LAN---

TAM

LATAM AIRLINES GROlJP

TAM ANO LABOR UNION AGREE ON VOLUNTARY RETIREMENT PROGRAM ANO UNPAIO LEAVE FOR CREW MEMBERS

Sao Pau/oAugust 12013- TAM Lin has Aéreas an nou nc es that, in a meeting held today with the National Air Workers Union, it reached an agreement regarding the upcoming reduction in its crew size.

Despite the adverse scenario facing the aviation industry, TAM decided to go beyond the requirements of law. In addition to fully complying with the collective bargain ing agreement,the company has agreed to offer an Un paid Leave Program (U LP) and a Volu ntary Retirement Program (VRP). Through these programsJ TAM undertakes to reduce the nu mber of c rew mem bers affected to 811.
The Unpaid Leave Program (ULPt which will be open to crew members of ali aircraft familiesJ will be valid for 18 months and extendable for another 12 months. In the first six months, employees who joined the ULP and their immediate family members will be covered by the health pian and, during the period of leave, enjoy the same benefits of air tickets as those enjoyed by the active employees of the company.
The Volu ntary Retirement Program (VRP) wili be affered to the crew of the Airbus
320 aircraft family (A319/A320/A321). Those joining the program will receive additional indemnity1 in addition to health pian far six months and three flight tickets for the employee and his or her direct relatives. TAM will also bear the costs of revalidating the Technical Qualification Certificate in the current aircraft until the final check in the flight simulator, in cases where the certificate expires in the three months after the employee has joined the program.
lt w ili also provide the necessary career transition assistance th rough a specialist consulting firm.
As announced earlier, TAM's decision aims to ensure the sustainability of the company's business, adjusting the staff strength to the changed operational scenario. The company is faced with a significant increase in costs, which forced it to reduce passenger capacity in the domestic market by 12% so far since 2011.
TAM will continue to invest systematically to increase efficiency and create value for employeesJ investors1 customers and society as a w hole.

LAN TAli/l

LATAM AIRLINES GROUP

About LATAM Airlines Group SA

LATAM Airlines Group SA ìs the new name gìven to LAN Aìrlìnes SA as a result of its assocìatìon wìth TAM SA LATAM Aìrlìnes Group S.A. now includes LAN Airlines and its affiliates in Peru, Argentina, Colombia and Ecuador, and LAN Cargo and its affiliates,as well as TAM SA an d its subsidiarìes TAM linhas Aereas S.A., including its business units TAM Transportes Aereos del Mercosur SA,TAM Airlines (Paraguay) and Multiplus SA This association creates o ne of the largest airlìne groups in the world in terms of network connections, providing passenger transport services to about 135 destinations in 22 countries and cargo services to about 144 destinations in 27 countries, with a fleet of 316 aircraft. In total, LATAM Airlines Group S.A. has more than 53,000 employees and its shares are traded in Santiago,as well as o n the New York Stock Exchange, in the form of ADRs,and Sao Paulo Stock Exchange, in the form of BDRs.

Each airlìne will continue to operate under theìr current brands and identities. For any inquiry of LAN or TAM,please visit www.lan.com or www.tam.com.br,respectively. Further information at www.latamairlinesgrou p.net

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