TAM nixes South Africa launch for 2009

Washington DC
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Brazilian carrier TAM has opted to postpone flights from Sao Paulo to Johannesburg, South Africa originally scheduled for launch this year.

TAM in April won approval from Brazilian authorities to inaugurate flights between the two cities, and explained it planned a launch for the second half of this year.

During a recent earnings call carrier CFO Libano Miranda Barroso said TAM has decided to delay the launch to preserve cash flow, explaining that "several initial costs are related to new destinations".

In November of 2008 TAM said it was leaning towards the Sao Paulo-Johannesburg market as its only new destination in 2009, and Johannesburg would have been TAM's first destination in Africa.