As of January, travel agent compensation will be specified on domestic tickets SAO PAULO, Brazil, Oct. 31 /PRNewswire-FirstCall/ -- TAM (Bovespa: TAMM4 and NYSE: TAM) and the ABAV (Brazilian Association of Travel Agents) signed an agreement to establish a new method for compensation payment that will result in greater transparency regarding the service purchased by the end user. As of January, passengers can expect to have the ticket price and corresponding travel agent compensation for the purchase specified on the ticket itself. The agreement will first be implemented in the Brazilian market and subsequently internationally. (Logo: http://www.newscom.com/cgi-bin/prnh/20060418/SPTU001LOGO ) The new procedures agreed to between the company and ABAV, organization with the greatest representation in Brazil's tourism sector, with over 50 years of activities, will be presented to the National Civil Aviation Agency (ANAC) in the next few days. According to the agreement, travel agent compensation -- previously known as the "commission" and required as an integral part of the tariff -- will consist of a service charge of 10% of the ticket value or R$ 30.00, whichever is greater, and will be levied on domestic tickets, which will be charged separately and directly to the final client. The amount will be charged by the travel agent directly to the customer as a service charge. The new procedure will be put into practice by agencies linked to ABAV and by TAM at all points of sale, stores and TAM Viagens, outsourced agencies and call centers, but will exclude electronic sales (http://www.tam.com.br/), where there is no participation by an actual representative at the moment of sale. "The work involved in reaching this final model has been maturing over the past year between the ABAV and TAM boards, always with open dialogue and great transparency. To get to this point, we also looked at what was being adopted successfully in a number of other locations around the world," said Wagner Ferreira, TAM Vice President of Sales. For TAM, the change will lead to a reduction in administrative and general expenses. Passengers, in turn, will be able to determine the ticket cost as well as service fee for the transaction. Investor Relations Contact: Press Agency Contact: Phone: (55) (11) 5582-9715 Phone: (55) (11) 5582-8167 Fax: (55) (11) 5582-8149 Fax: (55) (11) 5582-8155 http://www.tam.com.br/ri About TAM: TAM (http://www.tam.com.br/) has been domestic market leader since July 2003, closing the month of September 2007 with a 48.1% market share. The company flies to 47 destinations in Brazil. With commercial agreements signed with regional companies, it reaches 81 different destinations in Brazil itself. In September, TAM held a 69.8% market share among Brazilian airlines operating international flights. International operations include direct flights to eight destinations: New York and Miami (USA), Paris (France), London (England), Milan (Italy), Buenos Aires (Argentina), Santiago (Chile) and Caracas (Venezuela). On November 5, TAM will begin daily flight service to Montevideo (Uruguay). http://www.newscom.com/cgi-bin/prnh/20060418/SPTU001LOGO DATASOURCE: TAM CONTACT: Libano Miranda Barroso, TAM Investor Relations, +011-55-11-5582-9715, fax, +011-55-11-5582-8149, Web site: http://www.tam.com.br/

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