TAM Airlines ( ) ( ) is Brazil's flag carrier. The Southern Hemisphere's busiest airline (in terms of passengers enplaned and flights operated), Headquartered in the Jardim Aeroporto area of Campo Belo, São Paulo City, TAM operates scheduled services from São Paulo to destinations within Brazil, as well as international flights to Argentina, Chile, Bolivia, Uruguay, Paraguay, Peru, Venezuela, the United States, Portugal, the United Kingdom, France, Spain, Italy and Germany. The company is traded on the São Paulo Exchange (BM&F Bovespa) and New York Stock Exchange as "TAM S.A." As of May 2009 TAM is the leading airline in the domestic market in terms of market share, with a 49.2% participation, followed by GOL with a 38.7% market share.

History

TAM was founded on February 21 1961, by five former air-taxi pilots. The company was named Transportes Aéreos Marília, S.A. (Marília Air Transport) after the pilots' hometown of Marília, São Paulo. It began operations with 4 Cessna 180 and a single Cessna 170, ferrying cargo and passengers across Paraná, São Paulo and Mato Grosso states.

In 1964, Orlando Ometto, owner of agricultural ventures in the region, purchased a 50% stake in the company, with the intent to use its aircraft and pilots to support an agricultural expansion project of his own in central Brazil. With the capital, TAM purchased aircraft. As the original pilot-owners left the company, Ometto purchased their share of the company, eventually owning 100% of the company.

In 1966, the company bought twin-engined aircraft models, including the Piper Aztec, Piper Navajo and the Rockwell Grand Commander. During this period, the company also relocated its offices from Marília to the state's capital, São Paulo.

Captain Rolim Amaro

In 1971, Ometto was losing money. In his search for someone to turn TAM around, Ometto called Rolim Amaro, a former pilot of TAM who had left and had formed an air-taxi company. Amaro proposed to liquidate his company and purchase a portion of TAM. While this did not constitute 50% of TAM's capital, he proposed to Ometto that if he was able to make TAM profitable within one year, he would be given the remaining portion of the 50%. In case he failed, he would receive nothing. In April, 1972, the contract between Amaro and Ometto was signed, giving Amaro operational control over the company.

At the end of 1972, Amaro sold TAM's entire fleet. At the same time, he travelled to Cessna's Wichita, Kansas facility and after two months of negotiations with the company, he bought 10 Cessna 402 aircraft. Within one year, Amaro fulfilled his promise and was given 50% of TAM's capital.

In 1974, TAM added two Learjets to its fleet. In exchange for one of these jets, 33% of the company's stock was given to the jet's owner, Tião Maia. The three-way split between Maia, Ometto and Amaro would remain until 1975, when Maia sold his share to Ometto. This deteriorated the atmosphere between Amaro and Ometto. In 1976, after 9 months of negotiation for Ometto's 50%, Amaro wrote a check for $2 million, with the promise to pay it over a period of time.

Despite selling one of the jets and other assets, he was still unable to make the payments. For a period of time, Amaro went as far as cancelling insurance for his planes, in an attempt to reduce costs. The morning after insurance was reinstated, on September 24 1977, one of TAM's Learjets crashed on approach to Santos Dumont Airport. Despite no injuries, the aircraft was a total loss. However, with the cash from the Lear's insurance and the proceeds of the sale of a farm, Amaro concluded his purchase of TAM.

TAM Transportes Aéreos Marília

In 1976, prior to Amaro's takeover, and following a federal law thatin 1975 created 5 regional airlines in Brazil, TAM had participated in a joint-venture with VASP (then a state-owned airline) to create a regional airline that would fly between São Paulo and Mato Grosso. The company, dubbed TAM Transportes Aéreos Regionais S/A (IATA code KK) (TAM Regional Airlines), flew Embraer EMB 110 Bandeirantes at first. These, however, proved grossly inadequate for the task at hand, and even at full capacity needed to be subsidized by the government in order to be profitable.



