TAM Receives Two New Airbus; Fleet Reaches 93 Aircraft

SAO PAULO, Brazil, Oct. 30 /PRNewswire-FirstCall/ -- TAM S.A. (NYSE: TAM) (BOVESPA: TAMM4), Brazil's largest airline company, will receive tomorrow, October 31, two new Airbus aircraft: one A319 and one A320, which will start flying next week. These are the 11th and 12th A319/320 aircraft incorporated into the company's operating fleet which now has 93 aircraft, consisting of 71 Airbus - 14 A319, 47 A320 and 10 A330. TAM expects its fleet to have a minimum of 96 airplanes by the end of 2006.

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The aircraft are part of contracts, which foresee the acquisition of 61 Airbus aircraft - 15 A319, 40 A320 and 6 A330 - to be delivered by 2010. The contracts include the option of an additional 20 aircraft. TAM's strategic plan foresees an operational fleet of 127 Airbus aircraft by the end of 2010.

The new A320 aircraft will fly domestic routes as well as routes throughout South America, following the increase in demand observed over the past few months. According to ANAC, Brazil's National Civil Aviation Agency, the domestic market increased 14.7% in the period from January to September. During the same period, year-on-year, TAM increased 31.4%. The company held a 51.7% domestic market share in September 2006.

Manufactured with high technology, the Airbus A320 has the capacity to transport up to 174 passengers and the A319 can hold up to 144 passengers. With these new A320 and A319, TAM strengthens its policy of operating a young aircraft fleet, offering more comfort to passengers with a high-tech product.

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    About TAM:

TAM (http://www.tam.com.br) has been the leader in the Brazilian domestic market for more than three years, and held a 51.7% domestic market share and 60% international market share at the end of September 2006. TAM operates regular flights to 48 destinations throughout Brazil. It serves 74 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 3.3 million subscribers and has awarded more than 3.6 million tickets.