TAM and Air Canada Extend Partnership to Benefit Frequent Flyers

SAO PAULO - Agreement allows customers of both airlines to earn and redeem TAM Fidelidade points or Aeroplan Miles on any flight operated by either TAM or Air Canada

TAM (NYSE: TAM: Bovespa: TAMM4) and Air Canada, a founding member of Star Alliance, today announced that they will start implementing a bilateral agreement that will allow members of TAM Fidelidade or Air Canada’s Aeroplan programs to earn and redeem frequent flyer points/miles beginning April 28, 2009 on flights operated by either company. This initiative is part of a Memorandum of Understanding signed between TAM and Air Canada in June 2008, aiming to expand services offered to customers of both airlines.

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Paulo Castello Branco, TAM’s Commercial and Planning Vice President, states that the agreement will bring immediate benefits to passengers of both airlines. “The partnership of both frequent flyer programs — TAM Fidelidade and Aeroplan — enhances our strategy of Excellence in Services, one of the three pillars that sustain TAM’s operations, with the other two being Technical and Operational Excellence and Excellence in Management,” says Castello Branco.

A pioneer in the adoption of a Frequent Flyer Program for Brazilian airlines, TAM’s Programa Fidelidade now has over 5.5 million members, with more than 7.4 million tickets distributed through the redemption of accrued points.

“We are delighted to offer Air Canada’s most loyal customers increased benefits by continuing to build our partnership with TAM, Brazil’s leading airline,” said Ben Smith, Air Canada’s Executive Vice President and Chief Commercial Officer. “The opportunities for earning and redeeming reward travel have now grown exponentially across each of our networks. In addition, customers will enjoy Air Canada’s new in-flight product offering that features lie-flat beds in our Executive First Suites on all international routes, including Toronto-Sao Paulo, as well as brand new cabins, seats and seatback entertainment for all passengers fleet wide.” Air Canada operates daily Toronto-Sao Paulo non-stop flights using Boeing 767-300ER or 777-300ER aircraft in the northern hemisphere summer and winter seasons.

With the expanded partnership, TAM passengers can use points earned in TAM Fidelidade on any domestic or international flight operated by Air Canada. Likewise, Air Canada’s Aeroplan members can redeem their accrued miles for air travel in domestic and international flights operated by TAM.

TAM and Air Canada have had a codeshare agreement since October 2008, allowing TAM to sell seats in flights operated by Air Canada between Sao Paulo and Toronto, with the possibility of connections to a number of Canadian cities. Air Canada in turn can offer its customers a number of flight options to Brazilian destinations operated by TAM. With this partnership agreement, customers of both airlines will benefit from seamless connections on a single ticket and baggage check-through to final destination.

Source: TAM

Libano Miranda Barroso, TAM Investor Relations,+55-11-5582-9715, fax, +55-11-5582-8149, invest at tam.com.br/;Photo: NewsCom: https://www.newscom.com/cgi-bin/prnh/20080221/SPTH002LOGO