Could the idea of a merger between Varig and TAM be revived at a future date?
The two companies, fierce competitors before, were pragmatic and brave, sitting at the same table, working together on the feasibility study of a merger. That model did not work out for economic and financial reasons. The only thing possible at the time was a codeshare scheme. Last February we proposed to the air transport authority an evolution of this codeshare scheme. Instead of a blocked-space agreement we are proposing to transform it into a free sale system. We are about to get an answer to this proposal. Discuss the strategy to expand internationally in South America. There is a governmental policy of enhancing foreign trade with other South American nations, so we want Brazilian passengers to choose a Brazilian airline when traveling. In which markets should we be present? Buenos Aires comes in first, of course. Santiago is the second densest traffic market. Southbound another market is Montevideo. Looking west we have Lima, which is developing itself as a hub. Then come Caraca
