TAM S.A. (TAM) signed agreements with Sabre and is negotiating with Amadeus and Travelport to make its entire content (rates and inventory) in the Brazilian market available through the Global Distribution Systems (GDS) operated by the three companies.
 
The agreements will not have any impact on the end user, who will still be able to purchase airline tickets through travel agencies and TAM stores, and also through the call center and the company’s website.
 
TAM will continue to use the e-TAM portal, its own distribution channel based on Amadeus’s technology platform, to make its content available in Brazil. e-TAM will offer the same information contained in the Sabre, Amadeus and Travelport GDSs. With it, travel agents and corporate customers may choose the most convenient tool for their day-to-day use.
 
Through these new partnerships, TAM will be able to expand its options available to travel agents and corporate customers in order to issue tickets within Brazil. The expectation is that TAM’S full content shall be available on the three GDSs by the end of the first half of 2010. It will enhance the company’s content distribution in the domestic market.
 
We are looking at 2010 as a modestly profitable year for the airline industry compared to 2009. Looking at the key earnings drivers, capacity is under tight control and growing very modestly. We believe that demand will recover, although not in a big way, but certainly better than a very weak 2009. Based on better balance between supply and demand, we also expect fares to go up.
Read the full analyst report on “TAM”
Zacks Investment Research