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FORMED IN 1945 AND STARTED OPERATIONS IN 1946. NATIONAL CARRIER. FORMED AS FULL NAME: TRANSPORTES AEREOS PORTUGUESES. DOMESTIC & INTERNATIONAL, SCHEDULED, PASSENGER, CARGO & MAIL, JET AIRPLANE SERVICES.
AEROPORTO DE LISBOA
EDIFICIO 25 8 ANDAR,
P-1704-801 LISBON, PORTUGAL
PORTUGAL (PORTUGESE REPUBLIC) WAS ESTABLISHED IN 1143, IT COVERS AN AREA OF 92,389 SQ KM, ITS POPULATION IS 10.6 MILLION, ITS CAPITAL CITY IS LISBON, AND ITS OFFICIAL LANGUAGE IS PORTUGESE.
SEPTEMBER 1995: (TAP) PORTUGAL OWNS 25% OF AIR MACAU (MCU).
1994 = +0.7% (RPK) TRAFFIC, +5.1% PASSENGERS (PAX), +3.2% (FTK) FREIGHT TRAFFIC.
OCTOBER 1995: NEW ROUTE TO MUNICH, & MACAU (A340, 3/WEEK). ALSO, CONSIDERING TOKYO SERVICE.
MANUEL NORTON, DIRECTOR GENERAL, TECHNICAL PLANS A FLEET OF A310/A340 LONG RANGE & 737 SHORT RANGE ROUTES.
PLANS TO PHASE OUT 737-200 (P3973 TO TACA (TAC) November 1995, P4033 TO (TAC) January 1996, P4072 TO (TAC) December 1997). PLANS TO DISPOSE OF L-1011'S.
DECEMBER 1995: TO CODE SHARE WITH SABENA (SAB), LISBON - BRUSSELS - MACAU (A340'S).
MAY 1996: JORGE SOBRAL, DEPUTY GENERAL DIRECTOR, MAINTENANCE & ENGINEERING. MARQUES DES CRUZ, DIRECTOR PLANNING, CONTROL AND DEVELOPMENT. ANTONIO MONTEIRO, DIRECTOR TECHNICAL DEVELOPMENT PLANNING.
JULY 1996: MANUEL NORTON GENERAL MANAGER MAINTENANCE & ENGINEERING, RETIRES AND IS REPLACED BY JORGE SOBRAL DIRECTOR MAINTENANCE & ENGINEERING.
OCTOBER 1996: VITOR PINTO DEPUTY DIRECTOR ENGINEERING & MAINTENANCE. ISIDRO NUNES REPLACES PICARDO FLORO ENGINEERING MANAGER.
EUROPEAN COMMUNITY (EC) LIMIT FOR CASH INJECTION HAS NO EXPANSION OF CAPACITY?
THE AIRLINE DECIDED THAT A319/A320 IS STANDARD FOR (TAP) AIR PORTUGAL FLEET. $420 MILLION, 22/8 ORDERS A319 (INCLUDING 5 WHICH COULD BE A320'S), INCLUDING 4 LEASED.
NOVEMBER 1996: PERFORMS "D" AIRPLANE MAINTENANCE CHECK OF VIASA (VIA) 727 (QB126).
DECEMBER 1996: TO BOSTON (A310).
MAINTENANCE & ENGINEERING FORMED INTO BUSINESS UNITS SEPARATED INTO POWERPLANT, AIRFRAME, AND COMPONENTS.
MAINTENANCE CONTRACT FOR LUFTHANSA (DLH) 737 & A320.
FEBRUARY 1997: 3 ORDERS (JANUARY 1998) A319-100'S, (ILF) LEASED & 1 ORDER (APRIL 1999) A320, (ILF) LEASED.
APRIL 1997: PILOT (FC)'S STRIKE FOR 2 DAYS COST -$6 MILLION.
JUNE 1997: 737-382 (24365) HAS SPECIAL COLOR SCHEME SHOWING LISBON'S EXPO 1998.
JULY 1997: CONTINUATION OF PILOT (FC) STRIKE FROM THE END OF JULY 1997 MAY BRING DOWN AIRLINE.
1996 = -$52.5 MILLION (HAS HAD NO +VE SINCE 1974).
AUGUST 1997: PILOTS (FC) AGREE TO SUSPEND STRIKE.
SEPTEMBER 1997: 1 737-230 (22637) SOLD TO RYANAIR (RYR) (NOVEMBER 1997), & 1 L-1011-385-3 (500) (293B-1240) TO AIR MADEIRA (MAE).
REACHES ACCORD WITH PILOTS (FC).
OCTOBER 1997: 7,448 EMPLOYEES.
NOVEMBER 1997: RETIRED LAST L-1011.
DECEMBER 1997: CODE SHARE WITH SABENA (SAB) TO BRUSSELS.
WANTS TO BE PART OF ATLANTIC EXCELLENCE ALLIANCE WITH DELTA AIRLINES (DAL), SWISSAIR (SWS) & AUSTRIAN AIRLINES(AUL).
MANUEL FERREIRA LIMA, CHAIRMAN.
1ST OF 16 A319'S (CFM56), 132 PASSENGERS (PAX), DELIVERY.
JANUARY 1998: GOVERNMENT OK'S PRIVATIZATION. SWISSAIR (SWS) EXPRESSES INTEREST IN TAKING 10%. FINANCIAL EXPERTS RATE TAP AIR PORTUGAL (TAP) WORTH AT $320 MILLION TO $375 MILLION).
CODE SHARE WITH DELTA AIRLINES (DAL) TO NEW YORK/NEWARK.
FEBRUARY 1998: CODE SHARE WITH AUSTRIAN AIRLINES (AUL) TO VIENNA, INCLUDING LAUDA AIR (LAL).
MARCH 1998: CODE SHARE WITH (AOM) FRENCH (MNR).
ALMEIDA SANTOS, MANAGER ENGINEERING REPLACES LOPES RODRIGUES.
NOW PART OF "QUALIFLYER" GROUP ALLIANCE, WITH SWISSAIR (SWS), AUSTRIAN (AUL), SABENA (SAB) AND AOM (MNR). (SWS) TO TAKE 20% STAKE IN TAP AIR PORTUGAL (TAP).
1 A319 (CFM56-5B5/P) & 1 A320-200 (CFM56-5B4/P) DELIVERIES.
APRIL 1998: 1997 = +$8 MILLION (1ST +VE IN 25 YEARS)!
7,900 EMPLOYEES (INCLUDING 440 FLIGHT CREW (FC) & 1,730 MAINTENANCE TECHNICIANS (MT)).
MAY 1998: 737-382 (24449) RETURNED TO (ILFC). 1 ORDER (2000) A320 & 2 A321-200 (CFM56-5).
JUNE 1998: 1 A320, AIR MACAU (MCU) WET-LEASED FOR 6 MONTHS, DURING LISBON EXPO. 2 A319'S (CFM56-5B5/P) DELIVERIES.
JULY 1998: CODE SHARE WITH TRANSBRASIL (TBL) TO SAO PAULO.
OCTOBER 1998: ALL 737'S TO BE PHASED OUT BY 2000.
NOVEMBER 1998: 2 A319-111'S (905 - "HUMBERTO DELGADO," 17) DELIVERIES. 737-282 (24043) RETURNED TO LESSOR, LEASED TO CASINO AIR (CIN).
DECEMBER 1998: 2 737-282'S (23044; 23046) RETURNED TO LESSOR.
2 A319-111'S (CFM56-5B5/P) (917 "ANTONIO SERGIO;" 933 "ECA DE QUEIROS") DELIVERIES.
FEBRUARY 1999: A320-214 (945, CS-TNG), (ILF) LEASED.
MARCH 1999: 1998 = 9.36 BILLION (RPK) TRAFFIC (+6.6%), 230 MILLION (FTK) (-2.1%), 4.54 MILLION PASSENGERS (PAX) (+8.9%).
2 A320-214'S (960, CS-TNH; 979, CS-TTJ) DELIVERIES.
APRIL 1999: 8,333 EMPLOYEES.
2 737-382'S (24365; 25161), RETURNED TO (ILF), LEASED TO AIR MALTA (MLT).
MAY 1999: A320-214 (982, CSA-TNI) DELIVERY.
AUGUST 1999: CODE SHARE WITH AIR EUROPA (ARE), LISBON, AND OPORTO, TO MADRID.
SEPTEMBER 1999: TECHNICAL DIVISION: CONTACT: PEREIRA DE CARVALHO, MANAGER MARKETING, SALES & CUSTOMER SUPPORT: 36,380 SQ M HANGARS FOR 3 WIDE BODIES, & 5 NARROW BODIES AIRPLANES; "A" - "D" CHECKS FOR 707'S, 727'S, 737'S, DC-10'S, L-1011'S, A310'S, A320'S, & A340'S, AIRPLANES, INCLUDING COMPOSITES REPAIR, INTERIORS (INCLUDING VIP), STRIP/PAINT, SHEET METAL WORK, AND CORROSION PREVENTION & CONTROL PROGRAM (CPCP).
OCTOBER 1999: 2 A319-111'S (1100, CS-TTL; 1106, CS-TTM), DELIVERIES.
NOVEMBER 1999: CODE SHARE WITH AVENSA (AVN), OPORTO AND LISBON TO CARACAS.
1998 = +$9.61 MILLION (+$8.53 MILLION): 5.81 BILLION (RPM) TRAFFIC (+6.6%), 744.5 MILLION (FTM) FREIGHT TRAFFIC (+4.4%).
737-3K9 (24214) RETURNED TO BAVARIAN (BAV) LEASING.
DECEMBER 1999: IN EARLY 2000, TO LONDON GATWICK (LGW).
JANUARY 2000: A319-111 (1165, CS-TTP) DELIVERY.
FEBRUARY 2000: AS PART OF PARTIAL PRIVATIZATION, SAIRGROUP (SWS) TAKES 34% STAKE IN TAP AIR PORTUGAL (TAP), FOR $154 MILLION.
1 ORDER A320-214 (1181), (ILF) LEASED.
MARCH 2000: 737-33A (23827) RETURNED TO ANSETT WORLWIDE (AWW). 1 A320-214 (CFM56-5B4/P) (1181, CS-TNJ), (ILF) LEASED.
APRIL 2000: AS PART OF USA - PORTUGAL "OPEN SKIES" AGREEMENT, TAP AIR PORTUGAL (TAP) GAINS NEW BROAD RIGHTS TO USA INTERMEDIATE POINTS & BEYOND, + CHARTERS. NOW, SERVES 49 DESTINATIONS.
8,870 EMPLOYEES. (email@example.com).
TO START NEW CHARTER SUBSIDIARY, CALLED YES TOURS (YES), WITH 1 A310 & 1 A320-211 (234, CS-TNC) WET-LEASED.
2 A310'S TO PORTUGESE AIR FORCE. 2 A320-214'S (1206, CS-TNK; 1231, CS-TNL), DELIVERIES.
JUNE 2000: IN NOVEMBER 2000, TO CODE SHARE WITH AMERICAN AIRLINES (AAL) TO BOSTON, NEW YORK (JFK), AND NEWARK.
A320 (CFM56-5A1) (234, CS-TNC), RETURNED TO GATX (GAX).
JULY 2000: 1999 = -$107.21 MILLION (+$9.61 MILLION): 9.38 BILLION (RPK) TRAFFIC (+.3%); 203.6 MILLION (FTK) FREIGHT TRAFFIC (-11.5%); 4.84 MILLION PASSENGERS (PAX) (+6.7%); 8,870 EMPLOYEES (+6.9%).
AUGUST 2000: A320 (CFM56-5A1) RETURNED TO (GAX), LEASED YO VOLARE (VLR).
SEPTEMBER 2000: 1ST A321-112, 42C, 152Y PAX, (1307, CS-TJE). 1 A310-211 (191, CS-TNB) RETURNED TO LESSOR.
OCTOBER 2000: 2 A320-211'S (185; 191) RETURNED TO BAVARIA (BAV), LEASED TO ISRAIR (ISA).
NOVEMBER 2000: FERNANDO PINTO (CEO), EX-VARIG (VAR).
JANUARY 2001: AFTER BEING CRITICIZED BY THE PORTUGESE COMMUNITY IN SOUTH AFRICA FOR SUSPENDING SERVICE TO JOHANNESBURG, (TAP) AIR PORTUGAL (TAP) WILL NOW CODE SHARE WITH (LAM) MOZAMBIQUE, TO MAPUTO, AND (LAM) WILL OPERATE THE LAST SECTOR TO JOHANNESBURG. ALSO, CONSIDERING FUNCHAL TO JOHANNESBURG (WEEKLY), ON RATIONALE THAT 90% OF 350,000 PORTUGESE RESIDENTS IN SOUTH AFRICA ARE FROM MADEIRA.
A321-211 (1399, CS-TJF "LUIZ VAZ DE CAMOES") DELIVERY.
FEBRUARY 2001: SAIRGROUP (SWS), PULLS OUT OF (TAP)'S PRIVATIZATION EFFORT. (SWS) WILL CONTINUE COMMERCIAL AGREEMENT, AND PROVIDE A GUARANTEE FOR SHORT-TERM FINANCING NEEDS. (SWS) IS IN EFFECT, DECLINING TO TAKE 34% STAKE IN (TAP).
A320-212 (235) RETURNED TO GATX (GAX), LEASED TO AIR FRANCE (AFA).
APRIL 2001: 8,870 EMPLOYEES.
AUGUST 2001: FISCAL YEAR (FY) 2000 = -$115 MILLION, DUE TO INCREASED FUEL COSTS, AND THE DEVALUATION OF THE EURO. TAP AIR PORTUGAL (TAP) HAS REDUCED ITS WORKFORCE BY -10%, AND ACCEPTED THE VOLUNTARY RETIREMENT OF -1,500 EMPLOYEES. PLANS TO PARTIALLY PRIVATIZE, WITH GOVERNMENT RETAINING 51%, AND (TAP) HAVING AN INITIAL PUBLIC OFFERING (IPO), TO PLACE 39% SHARES ON THE MARKET, WITH 10% RESERVED FOR ITS EMPLOYEES.
8,870 EMPLOYEES. (firstname.lastname@example.org).
OCTOBER 2001: OPORTO - BARCELONA.
A320-211 (234, CS-TNC) RETURNED FROM (YES).
JANUARY 2002: 2001 = -EUR43.6 MILLION (-EUR122 MILLION): 10.46 BILLION (RPK) (+.7%); 208.38 MILLION (FTK) (-6.8%); 5.39 MILLION PASSENGERS (+2%).
IN 2002-03, FUNCHAL - CARACAS (A310, 2/WEEK).
2001 TOP 50 WORLD AIRLINES - PASSENGER TRAFFIC (BILLION) (RPM):
1 UAL 116.60; 2 AAL 106.15; 3 DAL 97.60; 4 NWA 73.11; 5 BAB 64.24; 6 AFA 59.54; 7 CAL 58.76; 8 DLH 56.76; 9 JAL 50.77; 10 USA 45.93; 11 SWA 44.50; 12 SIA 42.76; 13 QAN 42.14; 14 ACN 41.49; 15 KLM 35.76; 16 ANA 33.16; 17 CAT 27.81; 18 TII 27.43; 19 IBE 25.64; 20 KAL 23.73; 21 ALI 22.45; 22 MAS 22.29; 23 AMW 19.06; 24 VAA 17.65; 25 VAR 16.02; 26 CHI 16.00; 27 EAD 14.37; 28 SAS 14.26; 29 ANZ 13.54; 30 SAA 12.70; 31 SVA 12.56; 32 BEJ 12.39; 33 ASA 12.23; 34 JAS 10.06; 35 THY 9.35; 36 AMX 8.51; 37 PAL 8.36; 38 GIA 8.15; 39 CMA 7.99; 40 ELA 7.79; 41 GUL 7.65; 42 PIA 7.24; 43 AIN 7.10; 44 TAP 6.43; 45 EGP 5.53; 46 OLY 5.24; 47 AUL 5.06; 48 FIN 4.93; 49 IND 4.52; 50 CQT 4.51.
FEBRUARY 2002: PROJECTS TO ALMOST BREAK EVEN IN 2002, AND BACK IN PROFIT BY 2003.
MARCH 2002: NOW PROJECTS -5.3 MILLION EUROS FOR 2002.
CODE SHARE WITH CABO VERDE AIRLINES (TCV) TO SAL, CABO VERDE (8/WEEK).
APRIL 2002: 8,203 EMPLOYEES.
MAIN BASE: LISBON (LIS).
HUBS: PORTO (OPO); FARO (FAO); & FUNCHAL (FNC).
MAY 2002: CODE SHARE WITH IBERIA (IBE), ON 25 ROUTES AND 160 DAILY FLIGHTS, IN IBERIAN PENINSULAR, AND EUROPE.
June 2002: A320-214 (1799, CS-TNM), (GAX) leased.
July 2002: 2001 = -$39.08 Million (-$113.25 Million): 10.46 Billion (RPK) traffic (+.7%); 67.6% LF load factor; 5.39 Million passengers (PAX) (+2%); 53.87 Million (FTK) freight (-10.9%); 8,203 employees (+20.2%).
A320-214 (1816, CS-TNN "GIL VICENTE"), (GAX) leased.
August 2002: Iberia (IBE) shows interest in taking a stake in (TAP) Air Portugal.
March 2003: 2002 = -EUR 6 Million/-$6.6 Million (-EUR 43.6 Million): 11.38 Billion (RPK) (+9.7%); 5.6 Million (PAX) (+3.3%); 69% LF (+2); 193.91 Million (FTK) (-13.2%).
1st step towards privatization is to split the group into aviation, maintenance, and handling divisions, seeking separate partners for each. The government plans to sell 39% in 2004, with another 10% reserved for employees.
April 2003: Funchal - London Gatwick (LGW) (A320, weekly).
8,870 employees. (email@example.com)
May 2003: Next month, code share with SN Brussels Airlines (DAT), to Brussels. In 2003-09, code share with Continental Airlines (CAL), from Lisbon and 18 cities in Europe and Africa, to Newark and 51 cities in USA & Canada.
August 2003: Plans to replace its 5 A310-300's with 5 A330-200's.
September 2003: 2002 = -$5.7 Million (-$39.4 Million): 11.38 Billion (RPK) (+8.9%); +6.7% (ASK); 69% LF (+1); 5.6 Million (PAX) (+3.2%); 194 Million (FTK) (-6.9%); 8,538 employees (-2.6%).
2002 TOP WORLD AIRLINES TRAFFIC (RPK) (Billion):
46 (THY) 16.59; 47 (ATZ) 16.30; 48 (LTU) 16.10; 49 (JAA) 15.90; 50 (HAP) 14.40; 51 (JMA) 13.97; 52 (PAL) 13.52; 53 (AMX) 13.31; 54 (AIN) 13.25; 55 (FIN) 12.79; 56 (BER) 12.73; 57 (ELA) 12.54; 58 (TPR) 12.08; 59 (MON) 11.86; 60 (GUL) 11.84; 61 (CMA) 11.74; 62 (COR) 11.47; 63 (TAP) 11.38; 64 (LAN) 11.14; 65 (JBL) 11.01; 66 (AIJ) 11.00; 67 (PIA) 10.78; 68 (RYR) 10.20; 69 (EGP) 9.65.
