TAM Airlines Adjusts its Operational and Administrative Structure

Written by thomas · Filed Under Commercial 

July 30, 2008

thomas

SAO PAULO, Brazil, July 30 /PRNewswire-FirstCall/ — TAM Airlines, a
company of Grupo TAM (Bovespa: TAMM4 and NYSE: TAM) with headquarters in
Asuncion, Paraguay, is going to adopt a management model based on the three
pillars that support the company’s activities: Service Excellence,
Technical and Operational Excellence, and Managerial Excellence. TAM
Airlines has been the new name of TAM Mercosur since last March, pursuant
to the guidelines for repositioning the brand that accompanied the
expansion of Grupo TAM in the international market.

The management model is being adopted in all parts of the group,
aligning administrative and operational processes and seeking continuous
improvement of passenger and cargo air transport services.

With the administrative restructuring of the group’s Paraguayan
company, 133 employees will be transferred to the personnel roster of TAM
Linhas Aereas. About 120 employees are being let go. In recognition of the
service of these employees, the company is offering a package of benefits
superior to what is required by law, and that includes an extension of the
health plan and the granting of air travel discounts for a period
proportional to time of service. These employees will also receive support
in the process of reentering the job market.

With the aim of optimizing resources and improving the company’s
operational capacity, there will be changes in TAM’s air network,
specifically in the routes flying in and out of the Paraguayan capital.

“The search for synergies is consistent with our strategy of expanding
our presence in the international market, and seeks to promote process
optimization,” said Captain David Barioni Neto, president of TAM Linhas
Aereas and president of the Board of Directors of TAM’s Paraguayan
division, who is responsible for the executive management of TAM Airlines.

TAM (http://www.tam.com.br) has been the domestic market leader since
July of 2003, and closed June 2008 with 48.6% of market share. The company
flies to 42 destinations in Brazil. Through business agreements signed with
regional companies, it reaches 79 different destinations in Brazil. TAM’s
market share among Brazilian companies that operate international flights
stood at 75.3% in June. Operations abroad include TAM flights to 15
destinations in the United States, Europe and South America: New York and
Miami (USA), Paris (France), London (England), Milan (Italy), Frankfurt
(Germany), Madrid (Spain), Buenos Aires and Cordoba (Argentina), Santa Cruz
de la Sierra (Bolivia), Santiago (Chile), Asuncion and Ciudad del Este
(Paraguay), Montevideo (Uruguay), and Caracas (Venezuela). It has
code-share agreements that make possible the sharing of seats on flights
with international airlines, enabling passengers to travel to 64 other
destinations in the U.S., Europe and South America.

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