United Airlines and TAM Linhas Aereas signed a memorandum of understanding to develop an agreement to offer codeshare flights, which will expand the international destinations and frequent flyer benefits offered to customers.

The market leader in Brazil, TAM serves 49 cities in the country. The proposed agreement will result in more flight options for customers traveling between the United States and Brazil, and will give customers of United's Mileage Plus and TAM's Fidelidade programs the opportunity to earn miles while traveling to destinations never-before served.

"We are pleased to have the opportunity to expand the South American destinations we offer our customers," said John Tague, executive vice president and Chief Revenue Officer for United Airlines. "TAM is a leading airline in South America with excellent service, and our complementary route networks will deliver many codeshare and frequent flyer benefits to our customers, while supporting our strategy of international growth."

Marco Antonio Bologna, TAM president, said that the agreement will complement TAM's international route network in the United States by providing passengers with access to United's U.S. destinations. "United Airlines also will offer customers TAM flights in the United States, and will provide new connection opportunities in Washington and Chicago - important destinations for Brazilian business travelers," Bologna commented. "We anticipate that this partnership will result in increased traffic and more revenue opportunities for both airlines."

Implementation of the memorandum of understanding requires the execution of formal agreements, and is dependent upon formal approvals from the U.S. and Brazilian governments and other integrations that are expected to be in place in late 2007.