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        	  TAM Airlines has expanded its contract with 
			  OnAir, the in-flight connectivity service provider, to equip a 
			  range of single-aisle aircraft this year. 
			  Following a successful 
			  pilot project, TAM will install OnAir's on-board connectivity 
			  system in 26 aircrafts, allowing passengers to telephone, text, 
			  and browse the Internet using their own BlackBerrys or 
			  Smartphones. 
			  The connected aircraft are expected to start 
			  flying in the second half of this year. TAM will set up a 
			  dedicated production line to install the system on the Airbus 
			  A319, A320, and A321 aircraft at its Technological Center in São 
			  Carlos, State of São Paulo. All the aircraft operate domestic 
			  routes and will fly to most of the 45 destinations covered by TAM 
			  in Brazil. 
			  "The high use of on-board connectivity 
			  by our passengers has encouraged us to invest further. We noted 
			  our clients want and need to be connected while flying. To that 
			  end, we are increasing the number of aircrafts with the OnAir 
			  system to offer our customers a more complete flying experience", 
			  said Manoela Amaro, TAM Airlines' Marketing Officer. 
			  TAM is one of the first airlines in the Americas to offer on-board 
			  mobile phone services. Since October 2010, one Airbus A321 - 
			  operating between São Paulo/Guarulhos, Recife, Natal, Fortaleza, 
			  Salvador and Porto Alegre - has been equipped with the OnAir 
			  system. The service, based on Inmarsat SwiftBroadband, allows 
			  passengers to connect to a cellular network from their personal 
			  GSM handsets. 
			  Globally, the system has already 
			  proven itself on more than 150,000 flights to 356 cities, 
			  connecting passengers in 83 countries with roaming agreement with 
			  more than 250 mobile network operators. 
			  "Inflight 
			  connectivity has reached a tipping point," said Ian Dawkins, Chief 
			  Executive Officer of OnAir. "It's now a must-have for airlines and 
			  no longer just a nice-to-have." 
			  The service allows 
			  as many as eight TAM passengers to make and receive calls 
			  simultaneously on a flight, with no limits on data and text messaging. Mobile phones work in exactly the same way as in 
			  international roaming and can be activated as soon as the aircraft 
			  reaches an altitude of 4,000 metres (13,000 feet). Passengers can 
			  also use their Smartphones or BlackBerrys onboard to access e-mails 
			  or surf the internet. Usage is charged directly by the mobile 
			  network provider to the passenger's phone bill. Rates are set by 
			  his or her usual provider. 
			  "The more passengers 
			  become aware that they can stay connected while in the air, the 
			  greater our understanding of the services they demand and the 
			  faster airlines are learning that connectivity is now an integral 
			  part of the onboard experience," Dawkins added. "TAM's pilot 
			  project underlines the phenomenal interest of passengers in the 
			  service when given the opportunity to stay connected." 
			  The system provides complete aircraft safety by preventing any 
			  interference between mobile phone signals, mobile infrastructures 
			  on the ground and the aircraft's commands. If necessary, the OnAir 
			  system can be turned off by the aircraft's crew at any time. 
			  During takeoff and landing passengers will be instructed to switch 
			  off their electronic devices. 
			  TAM Airlines received 
			  technical approval from the Brazilian National Agency of Civil 
			  Aviation (ANAC) and OnAir has received the authorisation to 
			  operate the service by the Brazilian National Telecommunications 
			  Agency (Anatel). The system has also been certified by the 
			  European Aviation Safety Agency (EASA) and its use was recently 
			  approved by the European Union.
  
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