Category Archives: LATAM Airlines Group

Delta to add 13 new daily nonstops to Miami in support of LATAM

Delta Air Lines will add 13 new daily nonstop flights to Miami International Airport (MIA) from hubs and top corporate travel destinations around the U.S., including new service from Orlando, Raleigh-Durham, Salt Lake City and Tampa.

With this expanded network, Delta will offer 41 daily non-stop options between 10 U.S. airports and Miami, with all flights offering Delta’s award-winning First Class and Delta Comfort+ product, in addition to the carrier’s signature operational reliability and industry-leading service. Delta’s partnerships today extend its Miami reach across the globe to 12 international nonstop destinations, with LATAM offering 10 additional international destinations from Miami.

In addition to providing Delta’s Miami-based customers with more options throughout the airline’s network, Delta’s new flight schedule will be timed to maximize connectivity with LATAM. The two airlines are conveniently co-located at MIA, allowing swifter connecting times for customers.

The new flights will be available for sale beginning Saturday, Jan. 18, 2020, and will begin operating by summer 2020.

Delta’s increased service into MIA is part of the carrier’s developing partnership with LATAM, announced late last year. This strategic partnership would bring together the leading airlines in North and South America, offering significantly expanded travel options for customers with access to 435 destinations worldwide.

Together, Delta and LATAM will create the most comprehensive combined carrier network throughout the Americas, carrying more passengers between North and South America than any other partnership. Customers will benefit from significantly expanded travel choices across the Americas and an industry-leading, increasingly seamless customer experience, including reciprocal loyalty program benefits. The enhanced cooperation is subject to governmental and regulatory approvals.

Delta and LATAM recently announced plans to launch codeshare sales for select flights operated by certain LATAM affiliates in Colombia, Ecuador and Peru beginning in the first quarter of 2020, pending receipt of applicable government approvals.

The schedule for Delta’s new MIA flights is as follows:

Direction Departs Arrives Aircraft Type Service Begins
Miami to Orlando 8:35 9:46 Embraer ERJ-175 5/4/2020
Noon 13:11 Embraer ERJ-175 5/4/2020
15:25 16:36 Embraer ERJ-175 5/4/2020
18:50 20:02 Embraer ERJ-175 5/4/2020
22:10 23:21 Embraer ERJ-175 5/4/2020
Orlando to Miami 6:40 7:47 Embraer ERJ-175 5/4/2020
10:20 11:28 Embraer ERJ-175 5/4/2020
13:45 14:53 Embraer ERJ-175 5/4/2020
17:10 18:18 Embraer ERJ-175 5/4/2020
20:35 21:43 Embraer ERJ-175 5/4/2020
Miami to Raleigh-Durham 9:45 11:57 Embraer ERJ-175 5/22/2020
20:30 22:49 Embraer ERJ-175 5/22/2020
Raleigh-Durham to Miami 6:45 9:03 Embraer ERJ-175 5/22/2020
17:15 19:35 Embraer ERJ-175 5/22/2020
Miami to Salt Lake City 9:45 12:51 Boeing 737-800 7/28/2020
Salt Lake City to Miami 13:45 20:27 Boeing 737-800 7/28/2020
Miami to Tampa 8:45 9:49 Embraer ERJ-175 5/4/2020
Noon 13:08 Embraer ERJ-175 5/4/2020
15:20 16:27 Embraer ERJ-175 5/4/2020
18:40 19:50 Embraer ERJ-175 5/4/2020
22:15 23:23 Embraer ERJ-175 5/4/2020
Tampa to Miami 6:45 7:54 Embraer ERJ-175 5/4/2020
10:20 11:27 Embraer ERJ-175 5/4/2020
13:40 14:46 Embraer ERJ-175 5/4/2020
17:00 18:09 Embraer ERJ-175 5/4/2020
20:25 21:36 Embraer ERJ-175 5/4/2020

A portion of travel for some itineraries may be on Delta Connection® carriers.

