Profile: Tam S.A. (TAM)

TAM S.A. (TAM), incorporated on May 12, 1997, is engaged in providing scheduled air transportation in both the domestic market and the international market through the Company’s operating subsidiaries, TAM Linhas Aereas S.A. (TAM Linhas Aereas) and Transportes Aereos del Mercosur S.A. (TAM Mercosur). The Company offers flights throughout Brazil, serving the number of destinations in Brazil of all Brazilian airlines, and operate scheduled passenger and cargo air transport routes to 42 cities, in addition to 37 other domestic destinations that it serves through regional alliances with other airlines. It also directly serves 18 international destinations and provides connections to other destinations through commercial agreements with United Airlines, Lufthansa, TAP, LAN and other airlines. It offers convenience to its passengers by offering frequent and direct flights to and from all major domestic airports. During the year ended December 31, 2008, the Company carried approximately 25.6 million passengers on domestic flights and approximately 4.5 million passengers on international flights. As of December 31, 2008, the Company operated with a fleet of 129 aircraft, consisting primarily of Airbus models A340, A330, A321, A320 and A319, as well as Boeing models B777 and B767. As of December 31, 2008, TAM Linhas Aereas consisted of 129 aircraft, including three Airbus A320 subleased to TAM Mercosur. In 2008, the Company joined the Star Alliance. In December 2009, the Company acquired a local airline, Pantanal Linhas Aereas SA.

The Company’s principal product is the scheduled air transportation of passengers. In addition, it also has products targeted towards the development of domestic and international tourism. It also provides cargo transportation operations. The Company’s aircraft, the Boeing 777-300ER transports up to 365 passengers on its routes connecting Brazil, Germany, England and Chile. December 31, 2008, the Company operated an average of 627 daily flights to 42 destinations in Brazil. Through its regional alliances with Passaredo, Total Linhas, Trip Transporte, and NHT it serves an additional 37 domestic destinations. Passenger traffic in the domestic market represented approximately 58.6% of its revenues during 2008. The Company operates an average of 73 daily international flights to Buenos Aires, Santiago, Asunción, Montevideo, Lima, Ciudad del Este, Santa Cruz de la Sierra, Cochabamba, Bariloche, Caracas, Miami, Orlando, New York, London, Paris, Frankfurt, Madrid and Milan.

The Company’s codeshare agreements with LAN Group, Pluna, United Airlines, Air Canada, TAP, Lufthansa and BMI allow its passengers to make connections to destinations in Latin America, the United States and Europe, in addition to access to other services, such as check-in at desks of its partner airlines, simplified baggage shipping, access to VIP lounges and the ability to earn points in the TAM Loyalty Program. It also has agreements allowing the Company to offer its passengers a range of destinations around the world. International scheduled passenger traffic represented 25.7% of its revenue during 2008. The Company also earns revenues through cargo transportation operations. These operations represented 9.2% of its total revenues during 2008. The Company also has a travel and tourism operation, TAM Viagens. During 2008, this business represented 3.9% of its total revenues. TAM Viagens offers a range of packages, including air tickets, ground transportation, hotels, tours and several tourism services.

The Company competes with Gol and Varig.