TAM president Marco Antonio Bologna says the carrier aims to serve several other European and US destinations, and is particularly interested in Los Angeles. Flights to Asia, the Far East and South Africa are also on the carrier's long-term radar screen.
On the possibility of increased competition resulting from Gol's recent acquisition of fellow Brazilian carrier Varig, Bologna says there are "lots of opportunities" for both TAM and Varig. "Varig is coming back and we expect Varig and ourselves to compete with international flag carriers," he told Airline Business during an interview at the Paris air show in June. "The balance [between TAM and Varig on international routes] used to be 50/50 and Varig will recuperate the situation. We will fly the same battlefield."
Domestically, Bologna says TAM continues to see "incredible growth" and maintains a 50% market share, while 42% is held by Gol and the remainder by regional operators.
"We are reducing our fares, increasing our efficiency and reducing our costs," says Bologna, adding that Gol "focuses on the lower end of the market" whereas TAM's loyalty programme and in-flight entertainment offering means it caters to business travellers.
However, with new Varig planning to operate an all-premium service domestically, complete with loyalty programmes and lounges, TAM could find itself squeezed from both sides and facing stiff competition for business travellers and low-fare seekers alike.
"Varig will be re-launched as a premium-class service, offering direct flights to first-rate destinations in Brazil, South America, Europe and the United States," says Gol. "Varig will have a single-class on domestic routes and a dual-class on international flights."
TAM has yet to join a global airline alliance, although it recently signed codeshare agreements with Star Alliance members Lufthansa, United Airlines and TAP Portugal, and a commercial alliance with oneworld carrier LAN. "Our present strategy is to do codeshare agreements by bilateral," says Bologna. "We are discussing our participation with a major global alliance and we will address this issue in the near future."
TAM in June signed a memorandum of understanding with Airbus to acquire 22 A350 XWBs for delivery between 2013 and 2018. It has also taken options on a further 10 A350 XWBs, and has firmed options on four A330s scheduled for delivery between 2010 and 2011. TAM also has eight Boeing 777-300ERs on firm order, and will take delivery of four of the type next year.
Source: Airline Business