TAM went on to purchase three used Fokker F27 turboprops, which were then refurbished by Fokker in Holland. In order to obtain the import authorization for the aircraft, a deal was struck with the government where TAM was forced to maintain 3 Bandeirantes for every F27, as well as removing 5 seats from each one, bringing the F27's capacity down to 40 passengers. A fourth F27, previously owned by Air New Zealand, was incorporated in 1981. TAM would eventually own 10 F27 by 1983.

By 1981, TAM had flown 1 million passengers, and 2 million by 1984.

TAM (KK) and TAM (JJ)

In August 1986 the company, under financial stress, went public and began floating stock in the market. The same year, TAM - Transportes Aéreos Regionais (KK) acquired another regional airline, VOTEC, which operated in areas of northern and central Brazil. VOTEC was renamed Brasil Central Linhas Aéreas. TAM and Brasil Central, were both regional airlines and operated in different designated areas. They however operated as a consortium with integrated networks and fleet, being the most notable differences the flight-number IATA codes, the color scheme of the aircrafts and the areas where they were authorized to operate: whereas TAM - Transportes Aéreos Regionais flights had the IATA code KK, Brasil Central operated with the code JJ inherited from Votec; each one kept a different color scheme and operated in their own designated areas.

On May 15, 1990 the Brazilian Government lifted restrictions on operational areas of regional airlines allowing them to fly anywhere in Brazil. As a consequence, Brasil Central was renamed TAM - Transportes Aéreos Meridionais, acquired the same color scheme of TAM (KK) but maintained the IATA code JJ. In 2000 TAM (KK) was merged into TAM (JJ) and TAM (JJ) was renamed TAM Transportes Aéreos. The IATA code KK ceased to be used.

In 1988, TAM flew its 3 millionth passenger.

Fokker 100s

Despite TAM's success in the market, it was evident the airline would not last long when competing against airlines such as Varig and VASP which already possessed Boeing 737s in their fleet. Amaro then tried to buy VASP, about to be privatized, and called the project "Revolution". Having lost the bid, he opted for a slower growth with a gradual addition of new aircraft, re-dubbed "Evolution".

On September 15 1989, TAM arranged for the acquisition of two Fokker 100 jets, which had originally been ordered by the now-bankrupt Pan American World Airways. Like the F27 before them, TAM did not actually purchase them, but used Amaro's credibility to arrange for a third-party asset management company, Guinness Peat Aviation to purchase them and subsequently lease them back to TAM. Two more were added in 1991. In 1992, TAM carried its eight millionth passenger. By 1993, through the use of the Fokker 100 fleet which now numbered at 14, TAM was serving 56 cities in Brazil.

Transportes Aéreos del Mercosur S.A. TAM (PZ)

Flying abroad

In 1996, TAM bought another air company, Helisul, which used the trade name of TAM. In 1997, TAM ordered its first large jets; the airline ordered 45 planes from Airbus, including 10 A330, 4 A319s, and 34 A320s. In 1997, the Airbuses began to be delivered and the airline flew its first international service, from São Paulo to Miami International Airport.

Two years later, in 1999, services to Europe were inaugurated through a code share service with Air France, to Paris-Charles de Gaulle Airport. In 2000 the airline was renamed TAM Linhas Aéreas in Portuguese. Long running discussions to merge with Varig ended in 2004. The airline is owned by the Amaro family (69%), the Bank Garantia Fund (22%), and others (7%). It employs 10,471 staff.

Destinations

TAM Airlines has an extensive networking covering Europe, South and North America.

Many other destinations are operated trough code-share agreements, most of them by its partners airlines from Star Alliance (as TAM will join the alliance next april), but also from others airlines such as LAN Airlines and Pluna.

Subsidiaries

TAM Cargo provides cargo services.

TAM Viagens provides vacation package services for Brazilians, while TAM Vacations provides vacation package services for Americans.

