The airlines group LATAM (Brazilian TAM and LANChile) in response to a continuing deterioration of the Brazilian economy announced that they will adjust TAM’s domestic network in Brazil. Given the impact of the challenging economic scenario in Brazil, caused by an increase in inflation and an appreciation of the U.S. dollar versus the Brazilian real, has resulted in a slowdown of the airline industry and TAM will gradually reduce operations by 8 to 10 percent.
TAM’s CEO, Claudia Sender, said in a statement from the airline, “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 competitiveness in Brazil.”
The CEO believes in the country’s recovery and this adjustment in no way affects the Company’s long-term strategy, which includes 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.
Since May, 2015, the Brazilian Association of Air Companies (Abear) had detected stagnation in the sector’s domestic demand, with a growth no higher than one percent compared to the same month last year. The merger of TAM with LAN Airlines was completed on June 22, 2012, and the company is currently the largest Brazilian Airline by market share and fleet size, though it is not a flag carrier.
Before the takeover, TAM was Brazil’s and Latin America’s largest airline. Its headquarters are in São Paulo, operating scheduled services to destinations within Brazil, as well as international flights to Europe and other parts of North and South America. Shares in the company were traded on the São Paulo Exchange Bovespa and New York Stock Exchange as “TAM”. Prior to the merger with LAN, the company closed its capital, transferring its shares to Latam Airlines Group. However, in August 2015 it was announced that the two airlines would fully rebrand as LATAM, with one livery to be applied on all aircraft by 2018.
LATAM Airlines Brasil, formerly TAM Linhas Aéreas, is the Brazilian brand of LATAM Airlines Group and the national flag carrier of Brazil operating international and domestic flights from hubs in Rio, São Paulo, and Brasília. They were part of Star Alliance from 2010 and 2014, and Oneworld from 2014 e 2020. The company flies to Brazil from different hubs in the United States such as Miami, Orlando and New York.
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