Tam CEO Plans to Add International Flights, O Globo Reports

Tam SA Chief Executive Officer Marco Antonio Bologna said his airline plans to add international flights out of Rio de Janeiro and cut domestic flights to revive profit, O Globo reported.

Tam, the Brazilian unit of Latam Airlines Group SA (LAN), will start daily flights to Orlando, Florida, and Montevideo, Uruguay, this month and next, the Rio de Janeiro-based newspaper reported, citing an interview with Bologna. Tam also is considering direct flights to Madrid and more frequent flights to New York, according to O Globo.

Tam will reduce domestic flight capacity by 7 percent next year and keep more backup planes ready to avoid regulatory fines for flight delays or cancellations, O Globo reported. Those measures will help cut costs and allow Tam to return to profitability next year, Bologna told the newspaper.

Bologna didn’t immediately respond to a call outside of regular business hours seeking comment.

To contact the reporter on this story: Matthew Malinowski in Santiago at mmalinowski@bloomberg.net

To contact the editor responsible for this story: Sylvia Wier at swier@bloomberg.net

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