TAM Jatos Executivos provides air services for business executives.

Cine TAM is a theater in São Paulo owned by the airline company.

Fleet

The passenger fleet consists of the following aircraft (as of October 2009):

TAM Airlines Fleet

Aircraft	Total	Orders	Passengers (First/Business/Economy)	Notes
Airbus A319-100	21	8	144 (0/0/144)	4 leased.
Airbus A320-200	83	30	156 (0/12/144) 174 (0/0/174)	38 leased.
Airbus A321-200	5	9	220 (0/0/220)
Airbus A330-200	16	4	213 (0/42/171) 212 (7/30/175) 223 (4/36/183)	5 leased.
Airbus A340-500	2	0	267 (0/42/225)	ex-Air Canada aircraft. both leased.
Airbus A350-800	0	12	TBA
Airbus A350-900	0	10	TBA
Boeing 767-300ER	3	0	204 (25/189)	ex-Alitalia aircraft. All 3 leased.
Boeing 777-300ER	4	4	365 (7/53/305)
Total	134	77

On June 16, 2005, TAM announced the purchase of 20 additional Airbus A320 family aircraft (including all the models A319, A320 and A321), plus an additional 20 options. These are expected to be delivered between late 2007 and 2010, adding to the already scheduled delivery of 6 A320 between 2006 and 2008. At the same time, the company signed a memorandum of understanding with Airbus stating its intent to buy 10 of the new Airbus A350-900 (plus 5 options), with deliveries due to commence at the end of 2012. These are expected to replace the A330 on the Paris and Miami routes as they become available.

TAM has signed a firm contract with Airbus to acquire 37 additional aircraft. The order comprises 12 A319, 16 A320, 3 A321 and 3 A330 and includes 12 unspecified extra options. This would bring TAMs fleet, acquired directly from Airbus to 115 aircraft The commitments are separate from deals last year for 29 firm-ordered A320 and 20 options. The deliveries are to be concluded by 2010.

On October 31, 2006, TAM announced an order for 4 Boeing 777-300ER wide-body planes plus options for another 4 planes of the same type. Deliveries of the 370-seat 777s will commence in 2008. On June 19, 2007, TAM exercised its options for the last 4 777s, bringing the total number of firm orders to 8 aircraft.

TAM announced that on November 30, 2007, it would offer a new daily flight to Frankfurt am Main, Germany after receiving its second Airbus A340-500.

Fleet maintenance is partly conducted at the technology center at São Carlos Airport

Former fleet

TAM formerly operated the following types:

• Fokker F27
• Fokker 50
• Fokker 100
• McDonnell Douglas MD-11

Gallery

Image:Avioes da tam.jpg|TAM Airlines Airbus A319 & A320 aircraft at Congonhas AirportImage:TAM Airbus.jpg|TAM Airlines Airbus A320Image:TAM A340-500 PT-MSN FRA.jpg|TAM Airlines Airbus A340-500 used on the route to/from Milan, ItalyImage:TAM.jpg|TAM Airbus A320 Galeão Airport, Rio de Janeiro, BrazilImage:McDonnell Douglas MD-11 PT-MSH.jpg|TAM McDonnell Douglas MD-11 it was used on the route to/from Milan, Italy and Paris, France

Accidents and incidents

• On February 8 1979, a Bandeirante crashed near the town of Agudos killing all 18 people aboard. This was the first accident with loss of life for TAM.

• On July 4, 1984 a second Bandeirante crashed in poor weather on approach near Macaé, killing all 17 people aboard.

• On February 12, 1990 a F-27 aborted its landing, striking houses and a car outside the airport of Bauru. The 2 occupants of the car were killed.

• On October 31, 1996, TAM Transportes Aéreos Regionais Flight 402 crashed shortly after take-off from Congonhas, striking an apartment building and several houses. All 90 passengers and 6 crew members on board died. Three people were killed on ground. The crash was attributed to a faulty thrust-reverser in the right engine deploying after take-off.