A310-304 (472, CS-TEZ), (GECAS) (GEF) leased.
November 2003: Wants to form an alliance with Sata Air Acores (SAP) and Portugalia, an idea supported by the Portugese parliament.
December 2003: Agrees with Portugalia to form a partnership in 2004-03, that would including expanded code-sharing and joint services.
January 2004: 2003 = +EUR 19.7 Million/+$47.59 Million (+$57.81 Million): 12.01 Billion (RPK) traffic (+5.5%); 72.8% LF load factor; 5.83 Million passengers (PAX) (+4.7%); 203.47 Million (FTK) freight (+4.8%).
Will cut -200 of 8,120 jobs in 2004, primarily through retirements.
Plans service to the Czech Republic, Hungary, and Venice.
February 2004: In 2004-06, Lisbon - Budapest (A319, 2/week), Venice (A320, 4/week). Lisbon - Prague (2/week). In 2004-07, Lisbon - Natal (2/week).
Paints A319 (CS-TTJ) with "Eusebio" (famous Portugese International soccer player) scheme to support Portugal's hosting of the EURO 2004 Sporting Event.
March 2004: Porto - Amsterdam (A319, 5/week).
A320-214 (1667, CS-TMW) delivery.
April 2004: 8,538 employees.
Resumes Lisbon - Copenhagen - Stockholm (ARN) (3/week).
May 2004: Next month, resumes Lisbon - Copenhagen - Oslo (A319/A320, 3/week). Lisbon - Stockholm (3/week). To code share with SN Brussels (DAT), Brussels - Berlin (Tempelhof), Birmingham, Gothenburg, Hamburg, Oslo, Strasbourg, & Vienna.
Plans to join the Star (SAL) Alliance.
A320-211 (395, CS-TNE), GATX (GAX) leased.
June 2004: Code share with Malev (HGA), Lisbon - Budapest.
Agreement with Mozambique to operate domestic flights.
Plans to relocate its South Africa hub from Johannesburg to Luanda.
Is considering taking a 20% stake in Varig (VAR). In 2004-11, code share with (VAR) on all services between Brazil and Portugal.
Star Alliance accepts South African Airways (SAA), (TAP) Air Portugal, and Blue 1 (Air Botnia) for membership.
Star Alliance: Air Canada (ACN); Air New Zealand (ANZ); All Nippon Airways (ANA); Asiana (AAR); Austrian (AUL); Blue 1 (applicant); bmi (BMA); (LOT) Polish Airlines; Lufthansa (DLH); Scandinavian Airlines (SAS); Singapore Airlines (SIA); South African Airways (SAA) (applicant); Spanair (SPP); (TAP) Air Portugal (applicant); Thai Airways (TII); United Airlines (UAL); US Airways (USA); & Varig (VAR).
December 2004: 8,360 employees.
Joined the (GF-X) Exchange, an airfreight reservations system.
January 2005: Next month, "extensive strategic cooperation" with Lufthansa (DLH), including code sharing on all flights between Portugal and Germany. (DLH) will code share on (TAP) Air Portugal, Lisbon to Porto, Faro, Funchal, & Dakar, with (TAP) code share on (DLH) Munich & Frankfurt to major European cities like Helsinki, Riga, Prague, Athens, Budapest, & Zagreb + selected (DLH) flights to Asia.
February 2005: Re-brands from "(TAP) Air Portugal" to "(TAP) Portugal."
March 2005: Becomes Star (SAL) Alliance's 16th member. Star Alliance (SAL) partners (TAP) Portugal, All Nippon Airways (ANA), bmi (BMA), Lufthansa (DLH), Thai International (TII), Adria Airways (ADR), & Scandinavian Airlines (SAS) will all start using Terminal 1 at Paris Charles de Gaulle (CDG) which will have 8 Million passengers/year and will become a mini-hub for these carriers.
(TAP) currently operates an average of 160 to 180 daily flights to 42 destinations using a fleet of 40 airplanes.
60th year anniversary!
2004 = +EUR 8.6 Million/+$11.1 Million (-56%) (+EUR 19.7 Million): 6.5 Million passengers (PAX). Projects 2005 = +EUR 14 Million.
May 2005: Memo of Understanding (MOU) for (TAP) Portugal to acquire up to 20% of Varig (VAR), the maximum permitted by Brazilian legislation. Both companies will remain independent. (TAP) operates 38 flights a week from Portugal to Brazil and generates 22% of its revenue.
June 2005: (TAP) Portugal ended negotiations to acquire 20% of Varig (VAR) after (VAR) filed for bankruptcy which is similar to USA's chapter 11. (VAR) has a -ve net worth of -$2.5 Billion, a balance sheet debt of -$2.8 Billion and an off-balance sheet debt of approximately -$2 Billion. It has no significant assets because all of its airplanes are leased.
Lison - Natal (5/week). Now 40 weekly flights between Portugal and Brazil.
As the national airline, (TAP) Portugal (TAP) operates jet airplanes and serves destinations in Africa, Europe, Central, North, and South America.
(IATA) Code: TP - 047. (ICAO) Code: TAP (Callsign - AIR PORTUGAL).
Parent organization/shareholders: Portugese government (100%).
Owns: Air Macau (MCU) (15%); Air Sao Tome & Principe (40%); Linhas Aereas de Sao Tome & Principe (40%); & White (YES) (75%).
Alliances: (BMI) British Midland (BMA); Finnair (FIN); Iberia Airlines (IBE); Linhas Aereas de Mozambique (LAM); (LOT) Polish Airlines; Olympic Airlines (OLY); (PGA)-Portugalia Airlines; (SATA) International (SAP); SN Brussels (DSAT); Spanair (SPP); (TACV) (TCV); Ukraine International Airlines (UKR); United Airlines (UAL); & Varig (VAR).
Main Base: Lisbon Portela airport (LIS).
Hubs: Funchal airport (FNC); Porto airport (OPO); & Faro airport (FAO).
Domestic, Scheduled Destinations: Faro; Funchal; Horta; Lisbon; Ponta Delgada; Porto; Porto Santo; & Terceira.
International, Scheduled Destinations: Amsterdam; Barcelona; Bissau; Brussels; Budapest; Caracas; Copenhagen; Dakar; Fortaleza; Frankfurt; Geneva; Johannesburg; London; Luanda; Luxembourg; Madrid; Maputo; Milan; Munich; Natal; New York; Oslo; Paris; Prague; Recife; Rio de Janeiro; Rome; Sal; Salvador; Sao Paulo; Sao Tome Island; Stockholm; Venice; & Zurich.
2 A330-223's (318; 312), ex-Blue Wings (BLW), (ILF) leased.
July 2005: (TAP) Portugal and Air One (ADH) signed a marketing agreement covering code share operations on (TAP)-operated routes from Lisbon to Rome, Milan Linate, & Venice. Both companies are to market jointly a wide range of domestic destinations operated in code share in Italy and Portugal. (TAP) will apply its code to Air One (ADH) routes between Rome Fiumicino and Turin, Palermo, Catania, Genoa, Lamezia Terme, Trieste, Alghero and Venice and the (ADH) code will be applied to (TAP) flights between Lisbon and Oporto, Funchal, and Faro.
August 2005: 5,750 employees (-32%).
Star Alliance (SAL) partner United Airlines (UAL), transAtlantic flight code share including USA - Portugal, through Newark, London Heathrow, Frankfurt, Munich, Amsterdam, Brussels, & Zurich with access to Portugese cities: Lisbon, Faro, Porto, & Madeira, and in Africa: Sal, Dakar, & Maputo. (TAP) Portugal and Swiss International Airlines (CSR) concluded a commercial cooperation agreement including joint marketing and code sharing on all flights between Portugal and Switzerland beginning 2005-09. In the first stage, the Star Alliance (SAL) partners will code share on all flights from Lisbon to Zurich and from Lisbon and Oporto to Geneva. In the next phase, they intend to extend their code share operations to destinations beyond Zurich and Lisbon.
September 2005: (TAP) Portugal and (bmi) (BMA) signed up to trial the commercial use of mobile phones on board of some of their A320 family airplanes in partnership with OnAir, the Airbus - (SITA) joint venture. The trials will take place toward the end of 2006 based on the current timetable to have OnAir's on board equipment "fully certified" with "the necessary telecommunications regulatory framework put in place."
Passengers on (TAP) A321s will be able to use their (GSM) mobile phones and other (GPRS)-enabled devices such as BlackBerries or other compatible smart phones to make and receive voice calls, (SMS) messages and e-mails. "We believe that business passengers flying within Europe will very much welcome this new capability," said (TAP) (CEO) Fernando Pinto.
Separately, OnAir announced it selected Inmarsat's SwiftBroadband service and Thales' satcom system to support its passenger voice and data communications.
November 2005: Varig (VAR) and its controlling shareholder the Rubem Berta Foundation have chosen (TAP) Portugal as its partner in a debt-restructuring process aimed at saving it from liquidation, the Brazilian airline said yesterday. (TAP)'s proposal was chosen over 6 other offers. The plan includes an initial $62 million in financing to pay off debts owed to overseas leasing companies, avoiding the repossession of 20 - 40 airplaners In a 2nd phase, (TAP) would help Varig (VAR) with a $500 million recapitalization effort. The (TAP) plan still needs to be approved by Brazil's federally owned development bank (BNDES), according to reports. Last week, (TAP) Chairman Fernando Pinto told Diario Economico that (TAP) is ready to inject about $500 million into Varig (VAR) in return for a 20% stake. (VAR) filed for bankruptcy in July with debts of approximately R$7.7 billion/$3.4 billion.
(TAP) will acquire 10 A350s and 7 A330-200s to modernize and reinforce its long-haul fleet, Airbus announced at the Dubai Air Show, noting the decision brings the number of sales for the A350 to 143 from 10 customers. (TAP), an all-Airbus operator, will add the new A330-200s starting from 2007 in response to increased demand for its destinations in South America, Africa and North America. A350 deliveries will begin in 2013. Both types will be fitted with a 2-class layout and the A330-200s will accommodate 268 passengers. "This order is a natural step for our airline," (CEO) Fernando Pinto said. "(TAP) is dedicated to making forward-looking decisions, investing in the most modern technology and operational efficiency, and this decision is no exception."
December 2005: Varig (VAR)'s bankruptcy reorganization took a new twist after a Brazilian buyout fund reportedly took controlling interest in the airline's parent, Varig SA. According to "Reuters," the fund, Docas Invertimentos, owned by Nelson Tanure, paid $112 million to the Rubem Berta Foundation for 25% of the voting shares owned by the Foundation. It agreed to "rent" a further 42% of the shares, giving it control of the airline. (TAP) Portugal previously agreed to participate in a restructuring of Varig (VAR) that would see the Foundation lose control of the carrier.
(TAP) Portugal will add 3 new destinations to its network from the 2006 summer schedule. The airline will operate daily service into Bologna with 3x-weekly being extended to Zagreb. The 3rd new destination will be Dublin with 3x-weekly. (TAP) will increase the frequency of flights on several routes. Budapest and Prague will each get 3x-weekly, Scandinavia will increase from 11x- to 14x-weekly with 7x- to Stockholm and 7x- to Oslo via Copenhagen. Munich will increase from 12x- to 14x-weekly. Besides 4 nonstop Lisbon to Paris Orly flights, (TAP) will also operate 2 daily nonstops into Paris (CDG) Airport from Lisbon.
January 2006: The Association of European Airlines (AEA) selected Wolfgang Mayrhuber (CEO) & Chairman of the executive board of Lufthansa (DLH), as Chairman for 2006. He takes over from (TAP) Portugal (CEO) Fernando Pinto.
Varig (VAR) announced that it completed the sale, announced in December, of 2 subsidiaries for $72 million. A portion of the proceeds from the sales was used to pay off the lessors.
(VEM)-Varig Engineering & Maintenance went to Aero-LB, a consortium led by (TAP) Portugal. VarigLog (VLO), its cargo and logistics subsidiary, also went to (TAP), which then sold it to Volo Brasil, a consortium headed by USA-based Matlin Patterson, a private equity fund.
Both consortia, according to Varig (VAR), also committed to play important roles in the recovery of the carrier, whose restructuring plan was approved by its creditors' committee on December 19.
February 2006: Sabre Airline Solutions said Gulf Air (GUL) and (TAP) Portugal signed to use its AirServIn-Flight Solutions systems "allowing them to integrate their entire range of catering and cabin services management and drive savings of up to -15% from their total catering budgets."
Star Navigation Systems Group signed a Memo of Understanding (MOU) with (TAP) Maintenance and Engineering under which, subject to a final agreement, (TAP) will market Star's In-Flight Safety Monitoring System (ISMS) to (TAP)'s existing client base and provide installation. (ISMS) collects airplane data inflight, analyses it for anomalies and transmits it to Star's ground station. An alert is sent to (TAP) if a problem is anticipated or an incident has occurred, according to Star.
INCDT: A (TAP) Portugal A340-300 en route from Lisbon to Sao Paulo via Rio de Janeiro as (TP197) mistakenly landed on taxiway Bravo instead of runway 27R on Tuesday, February 21. It has been reported that Air Traffic Control (ATC) instructed the airplane pilot (FC) to make a go-around, however, the crew (FC) failed to follow instructions and nearly crashed into a United Airlines (UAL) airplane that was taxiing on Bravo.
March 2006: (TAP) Air Portugal (Lisbon) will launch 2x-daily A319-100/A320-200 service from Lisbon to Paris (CDG) on April 20 in addition to its several daily services to Paris Orly.
(TAP) Portugal will be reinforcing its operations from Oporto owing to growing demand and recent increasing traffic in Northern Portugal. From May 8, the Portuguese national carrier will operate 3x-weekly services to Sao Paulo and Rio de Janeiro. On June 6, it will launch a 3x-weekly flight to Newark Liberty. New routes will be flown with (TAP)'s 3 new A330s. (TAP) said it is taking advantage of the recently renovated infrastructure at Oporto Francisco Sa Carneiro (OPO), while simultaneously enhancing its commercial efforts in the Galicia. Currently, it provides passengers with free road transportation between (OPO) and a number of cities in Galicia, including Vigo, Tui, Santiago de Compostela, Caldas, Pontevedra, Porrino, Orense and Riba de Via.
(TAP) will also add an 8x-weekly frequency to its daily Lisbon - Sao Paulo. The new long-haul services represent a +17.5% increase in capacity to Brazil and +42% to Newark, and are in line with (TAP)'s aim to consolidate its growth in key markets. Last year, load factors rose to 86% LF on its (EWR) route, to 87% on its Sao Paulo route and to 88% on flights to Rio de Janeiro.
(TAP) also will develop its medium-haul network. New operations to Paris Charles de Gaulle will be launched in April and Bologna, Dublin and Zagreb will be added in June. Frequencies to Copenhagen, Stockholm, Prague, Budapest, Venice, Munich, Milan Linate and Zurich will increase from June 9. The expansion of its European network coincides with the delivery of new A320 family airplanes.
(TAP) Portugal took delivery of its 1st A330-223 (305, CS-TOE), the next step in its long-haul fleet renewal plan launched at the Dubai Air Show with an order for 7 A330-200s and 10 A350s. Delivery of the A330-200s originally was scheduled to begin next year. The new airplane will replace an A310 and be used on routes to the USA, Brazil and Africa. (TAP) will take 2 additional A330-200s at the end of this month and in April.
April 2006: Grupo (TAP), parent of (TAP) Portugal, reported a summary result showing a net loss of -€9.9 million/-$12 million in 2005, reversing a net profit of +€8.6 million in 2004, which was fueled by a +€30 million extraordinary gain from the partial sale of ground handling unit Servicos Portugueses de Handling.
Turnover was not released, but the carrier said revenues from passenger operations increased +9.5%, revenue from cargo was up +24.4% and maintenance sales grew +28%. Operating expenses climbed +10.8%, or +3.8% excluding fuel cost. Load factor gained +2 points to 72.4% LF and total boardings amounted to 6.38 million compared to 6.05 million in 2004.
In February, the Portuguese government announced plans to sell a portion of the carrier, but said it intends to retain control.
(TAP) Portugal and Aegean Airlines (CRM) agreed to code share on flights from Lisbon to Athens via Rome and to Thessaloniki via Munich and Frankfurt.
(TAP) Portugal will inaugurate nonstop service from Lisbon to Bologna on June 1st. (TAP) will operate 7x-weekly with 3x- continuing to Zagreb, all with A319s. (TAP) Portugal will inaugurate nonstop service from Lisbon to Dublin on June 2nd. (TAP) will operate 3x-weekly on Mondays, Fridays & Saturdays, mostly with A319s. (TAP) Portugal will inaugurate direct service from Lisbon to Zagreb on June 2nd. (TAP) will operate 3x-weekly with a stopover in Bologna, on Wednesdays, Fridays & Sundays, using an A319.
Aviapartner signed a contract with 4 Star Alliance (SAL) members: Lufthansa (DLH), Swiss International Air Lines (CSR), Austrian Airlines (AUL), and (TAP) Portugal to provide full handling activities at Amsterdam Schiphol, effective May 1. Value of the contract was not disclosed, but the Brussels-based ground handler said it is "one of the largest contracts" it has signed and covers >10,000 flights per year for 3 years.
May 2006: Turkish Airlines (THY) and (TAP) Portugal concluded a code share agreement that will see (TAP) place its code on (THY)'s 3x-weekly Lisbon - Istanbul service beginning July 1.
Volito Aviation Group purchased an A310 from Sachsen Landesbank. The airplane is on lease to (TAP) Portugal through March 2010. PK AirFinance provided financing.
June 2006: (TAP) Portugal is searching for solutions to improve services at its overcrowded Lisbon Portela (OPO) base, but said the situation will remain problematic until 2009, when a new terminal extension is scheduled to open. "There is no space for us in Lisbon available [for further expansion], so we have to divert traffic to Porto," VP External Relations & Alliances, Jose Guedes Dias said in Tokyo. In so doing, (TAP) will take advantage of the recently renovated infrastructure at Porto, which could be developed into a minihub. It already has increased operations at (OPO) with 3x-weekly flights to Sao Paolo and Rio de Janeiro launched May 8 and 3x-weekly services to Newark scheduled to begin June 6. "As a 2nd step, flights from Porto to New York and Brazil could be increased to daily operations, which have connections from Porto to European cities, for example, London or Paris," Dias added.
2 A320-214'S (870, CS-TQD; 2178, CS-TNP "Alexandre O'Neill"), deliveries.
August 2006: (TAP) Portugal posted a -€51 million/-$65.2 million loss in the 1st 6 months of 2006, a +€3 million improvement compared to a -€54 million loss in the year-ago period, and (TAP) said its board of directors still hopes to end 2006 "with positive financial results."
