Tag Archives: TAM Airlines

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):

TAM Airlines (TAM Linhas Aereas):

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 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:

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:

TAM Airlines:

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.

TAM:

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 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:

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:

TAM:

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:

TAM Linhas Aereas:

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.

TAM Airlines: