Air Transport World

TAM: Brazil's marketing leader secures top spot with VOTEC merger. (TAM Linhas Aerea Regional, VOTEC Servicos Aereos Regionais SA) (The Regionals of Brazil - part 2)

TAM: Brazil's marketing leader secures top spot with VOTEC merger

TAM Linhas Aerea Regional, a division of TAM Transportes Aereos Regionais S/A, is engaged in the merger into its corporate family of VOTEC Servicos Aereos Regionais S.A., a revolutionary change that marks the end of Brazil's system of five independent regionals.

The ongoing change amounts to a major revolution in marketing and integration in a country where the government helped create the five carriers and assigned them monopoly rights to their territories. (ATW, 3/87). The change also will result in the disappearance of both the VOTEC and TAM names, replaced by Brazil Central and Brazil West, respectively.

TAM, the regional, jointly owned by Brazilian major Vasp (20%) and holding company Taxi Aereo Marilia (TAM)--a fixed base operation with a branch in Ft. Lauderdale, Fla., an air taxi and a Cessna dealership --already operates under a corporate structure similar to many U.S. airlines.

The regional operation holds the position of Brazil's largest regional airline by virtue of placing first in the enplanement race the past five years. TAM's winning margin shrank considerably in 1985 when all but Rio Sul suffered declines in boardings. But in the waning days of 1986, TAM's President Capt. Rolim Adolfo Amaro told ATW that his carrier reversed 1985's 32% drop in passengers and expected to regain those lost boardings.

Even without the recouped losses, in 1987 TAM easily lays claim to the mantle of Brazil's largest regional in terms of passengers, RPKs, fleet size and revenues. With one merger, TAM's sphere of influence more than doubled from 1.04 million square kilometers to 2.28 million. …

Log in to your account to read this article – and millions more.