estimated to be as follows:

Between $225 million and $260 million is expected to derive from increased revenues resulting from the combination of LAN’s and TAM’s passenger networks and the addition of new flights;

Between $120 million and $125 million is expected to derive from increased revenues attributable to new services and best practice sharing in the cargo business;

Between $15 million and $25 million is expected to derive from the consolidation of, and best practice sharing in, the frequent flyer programs of both companies;

Between $100 million and $135 million is expected to derive from cost savings relating to the coordination of airport and procurement activities which should allow LATAM Group to leverage economies of scope and scale;

Between $20 million and $25 million is expected to derive from cost savings resulting from the coordination and improved efficiency of maintenance operations which should allow LATAM Group to leverage economies of scale; and

Between $120 million and $130 million is expected to derive from cost savings resulting from the convergence of LAN’s and TAM’s information technology systems, the increased efficiency of combined sales and distribution processes, and the increased efficiency in corporate overhead costs.

The estimated revenues and cost savings expected to result from the synergies and best practice sharing described above do not include any implementation costs. LAN and TAM expect that the one-time merger costs, including banking, consulting and legal advisory fees, to be incurred during 2012 and the investments required over the term of the synergy capture period to achieve the above-mentioned synergies will be between US$170 million and US$200 million in the aggregate. Finally, LAN and TAM expect reduced investments from avoided engine and spare part purchases of approximately US$150 million, which are expected to occur over the synergy capture period.

For a full version of this release, please visit www.lan.com.

Copyright Photo: Arnd Wolf. Please click on the photo for additional information.


LAN shareholders approve merger with TAM

LAN Airlines (Santiago) announced that at an Extraordinary Shareholders Meeting held in Santiago, Chile, LAN shareholders approved the merger of LAN with Sister Holdco S.A. and Holdco II S.A., two special purpose companies created exclusively for purposes of this transaction, where shares of TAM S.A. will be held, directly or indirectly, prior to their consolidation into LAN. LAN will be the surviving entity, with an exchange ratio set at 0.9 LAN shares for each share of the absorbed companies, and will be renamed LATAM Airlines Group S.A., subject to (i) the terms and conditions of the binding contracts between both parties; and (ii) a final decision, on or before April 30, 2012, in the pending Reclamación before the Chilean Supreme Court that seeks the approval of the proposed business combination between LAN and TAM.

LAN shareholders approved the merger on the proposed conditions by a broad majority, with over 99.99% of shares present at the meeting. The shareholders meeting also approved a change to the Company’s corporate name, and other necessary transactions contemplated in the agreements between the parties.

This approval is an important milestone in the implementation of the merger proposal between LAN and TAM, which is expected to be concluded by the end of the first quarter 2012.

Copyright Photo: Alvaro Romero. Please click on the photo for additional information.


Brazil’s antitrust authority (CADE) approves merger between LAN and TAM in a unanimous vote

The Council for Economic Defense (CADE) yesterday (December 14) approved the merger between LAN Airlines (Santiago) and TAM Airlines (TAM Linhas Aereas) (Sao Paulo) in an unanimous vote.

This is the final regulatory hurdle for the merger into a new holding company.

Both airlines would continue operating separately with their own brands.

Read the full story from Bloomberg Businessweek: CLICK HERE

TAM reports a weak third quarter, goes into the red

TAM Airlines (TAM Linhas Aereas) (Sao Paulo) reported a net loss of $380.2 million in the third quarter, down from a profit of $421.6 million in the same quarter a year ago.

Copyright Photo: Nick Dean.


TAM finalizes order for 32 A320 Family aircraft, including 22 A320neo aircraft

TAM Linhas Aereas (TAM Airlines) (Sao Paulo) has finalized a purchase agreement for 32 Airbus A320 aircraft, comprising of 22 A320neo and 10 A320 Family aircraft. The order follows a Memorandum of Understanding (MOU) signed last February. Engine selection will be announced by the airline at a later date.

To date, TAM has ordered over 200 Airbus aircraft, including 27 A350-900, and operates nearly 150 Airbus aircraft to 43 destinations within Brazil and 18 destinations throughout Europe, the United States and South America. The airline, which turned 35 this year, is among the largest A320 Family operators, with 125 in total, including 30 A319s, 86 A320s and nine A321s.

Image: Airbus.


Boards of LAN and TAM agree to continue with the merger and aim for completion by the end of the first quarter 2012

LAN Airlines (Santiago) has issued the following statement concerning the proposed merger with TAM:

“After thorough analysis of the content and implications of the resolution of the Tribunal de Defensa de la Libre Competencia de Chile (TDLC), Chile’s antitrust court, regarding the merger process between LAN Airlines S.A. and TAM S.A., the Boards of Directors of both companies have confirmed their decision to move forward with the transaction.

LAN and TAM believe the mitigation measures imposed by the TDLC do not significantly impact the synergies generated by the transaction and do not modify in any material respect the companies’ joint strategic development plans. From the analysis, the estimated impact on the expected synergies would not exceed US$10 million per year, reducing by such amount the total previously announced synergies of US$400 million.