All other indicators of the company's activity "showed a positive trend," (TAP) reported, highlighted by a +17% increase in operating revenue to €710 million from the €606 million generated in the 1st 6 months of 2005.
Expenses climbed +14.8% to €675 million, driven by a +41% rise in fuel costs to €167 million. (TAP) said unfavorable exchange rates between the USA dollar and Brazilian real, cost the company €12 million. (EBITDAR) doubled to €34 million. Operating result was -€34 million compared to -€39 million in 2005.
The Air Transport Business Unit saw 6-month revenues jump +17% to €573 million while the Cargo Division's turnover rose +24% to €41 million. The Maintenance & Engineering Unit earned +€58 million, a +25% year-over-year increase. Passengers grew +3.8% to 3.1 million as load factor remained steady at 70.8% LF.
(TAP) said it will continue serving Venice during its winter schedule beginning October 29, offering daily service from Lisbon. It also will operate daily flights to Bologna and 3x-weekly service to Zagreb.
(TAP) Portugal suspended acceptance of Varig (VAR) tickets. "Responsibility of the new company [Volo do Brasil] for tickets issued in advance, has not yet been clearly defined or declared. This is reflected in increased financial risk to (TAP) that is worsening by the day." (TAP) added it will continue to pursue negotiations with Varig (VAR) on the potential resumption of commercial agreements between the carriers.
September 2006: (TAP) Portugal will add 2x-daily flights between Lisbon and London Heathrow, Thursdays through Sundays beginning October 29, bringing its weekly frequencies to 43.
(TAP) Portugal said that it is pursuing "potential acquisition [or] shareholder participation" in rival (PGA) - Portugalia Airlines (POR). "The process is in its initial phase and no formal commitment has yet been entered into by the interested parties," (TAP) said. (TAP) is working with the Espirito Santo Financial Group.
(TAP) Portugal has reached an agreement in principal to acquire (PGA) -Portugalia Airlines (POR). The deal is expected to be finalized at the end of the year.
(TAP) Portugal reached agreement with (OMNI) Aviation of Portugal for the sale of (TAP)'s small leisure carrier White Airways (YES) for an estimated €5 million/$6.4 million.
White (YES) operates 1 A310-300 and 1 L-1011-500. According to the terms, the ownership of the L-1011 is transferred to (TAP), due for subsequent alienation, while (OMNI) will operate the A310 currently under lease.
"The present operation represents a decisive step forward for (OMNI) toward its growth and expansion into a new business segment. On the other hand, the sale of White (YES) will allow (TAP) from now on to focus and concentrate even more on its core business, which is regular air transport," (TAP) said, confirming the sale comprises 100% of the share capital.
White (YES) was established in November 2004, following the restructuring of (YES), a former charter carrier that had been created nearly 5 years earlier by (TAP) and the Abreu Group. (TAP) recently purchased Abreu's 24% holding in White (YES).
October 2006: In the 1st 9 months, (TAP) Portugal had 12.46 billion (RPK)s (+13.6%); 202.7 million (FTK)s (+23.3%); and 5.245 million passengers (+6.6%).
(TAP) Portugal hopes to conclude today, or by the end of this week at the latest, the purchase of (PGA) Portugalia Airlines (POR), that has been 6 years in the making, (CEO) Fernando Pinto told the European Aviation Club in Brussels.
(TAP) intends to buy nearly all the shares in the Regional airline. Presently, Grupo Espirito Santo owns 84.34% of (POR), which employs 745. Pinto did not disclose the purchase price, but said it is "well below the $150 million I read in the press." He added that (TAP) is buying the carrier without its debt.
The acquisition is subject to approval by the Portuguese competition authority. "We don't expect they will object, yet it is possible they will request some remedies. This is normal procedure," Pinto noted. (POR) was established in 1988, but did not start services until two years later, owing to a delay in air transport liberalization. It operates 6 F 100s, 2 Saab 2000s, 8 Embraer ERJ-145s and 1 E190D to 23 domestic and European destinations.
Pinto also said (TAP) remains committed to the A350. "We hope the program will go ahead. We're talking to Airbus (EDS)," he said, admitting the delay already has had "an effect" on (TAP)'s long-haul fleet plans. "We placed an order for an additional 3 A330s [to bridge the delivery delay], but we expect some kind of deal from Airbus (EDS) as we have to take on airplanes that are -20% less fuel efficient than the A350." (TAP) ordered 10 A350s and 7 A330-200s last year.
November 2006: (TAP) Portugal (CEO) Fernando Pinto said membership in the Star Alliance, which (TAP) joined in spring 2005, has expanded its reach greatly through the networks of its partner airlines, boosting its appeal in the marketplace.
He said that (TAP) "has grown very fast in the last 5 years, around +50% in terms of passenger kms."
(TAP) now is looking to expand its intercontinental services. It currently operates 4 A340-300s, 3 A330-200s and 5 A310-300s and is looking to add long-haul airplanes. "We have a further 5 A330s on order to replace the A310s by 2008. But we are looking at 3 or 4 additional wide bodies for our short-time planning within the next 2 to 3 years," Pinto said.
(TAP) will add cities to its long-haul network, but not new countries, Pinto revealed. It operates 47 weekly flights to 6 destinations in Brazil, including 6 frequencies from its Porto hub. 1 or 2 additional Brazilian cities could be added. He said that important routes to Africa are scheduled to be upgraded with new frequencies, but there are no plans to create a regional hub on the continent.
An increase in long-haul frequencies will require more feed, and Pinto said additional A320s may be added, but that discussions over such a move are very preliminary.
A full-year profit still is expected, thanks in part to a recent decline in fuel prices and the introduction of more fuel-efficient A330s. (TAP) expects passenger numbers to grow +15% over 2005's 6.5 million. Pinto also said (TAP) will prepare for privatization over the next 2 years.
(TAP) Maintenance & Engineering is working to become a significant 3rd-party player in South America following its acquisition of (VEM) - Varig (VAR) Engineering and Maintenance earlier this year. (TAP), which led the consortium that purchased the Brazilian company, invested €20 million in the recently renamed (VEM) Maintenance & Engineering, in which it holds a 51.1% stake. The (VEM) unit is 2.5 times larger than the (TAP) Maintenance Repair & Overhaul (MRO) center in Lisbon.
"The main reason for [the deal with (VEM)] is 50% of our (MRO) business in Lisbon is for 3rd parties. We have a good cost base here and we can compete with the rest of the world. Brazil is a good place for growth and (TAP) can't grow any more in Lisbon," (TAP) (CEO), Fernando Pinto said. He added that the (MRO) is a $200 million business for the company and remains one of its most important units. "We hope (VEM) will be making money by the end of next year at the latest," he said.
December 2006: Lisbon - Sao Tome is cancelled from January 13.
January 2007: Varig Engineering & Maintenance (VEM) aims to become a major player in the repair and maintenance of Airbus (EDS) airplanes in South America, according to Filipe Morais de Almeida, who joined the company as (CEO) last October from Bombardier Portugal, where he served as Chairman & (CEO). (VEM), the former Varig Engineering & Maintenance, was acquired by (TAP) Portugal in early 2006. It has bases in Rio de Janeiro, Porto Alegre and Sao Paulo.
Almeida noted that (VEM) already offers airframe maintenance for all Boeing and former McDonnell Douglas airplanes, as well as the Embraer ERJ-120, ERJ-145 and F 50. It is in the final phase of achieving certification to perform heavy maintenance on the A300/A310 family while A320 approvals are expected in the 2nd half of 2007. It already is providing line maintenance to (TAP) supporting A310 flights into Brazil. It also operates the only 767 passenger-to-freighter line in South America, and is considering entering into the 757 conversion business as well, Almeida said, although he noted that conversions are a supplemental activity, not a core function. In addition to airframe Maintenance Repair & Overhaul (MRO), (VEM) is active in component support and aims to grow this business.
Biggest challenge, according to Almeida, who spent several years with (TAP) Maintenance & Engineering, is changing the internal mindset at (VEM) to make it a more customer-focused organization. "Basically, the cultural change we need to make here is to part from a culture that was very linked with the operator [Varig (VAR)] to the culture of an (MRO) dedicated to the 3rd-party activity where the customer is the 1st reason of our existence," he explained. He added, "We are forced to succeed. We don't have too much choice."
February 2007: Austrian Airlines (AUL) Group will transfer 3 of its 4 A330-200s to Star Alliance partner, (TAP) Portugal, as part of its long-haul fleet reduction. The airplanes will leave Austrian (AUL) by April 29.
March 2007: (TAP) Portugal posted a +€7.3 million/+$9.6 million net profit in 2006, which it called a "remarkable" turnaround from the -€10.3 million loss in 2005, citing overall activity increases along with efficiency improvements. Consolidated revenues rose +21.7% to €1.65 billion and operating costs grew +18.1% to €1.47 billion as the fuel bill climbed +30.5% to €373 million. Operating profit came in at +€30.3 million compared to a -€9.5 million loss in 2005. (TAP) said all divisions contributed to the improved performance. The cargo division enjoyed a +29.4% revenue increase to +€93.4 million and the maintenance & engineering unit grew its revenue +11.1% to €117.6 million, thanks to 3rd-party business. (TAP) carried 6.9 million passengers in 2006, up +8% on the prior year. (RPK)s rose +15.7% on a +14.9% lift in (ASK)s, improving load factor +0.4 point to 72.8% LF.
April 2007: (TAP) Portugal and TAM (TPR) signed a partnership agreement under which they will codeshare on flights between Portugal and Brazil and onward to destinations in each carrier's network as well as link their loyalty programs. Specific routes or effective dates were not announced.
The Association of European Airlines (AEA) released members' punctuality and baggage-handling performance for 2006, revealing the majors' ongoing luggage-related difficulties. British Airways (BAB) was the worst-performing of the 24 reporting carriers with 23 missing bags per 1,000 passengers. (TAP) Portugal was 23rd, with 21 missing bags, Lufthansa (DLH) 22nd with 18.1 and Air France (AFA) 21st with 16.6. Top-ranked carrier was Air Malta (MLT) with 4.4 missing bags per 1,000 passengers. Turkish Airlines (THY) (4.7) and Air One (ADH) (8.1) rounded out the top 3. 6 carriers did not report. The 24 reporting airlines posted an average 15.7 missing bags per 1,000 passengers. Best short-/medium-haul ontime arrival performance was Luxair (LUX)'s 89.6%, followed by SN Brussels Airlines (DAT) (87%) and (KLM) (86.6%). Cyprus Airways (CYP) was worst at 68.9%, just below Air One (ADH)'s 70.1%. Icelandair (ICE) enjoyed a 100% completion factor while Olympic Airlines (OLY) cancelled a high 3.2% of its flights. (AEA)'s overall short-/medium-haul ontime arrival performance was 77.9% with a 98.5% completion factor. (KLM) posted the best long-haul ontime arrival performance with 79.9%, with Austrian Airlines (AUL) (77.4%) 2nd and Finnair (FIN) (76.3%) 3rd. Spanair (SPP)'s 37.3% was the worst. Icelandair (ICE) was the only airline to operate 100% of its scheduled flights, while bmi (BMA) led reporting carriers with a cancellation rate of 3.8%. Overall, (AEA) carriers' long-haul flights arrived ontime at a 66.3% rate with 0.5% cancelled.
May 2007: (TAP) Portugal and EgyptAir (EGP) will code share on EgyptAir (EGP)'s 2x-weekly Cairo - Lisbon service starting June 2 aboard A320s. Starting July 19th, Lisbon - Brasilia, using A330s.
(TAP) Portugal plans to expand its African and Brazilian services this summer as it adds 3 former Austrian Airlines (AUL) A330-200s to its fleet, (CEO) Fernando Pinto said. A 4th airplane may follow but no decision has been made. Increased frequencies to Luanda, Brasilia and potential nonstop services to Maputo, Johannesburg and an 8th Brazilian destination are in the offing, Pinto said.
(TAP) has hired the McKinsey Company to help prepare the Star Alliance (SAL) carrier for privatisation. (TAP) plans to privatise next year and has already received interest from several unidentified parties, although the process is still in the very early stages.
June 2007: (TAP) Portugal (CEO) Fernando Pinto was named Chairman of the (IATA) (ITA) board of governors at the (IATA) (ITA) Annual General Meeting (AGM). He will serve for 12 months and succeeds Singapore Airlines (SIA) (CEO) Chew Choon Seng. Next year's (AGM) will be held in Istanbul June 1 to 3. Turkish Airlines (THY) is the host carrier.
(TAP) Portugal's acquisition of (PGA) Portugalia Airlines (POR) has been cleared by Portugal's competition authority, (ADC), which last month imposed 7 conditions on the merger, including a limitation of frequencies between Lisbon and Porto, in order to open the route to competing carriers. (TAP) paid approximately €140 million for (POR), following several years of on-again-off-again negotiations and said it aims to integrate the 2 airlines fully by the end of September.
(TAP) Maintenance & Engineering signed a 7-year contract with Bulgaria-based BH Air (BGH) for overhaul of (CFM56)s powering its fleet of 4 A320s.
(TAP) Maintenance & Engineering concluded a contract with Transaero Airlines (TRX) for the overhaul of (RB211-524D4)s that power its fleet of 6 747-200s. Value of the 5-year contract is €90 million/$120.5 million.
July 2007: Lufthansa (DLH) and (TAP) Portugal are analyzing the possibility of launching an offer for Spanair (SPP) and have requested financial information from (SPP).
August 2007: (TAP) Portugal narrowed its 1st-half loss to -€30 million/-$41.1 million from -€52 million in the 1st half of 2006 on a +11.4% year-over-year increase in revenue to €806 million. (TAP) said that while it considers a full-year net earnings target of +€37.9 million to be a "great challenge," its board "is standing by its determination to do everything" to reach it. (TAP) earned +€7.3 million in full-year 2006, but noted that "traditionally the 2nd semester is stronger than the 1st." It said expenses in the 6 months ended June 30, rose +7.9% and operating loss improved to -€15 million from -€34 million, as passenger revenue climbed +14.5% year-over-year to €657 million. "Other (TAP) activity indicators all evolved positively," it said.
(TAP) transported 3.4 million passengers during the period, up +6.9%, driven by a +21% increase in passengers flying to/from the USA. Cargo revenue rose +13.3% to €46 million, and 3rd-party maintenance revenue fell -6.9% to €54 million, which (TAP) said was a result of the addition of 6 new airplanes added to the (TAP) fleet during the semester.
(TAP) Portugal will start a daily Porto - Brussels flight on September 15 with an F 100. The route will be operated with an ERJ-145 from the winter schedule. (TAP) and (TAM) (TPR) revealed details of their previously announced code share accord, saying that an operating agreement will take effect September 1, allowing (TAM) (TPR) passengers to purchase tickets for (TAP) flights between Brazil and Lisbon, and Porto and to connect to Faro, Funchal and Porto Santo. (TAP) will add its code on several (TAM) (TPR) domestic flights beyond Rio de Janeiro, Sao Paulo and Brasilia. The agreement also links (TAP)'s loyalty programs and provides for interline e-ticketing, lounge access and through check-in.
October 2007: (TAP) Portugal Cargo launched a weekly Brussels - Lisbon freighter service operating a leased Royal Jordanian Airlines (RJA) Cargo A310-300F.
Iberia (IBE) and (TAP) Portugal signed an agreement under which (TAP) Maintenance & Engineering will perform Maintenance Repair & Overhaul (MRO) work on the (CFM56-5C)s powering Iberia (IBE)'s A340s, while (IBE) Maintenance & Engineering will maintain (TAP)'s A320 landing gear. The carriers said creation of maintenance networks among airline (MRO) organizations through sharing and exchanging of maintenance services, "becomes an important factor to compete against" increasing inroads into the aftermarket by Original Equipment Manufacturers (OEM)s.
Alitalia (ALI), (TAP), and Air France (AFA) are now facing labor issues. Work stoppages by the National Flight Assistance Co and Air Transport Regione Lombardier, forced the cancellation of nearly 300 (ALI) flights in Milan and Rome, plus Osaka - Milan Malpensa service. (TAP) said the Civil Aviation Pilots Union (FC) scheduled a 3-hour strike, a 24-hour stoppage on Thursday, and a 13-hour strike on Saturday, because of "national legislating, relating to pilot (FC) retirement ages and conditions," which (TAP) argued are the "exclusive responsibility of the government." Meanwhile, "Reuters" reported that several cabin crew (CA) unions are planning to strike Air France (AFA) from October 25 to October 29. Baggage handlers at Paris Charles de Gaulle reportedly staged a work action Monday morning that caused delays.
November 2007: 1st 6 months = 8.41 billion (RPK)s (+12.7%) traffic; 158.3 million (FTK)s (+25.3%) freight traffic; 3.4 million passengers (+6.8%).
The Dutch Transport & Water Management Inspectorate levied a €30,000/$43,740 penalty on (TAP) Portugal, and a €15,000 fine on Pegasus Airlines (PGS) for repeated abuse of the legally set special noise regime, during the night and early morning period at Amsterdam Schiphol (AMS). Compliance with the relevant environmental standards at (AMS) has been tightened since July, following an agreement between Airport Coordination Netherlands, the Dutch slot coordinator, and the Inspectorate of the Ministry of Transport and Public Works. In September, the (IVW) imposed a €30,000 penalty on Fly Air (FLM), and €15,000 penalties on Alitalia (ALI), Delta Air Lines (DAL), Corendon Airlines (CDN), and Air Cairo (AOX). In July, Clickair (CLK) received administrative fines of €60,000 and €15,000, and Atlas Air (TLS) 1 penalty of €15,000.
(TAP) Portugal signed a firm order for 12 A350 XWBs plus 3 options, replacing its 2005 order for 10 of the former version of the A350. (TAP) also signed a letter of intent (LOI) for an additional 8 A320 family airplanes. (TAP) took delivery of its 1st new A330-200. The airplane is powered by (CF6-80)s, will seat 268 in 2 classes, and will be (TAP)'s 8th of the type.
December 2007: (TAP) Portugal expects to report positive results for 2007, its 2nd straight year in the black, despite increasing competition from low-cost carriers (LCC)s. "All parameters are good, even very good, and they would have been a lot better, if we did not face these very high fuel prices," (CEO) Fernando Pinto said during the Star Alliance (SAL) meeting in Beijing. (TAP) made +€7.3 million/+$11.4 million in 2006. Passenger numbers will rise by approximately +10% to 7 million this year, Pinto revealed, with one-eighth traveling on long-haul routes. "We're progressing well in Europe, even with the competition of the low-cost carriers (LCC)s. There are now 35 (LCC)s operating to Portugal," he noted, adding with amusement, "We have them all." He said (TAP) intends to stick to its full-service model. The integration of (PGA) Portugalia Airlines (POR), the regional operator it acquired for €140 million, is complete. "We've been flying together since July," Pinto said. He does not plan to replace or renew Portugalia (POR)'s 17 F 100s and ERJ-145s. "To the contrary," he laughed. "We paid for them, we intend to fly them." However, a planned +20% increase in block hours currently is not feasible owing to a pilot (FC) shortage. He also claimed that (TAP) will strengthen its position as the largest international carrier into Brazil, when it launches 5x-weekly Lisbon - Belo Horizonte flights on February 11. The A330 service will bring to 8, the number of destinations it serves in Brazil and to 65 the number of weekly frequencies. It will add a 6th weekly rotation to its Lisbon - Brasilia service on February 12. "We found a niche in Brazil and linking the country to our hub in Lisbon has been very successful," he said. In the 1st 9 months, (TAP) carried >700,000 passengers between the countries, up +16% on the year-ago period.