Photos: Delta Air Lines.

Delta, LATAM to launch codesharing as carriers build leading partnership in Latin America

Delta Air Lines and LATAM Airlines will launch codesharing for flights operated by certain LATAM affiliates in Colombia, Ecuador and Peru beginning in the first quarter of 2020, pending receipt of applicable government approvals.

The codeshare will offer customers increased connectivity between up to 74 onward destinations in the United States and up to 51 onward destinations in South America.

Delta expects to expand codeshare opportunities to include more destinations in the near future. The airlines are also working toward introducing frequent flyer program reciprocity and reciprocal lounge access.

In September, Delta and LATAM announced an agreement that would bring together the leading airlines in North and South America, which once fully implemented will offer significantly expanded travel options for customers with access to 435 destinations worldwide. The enhanced cooperation is subject to governmental and regulatory approvals.

LATAM also made this announcement:

LATAM Airlines Group has announced that its affiliates LATAM Airlines Peru, LATAM Airlines Colombia and LATAM Airlines Ecuador have signed codeshare agreements with Delta to provide greater connectivity with the United States starting the first quarter of 2020, subject to applicable regulatory approval.

The new codeshares follow the announcement of LATAM’s and Delta’s framework agreement on September 26, 2019, which will combine the carriers’ highly complementary route networks to provide customers with a seamless travel experience and greater connectivity to destinations worldwide.

The carriers are working to provide a smooth transition through the strengthening of their existing interline agreement, establishing reciprocal lounge access and mutual frequent flyer benefits as well as developing bilateral codeshare agreements.

The three codeshare agreements signed with Delta today (December 2, 2019) will offer LATAM customers the possibility to connect to up to 74 onward destinations in the United States and Canada and will open up to 51 onward destinations for Delta passengers in South America*. Starting the first quarter of 2020:

  1. LATAM Airlines Peru’s ‘LA’ code will be added to Delta flights from New York/JFK, Miami, Los Angeles and Orlando to up to 74 onward destinations in the United States and Canada. Likewise, Delta’s ‘DL’ code will be added to LATAM Airlines Peru flights between Lima and up to 34 onward destinations in Peru and South America.
  2. Delta’s ‘DL’ code will be added to LATAM Airlines Colombia flights from Bogota and Cartagena to up to 13 onward destinations in Colombia.
  3. LATAM Airlines Ecuador’s ‘LA’ code will be added to Delta flights between New York/JFK and up to 55 onward destinations in the US and Canada. Similarly, Delta’s ‘DL’ code will be added to LATAM Airlines Ecuador flights between Quito and up to four onward destinations in Ecuador.

LATAM also plans to establish codeshare agreements between Delta and its affiliates in Chile and Brazil in 2020*, offering even greater connectivity between South America and the U.S.

End of codeshare agreements with American Airlines

LATAM will formally end all its codeshare agreements with American Airlines on January 31, 2020. Customers who have purchased American Airlines flights via LATAM prior to this date for flights from February 1, 2020 onwards will be entitled to the same services, with no change to flight or ticket conditions.

LATAM’s frequent flyer and reciprocal lounge access agreements with American Airlines will remain in place until LATAM leaves oneworld.

oneworld departure

LATAM advised oneworld and its alliance partners in September 2019 that it would leave oneworld within one year, in line with the standard notice period. The company is evaluating an earlier departure date with any change to be communicated in due course.

Following LATAM’s departure from oneworld, it will maintain its bilateral agreements with the majority of the alliance members.

Background on the framework agreement announced on September 26, 2019:
• Delta will invest USD$1.9 billion for a 20% stake in LATAM through a public tender offer at USD$16 per share. The tender offer was launched on November 27, 2019 and will last 30 days.
• Delta will also invest USD$350 million to support the establishment of the strategic alliance contemplated in the framework agreement.
Delta will acquire four Airbus A350 aircraft from LATAM and has agreed to assume LATAM’s commitment to purchase 10 additional A350 aircraft to be delivered between 2020 and 2025.
• Delta will be represented on LATAM’s Board of Directors.
• The strategic alliance is subject to all required governmental and regulatory approvals.

