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THE HISTORY

Táxi Aéreo Marília emerged in 1961, as of the gathering of 10 young monomotor pilots. At the time, they performed the transportation of freight and of passengers between Paraná and the states of São Paulo and Mato Grosso. After six years, the group is bought by businessman Orlando Ometto, has its headquarters moved to São Paulo and also changes its profile when it starts to transport only pouches.

In 1971, captain Rolim Amaro, who had already worked at the company during its early years of operation, is invited by Orlando Ometto to be a minority partner of the company, with 33% of the shares. In the following year, the pilot acquires half of TAM's shares and takes over the direction of the company.
The year of 1976 marks the emergence of TAM - Transportes Aéreos Regionais, which originated the company known today as TAM Linhas Aéreas. Rolim holds 67% of the capital of the new company, with services turned to the interior of São Paulo, Paraná and Mato Grosso.

The 80's marks a period of growth. Changes start with the arrival of Fokker-27, replacing the bimotor airplanes. In 1981, TAM celebrates the mark of one million passengers served.
The first great leap over the mesh of the company comes in 1986, with the acquisition of airline company Votec. With the measure, TAM extends its activities to the Central-West and Northern regions of the country.
As of 1989, the presence of the captain at the door of the aircrafts to welcome the passengers and the unmistakable red carpet on the access to the boarding ladder become part of the differentiated treatment offered by TAM.

The company wins more visibility with the arrival of the Fokker-100, inaugurating a new age in regional aviation.
In 1993, TAM is pioneer in launching the TAM Fidelidade FFP, which stands out because it does not foresee limitation of seats for free tickets.
The year of 1996 marks the beginning of TAM's operations all over the national territory. TAM acquires company Lapsa from the Paraguayan Government and creates TAM Mercosur.
Along with a consortium formed by Lan Chile and Taca, TAM leads the negotiation for the purchase of Airbus aircrafts. The result is the purchase of 150 aircrafts for the three companies with the European consortium.
Another strategic initiative is the purchase of an area of 185 alqueires (447 ha) in the São Carlos region, in the interior of São Paulo, which is today TAM's Technological Center.
In 1998, TAM's first Airbus A330 arrive and the company performs its first international flight in the São Paulo - Miami route. In the following year, the first destination to Europe (Paris) takes place, in partnership with Air France.
Betting on technology as a means to serve its passengers better, TAM is once again pioneer in launching in Brazil a modern system of electronic tickets, baptized with the name of e-ticket.

TAM remanages its air network, restructure itself internally and begins sharing flights with Varig.
The company launches e-TAM Self-Service at the major airports in the country, an equipment that allows the passengers to perform their own check-in in only 10 seconds. The company closes the year with a profit of R$ 174 million, the highest in its history. After a career of 30 years in the company, Daniel Mandelli Martin leaves TAM's presidency.

Marco Antonio Bologna, who had held the Financial Vice-Presidency, takes over the Presidency on January 19.
Night flights are created, with reduced rates, known as "big owls".
TAM also invests in comfort and launches the new Executive Class chair on international flights to Europe (Paris) and the USA (Miami). The reclination of the chairs goes from 145º to 180º.
As economy rewarmed, the company resumed the operation of night flights to Miami and starts to operate three more weekly flights to Paris. With that, the number of frequencies to the USA increases to 14. To Europe, TAM starts to offer 10 weekly flights. In addition, the company starts a growth strategy for Latin America and starts to fly daily to Santiago (Chile) at the beginning of December.
In order to adapt the fleet to the increase in demand in the domestic and international market, TAM confirms the arrival of its tenth Airbus A330 until October of 2005, which will be used on international trips. The company also agreed with Airbus as to a deadline for the delivery of 10 more aircrafts A320 in the next four years. In addition to these firm deliveries, 20 options will also be assured for the same type of aircraft, subject only to TAM's confirmation.
In the domestic market, TAM closes a series of agreements with regional airline companies in order to increase its coverage within national territory and offer new connection and frequency possibilities for its passengers. In all, these are 25 new national destinations, responsible for the transportation of 38 thousand passengers more than in 2004. The agreements involve five companies: Passaredo, Ocean Air, Total, Trip and Pantanal. With that, TAM starts to cover a range of 66 cities within national territory (being 41 of these destinations its own).
TAM closes the month of December with the domestic market leadership for the 18th consecutive month and a historical record in the month of December: 41.17% of market share. Accumulated in the year, TAM keeps a participation of 35.79% in the national sector and 14.48% in the international sector. The occupation of the aircrafts accumulated in the year also reaches good results: 64% in the domestic market and 72% in the international market.

