- CAPA Analysis
- Schedule Analysis
- Route Maps
- US Route Data
- Annual Reports
- Print Summary
- IATA Code
- ICAO Code
- Corporate Address
- TAM Linhas Aéreas S.A.
Av. Jurandir, No. 856, Hangar 7
São Paulo, SP
- Main hub
- Sao Paulo Guarulhos International Airport
- Business model
- Full Service Carrier
- Domestic | International
- Star Alliance
- Joined Alliance
- Association Membership
- Codeshare Partners
All Nippon Airways
South African Airways
TAM Airlines (Paraguay)
Based at Sao Paolo-Guarulhos International Airport, TAM Airlines is listed on the New York and Sao Paulo Stock Exchanges, and is the national airline and largest carrier in Brazil. TAM has an estimated 50% of the domestic market share and 75% of the international market share. Using a fleet of narrow and wide-body Airbus and Boeing aircraft, TAM operates an extensive network of domestic and regional services within South America and international services to North America and Europe. TAM joined the Star Alliance in May-2010.
Location of TAM Airlines main hub (Sao Paulo Guarulhos International Airport)
TAM share price
850 total articles
102 total articles
Even as losses continued for Brazil’s second largest airline Gol during 3Q2013, there were some positive signs in the carrier’s results and its efforts to improve its financial leverage. Its work during the past year to beat back the effects of a weakening Brazilian economy and the resulting pressure that has had on demand were evidenced in improved passenger unit revenue and yields.
Gol also recorded positive margin improvement and made strides in its leverage ratios as its exposure to the Brazilian domestic market is more pronounced than its major rival TAM, who as part of the LATAM Airlines Group is leveraging the parent company’s ability to transfer some of TAM’s exposure to the falling BRL to the LATAM balance sheet.
Going forward it seems that Gol aims to focus on international expansion as a means to weather the tough market conditions within Brazil. While the carrier is not prepared to divulge the form that expansion will take, additional service to the US might be in the offing.
Latin America’s powerhouse LATAM Airlines Group believes it has turned a corner in its Brazilian operations after enduring weak margin conditions within Brazil’s domestic environment since the merger of LAN and TAM officially closed a little over a year ago.
The company’s overall 3Q2013 results were somewhat buoyed by a 19% improvement in Brazilian domestic unit revenues year-on-year as LATAM slashed its supply within Brazil by 6% during the quarter. For the 9M2013 time period LATAM’s ASKs within Brazil contracted by 9%.
While the rebound within Brazil in commendable LATAM still faces challenges with respect to the devaluing of the BRL, which fell 13% during 3Q2013 against the USD. LATAM is attempting to blunt the effects of currency fluctuations through hedging schemes and transitioning TAM’s debt to the LATAM balance sheet, which is denominated in the USD.
Oneworld has increased its presence in Colombia, Latin America’s third largest market, with LAN Colombia formally joining as an affiliate member on 1-Oct-2013. LAN Colombia is the second largest domestic carrier in Colombia after Star Alliance member Avianca and has a small but growing international operation.
Colombia is an important growth market but the impact of adding a Brazilian member is much more significant. Oneworld has set a 31-Mar-2014 ascension date for Brazil’s largest carrier TAM, which is now part of the LATAM Airlines Group along with LAN Colombia and four other LAN-branded carriers that are already oneworld members.
With LAN Colombia and subsequently TAM, oneworld will become the largest alliance in Latin America with a projected 27% share of seat capacity. Star will still have a respectable 16% share, which could grow to about 18% based on probable new members, and will remain the dominant alliance in Colombia.
A year into their historic merger LAN and TAM – now LATAM Airlines Group – are continuing a network optimisation concentrated largely in its Brazilian domestic operations; but tweaks are also occurring in its international services as the company works within the dedicated LATAM operations and with its oneworld partners on network optimisation. At the same time the scale created by the tie-up is allowing LATAM to shed older, less fuel efficient widebodies from the combined fleet.
One subtle shift in LATAM’s North American operations is the ending of a four year stint on flights between its Lima hub and San Francisco in Mar-2014. The move appears to be less about weak performance on the route and more geared towards freeing up some widebodies for operation by TAM as well as perhaps coordinating more closely with LATAM’s oneworld partner American in Los Angeles, which is introducing new service from Los Angeles to Sao Paulo in Nov-2013.
New Zealand has negotiated 12 bilateral agreements in the past 18 months as the government moves to implement its new International Air Transport Policy announced in Aug-2012. This places emphasis on establishing open skies agreements with key markets even if the offer is not reciprocated. To that end the government has negotiated the new or expanded bilateral agreements with the United Arab Emirates, Qatar, Kuwait, China, Taiwan, Japan, Indonesia, Brazil, Paraguay, Uruguay, French Polynesia and Iceland.
Negotiations have also been held recently with Papua New Guinea while talks with Vietnam and Thailand are planned in the near future.
New Zealand Ministry of Transport GM of Aviation and Maritime, Bruce Johnson said at the CAPA Australia Pacific Aviation Summit in Sydney on 07-Aug-2013 that the policy has a large focus on capacity and a strong commitment to open skies agreements where possible. “But [the policy] has also gone further than that and said where open skies can’t be agreed then we will agree to whatever is good for New Zealand. And if that means we don’t get reciprocity, then so be it.”
LATAM Airlines Group during 2Q2013 marked the first anniversary of its landmark merger between South America’s largest airline groups LAN and TAM with an overall loss of USD300 million for the historically weaker quarter, which also reflects the continuing struggles LATAM faces in the depreciation of the BRL against the USD.
But against those challenges LATAM has seen improvement in its domestic Brazilian operations as unit revenues in those markets grew 14% mainly driven by load factor growth.
Unlike Brazil’s second largest carrier Gol, LATAM’s scale is providing opportunities for the company to reduce its exposure to currency fluctuations, decrease its capital commitments and realign its fleet in certain operations to improve unit costs. All those initiatives allow LATAM’s management to remain confident that all the reasons behind their tie-up remain sound, and the underlying potential to deliver long-term financial benefits remains intact.
Great news! CAPA now offers email and phone contact functionality through its partnership with Gooey. Corporate access for this feature is USD1000 per annum.