*Subject to applicable regulatory approval.

Delta’s routes to Latin America:

Delta to buy 20% of LATAM and form a new airline partnership throughout the Americas

Delta Air Lines has made this announcement:

  • Partnership brings together the leading airlines in North America and Latin America, connecting the Americas to the world as never before.
  • Together, Delta and LATAM will hold the leading position in five of the top six Latin American markets from the U.S.
  • Together, the partners will serve 435 destinations worldwide and carry more passengers between North America and Latin America than any other partnership.
  • Customers will benefit from significantly expanded travel choices across the Americas and an industry leading customer experience.

Delta and LATAM Airlines Group S.A. have announced that they have entered into a strategic partnership that for the first time combines the strengths of the leading airlines in North and Latin America.

The strategic partnership will unlock new growth opportunities, building upon Delta’s and LATAM’s global footprint and joint ventures worldwide, including Delta’s existing partnership with Aeroméxico. With their complementary networks, Delta, LATAM and their partners will be able to offer access to a greatly expanded array of worldwide destinations. Together, the partnership will provide greater customer convenience, a more seamless travel experience and better connect customers with the rest of the world.

LATAM's PR-XTG leased to Qatar Airways as A7-AMA on February 21, 2017

Above Copyright Photo: LATAM Airlines (Brazil) Airbus A350-941 A7-AMA (PR-XTG) (msn 079) MUC (Arnd Wolf). Image: 937262.

Additional details of the partnership include:

  • Delta will invest $1.9 billion for a 20 percent stake in LATAM through a public tender offer at $16 per share, to be funded principally with newly issued debt and available cash.
  • Delta will also invest $350 million to support the establishment of the strategic partnership.
  • Delta will acquire four A350 aircraft from LATAM and has agreed to assume LATAM’s commitment to purchase 10 additional A350 aircraft to be delivered beginning in 2020 through 2025, supporting Delta’s ongoing fleet transformation.
  • Delta will be represented on LATAM’s Board of Directors, further strengthening the relationship.
  • The tender offer and the strategic partnership are subject to customary closing conditions and all required governmental and regulatory approvals, including anti-trust immunity.

Delta expects that the transaction will be accretive to EPS over the next two years. In addition, the transaction will not impact the company’s existing financial commitments to shareholders, including free cash flow and shareholder returns. Delta also expects to remain within targeted leverage ratios.

For LATAM, the transaction will improve free cash flow generation, reduce forecasted debt by over $2 billion by 2025 and improve LATAM’s capital structure, enhancing its ability to execute its long-term strategy.

LATAM (Brazil) aircraft photo gallery:

 

Finnair and LATAM Airlines Group to codeshare

Finnair and LATAM Airlines Group today implemented a new codeshare agreement on flights between Finnair’s hub in Helsinki (HEL) and LATAM’s hubs in São Paulo (GRU), Brazil, and in Santiago (SCL), Chile, via five European gateways: London (LHR), Paris (CDG), Madrid (MAD), Barcelona (BCN) and Milan (MXP).

As part of the codeshare agreement, Finnair’s AY code will be added to LATAM’s transatlantic flights between Finnair’s gateways in Europe and LATAM’s hubs in São Paulo and in Santiago. The cooperation will offer new destinations for Finnair customers, as LATAM’s flights will be the first ones flown to South America with a Finnair code.

Likewise, LATAM’s LA code will be added to Finnair’s flights between Helsinki and London, Paris, Madrid, Barcelona and Milan, providing LATAM passengers with access to Finland.

The new codeshare flights to São Paulo and Santiago are available for sale via Finnair.com as of today, for flights starting October 1, 2019.