• On July 9, 1997, at Suzano a bomb was detonated in the rear part of the passenger cabin of a Fokker 100 on TAM Transportes Aéreos Regionais Flight 283. The uncontrolled decompression blew one passenger out of the aircraft. The plane landed safely despite a 10 by hole next to the right engine.

• On August 30, 2002, TAM Airlines Flight 3084, a Fokker 100, was forced to land at a farm near Araçatuba after running out of fuel due to a faulty fuel indicator gauge. The gear-up landing's only victim was a cow on the ground. No passengers were injured. On the same day, another Fokker 100 made an emergency gear-up landing at Viracopos-Campinas International Airport. Shortly after the incidents of August 31, TAM announced its intention to reduce its fleet of Fokker 100 immediately and phase out the type completely within three years.

• On August 8, 2006, the forward airstair of a Fokker 100 separated from the aircraft just after the plane took off from Congonhas-São Paulo Airport, hitting the roof of a supermarket in São Paulo. No one was injured in the accident, and the aircraft landed shortly after.

• On July 17, 2007, Flight 3054, an Airbus A320, registration: PR-MBK, on a flight from Porto Alegre with 186 passengers and crew, overran the runway at Congonhas-São Paulo Airport, crossed a major thoroughfare and impacted against a TAM Express warehouse. 198 bodies were recovered from the crash site, including passengers and others on the ground. This is considered to be the deadliest aviation accident in Latin America.

See also

• Cine TAM - a cinema in São Paulo owned by TAM's parent company

References

1. " TAM Airlines." TAM Airlines. Retrieved on February 2, 2009.
2. " TAM Press Release (PDF)," TAM Airlines
3. " Contact Us." TAM Airlines. Retrieved on September 21, 2009.
4. " TAM S.A.," NYSE Euronext
5. Infobox pp. 156-157 print edition 2114, year 42, no. 21 (see detailed Brazilian domestic market share here).
6. Home Page on October 13, 1999. TAM Transportes Aéreos Regionais
7. http://www.tamviagens.com.br/
8. http://www.tamvacations.com/
9. Fleet Ref
10. [1]
11. Airliner World January 2007
12. TAM Press Release
13. TAM Press Release," TAM Airlines
14. " TAUME.COM Business News," Taume.com - World Business
15. " Centro Tecnológico de São Carlos," TAM Airlines
16. " Aeronaves" as of November 19, 1996. TAM Airlines
17. TAM Linhas Aéreas Flight 283, Airdisaster.com
18. Video of Flight 3084 after landing YouTube. Retrieved July 18, 2007.
19. TAM says damage assessment is still not possible. Folha Online. Retrieved July 17, 2007.
20. 'Many dead' in Brazil plane crash. BBC News. Retrieved July 17, 2007.
21. TAM Airplane loses control and hits warehouse. Folha Online. Retrieved July 17, 2007.
22. Fiery plane crash at São Paulo airport kills at least 200
23. " Acidente com o Airbus da TAM é o pior da América Latina." BBC Brasil. July 18, 2007. Retrieved on June 5, 2009.

• [24076] (2007). TAM magazine.
• [24077] (2007). TAM confirms purchase of 02 Airbus A340-500. São Paulo.
• Thales Guaracy(2003). O Sonho Brasileiro. São Paulo : A Girafa.
• [24078](2005). TAM confirms purchase of 20 Airbus A319/A320/A321. São Paulo.
• [24079](2006) . Airbus customer turns to Boeing with billion-dollar 777 order. The Seattle Times.

External links

• Official site
• TAM Passion to Fly and Serve
• TAM Vacations
• About Tam Airpasses
• TAM Cargo
• TAM Táxi Aéreo Marília S.A.
• TAM Viagens
• TAM Executive Aviation
• Paixão por voar e servir
• Museu Asas de um Sonho (TAM Wings of a Dream Museum)
• TAM at YouTube