The mitigation measures considered in the judgment by the TDLC are broadly in line with the measures that LAN and TAM were prepared to accept in January 2011 in the out-of-court settlement negotiated with the Fiscalía Nacional Económica (FNE), Chile’s antitrust authority. Nevertheless, on October 3, LAN and TAM presented an appeal before the Supreme Court objecting three of the mitigation measures which the companies deem to be unconstitutional and disproportionately severe.

The three measures being appealed are:

1.- the seventh condition, which establishes the obligation to submit for approval ex – ante certain code share agreements that LATAM Group may have reached with airlines outside of its chosen alliance. This is unnecessary considering the existence of an alternative measure, which requires the company to inform the FNE of all such agreements so that it may analyze and determine if they are detrimental to the competitive environment;

2.- the eight condition, which establishes the obligation to give up four fifth freedom rights to Lima, Peru. This condition goes against a 2009 ruling of the Supreme Court, which overturned a previous ruling of the TDLC which attempted to impose measures that would have had the same impact; and

3.- the fourteenth condition, which provides excessive intrusive powers to the FNE and to the consultant that the TDLC requires the company to hire to collaborate in the surveillance process. The company considers that the proposed “unrestricted, total, permanent and continuous” access that this consultant would have, both in and outside of Chile, to LATAM Group’s data bases, systems, accounting, installations, offices, call centers and others, is unlimited and differs from what is provided for by law since it lacks previous judicial controls and is therefore illegal in that it affects constitutional rights.

In its appeals before the Supreme Court, it is highlighted that the seventh and fourteenth measures have legitimate legal and constitutional alternatives which are in accordance with the underlying spirit of the measures proposed by the TDLC.

LAN and TAM confirm their commitment to implement the merger in the shortest possible timeframe, which they expect to be towards the end of the first quarter 2012. It is important to highlight that LAN and TAM plan to move forward, in parallel with the Supreme Court appeal process, with the various regulatory and corporate authorizations that are still required to complete the transaction.”


Copyright Photo: Alvaro Romero. Please click on the photo for additional information.

Chile’s antitrust court approves the LAN and TAM merger, with conditions

LAN Airlines S.A. (Santiago) and TAM S.A. (TAM Linhas Aereas) (Sao Paulo) yesterday (September 21) announced that Chile’s antitrust court, Tribunal de Defensa de la Libre Competencia (TDLC), approved the merger between LAN and TAM. This represents one more step in the process which both companies have followed to complete the transaction.

Currently, LAN Airlines and its affiliates operate 125 passenger aircraft while LAN Cargo and its respective affiliates have a fleet of 14 dedicated freighters.

TAM, including Pantanal, operates direct flights to 45 cities in Brazil and 18 cities in South America, the United States and Europe. Through agreements with companies in Brazil and abroad, TAM’s network encompasses a further 92 airports in Brazil and 92 international destinations, including Asia. The company was founded in 1976 and currently operates 153 aircraft.

The antitrust court’s resolution is complex and considers a series of mitigating measures. Therefore, both companies are currently analyzing in depth the implications and impact of the measures imposed by the court.

On August 13, 2010, LAN signed a non-binding agreement with TAM to merge and to also form the LATAM Airlines Group.


Copyright Photo: Alvaro Romero.

JetBlue announces a new interline agreement with TAM

JetBlue Airways (New York) has announced a new interline partnership with TAM Airlines (TAM Linhas Aereas) (Sao Paulo). This new partnership gives customers convenient options when connecting between the two carriers at New York’s JFK Airport and Orlando’s MCO Airport.

TAM, the largest carrier in Brazil, offers multiple daily departures from New York (JFK) to Brazil – to Rio de Janeiro (Galeão) and São Paulo (Guarulhos) – as well as twice-daily service between Orlando and São Paulo. According to the airline, JetBlue customers will enjoy new access to TAM destinations including Asunción, Paraguay; Buenos Aires, Argentina; Montevideo, Uruguay; Santiago, Chile; plus 45 cities across Brazil.

Copyright Photo: Ken Petersen.

JetBlue Slide Show: CLICK HERE

TAM exceeds expectations, posts first quarter profit of $78 million

TAM Linhas Aereas (Sao Paulo) returned to the black in the first quarter by posting a net profit of $78 million.

Read the full report from Bloomberg: CLICK HERE

Copyright Photo: Nick Dean. Please click on the photo for additional aircraft information.

TAM signs MOU for 22 A320neo and 10 A320 Family aircraft

TAM Linhas Aereas (Sao Paulo) today signed a Memorandum of Understanding (MOU) for 22 A320neo and 10 A320 Family aircraft. When signed as a contract, the order will make TAM the launch customer for the A320neo in Latin America.

Copyright Photo: AirSpeed. Please click on the photo for additional information.