TAM keeps its leadership in the aviation domestic market with an average of 43.5% of market share, growth of 7.7 p.p. in comparison with the year before. In the international market, the evolution was of 4.4 p.p., closing the period with 18.9% of market participation.
New frequencies for Paris (twice a day), Buenos Ayres (five daily) and the launching of the flight to New York, in November, contribute to increase the share of this segment. Furthermore, the company consolidates its flights to Miami (two per day), Santiago (Chile) (one daily) and reinforces its integration with TAM's subsidiary in the Mercosur, with headquarters in Asuncion, Paraguay, and that goes to Pedro Juan Caballero, Montevideo, Punta Del Leste, Ciudad Del Este, Santa Cruz de La Sierra and Cochabamba. In Brazil, TAM at 46 destinations and, with the commercial agreements with regional companies, it reaches 73 locations inside the country.
This year, 19.6 million passengers are transported, 44.7% above the figure recorded in 2004. The evolution of the operation made the company increase is staffing in 15.4% (1,290 new direct employees) as compared with 2004, totaling 9,669.

In the first semester, it reinforces flights as of São Paulo, Rio and Brasília, especially for the capitals of the Northeast. In July, it starts to fly to Boa Vista (Roraima) and begins direct frequencies to Manaus as of São Paulo. As of October 2, it starts to operate daily flights to Rio Branco (Acre) as of Goiânia, with stop in Brasília, and starts to fly to all the 26 Brazilian capitals, in addition to the Federal District.
In the international market, it completes the seven weekly frequencies to New York with night flights, starts the third daily flight to Miami as of Manaus and, with TAM Mercosul, reinforces Buenos Ayres as of Galeão. To Santiago (Chile), it increases its capacity with the operation of Airbus A330. In October, it begins flight to London and starts to offer its passengers two more new destinations in Europe: Zurich and Geneve, in Switzerland, by means of flights in code-share with Air France.
It closes the year with profits of R$ 556.0 million. In the domestic and international markets, the company transported 27.9% more passengers in comparison with the year before, totaling 25 million people. In December, it reaches 49.1% of domestic market participation and 60.6% in the international segment.

It starts operating new routes to Milan (Italy) and Cordoba (Argentina), and starts to offer a direct frequency between Salvador and Paris, in addition to flights connecting Fortaleza and Salvador to Buenos Ayres. It launches the second daily frequency to Santiago, Chile and starts to operate the third daily flight to Paris (France), this time with departure from the International Airport Antonio Carlos Jobim (Galeão), in Rio de Janeiro.
As part of its policy for the international segment, TAM establishes strategic partnership by means of subscription of Understanding Memoranda with Portuguese TAP, South American LAN, American United Airlines, in addition to German Lufthansa.
In July, it received official authorization from ANAC (Agência Nacional de Aviação Civil) [National Civil Aviation Agency] to start regular operations of three weekly frequencies to Frankfurt (Germany) and seven to Madrid (Spain).
In order to operate the international segment, TAM announces the expansion of its fleet planning, with the acquisition of 22 Airbus A350 XWB (Xtra Wide Body) with more then 10 options to be delivered between 2013 and 2018. In addition to these, the company confirmed the receipt of two more A330 in 2010 and two others in 2011. Previously, the company had already announced the contracting of four Boeing 777-300ER, increasing to eight the number of aircrafts of this model that will be delivered as of 2008. With that, TAM plans to close 2007 with 18 large - sized aircrafts for long - course trips and until 2010, there will be 26 aircrafts destined exclusively for international flights.
In the month of July, TAM records market participation in the domestic flights of 50.6%, consolidating the leadership achieved since July of 2003. In the segment of international lines operated by Brazilian airline companies, TAM reaches market share of 64.3%, keeping leadership won in July of 2006.