 

LATAM Airlines takes delivery of the first Airbus A320neo in South America

First Airbus A320neo for South America, delivered on August 29, 2016

Airbus issued this statement:

LATAM Airlines Group took delivery of its first Airbus A320neo – showcasing its white, indigo and coral livery and powered by Pratt & Whitney Pure Power PW1100-JM engines – on Monday, August 29, 2016 at Airbus headquarters in Toulouse.

LATAM Airlines Brasil will become the first airline in North and South America, and the fifth operator in the world, to operate the ultra-fuel efficient aircraft type.

Executives from LATAM and Airbus attended a delivery ceremony, which also marked the delivery of LATAM’s fourth A350 XWB — the first with the airline group’s new brand livery. LATAM was also the Americas’ first A350 XWB operator.

The A320 is configured in a 174-seat layout with 18” wide seats and equipped with the innovative Space-Flex cabin configuration. LATAM was the first in Latin America to order the A320neo in 2011, shortly after the program was launched. The airline group has a total of 67 A320neo Family aircraft on order.

Initially, LATAM plans to fly its first A320neo on Brazilian domestic routes to Brasília, Belo Horizonte, Campo Grande, Curitiba, Florianópolis, Porto Alegre, Recife, Rio de Janeiro (Galeão) and São Paulo (Guarulhos).

In November, LATAM will begin to fly regional routes throughout South America. The second LATAM A320neo, to be delivered later this year, is also expected to operate regional flights. The airline group has more than 250 Airbus aircraft in operation.

Copyright Photo: LATAM Airlines (Brazil) Airbus A320-271N WL F-WWBV (PT-TMN) (msn 7126) (first A320neo) XFW (Gerd Beilfuss). Image: 934622.

AG Read the Real WAN

LAN and TAM to operate as LATAM with a new livery

LAN-TAM Tails

LAN Airlines (Santiago) and TAM Linhas Aereas (Sao Paulo) (LATAM Airlines Group) have just announced it will move towards one brand – LATAM. The makeover will involve a new livery for both airlines.

LATAM logo (LRW)

The airline announced this new look with the video above and these short statements:

TAM and LAN built a story in common and left behind a legacy. Both succeeded in their markets and opened themselves to the world, bringing developments to the whole region. For years, they were recognised for their punctuality, services, and network. This allowed us to gain our customers’ preference and to take part in their stories.

Now, we begin together a whole new chapter, which starts off with a brand that will take our best to the entire world. Our new identity represents the strength of a region that never stops moving, a pioneer and contemporary spirit, which inspires us to take Latin America to the world and to bring the world to Latin America.

The group describes the new logo above:

Our symbol adopts an ascendant form, which represents our strength, dynamics, and will to always go further. It takes shape through the harmony between different elements, since we were born exactly from the beauty of diversity.

On the colors:

Our colours, Indigo and Coral, represent our complementary and unique way of being: elegant on the outside, warm on the inside. Our secondary colours contribute to making our expression more diverse, without falling into stereotypes, and symbolising a region that is born from and that stands out for its rich diversity.

More news from our South American partner ModoCharlie:

“LATAM Airlines Group presents today LATAM, the new brand under which the main airline group in South America will progressively move on to become a single airline in the near future. Its website will be, properly named Latam.com

The announcement and its implementation plan are presented after being postponed several times since the last quarter of 2014. Such postponings fed industry expectations and helped spread rumors on what the new airline name and corporate image would be. Months ago, a semi-official statement was made public to reveal that the unified name would be a new one, thus discarding both LAN and TAM. Rumors on what the final choice would be snowballed ever since.

The announcement, which was not expected until the end of 2015 or the first quarter of 2016, does not produce many immediate effects aside of the public availability of an informational website hosted under the new airline name’s domain name, which should become in the future the transactional website for the unified airline. The first unified experiences for passengers are expected on April 2016, with the presentation of the first aircraft with the new paint schemes, names and logos.”

