Air Canada and TAM Extend Partnership

Air Canada and Brazil's TAM have signed a bilateral agreement that will allow members of Air Canada's Aeroplan or TAM's Fidelidade programs to earn and redeem frequent flyer Miles/points beginning today - April 28, 2009 - on flights operated by either company.

"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, respectively.

Paulo Castello Branco, TAM vice president, Commercial and Planning, said 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, the other two being Technical and Operational Excellence and Excellence in Management," said Castello Branco.

TAM now has over 5.5 million members, with more than 7.4 million tickets distributed through the redemption of accrued points.

With the expanded partnership, Air Canada's Aeroplan Members can redeem their accrued miles for air travel on domestic and international flights operated by TAM.

Likewise, TAM passengers can use points earned in TAM's Programa Fidelidade on any domestic or international flight operated by Air Canada.

Air Canada and TAM have had a codeshare agreement since October 2008, allowing TAM to sell seats on 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 destination 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.

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