January 2008: 2007 statistics: 19.22 billion (RPK)s passenger traffic +15.5%; +17.8% capacity (ASK)s; -1.4 load factor for 71.4% LF.
AerVenture Ltd, a joint venture among AerCap (DEA) Holdings, LoadAir and Al Fawares, will lease 6 new A320-200s to (TAP) Portugal under 8-year lease agreements. The airplanes will be delivered in 2009 and are part of a 2005 order from Airbus (EDS).
2 A330-202s (899, CS-TOM "Vasco de Gama;" 904, CS-TON), deliveries.
March 2008: Singapore and Portugal concluded an "open skies" agreement that will become fully effective from the 2010 (IATA) (ITA) summer schedule. Singapore now has concluded "open skies" agreements with 14 European Union (EU) countries.
April 2008: (TAP) Portugal reported its "best year ever" in 2007 with a net profit of +€32.8 million/+$51.2 million that represented a more-than-fourfold increase over the +€7.3 million earned in 2006, as operating profit more than doubled to +€79.3 million from +€30.3 million a year earlier. "These results now confirm not only the recovery of the Portuguese flag carrier, which in the year 2000 had posted a -€122 million loss, but prove as well its viability as a sound company," (TAP) said in a statement, claiming it has entered a "new stage of sustainable profitability growth." Consolidated operating revenue rose +16% to €1.92 billion, and operating costs grew +13.6% to €1.69 billion. Passenger revenue showed a year-on-year increase of +18.2% to €1.58 billion, its Maintenance & Engineering unit reported a +8.8% gain in revenue to €127.9 million (largely from 3rd-party customers) and its cargo and mail division boosted revenue +4.9% to €107 million.
(TAP) carried 7.8 million passengers in 2007, up +13%, of which 4.5 million were within Europe (+14.9%), 1.6 million domestic (+5.9%), 1 million to Brazil (+17.1%), 442,000 to Africa (+13.7%), 192,000 to the USA (+9.8%), and 95,000 to Venezuela (+3.5%).
(TAP) finalized the acquisition of (PGA) Portugalia (POR) in 2007 and added 5 new A330s and 2 A320s to its fleet.
Amadeus said (TAP) Portugal selected its Star Alliance (SAL) Common Information Technology (IT) Platform, featuring reservations, inventory, ticketing, and check-in capabilities. Migration is expected to be completed by 2010.
2 A319-112s (1756, CS-TTR; 1765), bought from Air Canada (ACN). A330-202 (914, CS-TOO), delivery.
May 2008: (TAP) Portugal announced the launch of new fare and product offerings that it claimed will be better tailored to customer needs, while strengthening "transparency in communicating with the traveling public." From June, (TAP) will offer 5 new products, each of which will come with a specific level of service, both in flight and on the ground: Tap/executive and tap/plus are designed for business travelers (C) or customers "looking for a higher quality service," while tap/classic ("convenience and flexibility"), tap/basic ("very good value") and tap/discount ("very low price") round out the offerings.
June 2008: Royal Jordanian (RJA) (CEO) Samer Majali took over as (IATA) (ITA) Chairman, succeeding (TAP) Portugal, (CEO) Fernando Pinto. He will serve one year and said the agenda "has extraordinary challenges. Change must be even more aggressive." (IATA) (ITA)'s board of governors announced that Cathay Pacific Airways (CAT) (CEO), Tony Tyler will succeed Majali in June 2009, when the Annual General Meeting (AGM) will take place in Kuala Lumpur.
(ITA) Software reached agreement with (TAP) Portugal for provision of its (QPX) airfare pricing and shopping system. The technology is expected to enhance the on line experience and increase revenue.
July 2008: (TAP) Portugal launched a 6-month commercial trial of Mobile OnAir, the Airbus (EDS)/SITA joint venture's inflight mobile phone and broadband service. Passengers on 1 (TAP) A319 will be able to use their Personal Digital Assistant (PDA)s and certain mobile phones to send and receive e-mail, (SMS), and voice calls. (TAP) crew (CA) will be able to adjust the service to prohibit phone calls.
(TAP) Portugal will reduce capacity by approximately -40 flights per week during the coming winter season, (CEO) Fernando Pinto confirmed. Reductions will be a mix of intercontinental and European frequencies and no destinations or airplanes are expected to be cut.
August 2008: (TAP) Air Portugal 1st 6 months = net loss of -$213 million (-$47 million).
September 2008: (VEM) Maintenance & Engineering (VLO), a (TAP) Portugal subsidiary, reached a deal with Air Transat (AIJ) for heavy maintenance on 4 A310s. "C" checks are scheduled from September to November at (VEM)'s (VLO) hangar in Rio de Janeiro.
A310-304 (483) leased to Air Transat (AIJ) as (C-GTSW).
October 2008: (TAP) Portugal flew 2.05 billion (RPK)s traffic in September, up +6.6% year-over-year, against a +12.1% surge in capacity to 2.8 billion (ASK)s. Load factor dropped -3.8 points to 73.3% LF.
(TAP) Portugal will launch 6x-weekly, Lisbon (LIS) - Casablanca on October 27. It will be its 9th African destination. It also will increase daily (LIS) - Oslo Gardermoen to 9x-weekly from January.
December 2008: (TAP) Portugal will launch 5x-weekly flights from Lisbon (LIS) to Warsaw (WAW), Helsinki, and Moscow Domodedovo (DME) in June. (LIS) - (WAW) will operate daily, July 22 - September 6.
Travelport Global Distribution System (GDS) concluded a full-content, multiyear agreement with (TAP) Portugal providing all Galileo- and Worldspan-connected travel agents with access to (TAP)'s published fares and inventory, including Web-only fares. Travelport and (TAP) also agreed on a joint sales program to strengthen both parties in key markets across Africa as well as in France, Italy, and Brazil.
February 2009: (TAP) Maintenance & Engineering listed (VEM) (VAR) Maintenance & Engineering as an affiliated company extending the scope of its membership in the Airbus (EDS) Maintenance Repair & Overhaul (MRO) Network. Affiliation means (TAP) will be the 1st member to offer base maintenance services for (EDS) airplanes in South America.
A320-214 (3769, CS-TNQ, "Jose Regio"), AerVenture leased.
April 2009: Air Canada (ACN) and (TAP) Portugal announced a code share agreement under which (TAP) will place its code on (ACN) flights between Canadian cities and international gateways including Newark, London Heathrow and Madrid. (ACN) will place its code on (TAP) flights from Lisbon and Porto to the same gateways. "Both carriers will thus offer services between Portugal and Canada, via selected connecting points, each one using its own code throughout the entire itinerary," the airlines said.
Portugalia Airlines (POR) pilots (FC) have scheduled 1-day strikes for Tuesday, Thursday, Saturday and Sunday, parent (TAP) Portugal said. The stoppages, which are "over pay and conditions," would "result in severe delays and/or flight cancellations between London Gatwick and Porto," (TAP) said. Attempts will be made to accommodate customers on (TAP) flights from London Heathrow if the strikes occur. "(TAP) senior management is doing all possible to avoid work stoppages by negotiating with the appropriate authorities. They are optimistic that the issues between the 2 parties can be resolved without the need for a strike," it said.
A320-214 (3883, CS-TNR), delivery.
June 2009: (TAP) Portugal launched a carbon offset program with (IATA) (ITA) enabling passengers to pay compensation for the carbon dioxide emissions resulting from their flights. The proceeds will be given to the Aquarius Hydroelectric Project, a renewable energy project in Brazil. It is the 1st such program to be launched in conjunction with (ITA). The industry-wide scheme designed by the association calculates CO2 based on a methodology developed by (ICAO). (ITA) is the administering entity for the (TAP) program and will arrange the purchase of carbon credits and manage and provide offset tracking.
(TAP) Portugal will launch 5x-weekly flights from Lisbon to Warsaw (June 9) and Moscow Domodedovo (June 10) aboard A320s.
Air Macau (MCU) is expected to get a +MOP507.3 million/+$62.4 million capital injection from Air China (BEJ) and other stakeholders designed to help it avoid liquidation. (BEJ) said that shareholders approved the plan last month. Hit hard by the increasing number of direct flights across the Taiwan Strait and the harsh economic environment, (MCU)'s 2008 loss exceeded the -MOP109 million posted in 2007, Chairman, Zhao Xiaohang told the "Macau Daily News." Its net asset value was approximately MOP-107.3 million as of December 31. According to local law, since the net asset value of (TAP) is negative/lower than half the value of its issued share capital, shareholders must either replenish its assets or dissolve it. (MCU) is owned by (BEJ) parent, China National Aviation Corporation (51%), Servicos Administracao e Participacoes which includes (TAP) and Banco Nacional Ultramarino (20%), Sociedade de Turismo e Diversoes de Macau (14%), (EVA) Air (5%), and others.
August 2009: (TAP) Portugal Maintenance and Engineering Brazil was certified by the USA (FAA) to perform heavy maintenance on A330 and A340 airplanes. The company also is (FAA)-certified for the A300-B4, A300-600, and A310. It is a member of the Airbus (EDS) Maintenance Repair & Overhaul (MRO) Network.
The Star Alliance (SAL) said EgyptAir (EGP), South African Airways (SAA), and (TAP) are the 1st members to use the (SAL)'s newly developed Common Information Technology (IT) Mobile Platform. The mobile services are being rolled out in stages and currently include flight schedules, real-time departures and arrivals and lounge information among other features. More interactive services such as frequent-flyer program status, online check-in and seat selection and mobile boarding passes with 2D barcodes will be made available in the coming weeks, the (SAL) said.
September 2009: (TAP) Portugal pilots (FC) called a 48-hour strike for 2 days over pay. (TAP) said it expected "some disruptions in its operations" but that it "has taken all measures to minimize its impact." Flights operated by its (PGA) Portugalia Airlines (POR) subsidiary will be unaffected and connections between Lisbon and the Azores, Madeira, Luanda, and Luxembourg will be maintained, (TAP) said. It estimated that the stoppage will cost the company around -€10 million/-$14.8 million, according to the "Associated Press."
(TAP) will launch flights from Lisbon (LIS) to Valencia (2x-daily on October 25) and Algiers (3x-weekly from November 25). 5x-weekly, (LIS) - Casablanca service will increase to 12x- on October 25.
A320-214 (4021, CS-TNS), AerVenture leased.
October 2009: (TAP) Maintenance and Engineering Brazil delivered 2 ERJ-145s formerly operated by Thai carrier, PB Air (PBJ) to (GECAS) (GEF) after performing a "C" maintenance check. The airplanes immediately went into operation with Passaredo Linhas Aereas (PDO).
November 2009: French slot coordinator (COHOR) said it redistributed a pool of 6,672 slots at Paris Orly for the summer 2010 season, with half awarded to carriers with new entrant status and half to incumbents. New entrant slots were allocated to easyJet Switzerland (TEB) for 2x-daily flights to Venice, Vueling Airlines (VUZ)/(CLK)`and Pegasus Airlines (PGS) for one daily flight each and to Wizz (WZZ) for 4x-weekly flights to Bratislava. Incumbent slots were allocated to (TAP) Portugal for 3x-daily flights, Iberia (IBE) for one daily flight, Midex Airlines (MIX) for 3x-weekly flights, and Air Algerie (ALG) for one weekly flight.
2 A320-214s (4095, CS-TNT; 4106, CS-TNU), AerVenture leased.
December 2009: (TAP) Maintenance & Engineering Brazil said it received USA (FAA) certification for heavy maintenance and component overhaul on E170s and E190s.
A320-214 (4145, CS-TNW), AerVenture leased.
January 2010: (TAP) Portugal will increase capacity to/from Spain this year by +7% to 1.4 million seats. (TAP) currently operates a combined 192 weekly flights from Lisbon to Madrid (MAD), Barcelona (BCN), Malaga, Bilbao, La Coruna, Pamplona, Valencia, and Seville and from Porto to (MAD) and (BCN), as well as a Funchal - (MAD) summer service. (TAP) Portugal will commence a 3x-weekly, Lisbon - Marrakech service in June as part of an expansion strategy in Africa, which it said "is the only part of its network to have shown steady growth since 2001." Passenger numbers to/from Africa have risen +129% to 541,000 in that time frame and Africa was also the only part of the (TAP) network to grow in 2009 (6.4%). Including the new route, it will serve 10 cities in 8 African countries with 55x-weekly flights to/from Portugal.
(TAP) is still flying 16 airplanes in (PGA) Portugalia Airlines (POR) livery, although it bought (POR) back in 2006.
March 2010: (TAP) Portugal will commence 3x-weekly, Lisbon - Algiers service on June 1.
(TAP) Portugal pilots (FC) represented by the (SPAC) union have called a 6-day strike starting March 26. (SPAC) warned that all flights will be affected except those to Madeira, which they will continue to serve to support efforts to rebound from last month's flooding. Pilots (FC) staged a 2-day strike last September and have been negotiating with (TAP) since. (TAP) President & (CEO) Fernando Pinto said that the sides reached an agreement in principle on "a win-win situation allowing the airline to increase its efficiency and pilots benefitting from more comfort," yet he admitted that "we are still quite a distance apart" on the valuation of the increased productivity and flexibility accepted by the pilots (FC). (TAP) offered a +1.8% wage increase. It estimated that the 6x-day strike will cost it -€30 million/-$41.1 million.
The public sniping between British Airways (BAB) and the Unite union continued, while (TAP) Portugal and its pilots (FC) struck a more conciliatory tone and reached a deal that cancelled a potentially devastating 6 day strike. (TAP) pilots (FC) represented by the (SPAC) union called off the March 26 to 31 work stoppage after agreeing to a new contract. "The agreement includes a pay rise of +1.8%, the same as for the other (TAP) unions, and equal sharing of productivity gains by pilots (FC) and the airline," (TAP) said.
President & (CEO) Fernando Pinto said that "common sense has prevailed" and considered the agreement "good for both sides." He added that (TAP) "will make every effort to minimize the effects and guarantee normal operation over the Easter period."
April 2010: (TAP) Portugal recorded a 2009 net profit of +€59 million/+$79 million, a sweeping reversal from the -€209 million deficit incurred in 2008, crediting its change in fortunes to declining fuel prices, cost-cutting measures, a "selective" capacity reduction and a commercial policy that allowed it to minimize the fall in revenue.
(TAP) said in a statement that it had achieved a "quite remarkable result which allows (TAP) to reposition again on the path to profit" following the "exception" in 2008. Operating revenue in 2009 fell -11% to €1.92 billion but operating profit was +€65 million compared to an operating loss of -€156 million in 2008. Passengers carried declined -3.4% to 8.44 million, still its 2nd-highest total ever.
Parent, the (TAP) Group remained slightly in the red with a loss of -€3.5 million, narrowed from a -€285 million deficit in 2008, mainly owing to the negative impact of buying back shares in Groundforce. It decided last year to regain full control of the ground handling company to improve its service levels, Executive Chairman & (CEO) Fernando Pinto said. But (TAP) now is looking to divest Groundforce partially or totally following a December decision by Portugal's competition authority that it is in breach of European Union (EU) rules on 3rd-party handling.
SEE ATTACHED AIR TRANSPORT WORLD (ATW) ARTICLE ON (TAP) AIR PORTUGAL'S FUTURE - - "TAP-2010-04-A/B/C/D/E/F."
June 2010: (TAP) Portugal appointed Aviareps as its general sales agent (GSA) in Ukraine.
August 2010: (TAP) Portugal broadened its code share agreement with Star (SAL) Alliance partner, (LOT) Polish Airlines to include 7 new destinations beyond Warsaw operated by (LOT): Gdansk, Krakow, Poznan, Katowice, Rzeszow, Szczecin, and Wroclaw. (TAP) operates a 5x-weekly service between Lisbon and Warsaw. It also extended its code share with EgyptAir (EGP), adding its TP code on (EGP)-operated flights to Luxor and Sharm el Sheik from Rome and Milan Malpensa.
October 2010: United Continental Holdings' Continental Airlines (CAL) division and Star Alliance (SAL) partner (TAP) Portugal from October 11 started code sharing on flights across Africa, Central America, Europe, and the USA. (CAL)'s ‘CO’ designator code is placed on (TAP)’s services to Newark Liberty International Airport from Lisbon, as well as (TAP)’s domestic flights between Lisbon and Faro, Madeira and Oporto. The ‘CO’ code is also be placed on (TAP)’s African destinations of Praia, Sal, and Sao Tome, as well as services to Spain, Germany, France, and the UK. Once government approvals have been granted, the code share will be expanded to include (TAP)-operated flights to Angola, Guinea-Bissau, Morocco, and Mozambique.
In return, (TAP)’s ‘TP’ code is placed on (CAL)’s Lisbon flights from Newark, as well as 20 across the USA and Mexico, and on (CAL)’s daily transatlantic flights between Lisbon and Newark Liberty.
November 2010: (TAP) Portugal said its privatization process could start next year. (CEO) Fernando Pinto stated at the (ALTA) meeting in Panama City that privatizing the carrier "is part of a [government] plan and this process could start in 2011."
(TAP) enjoys high load factors on its long-haul routes, especially to South America and Africa, "but the high fuel price spoils everything," Pinto stated. Nevertheless, (TAP) operates up to 80x-weekly flights to Brazil.
In order to privatize, an outside strategic investor may be necessary. Asked if (TAM) (TPR)/(LAN) Airlines prospective parent company the LATAM Airlines Group may have an interest in investing in (TAP) Portugal, (TAM) (TPR) President Libano Miranda Barroso said that after the merger is completed, "we are open for everything. Nothing is impossible."
Pinto said that the average European market is not growing, necessitating (TAP)'s focus on long-haul services, which generate 50% of its revenue. He said there would be no further growth in (TAP)'s Brazil flight capacity at this time.
December 2010: (TAP) Portugal will add 6 destinations from Lisbon next year: Athens, Bordeaux, Dubrovnik, Dusseldorf, Manchester, and Vienna.
January 2011: (TAP) Portugal will launch 4x-weekly, Lisbon - Porto Alegre in June, subject to approval from Brazilian authorities.
This is (TAP)'s 10th Brazilian destination along with Belo Horizonte, Brazilia, Campinas, Fortaleza, Natal, Recife, Rio de Janeiro, Salvador, and Sao Paulo (GRU). In 2010 (TAP) carried 1.4 million passengers between Portugal and Brazil, a +25% increase from 2009. Porto Alegre also joins Athens, Bordeaux, Dubrovnik, Dusseldorf, Manchester, Miami, and Vienna as new (TAP) destinations scheduled to open this year.
