TAM Orders 46 Airplanes From Airbus for $6.9 Billion

TAM Orders 46 Airplanes From Airbus for $6.9 Billion

Jan. 21 (Bloomberg) -- TAM SA, Brazil's biggest airline by the number of passengers carried, said it ordered 46 Airbus SAS planes for about $6.9 billion as it expands service abroad and domestically.

The agreement follows an initial commitment in June. The order signed today includes 22 A350 XWBs, four A330-200 and 20 A320-series single-aisle planes, Sao Paulo-based TAM said in an e-mailed statement today.

Brazil's domestic air travel has expanded more than 10 percent in the past five years as record-low interest rates and consumer credit fuel growth in Latin America's biggest economy. TAM has been increasing its share of both international and domestic routes in Brazil. The carrier carried 49 percent of all domestic airline passengers last year compared with 41 percent in 2005, according to data from the country's civil aviation regulator.

TAM, which controls 67 percent of the international market among Brazilian airlines, operates 11 direct flights from Brazil to cities such as to Paris, London, Milan, New York and Miami.

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