Brazil's TAM has unveiled plans to create a new holding company that will be headed by former CEO Marco Antonio Bologna.
TAM says it has decided to create a holding company, to be called TAM SA, to improve its governance. The new structure will also result in separate management teams for TAM's airline subsidiaries and its loyalty unit Multiplus.
Bologna, who served as TAM CEO from late 2003 to late 2007, has been appointed to the position of executive president for TAM SA. Libano Barroso, who was appointed TAM's CEO last year, will continue be in charge of all the company's airline subsidiaries, but will relinquish his title of Multiplus president.
In February TAM sold a 29% stake of Multiplus for about R$700 million ($390 million) in an initial public offering on the Sao Paulo Stock exchange. Barroso will continue to serve as president of Multiplus until a separate CEO for the Multiplus is appointed.
"By end of year we are committed to bring a new CEO of Multiplus," Barroso told investors today during TAM's fourth quarter 2009 results conference call.
Barroso adds he will continue to be in charge of all "airline-related businesses" while Bologna will be in charge of other businesses, new business development, institutional affairs and representation of the group. "We are very glad to have him [Bologna] back to the executive level," Barroso says.
Since relinquishing the CEO role in November 2007 to David Barioni, Bologna has remained with TAM as a board director and advisor. He also currently serves as acting president of TAM's business jet division.
Barioni resigned in October 2009 and was replaced by Barroso, previously TAM's CFO. Barroso calls the establishment of a new parent company an important step in a strategy initiated by Bologna in 2007 to unlock shareholder value. The spin-off of Multiplus was also important step in this strategy, as is the carrier's continued expansion of its domestic and international networks.
"To prepare the group for this next level of growth it is important to separate certain functions within the group," Barroso explains.
The president of the company's board of directors, Maria Claudia Amaro, says in a statement that "the decision to separate the leadership positions in TAM SA and TAM Airlines represents an important step toward the creation of a great corporation, always having its air operations as its backbone. We have reached a stage at the company where the precise definition of the corporate functions has become strategic."
Airline subsidiaries under TAM SA include TAM Linhas Aereas, newly acquired Brazilian regional carrier Pantanal and Paraguayan carrier TAM Mercosur. Under the new corporate structure, Barroso will continue to be president of all three of these carriers as well as tour operator TAM Viagnes.
Source: Air Transport Intelligence news