March 2011: (TAP) Portugal said it achieved “the best result ever in the history of the company,” reporting a net profit of +€62.3 million/+$86 million for 2010, up from income of +€59 million reported in 2009. It noted the positive performance was achieved despite a 45% hike in fuel costs, the April Icelandic volcano ash cloud crisis, strikes by French and Spanish air traffic controllers (ATC), and floods in Madeira.
Operating revenue rose +14.6% compared to 2009 to €2.2 billion on a +7.7% increase in passengers carried to 9.1 million and strong growth in its cargo and maintenance activities. (TAP)’s cargo division recorded a +31% rise in revenue to €112 million on a +24% increase in volumes carried to 94,200 tonnes. Revenue generated by its Maintenance & Engineering business unit heightened +28% to €123.7 million.
(TAP), which is slated for privatization said passenger revenue benefited from strong sales abroad, “particularly in the Brazilian and Angolan markets” where sales increased by >+55% and +30%, respectively. (TAP) carried >1.4 million passengers between Portugal and the 9 Brazilian gateways, up +25% over 2009.
In June it will further extend its network to Brazil and launch 4x-weekly service between Lisbon and Porto Alegre, subject to approval from Brazilian authorities, lifting the number of weekly fights between the 2 countries to 74. (TAP)’s on-line cities in Brazil include Rio de Janeiro, Sao Paulo, Campinas, Brasília, Belo Horizonte, Salvador, Recife, Natal, and Fortaleza.
(TAP) carried >1 million passengers on its routes between Portugal and France last year, up +8.4% over 2009. In the peak summer demand period, (TAP) will be offering a total of 152x-weekly between Portugal and France: 49x-weekly between Lisbon and Paris and 21x- between Porto and Paris, respectively. (TAP) also operates 20x-weekly flights from Lisbon to Nice and Lyon and 14x- from Lisbon to Marseilles and Toulouse.
(TAP) Portugal is seeking riches in underdeveloped parts of Africa. Sao Vicente is (TAP)’s newest destination, its 3rd in the Cape Verde islands and 13th in Africa overall, including Mali’s capital Bamako, another new destination that opens this summer. 2x-weekly frequencies to Sao Vicente will operate from Lisbon starting in July. Last year, (TAP) carried >600,000 passengers on its African routes, more than half of which connect Lisbon to countries formerly under Portugal’s colonial control. It’s no longer the days of colonial riches, however, and Portugal’s debt-soaked economy today is more akin to the football star Cristiano Ronaldo: injured and out of action.
Network-wide load factor last year improved 6 points to 74.5% LF. At year end, (TAP)’s network comprised 64 destinations in 30 countries worldwide. (TAP) currently operates >1,850 weekly flights using a fleet of 71 Airbus airplanes, of which 55 are operated on mainline routes and 16 are operated by its regional airline, Portugalia (POR).
(TAP) Portugal refuted recent press reports that the proposed (LATAM) Airlines Group (LAN)/(TPR) initiated discussions to take a stake in the state-owned airline to form a powerful transatlantic-Latin American conglomerate. “There has been no approach from (LATAM),” a spokesperson said, noting that the Portuguese government has not launched (TAP)'s privatization process . “There are indications pointing to the privatization launch due to happen in a near future, ie, this current year, but for the time being there are no comments other than this indication,” she stated. According to reports, the group arising from the planned (LAN) Airlines and TAM (TPR) merger is looking to initially acquire 39% of (TAP), eventually increasing its share to 49%. Negotiations were reportedly to conclude by May. It added that a purchase is conditional on (TAP) selling off handling company Groundforce. Lufthansa (DLH) also reportedly asked for details on (TAP)'s privatization and speculated it could take up the remaining 51%.
(TAP) Portugal selected "Discover the World Marketing" to serve as its representation in Austria. (TAP) begins nonstop, Vienna - Lisbon service on May 27.
CHAMP Cargosystems was selected by (TAP) Portugal to manage its cargo operations, with long-term use of the Cargospot suite of cargo management solutions. (TAP) reported a +24% increase in cargo volume in 2010.
June 2011: Turkish Airlines (THY) revised its code share agreement with (TAP) Portugal Airlines; the carriers will now reciprocally place their codes on each other's flights. (TAP) will launch 4x-weekly, Lisbon - Accra A320 service on July 2.
Lufthansa Systems (LHS) reached an agreement with (TAP) Portugal to supply its myIDTravel solution to manage (TAP)'s interline staff travel.
Worldwide Flight Services (WFS) won a new cargo handling contract from (TAP) Portugal in Miami. For (TAP), (WFS) will provide cargo warehousing and customer service for (TAP)'s 5 A330 flights a week. (TAP) is expected to carry around 2,700 tonnes of cargo per annum on the new route.
July 2011: As the national airline, TAP Portugal (TAP) operates jet airplanes and serves 64 destinations in 30 countries in Africa, Europe, North, and South America. (TAP) is Europe's leading provider of services to Brazil. Regional subsidiary, PGA - Portugalia Airlines (POR) operates scheduled domestic and international flights from Lisbon and Porto together with European charter flights.
(IATA) Code: TP - 047. (ICAO) Code: TAP (Callsign - AIR PORTUGAL).
Parent organization/shareholders: Portugese government (100%).
Airline subsidiaries/shareholdings: (PGA) - Portugalia Airlines (POR) (100%).
Alliances: Star (SAL) Alliance; Aegean Airlines (CRM); Air China (BEJ); Alitalia (ALI); Brussels Airlines (DAT)/(EBA); Egypyair (EGP); Linhas Aereas de Mozambique (LAM); S7 Airlines (SBR); SATA International (SAP); South African Airways (SAA); Swiss International Airlines (CSR); TACV - Cabo Verde Airlines (TCV); TAM Linhas Aereas (TPR); Turkish Airlines (THY); and Ukraine International Airlines (UKR).
Main Base: Lisbon Portela airport (LIS).
Hubs: Funchal airport (FNC); Porto airport (OPO); & Faro airport (FAO).
Domestic, Scheduled Destinations: Faro; Funchal; Horta; Lisbon; Ponta Delgada; Porto; Porto Santo; & Terceira.
International, Scheduled Destinations: Amsterdam; Barcelona; Belo Horizonte; Bissau; Brasilia; Brussels; Budapest; Campinas; Caracas; Copenhagen; Dakar; Fortaleza; Frankfurt; Geneva; Johannesburg; London; Luanda; Luxembourg; Madrid; Maputo; Milan; Munich; Natal; New York; Oslo; Paris; Porto Alegre; Prague; Recife; Rio de Janeiro; Rome; Sal; Salvador; Sao Paulo; Sao Tome Island; Stockholm; Venice; & Zurich.
October 2011: Marshall Aerospace (MAC) has been awarded an Interior Cabin Upgrade contract by (TAP) Portugal. The upgrade is to be applied to 4 A340-312 airplanes and will include new seating with enhanced in-flight entertainment systems.
Under the contract, Marshall Aerospace (MAC) will be the Aircraft System Integrator, responsible for the installation of the upgrades and the provision of all adaptive modification data. The company will also certify the upgrades under its (EASA) Part 21J DOA privileges; thus enabling an early return to service (upon successful completion of the installation and ground-testing). (MAC) will then work through the regulators to provide (EASA) and (FAA) Supplementary Type Certificates (STC)s.
Steve Fitzgerald (CEO) Marshall Aerospace, said: “We are delighted to have won this contract as it not only reflects our increasing activities in the commercial sector but it also exemplifies how we are fulfilling a much-needed ‘hybrid role’ within the industry, supplying airlines and other Maintenance Repair & Overhaul (MRO) facilities with Engineering services that in turn enable them to secure more business.”
Preliminary design work for (TAP) has already commenced and the 1st installation is scheduled for February 2012. Following the 1st airplane Release to Service, on completion of successful ground testing, the remaining 3 airplanes will be upgraded by November 2012.
Luís Monteiro VP Marketing (TAP) Portugal, commented: “With such an upgrade to be applied to its 4 A340 airplanes in operation on the long haul sector, (TAP) continues to ensure the quality and reliability of the in-flight entertainment systems equipping its fleet across the whole Network. Thereby, the company provides customers with a superior level of comfort and quality on board, living up to their expectations and aligning with the best practices within the Industry.”
The installation will be performed at (TAP)’s facilities in Lisbon, Portugal after completion of Marshall Aerospace (MAC)’s activities in Cambridge, UK.
The contract was awarded through a traditional competitive bid process. A contributing factor in (MAC)’s success was the company’s track record on similar upgrade programs, which presented (TAP) with the lowest risk proposal.
November 2011: (TAP) Portugal currently serves 10 destinations in Brazil: Belo Horizonte; Brasilia; Campinas; Fortaleza; Natal; Porto Alegre; Recife; Rio de Janeiro; Salvador; Sao Paulo. It states it would add even more capacity if it had more longhaul airplanes.
December 2011: Next June, (TAP) Portugal will launch service between Lisbon and Berlin in Germany. (TAP) will operate the route 5x-weekly from 5 June. (TAP) will compete with EasyJet (EZY), which operates 3x-weekly flights between the 2 cities.
January 2012: (TAP) Portugal is adding 2 new routes from Lisbon during the upcoming summer timetable period:
Funchal - London Heathrow: daily A319-100/A320-200 service has started on October 30 (transferred from Gatwick to Heathrow just for the winter season until March 24);
Lisbon - Berlin: 5x-weekly A319-100 service starting on June 5;
Lisbon - Turin: 4x-0weekly A319-100 service starting on June 3.
(TAP) is currently wet-leasing an A310-300 from White (YES) for its weekly Lisbon- São Tome service. It has entered into a bilateral code share agreement with Etihad Airways (EHD) to offer its passengers connections between Portugal and Abu Dhabi.
The European Commission (EC) raided the premises of Brussels Airlines (DAT)/(EBA) and (TAP) Portugal in Belgium and Portugal, as part of its investigation to verify whether the carriers’ code share agreements are a breach of (EU) antitrust rules.
“While the (EC) was so far been rather concerned about possible effects that code share agreements may have had for consumers, it now has, in addition, reasons to suspect illegal collusion between the parties,” it said.
(EC) officials were accompanied by their counterparts from the relevant national competition authorities.
The (EC) opened the investigation in February. It also opened a similar probe into the code share practice between Lufthansa (DLH) and Turkish Airlines (THY) on the Munich - Istanbul Ataturk (IST) and Frankfurt - (IST) routes. The (DAT)/(EBA) - (TAP) investigation concerns the Brussels to Lisbon route, where the carriers are the only operators.
February 2012: (TAP) Maintenance & Engineering (M&E) Brazil received a 777 landing gear overhaul service contract from Boeing (TBC). The contract includes inspection, repair and overhaul of the landing gear axles of the 777 through a service bulletin released by (TBC).
(TAP) (M&E) Brazil has completed the first "C1/C2" checks performed on an Air Transat (AIJ) A330-200, and has delivered the airplane to (AIJ).
March 2012: (TAP) Portugal selected OnAir to provide its in-flight Wi-Fi service onboard its A330 airplanes, targeting a launch date of early 2012. (TAP) will also deploy OnAir services on its planned fleet of A350s.
April 2012: (TAP) Portugal was forced to suspend operations to Bissau Oswaldo Vieira International (OXB) following a military coup in Guinea Bissau in the evening of April 12. The military has closed the country's airspace until further notice.
May 2012: Lufthansa (DLH) is now reportedly also considering acquiring (TAP) Portugal according to a report by the "Financial Times."
June 2012: (TAP) Portugal and Oneworld (ONW) alliance member S7 Airlines (SBR) launched code share flights between Portugal and the Russian Federation on June 4. Through this code share agreement, (TAP) will serve seven new destinations in Russia on flights operated by (S7) Airlines (SBR), comprising St Petersburg, Kazan, Yekaterinburg, Samara, Ufa, Novosibirsk, and Sochi. (SBR) will now be able to market its own services between Moscow and Lisbon, as well as on flights to Porto, Funchal, and Faro.
August 2012: (TAP) Portugal reported a net loss of -€112 million/-$138 million for the 1st half, -14.6% worse than the year-ago period.
(TAP) blamed strikes and soaring fuel prices for the deteriorating financial performance, but stressed that operations “are highly seasonal and a considerable improvement is expected in the 2nd half of the year.”
(TAP) said that, although revenue for the 1st half was up +9.3% year-over-year, reaching €1.08 billion and exceeding what (TAP) described as the “psychological barrier” of €1 billion for the period, industrial action had an estimated direct negative impact of -€21.6 million.
(TAP)’s fuel bill rose +20% to €390 million from €325 million in the year-ago period, which “contributed substantially to the general increase in operating costs.”
Within the group, (TAP)’s Brazil Maintenance & Engineering arm, Manutenção e Engenharia do Brazil, recorded “a significant recovery” of 31.2%, with losses falling from -€30.1 million in the 2011 1st half to -€20.7 million for the period ended June 30 this year.
(TAP)’s Portugal-based airport ground handling services subsidiary, Groundforce, which was sold at the end of the period, also reported a marked improvement for the 1st six months. Although it ended the 1st half with losses of -€2.3 million, it was a +68.8% improvement over the -€7.3 million loss recorded for the same period in 2011. (TAP) said the result suggested Groundforce could achieve its 1st profit before year end.
Operating performance for the 1st six months was improved, with passenger numbers at 4.7 million, up +4.7% year-over-year, and (TAP)’s market share at Portuguese airports up to 41.7%.
(TAP) Portugal is the 2nd national carrier after Adria Airways (ADR) put up for sale recently after the Portuguese government has approved a plan to privatize (TAP) as part of a general privatization plan agreed as part of the country's bailout package. Bidders are expected to be invited soon with the government keen to find a partner that will maintain (TAP)'s status as Portugal's national carrier operating a hub at Lisbon Portela de Sacavem airport (LIS).
September 2012: (TAP) Portugal is moving toward an expected full privatization by year end, following President Cavaco Silva’s approval placing (TAP) and its subsidiaries up for sale.
(TAP)'s expected privatization is part of Portugal’s €78 billion/$100.9 billion international bailout agreement by the European Union (EU) and the International Monetary Fund in 2010.
Three groups (the International Airlines Group (IAG) (British Airways (BAB)/Iberia (IBE), Lufthansa (DLH), and Avianca (AVI) - Taca (TAC) submitted preliminary bids. However, local media in Lisbon have reported that the (IAG) and (DLH) have given up their interest in (TAP).
Observers believe that LATAM (LAN) Airlines/(TAM) (TPR) and Qatar Airways (QTA), as well as Avianca (AVI) - Taca (TAC)’s Synergy Group will reportedly move onto to the second phase of the bid, which is anticipated to take place in October.
(TAP), which has an estimated value of €1.2 billion, is navigating rough skies toward privatization in the face of a turbulent economic environment.
(TAP) ended the 1st half of this year with a -€112 million net loss, -14.6% widened from the year-ago period. Strikes cost (TAP) -€21.6 million, while fuel costs increased +20% to €390 million.
(TAP) Portugal also seems to be of interest to Delta Air Lines (DAL) and Virgin Atlantic (VAA) which both are contemplating placing bids for the Portuguese national carrier and South African Airways (SAA) in the upcoming privatization process according to a news report by "Expresso" published in Portugal.
White (YES) has wet-leased its single A310-300 (494, CS-TQV) to Air India (AIN) for this year's Hajj charter season. While the airplane operates between India and Saudi-Arabia flying Indian muslim pilgrims, its partner (TAP) Portugal is temporarily using (SATA) International (SAP) A310-300s until December 7 for the weekly scheduled service between Lisbon Portela de Sacavem (LIS) and São Tome International (TMS) that is typically operated by (CS-TQV).
October 2012: State Secretary for Transport & Public Works, Sergio Monteiro said the government would now work with Synergy, Brazil to finalize a binding bid, according to a "Reuters" report. It hopes to seal a deal by the end of the year for completion in the 2013 1st quarter, "Reuters" said.
(TAP) has run up debts estimated to be around €1.2 billion/$1.6 billion and privatization of the airline is part of a disposal of state assets required by the terms of Portugal's €78 billion European Union (EU)/International Monetary Fund bailout.
Monteiro said that 10 unspecified companies had showed an interest in the privatization, and both the International Airlines Group (BAB)/(IBE) and the Lufthansa (DLH) group have shown interest.
Analysts say (TAP)’s routes to Brazil (Latin America’s largest country and a former Portuguese colony) are its key selling point.
Owned by entrepreneur, Germán Efromovich, Synergy Brazil is the majority owner of AviancaTaca (AVI)/(TAC); it also controls Colombian airline Avian and Avian Brazil.
Financial pundits are querying how Synergy plans to structure a deal as (EU) rules prohibit non-European shareholders from controlling >49% of an (EU) carrier. Monteiro said the Portuguese government has priority in buying back the airline if the company acquiring it eventually decides to sell. The Portuguese government also insists (TAP)’s hub must stay in Lisbon.
The government is also preparing to sell airport operator (ANA) by the end of the year.
November 2012: (TAP) Portugal reported a 3rd-quarter net profit of +€102.3 million/+$130.4 million, up +21% from a +€84.6 profit in the year-ago period. (TAP) said the results were due to (TAP)’s broad geographical spread. “The fact that >two-thirds of our revenues are generated abroad, and that our network covers different parts of the world, from Eastern Europe, Africa, to Latin America, gives us greater defense against disruption in any particular market,” (TAP) (CEO) Fernando Pinto said.
Pinto said this marked the best ever quarter in the history of (TAP), noting this as a particular achievement given the stark backdrop of increasing fuel prices. During the 3 months to September, (TAP) carried 3.1 million passengers. In the 1st 9 months, passenger numbers were +4.1% up at 7.8 million.
January 2013: (TAP) Portugal and Emirates (EAD) announced the start of a reciprocal code share agreement under which (EAD) will place its code on (TAP) services from Lisbon to Porto, Faro and Funchal, as well as Seville, Madrid and Barcelona. (TAP) will place its code on (EAD) service between Lisbon and Dubai, to Bangkok, Singapore, Hong Kong and Kuala Lumpur. The agreement will also link the 2 frequent flier programs.
(TAP) Maintenance & Engineering (M&E) Brazil has launched a “Minor Checks” program to meet growing demand for airplane light maintenance in Brazil. The program will be available to customers operating all models of Airbus (EDS), (ATR), Boeing (TBC) and Embraer (EMB) airplanes in or to Brazil from the beginning of February. Up to 8 service boxes located inside (TAP) (M&E) Brazil facilities, in Rio de Janeiro and Porto Alegre will be available.
(TAP) (M&E) Brazil appointed Antonio Carraça to head its new "Minor Checks" project. Carraça has >30 years of aircraft maintenance experience, (TAP) said.
