TAM is Authorized to Fly to Frankfurt and Madrid

SAO PAULO, Brazil, July 6 /PRNewswire/ --

- The company hopes to start new routes this year and expand its international network

TAM (Bovespa: TAMM4) (NYSE: TAM) received official authorization from the Brazilian Civil Aviation Authority (ANAC - Agencia Nacional de Aviacao Civil) to begin three weekly flights to Frankfurt (Germany) and seven to Madrid (Spain). The company will start these flights by the end of the year. TAM is already making all necessary provisions for these flights.

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As a part of its international sector policy, TAM has been establishing strategic partnerships for the destinations in which it operates. For Germany, the company signed a Memorandum of Understanding with Lufthansa two months ago to implement codesharing on national and international routes. "TAM and Lufthansa have signed an alliance agreement, under which the two companies will commence codesharing, acting jointly at the Guarulhos and Frankfurt airports, and will integrate their respective loyalty programs," said Paulo Castello Branco, Vice-President for Planning and Alliances for TAM.

At the Memorandum signing with Lufthansa on May 21 in Brazil, Gotz Ahmelmann, Lufthansa's Vice-President for Alliances, Strategy and Subsidiaries, said: "We are happy to have found in TAM a professional and trustworthy partner in the growing Brazilian market." Jens Bischof, Lufthansa's Vice-President for the Americas, highlighted the quality and credibility of the two companies, saying, "Our clients are going to benefit from this cooperation very soon."

During the past months, TAM has signed Memoranda of Understanding to establish partnerships with the Portuguese airline TAP, LAN in South America and United Airlines in the U.S., as well as Lufthansa in Germany.

TAM has been increasing its market share on international routes. It ended May with a 72.4% share among the Brazilian companies that operate internationally. In Europe, it already has direct flights to Paris (three flights per day, two from Sao Paulo and one from Rio de Janeiro); London (one flight per day) and Milan (one flight per day). In the United States it flies to Miami (three flights per day, two from Sao Paulo and one from Manaus) and New York (two flights per day). It also serves various destinations within South America: Buenos Aires and Cordoba (Argentina), Santiago (Chile), Asuncion and Ciudad del Este (Paraguay), Santa Cruz de la Sierra and Cochabamba (Bolivia). In September it will start daily operations to Caracas (Venezuela) and in October to Montevideo (Uruguay).

Fleet - For international sector operations, TAM announced last month that it would increase its fleet with the purchase of 22 A350 XWB (Xtra Wide Body) Airbuses, with options for 10 more to be delivered between 2013 and 2018. In addition, the company confirmed receipt of another two A330s in 2010 and another two in 2011. Previously the company had announced a contract for four Boeing 777-300ERs, bringing the total of these aircraft, which will be delivered starting next year, to eight. With this, TAM will close 2007 with 18 large aircraft for its long-distance routes and, by 2010, there will be 26 aircraft exclusively for international flights.

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About TAM:

TAM (www.tam.com.br) has been the leader in the Brazilian domestic market for more than three years, and closed May 2007 with a 49.7% domestic market share and a 72.4% international market share. The company operates flights to 49 destinations throughout Brazil. It serves 76 different cities in the domestic market through regional alliances. Additionally, it maintains code-share agreements with international airline companies that allow passengers to travel to a large number of destinations throughout the world. TAM was the first Brazilian airline company to launch a loyalty program. Currently, the program has over 4.0 million subscribers and has awarded 4.3 million tickets in exchange for points.

Web site: http://www.tam.com.br