TAM Linhas Aereas has postponed plans to increase its fleet of Airbus jets from 2008 to 2011 allegedly because of a drop in demand for domestic air travel.
It will cut demand for narrow-body Airbus jets by five planes a year. Previous plans included 103 narrow-body jets in 2008, 106 in 2009, 112 in 2010 and 115 in 2011.
Brazil's Aviation Industry has been in crisis for the past year due to overcrowding, air traffic controller strikes and massive delays, not to mention suffering from the consequences of the Sao Paolo air crash. A TAM Airbus 320 crashed at Sao Paulo's Congonhas airport in July, killing 199 people. This crash at Brazil's busiest domestic airport led the government to review use of the airport.
It currently flies to Paris, London and Milan in Europe and New York and Miami. TAM plans to leave international flights unchanged. It plans to start flights to Frankfurt from November 30 and to start daily flights to Madrid by December. TAM said it is sticking to its forecast of a 10 to 15% rise in domestic demand in 2007.
TAM has orders for 51 narrow-bodied Airbus jets, which include the A319, A320 and A321, and orders for 10 A330 planes through 2011. It had ordered four additional Boeing 777-300ER planes worth 1 billion US dollars. Boeing said TAM was the first Latin American airline to add the long-range jetliner to its fleet.
The new planes will help the company save fuel and increase its presence in the international market. It is set to receive its first of the planes in June 2008.
The competition, GOL Linhas Aereas Inteligentes, has a reduced fleet plan this year.
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