(TAP) (M&E) Brazil has launched a “Minor Checks” program to meet growing demand for airplane light maintenance in Brazil. The program will be available to customers operating all models of Airbus (EDS), ATR, Boeing (TBC) and Embraer (EMB) airplanes in or to Brazil from the beginning of February. Up to 8 service boxes located inside (TAP) (M&E) Brazil facilities, in Rio de Janeiro and Porto Alegre will be available.
February 2013: (TAP) Portugal reported annual net income of +€15.9 million/+$21 million, more than quadrupled from a +€3.1 million profit in the year-ago period. (TAP) said the results were due to efforts to improve efficiency year-over-year.
This is its fourth year in a row of positive results, mainly due to the expansion of (TAP) operations. In 2012, (TAP) reduced its total debt from €1 billion to €862 million. Aggregate debt dropped from 46% of total income in 2011 to 35% in 2012.
The company also cites performance improvement of +23% in its Maintenance and Engineering business, which had recently been for sale, and increases in ticket sales of +6.7%.
Revenue rose +6.9% to €2.43 million, while expenses, ex-fuel, increased +4.8% to €1.42 million, producing an operating profit of +€43.4 million, up +5.6% from a +€41.4 million operating profit in the prior year. Fuel costs increased +€93 million in 2012, an increase of +13% in the fuel bill.
Traffic rose +4.8% in (RPK)s on a +4.1% increase in capacity, producing a load factor of 76.8% LF, up +0.5 points. (TAP) broke the 10 million mark in passengers carried in 2012.
At the end of 2012, the Portuguese government abandoned plans to sell (TAP) Portugal to Synergy Aerospace (ONE) and plans to restart the (TAP) privatization by 2014.
May 2013: (TAP) will begin 2x-weekly, Lisbon - Boavista, Cape Verde and 5x-weekly, – Tangiers in October.
July 2013: Avianca Colombia (AVI) owner, Germán Efromovich, has reportedly applied for a EUR 345 million loan from Brazil's 2nd largest state bank, Caixa Económica Federal, which the Brazilian press speculate could be used to acquire a stake in (TAP) Portugal. While Mr Efromovich confirmed the funding application to the Folha de Sao Paulo newspaper, he refused to comment on the deal which, if approved, would be used to cover (TAP)'s estimated EUR1billion debt and which Lisbon wants any potential buyer to assume. The report further claims that, with or without the loan, Mr Efromovich will push ahead with the bid and has already met with Portuguese government officials. However, to avoid being forced to take any deal offered to it, Lisbon is understood to want more than one bidder. jetBlue Airways (JBL) Founder and current Azul Linhas Aéreas Brasileiras (AZL) (CEO) David Neeleman, has also been rumored to be interested in acquiring a stake in (TAP), though he has vehemently denied all such reports.
August 2013: (TAP) Maintenance & Engineering Brazil has earned European Aviation Safety Agency (EASA) certification for all maintenance levels on all Embraer (EMB) jets. The company hopes it can increase services to European carriers.
September 2013: (TAP) Portugal will begin October 27 Lisbon - Munich (18x-weekly), - Hamburg (11x-weekly), - Berlin, and – Dusseldorf (7x-weekly). With the addition of a flight, Lisbon - Vienna becomes a daily service.
French infrastructure group Vinci Airports has finalized its acquisition of Portuguese airports operator (ANA). The deal (worth $4.17 billion) marks the final step in the Portuguese government’s privatization of (ANA), which was approved by the European Commission (EC) earlier this year.
(ANA) holds a 50-year concession for 10 airports in Portugal, the Azores and Madeira, which collectively handled >30 million passengers in 2012. Lisbon Airport handles 15 million passengers a year due to high traffic to and from Brazil, and Portuguese-speaking Africa. Vinci Airports already manages 23 airports in France and Cambodia.
October 2013: (TAP) Portugal added 2 new African routes to its network from Lisbon (LIS) on October 27th, as it launched services to Boa Vista (BVC) in Cape Verde and to Tangier (TNG) in northern Morocco. (TAP), which already operates 6x-weekly flights to Sal, 5x-weekly to Praia, and 2x-weekly to Sao Vincente in Cape Verde, now offers 2x-weekly schedule to Boa Vista using A319s. Competition on the 2,800 km route comes from (TACV) Airlines (TCV)’s single weekly flights. 5x-weekly flights to Tangier are (TAP) Portugal’s 3rd service to Morocco (it already operates 6x-weekly flight to Casablanca and 4x-weekly to Marrakech) and are operated using a Beech 1900D.
(TAP) Portugal will launch 3x-weekly service to Brazil’s Manaus and Belem beginning in June 2014. With the addition of these new destinations, (TAP) will increase the number of gateways in Brazil to 12.
(TAP) said its high load factors can hardly meet the increasing demand on many routes. It operates up to 74 weekly direct flights to 10 cities in Brazil from Portugal Fortaleza, Natal, Recife, Salvador, Brasilia, Belo Horizonte, Rio de Janeiro, Sao Paulo Guarulhos, Campinas, and Porto Alegre.
(TAP) (CEO) Fernando Pinto said recently it is eyeing “up to 6 additional A330-200s and several A320s for short- and medium-haul routes” as it aims to increase its presence in Africa.
(TAP) Maintenance & Engineering (M&E) has been awarded an 8-year contract to provide landing gear repair and overhaul services for the (NATO) (NAT) E-3A (AWACS). The 1st shipset will be serviced before the end of 2013.
December 2013: (TAP) Portugal (CEO) Fernando Pinto said (TAP) will gradually renew the fleet of subsidiary, (PGA) Portugalia Airlines (POR), with the exercise to be complete by 2016. "Our business plan until 2016, envisages the gradual replacement of (POR)'s fleet," Mr Pinto is quoted by "Jornal de Negócios" as saying. He added that "studies have shown interesting alternatives, but it is important to note that the current fleet of 8 ERJ-145s and 6 Fokker F 100s have served well the kind of operation that (TAP) needs ie servicing routes with low/average potential but which generate excellent results." In addition, Mr Pinto also discussed the possibility of replacing Portugalia (POR)'s fleet of 2 Beech 1900Ds, used on (PGA) Express flights to Spain and North Africa, in the near future. Since 2007, Portugalia (POR) has operated scheduled international and domestic services from Lisbon and Porto using (TAP) flight numbers. It also offers European charter services.
(TAP) Portugal currently operates 70 airplanes to 37 countries, 85 destinations, on 116 routes and 250 daily flights.
January 2014: (TAP) Portugal increases Lisbon - Sao Tomé A320 service from 1x- to 3x-weekly from July 1.
(TAP) is to launch 10 new routes in 2014; the biggest carrier by far for European World (soccer) Cup fans heading for Brazil. For a government-owned flag-carrier operating in one of Europe’s most economically challenged countries, (TAP) had a surprisingly good 2013. Passenger number were up +5% to an all-time high of 10.7 million, and the annual load factor reached 79.4% LF, another company record. European traffic growth led the way, growing by +443,000 passengers (+7.2%) while domestic traffic was up just +1%. To round off an impressive year, at the end of 2013, (TAP) announced plans to serve 10 new destinations in 2014, including 2 in Brazil, which will be appreciated by football fans across Europe.
(TAP)’s fleet (including that of its fully-owned subsidiary Portugalia (POR)) currently comprises 16 wide body Airbus airplanes, 39 A320-series airplanes, 6 Fokker F 100s, 8 Embraer ERJ-145s and 2 Beechcraft 1900Ds. According to Airbus (EDS), (TAP)’s only orders for new airplanes are for 12 A350-900s.
During 2013, (TAP) launched only 2 new services from Lisbon, to Boa Vista (Cape Verde) and Tangier (Morocco), while dropping flights to Milan Linate and Turin. (TAP)’s growth was achieved with no additional airplanes, and primarily through an increase in load factor. However, before Christmas, (TAP)’s (CEO) Fernando Pinto announced plans to grow (TAP)’s network by a further +10 destinations in 2014, with 2 new Brazilian destinations (Belem and Manaus) launching in June, and a further 8 new routes starting in early July.
The addition of Hannover brings to 6 the number of destinations served in Germany; after Berlin, Düsseldorf, Frankfurt, Hamburg, and Munich. In 2013, (TAP) transported 627,000 passengers on its German routes, representing growth of +18%. The new Hannover route, plus increases in frequencies on the existing routes, means that capacity will be up +22% between the 2 countries in 2014.
Total weekly seat capacity across the whole network is set to grow this summer by around +8%, with (ASK)s on track to grow by closer to +12%, thanks to the introduction of the new long-haul routes. Destinations served with at least 4 daily flights this summer from Lisbon are Barcelona, Brussels, Funchal (Madeira), London Heathrow, Madrid, Milan Malpensa, Paris Orly, Porto, and Rome Fiumicino, as well as between Porto and Paris Orly.
This June, (TAP) will be flying almost 2x- as many weekly seats between Europe and Brazil as any other airline, offering non-stop flights to 11 Brazilian cities from Lisbon (plus Belem via Manaus), plus two routes to Brazil from Porto. These long-haul routes to Brazil account for just over one-third of (TAP)’s capacity this summer, if measured by (ASK)s. TAP Portugal offers almost twice as many weekly seats between Europe and Brazil as fellow current Star (SAL) Alliance member (TAM) Airlines (TPR) (though (TAM) joins the Oneworld (ONW) Alliance at the end of March), with AirFrance (AFA) and Lufthansa (DLH) the next biggest operators in the market. While (TAM) (TPR)’s weekly seat capacity is actually down -6.6% this June, (TAP)’s is up +11%. (TAP) will be keen to maximize its impressive links to Brazil this summer, especially while the World Cup is taking place from 12 June 12 to 13th. SEE ATTACHED - - "TAP-2014-01 - EUROPE TO BRAZIL."
(TAP) Portugal has become the latest European carrier to relax restrictions on the use of personal electronic devices (PED) on takeoff and landing. The move, which takes effect from January 14, follows the European Aviation Safety Agency's (EASA) decision to allow (PED) use during all flight phases as long as the device is set to “flight mode.”
(TAP) has maintained restrictions on the use of laptops during takeoff and landing. “These should be properly stowed to ensure the safety of other passengers,” (TAP) said. Likewise, the use of walkie-talkies, portable radios and remote-control toys remain restricted.
Passengers can use smaller electronic devices, but these must have wireless access and Bluetooth disabled, according to (TAP).
The (FAA) announced plans to relax restrictions on (PED) use at the end of October and Delta Air Lines (DAL)was the first USA carrier to activate gate-to-gate (PED) use.
(EASA) adopted a similar approach in early December and on December 19 British Airways (BAB) became the first European carrier to adopt the changes.
February 2014: (TAP) Portugal ((IATA) Code: TP, based at Lisbon) has announced plans to wet-lease an A310-300 from fellow Portuguese operator, Hi Fly (LXA) during the month of May. The A310-300 (565, CS-TEX), will be deployed on (TAP)'s weekly Lisbon to São Tome service (replacing the A310-300 (CS-TQV) typically wet-leased from White ((IATA) Code: WI, based at Lisbon) (YES).
March 2014: (TAP) Portugal will begin Lisbon - Oviedo ATR42-600 service on July 1.
April 2014: (TAP) Portugal will deploy its 2 ATR 42-600s, (1002, CS-TRU) and (1005, CS-TRV), on flights from Lisbon to Asturias, Seville, and Tangiers with effect from July 1.
Wet-leased from White ((IATA) Code: WI, based at Lisbon) (YES), the flights will be operated for (TAP) Portugal subsidiary, (PGA) Portugalia Airlines ((IATA) Code: NI, based at Lisbon) (POR).
May 2014: The Brazilian Air Force (BRF) is to add a 3rd 767-300ER tanker and options for another 2, to be converted by Israeli Aerospace Industries (IAI) Bedek division, with maintenance by (TAP) (M&E) Brazil.
(TAP) Maintenance & Engineering (M&E) Brazil, which used to be Varig (VAR)’s Maintenance arm, is on track to return to profitability next year and is seeking strategic partners.
June 2014: (TAP) Portugal, the biggest carrier for European (FIFA) World Cup Football (soccer) fans heading for Brazil, expanded its presence in the South American country with 2 new routes launched from its Lisbon (LIS) base on June 3rd. The Star (SAL) Alliance member inaugurated the 6,972 km sector to Manaus (MAO) with 3x-weekly flights (Tuesdays, Fridays, Sundays), utilizing its 268-seat A330-200s. Furthermore, these services continued to Belem (BEL). There is no competition on any of the 2 new airport pairs.
A320-214 (2822, CS-TNX "Malangatana"), ex-(9X-CAD) delivery.
July 2014: (TAP) Portugal expanded its Lisbon (LIS) offering with the addition of 8 new routes. Surprisingly, only 1 of the new airport pairs faces any competition, namely the 1,114 km sector to Nantes (NTE), which is served 6x-weekly using the Star (SAL) Alliance member’s 49-seat ERJ-145s. In addition, the 7,529 km sector to Bogota (BOG) in Colombia is classified as the longest route.
8 new routes as follows:
Lisbon (LIS) to Asturias (OVD) 6x-; to Belgrade (BEG) 2x-; to Bogota (BOG) 4x-; to Gothenburg (GOT) 4x-; to Hannover (HAJ) 4x-; to Nantes (NTE) 6x- vs Transavia.com France (TVF); to St Petersburg (LED) 3x-; to Tallin (TLL) 3x-.
August 2014: (TAP) Portugal ((IATA) Code: TP, based at Lisbon) will resume services to Bissau, the capital of Guinea-Bissau, with effect from late October this year. Speaking in Lisbon during the recent signing of a border control and migration training and cooperation protocol between Portugal and its former colony, (CEO) Fernando Pinto said incidents such as that which lead to the suspension of the route in December last year, must never be allowed to happen again.
Last year, a (TAP) flight from Bissau was forced by local authorities to depart with 74 Syrians aboard, all of whom had forged documents.
The route from Lisbon, Guinea-Bissau's only scheduled long-haul service, will resume on October 26 with a 3x-weekly service operated on-board an A319-100.
(TAP) currently operates 83 airplanes, and serves 38 countries, 89 destinations, 119 routes and 345 daily flights.
October 2014: (TAP) Portugal has warned it is expecting “significant disruption” from a cabin crew (CA) walkout planned for October 30 and November 1.
The (SNPVAC) union, which represents 90% of (TAP)’s cabin crew (CA), is planning strike action for four to protest working conditions at (TAP). The other two days of action will be held on November 13 and December 2. “This strike is not about money,” a (SNPVAC) representative said. “We are not asking for more money, only better working conditions. We want (TAP) to comply with their agreements.”
The union’s grievances include scheduling issues and a lack of staff. The representative said there are no talks underway with the company at the moment.
(TAP) Portugal has warned it can only guarantee minimum service on October 30 and November 1, although its Portugalia (POR) regional operations are not expected to be affected.
A total of 55,000 passengers were booked on its mainline flights over the two-day period. (TAP) has urged passengers to amend their travel plans and the total has now dropped to about 30,000.
November 2014: (TAP), Portugal’s leading airline, has introduced two additional Airbus A330s into its long-range fleet, following comprehensive and fast-turnaround cabin upgrades, integrated and certified by Marshall Aerospace and Defence Group (MAC), which had the responsibility of Design Organization and seat modification house.
The program timescales were exceptionally tight, as both airplanes were operated by another airline until the end of 2013. Post modification and certification, the 1st airplane was released to service on July 25th by the (TAP) Maintenance & Engineering facility in Lisbon. This release, approximately 10 months after project inception (and several months less than the industry norm) reflects the professionalism and dedication of the (TAP) Engineering & Maintenance team and its close working relationship with (MAC). The 2nd airplane was delivered just a few weeks later, on August 18th.
(TAP) employed Marshall (MAC)’s services based on a strong relationship developed in response to the operator’s time-sensitive requirements on a recent four-airplane (Airbus A340) cabin upgrade program. In contrast to that program, the A330 upgrade included the introduction of Lower Deck Mobile Crew Rest (LD-MCR), which required comprehensive structural changes to the airframe. In addition, Marshall (MAC) engineered the Business (C) Class seat modifications and supplied approved modification kits.
The (MAC) A330 modification was approved by European Aviation Safety Agency (EASA) Supplemental Type Certificate (STC), allowing return to service, and Federal Aviation Administration (FAA) approval is currently being applied for in support of USA-based supplier interests and any later airplane re-sale.
December 2014: News Item A-1: Portugal’s government has moved to reduce the effects of a strike by employees at national airline (TAP) over the holiday period, and ground staff at several UK airports also plan industrial action in the busy run-up to Christmas.
The Portuguese Council of Ministers announced it was instituting a “civil requisition,” which enables it to legally summon employees to work to ensure minimum services are upheld “in the national interest.” Staff had planned to strike from December 27 - 30 to protest the government’s privatization plans for (TAP).
(TAP) said that, if the strike goes ahead, 130,000 passengers will be affected. The Portuguese financial newspaper "Diário Económico" estimated that this would have an immediate negative impact of -€36 million/-$44 million. (TAP) stopped taking bookings for the affected dates since they were announced December 11.
(TAP) has called for “common sense to prevail” in the matter. (TAP) said its future lay in working with passengers, not alienating them.
The precise level of the “minimum services” covered by the civil requisition is not yet known.
Meanwhile, some UK employees of Dubai-based ground handler dnata plan to strike for 48 hours from 4 am local time on December 23 at 3 UK airports, as hundreds of thousands of people fly out in search of Christmas sunshine or ski holidays.
One union, the (GMB), has accepted dnata’s wage rise of +2.25% for most staff and +4.5% for supervisory grades. However, another union, Unite, has rejected what it described as an imposed and divisive offer and balloted for strike action.
Some 460 members are expected to walk out at London Heathrow, London Gatwick and Manchester airports. Dnata employs some 1,900 people in the UK. Most of the striking staff provide check-in and ground handling services for some airlines at London Heathrow (LHR) Terminals 2, 3 and 4.
An (LHR) spokesman said that dnata had contingency plans in place to minimize disruption for passengers. “(LHR) will have extra staff on duty to support passengers with their journey,” he added. “Passengers should allow plenty of time for traveling through the airport and speak to their airline if they have any concerns.”
Both Gatwick and Manchester said that dnata staff there were responsible only for loading cargo for three airlines (Emirates (EAD) and Virgin Atlantic (VAA) at Gatwick, Emirates (EAD) and Cathay Pacific (CAT) at Manchester) and that passenger services would be unaffected.
News Item A-2: (TAP) Portugal is using (CA) Application Performance Management (APM) to ensure the performance of critical business applications and improve the experience and quality of customer service.
January 2015: The Portuguese government, which decided to sell 66% of flag carrier, (TAP) Portugal last year, is moving forward slowly with the long-planned privatization process.
April 2015: News Item A-1: (TAP) Portugal’s Pilots Union (SPAC) has announced a 10-day strike from May 1 to protest the ongoing privatization process. The industrial action is reportedly projected to cost (TAP) Portugal up to €70 million/$75.6 million and strongly affect operations.