Read more on ModoCharlie: CLICK HERE

Later the group issued this statement:

  • The new brand represents the creation of the largest airline group in Latin America and one of the largest in the world.
  • “Connecting LATAM to the world, and bringing the world to LATAM. The airline group has grown up alongside each country in the region and has consolidated to offer clients the best network of connections and most modern fleet in Latin America. The passenger experience will improve with access to a single product and service within one network, more powerful online presence and integrated channels of communication, in addition to faster development of innovation and technology in the countries where the Group operates. LATAM will be a brand that builds a culture that is dedicated to taking care of its clients,” said Enrique Cueto , CEO of LATAM Airlines Group.
  • The choice of the name LATAM, part of the consolidation of LAN and TAM, is the result of an extensive study conducted in 10 countries following the association of both airlines and their affiliates.
  • LATAM Airlines Group is currently working on the gradual roll-out of the new corporate brand image over the next three years for airports, aircraft, commercial offices, web pages, and uniforms. The first changes will be visible starting in the first half of 2016 with specific dates to be announced in a timely manner.

After an extensive integration process following the association of LAN Airlines and TAM Airlines – during which the Group made great advances in achieving synergies for internal processes, network optimization, and fleet restructuring and modernization – LATAM Airlines Group has decided to adopt a single name and identity and announces that the new brand for the largest airline group in Latin America and its affiliates will be LATAM. The new LATAM branded airline group will unite all the passenger and cargo airlines for LATAM Airlines Group: LAN Airlines and its affiliates in Peru , Argentina , Colombia and Ecuador ; in addition to TAM Linhas Aereas S.A., and its subsidiary TAM Air Transport Mercosur S.A. (TAM Airlines ( Paraguay ), and the cargo carriers comprised of LAN CARGO , LAN CARGO Colombia, ABSA (TAM Cargo) and Mas Air.

The decision to create a new brand is a historic milestone in the airline industry not only because this is the first time an airline group has chosen to consolidate under a single brand, but because this is the first time a Latin America based airline group aspires to become one of the best in the world.

For that reason, the new brand will incorporate the most valued strengths and characteristics of both LAN and TAM, in addition to the important histories of both carriers, 86 and 39 years respectively, during which they became part of the history of the region by contributing to its growth, development and increased connectivity.

“Out of all of the options that we were considering, the name LATAM always seemed to us to be the most natural evolution of both the LAN and TAM brands, but a period of mutual understanding and maturation was necessary to make the decision. We knew that having a single brand was essential to consolidate the connection between LAN and TAM, and the name LATAM creates a strong identity for the airlines that form the largest airline group in Latin America. The new brand is born from the desire to capture the best of both identities and legacies and consolidate them to create an even stronger one that preserves the essence of each brand – an essence that is truly Latin American,” said Mauricio Amaro , President of the Board of Directors, LATAM Airlines Group.

“With LATAM we will continue on the path of leadership that LAN and TAM started in parallel, working closely together over the past three years to implement an ambitious agenda of innovative projects for our passengers to have a better experience with us before, during and after their flight. The passenger experience will improve with access to a single product and service within one network, more powerful online presence and integrated channels of communication, in addition to faster development of innovation and technology in the countries where the Group operates. LATAM will increase optimization of our fleet, provide easier access for passengers and clients to the best network of destinations in the region while offering a new in-flight experience, updates in service and in-flight entertainment, and innovative technology that gives passengers more control over their travel experience. Our passengers have high expectations and we want to offer them service that meets those expectations. LATAM will be a brand that builds a culture that is dedicated to taking care of its clients,” said Enrique Cueto , CEO of LATAM Airlines Group.

