The larger-than-life Amaro, who died in a helicopter crash in 2001, is still revered at TAM and throughout Brazil for his farsightedness, business acumen, innovation and focus on the customer and quality of service. He created the airline’s “Red Carpet Service” concept – with a red carpet literally leading to the aircraft – and he was always at the aircraft door welcoming passengers onboard, a tradition many TAM pilots continue. The phrase “The Magic Red Carpet” is still emblazoned on the fuselage of TAM’s intercontinental aircraft.
Amaro’s vision plays an ongoing role in TAM’s modus operandi, and members of his family are still an integral part in the carrier as officials in the airline, on the holding company’s board of directors, and as shareholders.
In June, TAM reopened its own aviation museum in a new facility at São Carlos – the site of its maintenance center – that will inspire envy worldwide. With nearly 80 classic aircraft, it is the largest private museum kept by an aviation company in the world. The idea for the museum came from Captain Rolim and his brother, João Francisco Amaro, who is now the museum’s president.
TAM’s stunning growth
TAM’s recent growth has been stunning, with double-digit increases in both domestic and international capacity annually over most of the last decade. In the first six months of 2010, TAM’s domestic market share was 42.2 per cent, in the same ballpark as low-cost carrier Gol, its major competitor. TAM’s international market share among Brazilian carriers was a whopping 84.7 per cent.
TAM Airlines painted this Airbus A330-200 in a special livery to commemorate the Brazil national football team's appearance in the 2010 FIFA World Cup in South Africa
However, TAM did not take on all of Varig’s international routes and it doesn’t intend to, planning instead to capitalize on feed from its new partners, both in Brazil and at its international destinations. TAM also plans to offer its Brazil-originating passengers more connections around the world on flights operated by its Star partners.
With a TAM-United codeshare in operation since late 2007, for instance, United’s Schwab says his airline has been seeing increased connections to its network in both Miami and New York from TAM flights, even though neither city is a hub. United also is seeing increasing numbers of its U.S.-originating customers connecting to TAM flights in São Paulo and Rio, and greater numbers of connecting passengers from TAM’s Brazil services on United’s U.S.-bound flights. “There is a very definite boost to traffic,” says Schwab.
While it is slowly expanding international services, TAM has been more active in beefing-up its internal Brazilian services by adding new destinations and expanding frequencies on existing routes. In December, it acquired Pantanal Linhas Aéreas, a small carrier operating flights from São Paulo’s downtown Congonhas Airport to medium-sized cities within Brazil. TAM plans both to upgrade Pantanal’s fleet – currently five ATR 42-300 turboprops – and expand its services.
“The Brazilian economy is growing,” says Ruy Amparo, TAM’s vice president, operations and MRO, “and there are small cities that have no flights at all.” With air service, travel at these smaller cities is expected to grow above the national average, expanding Brazil’s air transportation base, as well as increasing connectivity to other TAM flights.
TAM Airlines operates a few Airbus A321-200s on domestic routes, in one-class, 220-seat configuration
TAM’s aircraft fleet
Should TAM decide to expand further, it will have the aircraft to do so. It has orders in place for 100 new aircraft over the next decade, valued at well over $11 billion at list prices. TAM’s orders include 64 new Airbus A320-family aircraft, 27 Airbus A350 XWBs, three more Airbus A330-200s and six more Boeing 777-300ERs. The airline’s average fleet age is about six years, and many of the new aircraft will be used to replace existing Airbus A320s to keep the fleet young, TAM officials say.
TAM’s current fleet includes 116 Airbus A320-family aircraft, 18 Airbus A330-200s and four Boeing 777-300ERs. It also operates two Airbus A340-500s and three Boeing 767-300ERs, acquired on lease in a hurry in order to operate some of Varig’s vacated routes. The five aircraft will be returned over the next two years as TAM takes delivery of new jets.
The three Boeing 767s, with an average age of 15 years, clearly do not have the amenities of TAM’s younger aircraft. A 15-year-old ex-Alitalia Boeing 767 that TAM flies on its Rio-Miami route, for instance, does not offer passengers the advanced inflight entertainment system installed on other long-haul aircraft, but has large TV monitors installed in the ceiling. TAM distributes hand-held devices with IFE options available on its normal system to business-class passengers, but passengers in economy, who ordinarily have access to the same IFE system, are limited to one movie shown on the overhead monitors.
“We don’t like the way we are not standardized,” Amparo admits, but notes those aircraft will be out of the fleet soon.
Carole Shifrin has been a Washington-based freelance writer for ten years. Her career includes 15 years at Aviation Week & Space Technology, where she served as Dallas Bureau Chief, London Bureau Chief and Senior Transport Editor, and 13 years as a staff writer at The Washington Post. Carole is the recipient of numerous awards, including the prestigious Lauren D. Lyman Award for distinguished, career-long achievement in aviation journalism.
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