(TAP) is making every effort to avoid the strike. (TAP) spokesperson Isabel Palma in Lisbon said it is making every effort to reverse the situation. (TAP) is allowing passengers with confirmed bookings on flights scheduled for the announced dates to change to (TAP) flights outside the strike period.
The Portugal flag carrier reported a 2014 loss of -€46 million/-$50.4 million, reversed from a net profit of +€34 million in 2013. This is its first loss after five consecutive years of profit.
The Star (SAL) Alliance member said that circumstances (such as additional airplane delivery delays, announcements of industrial actions and a number of operational issues) resulted in a global impact of around €108 million.
(CEO) Fernando Pinto said last December that (TAP) has to cut costs on a daily basis. “(TAP) is operating in a non-rich market; we cannot charge what other carriers can do from their markets,” he said. “In order to survive, you have to be efficient and lower costs by obligation.”
Pinto said (TAP) flights are longer than other European carriers because it is located at the outside edge of Europe “so most of our flights are longer than 2 hours. That is our challenge every day. But we have had a €250 million aggressive cost-cutting program in the last 3 years.” Later, pilots (FC) from (TAP) Portugal and its associate Portugalia will begin a 10-day strike on Friday, May 1, in an ongoing dispute on the privatization process. The industrial action is projected to cost (TAP) Portugal up to €70 million/$75.6 million and strongly affect operations.
An arbitration tribunal has ruled that minimum services will be assured during a strike, including flights between the Portuguese mainland and the Acores, Madeira, Brazil, Angola, Mozambique, and seven European cities.
“The strike seems [that it will] go ahead, meaning that so far, it has not been called off by the union,” (TAP) spokesperson Isabel Palma said. “Meanwhile, the flights established as minimum services have been announced and will operate as scheduled. In addition, (TAP) is also doing everything in its power to operate other flights with the available means.” Palma said the company is not commenting on the privatization process.
(TAP), The Portuguese flag carrier reported a 2014 loss of -€46 million/-$50.4 million, reversed from a net profit of +€34 million in 2013. This is its first loss after five consecutive years of profit. Unforeseen circumstances—such as additional aircraft delivery delays, announcements of industrial actions and a number of operational issues—resulted in a global impact of around €108 million.
News Item A-2: "Discover the World" Marketing now represents (TAP) Portugal, effective March 1. Discover the World also supports TAP Portugal revenue growth in Austria, Malaysia, Philippines, and Singapore.
May 2015: News Item A-1: Pilots (FC) from (TAP) Portugal and its associate Portugalia ended a 10-day strike May 10, in an ongoing dispute protesting the privatization process. “The strike started on May 1. It has been difficult and complex for us, but (TAP) had been able to deliver, in average, about 70% of the operations,” (TAP) spokesperson Isabel Palma said.
According to several reports, the industrial action is projected to cost (TAP) up to €70 million/$75.6 million.
“Fortunately, many pilots (FC) showed up to ensure [we could operate],” Palma said. An arbitration tribunal ruled that minimum services (especially to the Acores and European destinations) must be assured during the strike on several long-haul routes.
Palma said (TAP) reallocated and as many passengers as possible before the strike and consistently re-accommodated passengers during the strike period.
The Portuguese flag carrier reported a 2014 loss of -€46 million/-$50.4 million, reversed from a net profit of +€34 million in 2013. This is its 1st loss after 5 consecutive years of profit. Unforeseen circumstances (such as additional airplane delivery delays, announcements of industrial actions and a number of operational issues) resulted in a global impact of around €108 million.
News Item A-2: The Portuguese government, which decided to sell up to 66% of flag carrier (TAP) Portugal, is moving forward with the long-planned privatization process.
June 2015: "Portugal sells 61% stake in (TAP) Portugal to JetBlue (JBL) Founder" by (ATW) Kurt Hofmann, June 12, 2015.
The Portuguese government has sold its 61% stake in (TAP) Portugal to the Gateway consortium, a joint venture (JV) between JetBlue Airways (JBL) and Azul Brazilian Airlines (AZL) Founder, David Neeleman and Portuguese bus company, the Barranquiro Group.
The transaction, which still needs to be approved by the European Commission (EC), finalizes a long-planned privatization process for the loss-making (TAP) Portugal.
Several media outlets quoted the Portuguese Secretary of the Treasury as saying that the sale should generate between €354 million/$488 million and €488 million and it may take up to two years to realize the full value of the transaction.
The (TAP) Group has an estimated total debt of $1.4 billion, as well as a provisional valuation for government’s remaining 34% stake. Once the privatization process is completed, Lisbon may exit the (TAP) Group completely after 2017.
According to several media reports, Gateway offered to invest in 53 new airplanes for (TAP), to keep the (TAP) head office in Lisbon for a least 10 years, and have secured (TAP)’s hub operations in Lisbon for the next 30 years.
Star (SAL) Alliance member, (TAP) Portugal, together with Azul (AZL), could open up new opportunities for the (SAL) alliance.
Star (SAL) Alliance (CEO), Mark Schwab said on the sidelines of the (IATA) (AGM) in Miami, that the (SAL) alliance has always been interested in having two partners in Brazil, because it is a huge market.
“Both carriers, Azul (AZL) and Avianca Brazil (ONE), would offer a very complementary coverage in Brazil,” Schwab said, declining to give more details about an Azul (AZL) membership.
Azul Brazilian Airlines (AZL) began long-haul services from its hub at São Paulo’s Viracopos/Campinas International Airport (VCP) to Fort Lauderdale, Florida on December 2nd last year, followed by daily services to Orlando.
Avianca Brazil (ONE) will join the Star (SAL) Alliance in the 2nd part of July. (TAP)’s other 2 bidders were Avianca Holdings Chairman, German Efromovich and Portuguese investor/entrepreneur Miguel Pais do Amaral.
(TAP) Portugal reported a 2014 loss of -€46 million, reversed from a net profit of +€34 million in 2013. This was the Portugal flag carrier’s 1st loss after 5 consecutive years of profit.
A 10-day pilot (FC) strike by (TAP) pilots was estimated to have cost some €35 million, several media outlets have reported.
July 2015: News Item A-1: (TAP) Portugal is undergoing a transition period after the Portuguese government sold its 61% stake to the Atlantic Gateway consortium, a joint venture (JV) between JetBlue Airways (JBL) and Azul Brazilian Airlines (AZL) Founder, David Neeleman and Portuguese investor, Humberto Pedrosa, owner of transportation and services company, the Barraqueiro Group.
(TAP) Portugal and Azul Brazilian Airlines (AZL) will become sister companies, creating a wide range of potential synergies between the two carriers, (TAP) (CEO) Fernando Pinto said.
News Item A-2: (TAP) Portugal is studying the Airbus A321neo for use on secondary transatlantic routes to Africa and Eastern Europe, which would offer net growth and open up several markets, (TAP) (CEO), Fernando Pinto said.
October 2015: News Item A-1: "Portugese Regulator clears (TAP) Portugal takeover" by (ATW) Victoria Moores, October 8, 2015.
Portuguese anti-trust regulator Autoridade da Concorrência (AdC) has given the green light for the "Atlantic Gateway" consortium to acquire a 61% stake in (TAP) Portugal.
The clearance takes the Atlantic Gateway consortium, a joint venture (JV) between JetBlue Airways (JBL) and Azul Brazilian Airlines (AZL) Founder, David Neeleman and Portuguese bus company, the Barranquiro Group, a step closer to finalizing its acquisition of (TAP) Portugal.
“(AdC) decided to clear the merger as it considered that the notified transaction would not create significant impediments to effective competition on the identified relevant markets, since none of the acquiring parties are active on the same air routes currently operated by (TAP), nor was the risk of elimination of potential competition on the routes to Brazil identified,” (AdC) said.
The competition body added that it was notified of the transaction on August 20, after the European Commission (EC) considered it was “outside its jurisdiction” under European merger control rules.
A (TAP) Portugal spokeswoman said the deal now hangs on approval by Portuguese civil aviation authority, (ANAC). “(TAP)’s privatization process is expected to be completed soon, but I don’t know exactly when,” she said.
(TAP)’s other two bidders were Avianca (AVI) Holdings Chairman, German Efromovich and Portuguese investor/entrepreneur, Miguel Pais do Amaral.
November 2015: News Item A-8: Portuguese national carrier (TAP) Portugal has signed a firm order with Airbus (EDS) for 53 aircraft from the European manufacturer, it announced on November 13.
The deal will see (TAP) taking 14 A330-900neo plus 39 A320neo family models, consisting of 15 A320neos and 24 A321neos. (TAP) is already an all-Airbus (EDS) customer, with a current fleet of 43 A320 family models (21 A319, 19 A320 and three A321s) plus 14 A330-200 and four A340-300 wide bodies.
The aircraft will join (TAP) as part of its fleet renewal announced by (TAP)’s new majority owner, Atlantic Gateway. As part of the agreement, (TAP) Portugal is substituting its previous order of 12 A350-900s with the A330-900neos.
“Our latest order for 14 Airbus A330-900neo aircraft and 39 A320neo family aircraft reflects our ongoing commitment to provide our customers with the next generation of fuel efficient aircraft,” (TAP) (CEO) Fernando Pinto said. “The A330neo, like the A320neo family, will give us the flexibility to enter new markets and improve the frequency of existing ones.”
The A330-800neo and A330-900neo were launched in July 2014, with first deliveries scheduled to start in (4Q) 2017. The A330neo incorporates Rolls-Royce (RRC) (Trent 7000) engines, aerodynamic enhancements and new cabin features, with Airbus (EDS) forecasting a +14% improvement in fuel consumption per seat compared to current A330s. Additionally, range increases by around +400 nautical miles.
December 2015: See attached - (TAP-1-David Neeleman-2015-1-A/B.jpg.)
January 2016: "(TAP) Portugal rebrands Portugalia regional as (TAP) Express," atwonline.com January 6, 2016.
Following its recent change of ownership, (TAP) Portugal is rebranding its Portugalia (PGA) regional operation as (TAP) Express and renewing its fleet with 8 ATR 72s and 9 Embraer E190s.
February 2016: News Item A-1: Portuguese Government Increases Stake in (TAP)" by (ATW) Alan Dron, February 8, 2016.
Just 2 months after Portugal agreed to a private consortium taking a majority stake in national carrier (TAP), the country’s government has scaled back the acquiring consortium’s share to 45%.
Since the agreement was confirmed in November, an election has brought a socialist administration to power in Lisbon. One of the planks of its campaign was to roll back privatizations agreed by the previous government.
Under last year’s agreement, the Atlantic Gateway consortium (comprising JetBlue Airways (JBL) and Azul Brazilian Airlines (AZL) founder, David Neeleman and Portuguese bus company the Barranquiro Group, took 61% of (TAP)) with the government retaining 34% and (TAP) employees 5%.
Following negotiations, however, the government announced February 5 that it had agreed via a memorandum of understanding (MOU) with the consortium to increase its shareholding to 50%, with Atlantic Gateway’s share cut to 45% and the employees retaining 5%.
Final details of the new agreement have still to be agreed, a (TAP) spokeswoman said February 8. However, despite taking its larger stake in the airline, “The government has recognized that it’s privatized. Nothing has changed.”
She said she did not yet have details of how governance of the airline under the new arrangement would work.
A 12-strong non-executive board will be equally split between government and Atlantic Gateway representatives.
News Item A-2: Portugese flag-carrier (TAP) is to establish its new regional division, TAP Express, which will operate Embraer jets and ATR turboprops, and position itself as a successor to regional subsidiary Portugalia (POR) from the end of March.
The fleet will be modernized to comprise 9 Embraer E190s and 8 ATR 72s to increase its regional capacity by +47%. For many recent years, Portugalia (POR) has operated Embraer ERJ-145s and Fokker 100s as well as ATR 42s.
(POR)'s fleet averages 21 years of age, and new aircraft will reduce this figure to just 2 years.
The fast phase-in of aircraft will benefit from the recent co-operation between (TAP) and Brazil's Azul (AZL), as well as the Atlantic Consortium, including Azul (AZL) Founder David Neeleman.
March 2016: "Azul (AZL) Makes $90 million Investment in (TAP) Portugal" by (ATW) Kurt Hofmann, March 25, 2016.
Azul Brazilian Airlines (AZL) has acquired $90 million in convertible bonds in (TAP) Portugal, the equivalent of 40% of the economic value of (TAP) Portugal, spokesperson Isabela Palma said. The transaction is pending approval from Portuguese civil aviation authority (ANAC).
In 2015, the Atlantic Gateway consortium, which is partly backed by JetBlue Airways (JBL) and (AZL) Founder, David Neeleman, acquired a 61% stake in (TAP) from the Portuguese government. But in February of this year—after, Portugal agreed to the private consortium taking a majority stake in national carrier (TAP), the country’s government scaled back the acquiring consortium’s share to 45%.
In November 2015, Haikou, China-based (HNA) Group, the parent of Hainan Airlines (HNA), made a firm commitment to buy 23.7% stake in Azul Brazilian Airlines (AZL) for $450 million.
Several media outlets have reported that Azul (AZL) sees this $90 million investment as a way to strengthen the common interests between Azul (AZL), (TAP) and the (HNA) Group. It also opens up additional opportunities to further explore trade agreements, joint negotiations, fleet optimization partnerships, and provides global job and career possibilities for crew.
As part of the cooperation between (AZL) and (TAP), (AZL) will sublease 17 aircraft to the Portuguese carrier, including Airbus A330-200s, Embraer (EMB) E190s, and ATR 72-600 turboprops.
April 2016: "(TAP) Portugal to Revamp Airbus Cabins" by (ATW) Victoria Moores, April 7, 2016.
Newly privatized (TAP) Portugal is to refresh the cabins of its 39 Airbus A320 family narrow bodies and 7 A330-200s, as part of an updated product strategy, that will be announced at a later date.
“Part of our commitment when we bought the airline and privatized it was to invest in an entirely new product, new seats, new customer service,” (TAP) Portugal (CCO) Trey Urbahn told media attending the Aircraft Interiors Expo (AIX) in Hamburg. “(TAP) never had the capital to invest in its product and we believe this is what it needs. This [project] was ‘Takeover Day One.’ We are turning all the interiors out completely and replacing them with lie-flat seats and a new 3-class cabin. We are densifying on 1 hand, but also improving the product at other end, to give the customer choice.”
* Low Cost Carrier (LCC) Competition
(TAP) is partly making the changes in response to (LCC) competition. “(TAP)’s basic product needs to compete with (LCC)s on a point-to-point basis. Portugal is an important market to (LCC)s easyJet (EZY), Ryanair (RYR) and Vueling (VUZ). On point-to-point, we have to be able to offer the same price as (EZY) or (VUZ) and, up until now, legacy carriers have not done that largely because they can’t compete on cost. Over time, the (LCC)s have grown and grown. We need to defend that market; it’s important to us.”
3 classes will be introduced on all of (TAP)’s short- and long-haul aircraft. (TAP) is taking both auxiliary-tank equipped and long-range A321neos for transatlantic services, which will also be fitted with lie-flat seats.
On short-haul, business (C)-class pitch will increase to 33 inches and middle seats will be blocked by a table. The cabin revamp will increase the density of its A319s from 132 to 144 seats. Its A320s will shift from 162 to 174 and the capacity of its A321s will rise from 200 to 216. This will lower its unit costs by -15% in the economy (Y) cabin, before accounting for new ancillary fees, allowing for more competitive fares.
“The lowest-price product will be completely un-bundled. We intend to be competitive. The days of the [LCC]s having price advantage? We are done with that. We recognize that they [price-sensitive travelers] represent a segment (a relatively important segment) of the customers we need to serve. We will offer our customers choice, the ability to buy up to the products and services they want. Passengers who want the lowest prices will have to carry hand luggage and pack light. There is a link between what you pay and what you get, and customers want lower prices.”
* Narrow Body Overhaul
The narrow body overhaul will begin in September 2016, at the rate of 4 aircraft per month, and the wide bodies will join the program around January 2017. The work should be completed before the 4th quarter of 2017. “This is pretty ambitious. It’s a lot of airplanes,” Urbahn said.
(TAP) has 14 A330-200s in operation, comprising a mix of (GE)- and Pratt & Whitney (PRW)-powered aircraft, but only 7 of these will be upgraded. “The A330-200 has a long future. The (PRW)-powered aircraft will be phased out earlier, but the (GE)-powered aircraft will stay for 8 years or so,” he said. “Our A330-200s with (PRW) engines have an older Panasonic in-flight entertainment (IFE) system which is not audio-video on demand (AVOD) and the retrofit cost is enormous. We are in the process of evaluating whether to make that investment.”
In the cabin behind the wing, (TAP) will offer a thin, pre-reclined fixed-back seat at a 28-inch pitch, with bring-your-own device in-flight entertainment (IFE) and Wi-Fi connectivity, as an un-bundled economy (Y) product for price-sensitive travelers. “It’s a very comfortable and tolerable seat, despite the higher density,” Urbahn said, adding that it is similar to the product operated by Vueling (VUZ) and Air France (AFA).
Forward of the wing, it will have an “economy plus” product, making up 40% of the total seat count, with a reclining seat and a 33-inch pitch. (TAP)’s economy plus (PY) product will be a small step up from economy (Y), rather than a premium-economy (PY) offer. “This gives an upgraded experience, but it is also very, very efficient. The product differentiation between economy plus (PY) and business (C) is enormous.”
* A330 Upgrade
The A330 upgrade will include a shift to full lie-flat beds in a staggered configuration, supplied by Thompson Aero Seating. Urbahn said that the Thompson Vantage lie-flat design means the A330 business (C) class seats can go lie-flat, without losing density. Instead, it has created space for one more seat (increasing business (C)-class to 25C seats. Overall, the A330-200s will be configured with 269 seats, compared with 268 today, by optimizing galley and closet space.
“We are transitioning the quality image of (TAP). Today, it is primarily a leisure airline, so we have a lot of families traveling together, even in business (C) class. Lisbon is not a market like London, which has a large base of high-value premium customers, so we believe we need the right mix of density (high-density, higher quality) than we offer today, and the Thompson seat was a good fit for that.”
On its long-haul product, (TAP) elected for a minimal jump between classes because a premium economy (PY) product would have required a 38-inch pitch, fewer seats, higher costs and more expensive fares, and it could risk cannibalizing business (C) class. “It needs to be priced based on costs because of real estate. Throughout the process, we will continue to offer passengers the ability to upgrade [from economy (Y) to economy plus (PY)]. It could be as little as €50/$57 transatlantic, which is nothing like the premium you see on premium-economy (PY) tickets, which are typically +50% to 2x more than an economy (Y) seat.”
* (TAP) A340s
The Portuguese carrier’s A340s, which have just been through an in-flight entertainment upgrade, will be excluded from the program.
“Our original plan was to retire them early, but it’s actually a really good aircraft (at today’s fuel price, they are probably the most profitable aircraft we fly, because we own them). We invested in a revamp a few years ago to give them state-of-the-art (IFE), so they will continue to fly for 4 to 5 years. The A340s will remain as they are, we are not contemplating any change to that. They will be the 1st aircraft of our wide body fleet to exit, and we will probably reduce their utilization substantially and operate them more or less as spares.”