Cueto went on to explain in his own words the choice of the name LATAM: “LATAM Airlines Group was created by two large Latin American companies that started from zero and prospered thanks to their shared passion for flying, vision, dedication and innovation. Both companies and their respective affiliates conquered their markets and connected them with the world, promoting prosperity in the region and becoming known for their on-time performance, service and networks that won them the preference of their clients and become a part of their history. LATAM Airlines Group created a unique partnership in the industry that resulted in the largest airline group in the region. That is why we chose the name LATAM, because it honors who we were and who we want to continue to be, working together with our affiliates to be the ambassadors of a Latin America that grows and prospers, loyal to its natural and human roots – a region that never stops moving.”

The new LATAM logo

When describing the new logo, Jerome Cadier , VP of Marketing for LATAM Airlines Group said, “The logo was inspired by the identity and heritage of the region, incorporating the best of LAN and TAM. For this reason, we selected indigo and coral as the main colors for LATAM. The first represents the best of both worlds as it falls between red and blue which are the main brand colors for TAM and LAN. And the second, symbolizes energy and passion, essential attributes of the new brand. These two colors are supported by secondary colors that bring to life the diversity that is found in Latin America .”

“The implementation of rebranding in our industry is a gradual process and requires a long period of development. It will require a lot of time and effort, but as we work on the implementation of the new brand, we will continue to work in parallel to unify the in-flight experience offered by the LATAM Airlines Group airlines,” explained Cadier.

LATAM Airlines Group is currently working on the new corporate brand, a process that will take approximately three years to complete and will begin to be visible in the first half of 2016 with a gradual roll-out for airports, aircraft, commercial offices, web pages, and uniforms. Some of these change are already visible and can be observed principally in the in flight experience with new redesigned aircraft cabins, the new VIP lounges in Sao Paulo and Santiago – the largest in the region – that are open to the public and form part of the best network of lounges for frequent flyers in the region as well as digital platforms like the option to access onboard entertainment via mobile devices.

The LATAM Airlines Group carriers will be consolidated with the objective of offering unified service in alignment with the new brand. These changes will be announced to passengers and clients in a timely manner.

The Frequent Flyer Programs for LAN, TAM and its affiliates will continue making improvements to the existing programs with any changes also communicated in a timely manner.

LATAM: Consolidating Leadership in Latin America

After the association of LAN and TAM, the Group consolidated its operations in seven domestic markets in the region as well as regional networks within South America , international flights and cargo operations.

Together, both airlines have continued to operate as pioneers in the aviation industry with important achievements such as the unification of their network of passenger and cargo destinations and the renewal of their fleets, incorporating some of the most modern and efficient aircraft in the industry. LAN was the first airline to take delivery of the Boeing 787 in the Americas and TAM will be the delivery client for the Americas for the Airbus A350-900 XWB.

In addition, both companies have unified the interior design of aircraft cabins and onboard service. For the past seven consecutive years, LAN and TAM have alternated between first and second place in the Skytrax World Airlines Survey “Best Airlines in South America ” award category, considered to be one of the leading authorities for levels of satisfaction for the global airline industry.

Both airlines have made investing in a sustainable operation a priority which resulted in LATAM Airlines Group becoming the first airline group in the Americas to join the Dow Jones Sustainability index in 2014.

Choosing the name LATAM

Throughout the integration process the importance of a single brand for the Group was clear. The process through which the brand was defined consisted of several stages where all possible brand scenarios were reviewed. For this process, LATAM Airlines Group hired the brand consultant Interbrand to conduct a study in 10 countries, five of them where LATAM Airlines Group has domestic passenger operations in addition to important long-haul destinations including Brazil , Chile , Peru , Argentina , Colombia, the United States , Spain , England , France and Italy. The study also incorporated input from partners and the needs of clients across the markets where the Group operates, all collected in a thorough study that resulted in the creation of the new value proposition.

