Brazilian Airline TAM of the LATAM Airlines Group has continued to expand internationally during 2015 even as it has revised its domestic capacity forecast from flat to a reduction of up to 4% for the year amid a continuing weakening economy in Brazil.
Some of the international build up is occurring from Brasilia, where TAM has also made a regional domestic push in 2015. TAM is also continuing studies of the establishment of a hub in the northeastern region of Brazil to enhance its trans-Atlantic network. The airline’s evaluations show that despite Brazil’s economic weakness, it is necessary to have a strategy in place to exploit the demand once the economy starts to rebound.
TAM remains the internationalmarket share leader among Brazilian airlines, and has the strategic advantage of capitalising on the network of the LATAM Airlines Group to balance the weaker conditions in Brazil. But Brazil will likely continue to drag down LATAM’s fortunes in the short term.
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