TAM ‘s stockholders to inject another $81 million

TAM Linhas Aereas’ (Sao Paulo) stockholders will inject another $81 million in equity into the company through the issuance of new stock according to this report by Reuters.

Read the report:


Copyright Photo: Marcelo F. De Biasi. Recently-delivered Airbus A330-223 PT-MVT (msn 1118) climbs from Sao Paulo (Guarulhos).

TAM Airlines firms up order for 20 Airbus A320 Family aircraft and five A350-900s

TAM Airlines (TAM Linhas Aereas) (Sao Paulo) has signed a firm order for 25 Airbus aircraft, bringing the Brazilian airline’s total Airbus order book to 176. This order for 20 A320 Family aircraft and five A350-900s follows the Memorandum of Understanding (MOU) announced at ILA Berlin Air Show in June.

TAM’s new A320 Family aircraft will replace existing A320 Family aircraft as part of the airline’s commitment to keep an average fleet age of six years.

As of today, TAM’s total Airbus orders have increased to 134 A320 Family aircraft, 15 A330-200s and 27 A350 XWB. 65 Airbus A320 Family aircraft, two A330-200s and 27 A350 XWB are still in the backlog.

Copyright Photo: Marcelo F. De Biasi. TAM’s sleek Airbus A320-232 PR-MBO (msn 3156) painted in the Star Alliance motif climbs away from Sao Paulo (Guarulhos).

TAM signs MOU for 20 A320 Family aircraft and five A350-900s

Copyright Photo: Marcelo F. De Biasi. Please click on photo for full view, information and other photos.

TAM Airlines (TAM Linhas Aereas) (Sao Paulo), Airbus’ biggest customer in the southern hemisphere and Brazil’s largest airline company, announced an order for 20 new Airbus A320 Family and five A350-900 aircraft, bringing the Brazilian airline’s total Airbus orders to 176 aircraft, including 134 A320 Family, 15 A330-200s and 27 A350 XWB aircraft. The Memorandum of Understanding outlining the order was signed during the ILA Air Show in Berlin.

The new A350-900 aircraft will be powered by Rolls Royce engines. TAM is yet to select engines for the new 20 A320 Family aircraft. The airline currently operates its existing fleet of A320 Family with both CFM and IAE engines.

TAM’s incremental A320 Family aircraft order will, in accordance with the airline’s fleet plan, replace existing A320 Family aircraft as part of their commitment to keep an average fleet age of six years. Both the A320 Family and A350 XWBs fleet will serve the carrier’s existing routes.

TAM to create a holding company

TAM Linhas Aereas (Sao Paulo) is creating a holding company according to this Reuters report.

Read the full report:


In other news, TAM is looking at acquiring 20 aircraft in the 100 to 150-seat range as part of a new plan to expand the operation of recently acquired regional carrier Pantanal Linhas Aereas according to Flightglobal.

Read the full report:


TAM Airlines (TAM Linhas Aereas) is in talks to buy a share of LAN Airlines

TAM Airlines (TAM Linhas Aereas) is in talks to acquire a share of LAN Airlines (Santiago) owned by President-elect Sebastian Pinera, Brazilian magazine Exame reported late on Thursday on its website according to Reuters. TAM is interested in acquiring a 19 percent stake in LAN held by Pinera’s holding company Axxion.

News link:


Copyright Photo: Bruce Drum.

TAM buys Pantanal for $7.3 million

TAM Airlines (Sao Paulo) has acquired Pantanal Linhas Aereas (Sao Paulo) for $7.3 million and will develop the small airline into a much larger feeder airline. Ironically TAM started as an air taxi company and later a regional carrier.

Please click on the AG icon for a direct link to the TAM photo gallery.

News link:


TAM’s CEO suddenly resigns

Copyright Photo: Keith Burton.  Please click on photo for full view, information and other photos.

Copyright Photo: Keith Burton. Please click on photo for full view, information and other photos.

TAM Airlines’ (TAM Linhas Aereas) (Sao Paulo) Chief Executive Officer (CEO) (David Barioni Neto) suddenly resigned after almost two years. He was replaced temporarily by Libano Miranda Barroso.

News link:


TAM Airlines’ Brazilian football logojet

A close-up of the football (soccer) nose like Lufthansa.  Copyright Photo: Wade DeNero.

A close-up of the football (soccer) nose like Lufthansa. Copyright Photo: Wade DeNero.

Rolling into position for takeoff at MIA is A330-223 PT-MVP (msn 961) of TAM in the special "Seleção Brasileira color scheme.  TAM has been the official carrier since 2007.  Copyright Photo: Wade DeNero.

Rolling into position for takeoff at MIA is A330-223 PT-MVP (msn 961) of TAM in the special “Seleção Brasileira color scheme. TAM has been the official carrier since 2007. Copyright Photo: Wade DeNero.

TAM Airlines (TAM Linhas Aereas) (Sao Paulo) in June 2009 introduced this new logojet in support of Brazilian football team.


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