Among the various options, the name LATAM always stood out as the best choice for a variety of reasons:

  • The best option to, from and within Latin America : LAN, TAM and their respective affiliates have a complimentary network and fleet which presents one of the largest advantages for consolidating under a single brand.
  • LATAM is the group of airlines with the largest presence in the region with more than 1,500 flights per day, domestic passenger operations in seven countries, more than 140 passenger destinations in 24 countries with daily flights to Europe , the United States , Australia , the Caribbean and 144 cargo destinations in 26 countries.
  • No other airline group has as powerful a presence in the region as LATAM. The LATAM brand will maintain and strengthen the leadership in connectivity to and from the region for passengers as well as cargo.
  • A single travel experience with world class standards: One of the objectives of the Group is to provide a single in-flight travel experience with a world class standard of service for passengers that reflects the best that Latin America has to offer and is identified with a single brand name.
  • Greater Efficiencies: LATAM Airlines Group is currently one of the 12 largest passenger and cargo airlines in the world. In the three years since the association of LAN and TAM important synergies have been achieved across different areas of the business and the transition to a single brand like LATAM will further facilitate the consolidation of advantages and benefits for customers, employees and shareholders and move the group towards the goal of being among the top three airlines in the world.
  • A new culture with the best of both worlds: Before the association, LAN and TAM shared a long history and several similarities in their corporate vision in addition to a great workforce. LATAM Airlines Group has a robust team of 53,000 people around the world dedicated and passionate about achieving the goal of being one of the top three airlines in the world.

LAN-TAM History: CLICK HERE

LAN Airlines (Chile) aircraft slide show: AG Airline Slide Show

TAM Airlines aircraft slide show: AG Airline Slide Show

AG Ad - Captain's Log 5.2015 (LRW)

TAM to reduce its domestic operations in Brazil

LATAM Airlines Group S.A. and TAM S.A. (TAM Linhas Aereas) (Sao Paulo), announced that TAM will adjust its domestic network in Brazil. The group issued this statement:

LATAM Airlines Group logo

In order to allow TAM Airlines to remain committed with its long term sustainable development and growth plans for Brazil, the Company has decided to implement an adjustment to its domestic network at this time.

Given the impact of the challenging economic scenario in the country, caused by an increase in inflation and an appreciation of the U.S. dollar versus the Brazilian real, resulting in a slowdown in the airline industry, TAM is now implementing a gradual reduction of its domestic operations in Brazil of approximately 8% to 10%. As a result, the company has revised its capacity growth (ASK) guidance for this year for the domestic market in Brazil from 0% growth to a contraction of 2 to 4% as compared to 2014.

TAM has been working to adopt several measures to limit the impact of this adjustment on its employees. Nonetheless, the Company estimates it will reduce its staff by less than 2%, considering its normal turnover. Given the Company’s mid-term growth plans, this adjustment will not impact flight crew personnel. TAM will provide support to the affected employees with an outplacement program.

In order to guarantee the best service to its passengers, TAM will continue to serve all domestic destinations that it currently operates.

The Brazilian airline industry has suffered from declining demand, according to National Civil Aviation Agency (ANAC) data. Furthermore, data from the Market Readout of the Brazilian Central Bank released on July 10 indicates that the market projects a further decline of the Brazilian GDP, in 2015, with estimates revised down from a contraction of 1.3% to a 1.5% decline. They also estimate that inflation should end the year at over 9%, while the U.S. dollar is expected to continue to strengthen against the Brazilian real.

“TAM is taking this measure to face the difficult economic scenario of the country. It is necessary to make adjustments to our network while maintaining the connectivity we offer our passengers, and strengthening even further the Company’s competiveness in Brazil ”, said Claudia Sender, CEO of TAM S.A.

“We continue to believe in the country’s recovery and this adjustment in no way affects the Company’s long-term strategy, which include the renewal of the fleet, the feasibility study for the Northeastern hub and the continuous strengthening of our hubs in Brasília and São Paulo/Guarulhos”, she added.

Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Airbus A321-231 PT-MXM (msn 5987) with Sharklets departs from the Sao Paulo (Guarulhos) hub.

TAM aircraft slide show: AG Airline Slide Show

AG Full screen views