Airbus (EDS) will supply the service bulletins (SBs) for the work, along with the engineering design, methodology and overall integration, but (TAP) will carry out the work in its own Maintenance & Engineering facilities. This will not affect its 3rd-party work, as (TAP) has “a lot of capacity” at its Brazilian Maintenance operation.
The modification work will bring (TAP)’s existing fleet up to a similar standard to its incoming A330neos and A320neo family aircraft. (TAP) is the launch customer for the A330neo, which is equipped with Airbus (EDS)’ new Airspace interior, due for delivery by the end of 2017.
(TAP) will equip its 14 A330neos with >4,000 Recaro economy (Y) and business (C) class seats in a 3-class layout, including the standard and premium versions of Recaro’s CL3710 economy (Y) class seat and the CL6710 business (C) class seat. “Even economy (Y) class passengers will be able to enjoy a seat with 12-inch (IFE), (USB) and (PC) power supply,” Recaro said.
During the briefing, Urbahn urged Airbus (EDS) to offer the Airspace cabin on the A321. Airbus Head Cabin Marketing, Ingo Wuggetzer said: “The A320 family will follow. All our new cabin developments will be based on the Airspace product. I don’t know yet when that will be finished, or when it will be done, but it will be done.”
July 2016: News Item A-1: Hainan Airlines (HNA) plans to take a 23% shareholding in (TAP) Portugal, with a bond buy from Azul Brazilian Airlines (AZL), in a €30 million/$33 million transaction.
According to a statement from the Shanghai Stock Exchange, (HNA) intends to buy the stake in (TAP) through the purchase of 25% convertible bonds from (AZL), the Brazilian low-cost carrier (LCC). (AZL) bought $100 million of bonds from (TAP) in March 2016, giving it a 40% potential interest in (TAP), the Portuguese flag carrier.
This latest move bolsters (HNA)’s presence in both the European and South American markets, following the purchase of a 23.7% stake in Azul (AZL) for $450 million in November 2015, and a 7% stake in the Atlantic Gateway consortium (a part-owner of (TAP)).
(HNA)’s latest investment in (TAP) gives it a 13.06% economic interest in (TAP), according to the Shanghai Stock Exchange statement, along with voting power on the (TAP) board from a seat on the 12-person Director’s list.
News Item A-2: (CFM) unveiled (LEAP-1A) engine orders at the Farnborough Air Show to power 164 A320neo family aircraft: Seoul-based Asiana Airlines (AAR) selected (LEAP-1A)s to power 25 A321neos; (TAP) Portugal ordered 83 (LEAP-1A)s to power 15 A320neos and 24 A321neos; and Malaysia’s AirAsia (ASW) ordered 200 (LEAP-1A)s to power 100 A321neos.
October 2016: Russian and Portuguese aviation authorities have agreed to add a 2nd designated carrier from each side for the routes between the countries. According to Russia’s Federal Air Transport Agency, approved airlines are allowed to operate up to 14x-weekly Moscow - Lisbon service and up to 7x-weekly service on other routes connecting the countries.
In June 2009, (TAP) Portugal launched 5x-weekly Lisbon - Moscow Domodedovo Airbus A320 service, which (TAP) increased or decreased frequencies depending on demand. In July 2014, (TAP), the Portuguese flag carrier announced Lisbon - Saint Petersburg seasonal service.
On the Russian side, Yekaterinburg-based Ural Airlines (URL) operates 2x-weekly Moscow Domodedovo - Lisbon A320 service.
Krasnoyarsk-based KrasAir (ZXD) had operated Moscow - Lisbon services, but went bankrupt in 2008; Transaero Airlines (TRX) went bankrupt in 2015.
December 2016: News Item A-1: Airbus (EDS) will delay delivery of the 1st A330neo by >6 weeks, postponing to March 2018, delivery of the aircraft to launch customer (TAP) Portugal, as reported by the Wall Street Journal December 16.
News of the delay came via comments made to the Wall Street Journal by (TAP) Portugal (CEO) Fernando Pinto. Airbus (EDS) has long planned to deliver the 1st A330neo aircraft in late 2017. (TAP) ordered 14 A330neos in 2015. The aircraft are powered by latest generation Rolls-Royce (RRC) (Trent 7000) engines.
April 2017: (TAP) Portugal plans to launch 2x-daily weekday flights from Lisbon to London City Airport (LCY) starting October 29, becoming the only airline to operate between the 2 destinations. There will also be 1 flight each on Saturdays and Sundays.
(TAP), the Star (SAL) Alliance member said it will then serve all 3 London airports (Heathrow, Gatwick and (LCY)).
The new route will be operated by a 106-seat Embraer E190, increasing total frequencies by +24% to all 3 London airports.
May 2017: (BOC) Aviation has ordered 4 Airbus A320neo family aircraft (including A320 and A321 variants), +2 A330-900 wide bodies. All 6 aircraft have been committed for lease to Portugal’s flag carrier, (TAP) Portugal. The aircraft will be delivered from 2018 - 2020.
“This aircraft placement demonstrates our ability to provide a comprehensively tailored solution built around new-technology Airbus (EDS) aircraft and including both single-aisle and twin-aisle categories,” (BOC) Aviation (CCO)-Europe, Americas and Africa, Steven Townend said. “(TAP) Portugal represents yet another new European customer, which will expand our globally diversified customer portfolio even further,” Townend added.
(TAP) VP Finance Teresa Lopes described the lease as an important plan to improve (TAP)’s long-term profitability. “(TAP)’s fleet renewal plan, which includes 53 brand new Airbus neo family aircraft, is a foundational element of our business strategy. (BOC) Aviation (SIL)’s ability to design innovative solutions to help finance new aircraft was very important for (TAP),” Lopes said.
Star (SAL) Alliance member (TAP) Portugal carried 11.7 million passengers last year.
July 2017: (TAP) Portugal returned to Bucharest (OTP) and Budapest (BUD) on July 2, with (TAP) having last served the Hungarian and Romanian capitals at the end of Winter 2015/2016. Both are now connected to Lisbon (LIS) once again by (TAP), with services on the 2,478 km link to Budapest operating 7x-weekly (2x-daily Saturday, no Friday flight), and the 2,971 km connection to Bucharest being served 6x-weekly.
“We experienced a +5.9% increase in Portuguese tourists last year,” said Jost Lammers, (CEO) Budapest Airport. Lammers added: “It’s a great moment for us to welcome back (TAP) Portugal into our portfolio as well as giving us the opportunity to offer our customers (TAP)’s excellent onward connections to Morocco, Brazil, Cape Verde and the Azores.”
(TAP) Portugal also confirmed at the Budapest launch that its services to the gateway of Hungary will continue into Winter 2017/2018 with 6x-weekly flights. Both capital connections are already served by Hungarian-based ultra low cost carrier (ULCC) Wizz Air (WZZ), while Blue Air (BLD) also flies between Bucharest and Lisbon.
August 2017: Azul Brazilian Airlines (AZL) will add +2 more Brazil - Florida routes in December and has reached an expanded code share agreement with New York-based JetBlue Airways (JBL).
(AZL) currently serves both Orlando and Fort Lauderdale, Florida daily from its São Paulo base and Orlando from Recife, Brazil. In December, it will launch daily Airbus A330 flights between Belo Horizonte, Brazil and Orlando and daily A320neo flights between Belem, Brazil and Fort Lauderdale.
(AZL)’s other long-haul international destination is Lisbon, to which it flies from São Paulo. The growing international network is aimed at connecting Brazilian passengers to (AZL)’s code share partners.
Azul (AZL) has code share agreements in place with United Airlines (UAL), which owns a stake in (AZL), and (TAP) Portugal, in which (AZL) owns a stake. Building on a prior interline deal with JetBlue (JBL) (also founded by (AZL) Founder David Neeleman) (AZL) and (JBL) have agreed to put (AZL)’s code on JetBlue (JBL) flights between several destinations and Fort Lauderdale and Orlando.
Azul (AZL) and JetBlue (JBL) had announced an agreement last year to enable (AZL) codes to be placed on some (JBL) flights, but an (AZL) spokesperson said the new deal is more expansive. “Our systems are more integrated now,” the spokesperson said.
(AZL)’s international flying “is strong,” (AZL) Chief Revenue Officer Abhi Manoj Shah told analysts and reporters on August 14. “The [international] unit revenues are up year-over-year. The strengthening of the local currency is encouraging Brazilians to travel to North America and Europe more. We want to fly from where we are strong [in Brazil] to where our partners are strong, where (JBL), (UAL) and (TAP) are strong.”
Click below for photos:
TAP-A320-200 - 2014-08
TAP-A340-300 - 2012-08
TAP-E190 - 2017-04.jpg
0 737-3K9 (CFM56-3) (1695-24365; 2226-25161 RTND (ILF), LST (MLT) 1999-04) (24365 LST (MLT) IN 1999-06) (1796-24214 RTND (BAV) 1999-11), 23827 RTND (AWW) 2000-03 LST (TBL) (1794-24213, /89 CS-TIG RTND (BAV).
0 A310-304 (CF6-80C2A2) (472, /88 CS-TEZ "VIANA DA MOTA"), (GEF) LSD 2003-09. RTND. 24C, 167Y.
0 A310-304 (CF6-80C2A2) (483, /88 CS-TEH "BARTOLOMEU DIAS;" 495, /89 CS-TEI "FERNAO DE MARGALHAES;" 494, /89 CS-TEJ "PEDRO NUNES;" 541, /90 CS-TEW "VASCO DE GAMA;" 565, /91 CS-TEX " JOAO XXI"), 2 TO PORTUGESE AF, 191 RTND. 1 WET-LST (YES) 2000-06. 483; LST (AIJ) AS (C-GTSW) 2008-09. 495; & 565; TO (LXA). 565; (LXA) WET-LSD 2014-05. 18C, 176Y.
9 ORDERS A320 FAMILY:
18 + /8 OPTIONS A319-111 (CFM56-5B5/P) (750, /97 CS-TTA "VIEIRA DA SILVA;" 755, /97 CS-TTB "GAGO COUTINHO;" 763, /98 CS-TTC "FERNANDO PESSOA;" 790, /98 CS-TTD "AMADEO DE SOUZA-CARDOSO;" 821 /98 CS-TTE " FRANCISCO D'OLLANDA;" 837, /98 CS-TTF "GALOUSTE GULBENKIAN" 906, /98 CS-TTG "HUMBERTO DELGADO;" 917, /98 CS-TTH "ANTONIO SERGIO;" 933, /98 CS-TTI "ECA DE QUEIROS;" 979, /99 CS-TTJ "EUSEBIO;" 1034, /99 CS-TTK "MIGUEL TORGA;" 1100, /99 CS-TTL "ALMEIDA GARRETT;" 1106, /99 CS-TTM "ALEXANDRE HERCULANO;" 1120, /99 CS-TTN "CAMILO CASTELO BRANCO;" 1127, /99 CS-TTO "ANTERO DE QUENTAL;" 1165, /00 CS-TTP "JOSEFA D'OBIDOS"), 30CY; 102Y.
3 A319-112 (CFM56-5B6/P) (629, /96 CS-TTQ "AGOSTINHO DA SILVA;" 1756, /02 CS-TTR "SOARES DOS REIS;" 1765 /02 CS-TTS "GUILHEMINA SUGGIA"), 1756; 1765; BF (ACN) 2008-04. 30CY; 72Y.
1 A319-112 (CFM56-5B) (1668, CS-TTU), EX-(VT-SCD), ALS IRISH AIRCRAFT LEASING LSD 2014-06. 60CY, 102Y.
1 A319-112 (CFM56-5B) (3872, /09 TS-IEG), EX-(D-AHIO), SYPHAX AIRLINES (SYA) LSD 2014-07. 60CY, 102Y.
0 A320-211 (CFM56-5A1) (185, /92 CS-TNA "GRAO VASCO"), BIAL LSD, RTND. 42C, 114Y.
0 A320-211 (CFM56-5A1) (191), EX-(LXA), (BAV) LSD 2005-03. RTND. 42C; 114Y.
0 A320-211 (CFM56-5A1) (234, /91 CS-TNC), (GAX) LSD, RTND, LST (JOR). NOW LST (CGL) 2009-04. 156Y.
0 A320-211 (CFM56-5A1) (395, /92 CS-TNE), (GAX) LSD 2004-05. 156Y.
10 A320-214 (CFM56-5B4/P) (945, /99 CS-TNG "MOUZINHO DA SILVEIRA;" 960, /99 CS-TNH "ALMADA NEGREIROS;" 982, /99 CS-TNI "AQUILINO RIBEIRO;" 1181, /00 CS-TNJ "FLORBELA ESPANCA;" 1206, /00 CS-TNK "TEOFILO BRAGA;" 1231, /00 CS-TNL "VITORINO NEMESIO; 1667, CS-TMW, 2004-03; 1799, /02 CS-TNM "NATALIA CORREIA;" 1816, /02 CS-TNN "GIL VICENTE" 2002-07; 2178, CS-TNP "ALEXANDRE O'NEILL" 2006-06; 2792, CS-TNW "JOSE SARAMAGO;" 2822, CS-TNX "MALANGATANA" 2014-06). 18C; 150Y.
1 A320-214 (CFM56-5B4/2) (870, /99 CS-TQD "EUGENIO DE ANDRADE" 2006-06), 18C; 150Y.
6 A320-214 (CFM56-5B4/3) (3769, /09 CS-TNQ "JOSE REGIO;" 3883, /09 CS-TNR "LUIS DE FREITAS BRANCO;" 4021, /09 CS-TNS "D AFONSO HENRIQUES;" 4095, /09 CS-TNT "RAFAEL BORDALO PINHEIRO;" 4106, /09 CS-TNU "COLUMBANO BORDALO PINHEIRO;" 4145, /09 CS-TNV "GRAO VASCO"), AERVENTURE LSD. 18C; 150Y.
16 ORDERS (2018-06) A320neo (LEAP-1A):
3 A321-211 (CFM56-5B3/P) (1307, /00 CS-TJE "PERO VAZ DE CAMINHA;" 1399, /00 CS-TJF "LUIS VAZ DE CAMOES;" 1713, /02 CS-TJG "AMALIA RODRIGUES"), 20C; 174Y.
40 ORDERS (2018-02) A321neo (LEAP-1A):
5 A330-202 (CF6-80E1A4) (877, /07 CS-TOL "JOAO GONCALVES;" 899, /08 CS-TOM "VASCO DE GAMA;" 904, /08 CS-TON "JOAO XXI;" 914, /08 CS-TOO "FERNAO DE MAGALHAES;" 934, /08CS-TOP "PEDRO NUNEZ"). 24J, 239Y.
1 A330-203 (486, CS-TOR "BARTOLOMEU DIAS"), 24J, 239Y.
0 A330-223 (PW4168A) (322, /03 CS-, 2006-02; 324, /03 CS-, 2006-03), EX-(DLH). RTND. 24J, 239Y.
8 A330-223 (PW4168A) (181, /00 CS-TOH "NUNO GONCALVES;" 195, /99 CS-TOI "DAMIAO DE GOIS;" 223 /98 CS-TOJ D.JOAO II O PRINCIPE PERFEITO;" 305, /99 CS-TOE "PEDRO ALVAREZ;" 308, /99 CS-TOF "INFANTE D. HENRIQUE" (SEE PHOTO); 312, /99 CS-TOG "BARTOLOMEU DE GUSMAO;" 317, /00 CS-TOK "PADRE ANTONIO VIEIRA"). 24J, 239Y.
15 ORDERS (2017-10) A330-900neo (TRENT 7000):
4 A340-312 (CFM56-5C3/F) (41, /94 CS-TOA "FERNAO MENDES PINTO;" 44, /94 CS-TOB "D. JOAO DE CASTRO;" 79, /95 CS-TOC "WENCESLAU DE MORAES;" 91, /95 CS-TOD "D. FRANCISCO DE ALMEIDA"), 36C, 232Y.
12/3 ORDERS (2014-11) A350-800XWB (TRENT XWB-74), 287CY:
2 ATR 42-600 (1002, CS-TRU; 1005, CS-TRV), (YES) WET-LSD, PORTUGALIA (PGA) (POR) OPS.
8 ATR 72, OPS FOR (TAP) EXPRESS, 2016-01.
9 EMBRAER E190, OPS FOR (TAP) EXPRESS, 2016-01. 106 SEAT.
0 F 100, RTRD.
Click below for photos:
TAP-1-FERNANDO PINTO-CEO 2010-04
TAP-3-Trey Urbahn - L - 2016-04.jpg
TAP-4-JORGE LEITE - 2012-10
TAP-5-FERNANDO MATOS - 2012-10
NEW OWNERS (61% STAKE): ATLANTIC GATEWAY CONSORTIUM - DAVID NEELEMAN, FOUNDER OF JETBLUE AIRWAYS (JBL) AND AZUL BRAZILIAN AIRLINES (AZL), PLUS HUMBERT PEDROSA, PORTUGESE BUS COMPANY OWNER CALLED THE BARRANQUIRO GROUP (SEE PHOTO - "TAP-1-ATLANTIC GATEWAY-2015-12.jpg" - STANDING EITHER SIDE OF FERNANDO PINTO).
MANUEL PINTO BARBOSA, CHAIRMAN.
CAVACO SILVA, PRESIDENT.
FERNANDO PINTO, EX-(VAR), CHIEF EXECUTIVE OFFICER (CEO) (2000-11).
Fernando Pinto started his career in the aviation industry in 1972, initially working as an engineer at Brazil's Varig (VAR) after earning a degree in Mechanical Engineering at Rio de Janeiro's Federal University. He gradually rose through the ranks at (VAR), becoming Technical Director of its regional subsidiary Rio-Sul (ROS) in 1988, and (CEO) of (ROS) in 1992. In 1996, he was appointed (CEO) of (VAR), but was ousted in May 2000, after a disagreement with shareholders over corporate reform at the Brazilian flag carrier. Five months later he joined (TAP).
Over the years, he has become more and more active at the industry level, serving as President of the Association of European Airlines (AEA) in 2005 and as Chairman of (IATA) (ITA) from June 2007 to June 2008.
He is married and has two children. He spends his weekends flying gliders and ultra light airplanes near his home in Sintra, a famous town west of Lisbon.
June 2008: (TAP) Portugal has been totally transformed since Fernando Pinto took over as chief 8 years ago. Could Pinto lead (TAP) into private hands? Fernando Pinto just about did everything since he took over the reins of (TAP) in October 2000. Under Pinto, (TAP) overhauled its network, renewed its fleet, reduced its cost structure, doubled its revenues without growing head count, steadily improved its profitability, joined a global alliance and acquired its local rival. The turnaround culminated with (TAP) generating a record +€33 million/+$51 million profit. At the end of 2007 it seemed (TAP), which incurred a -€122 million loss in 2000 but turned net profits in 4 of the 5 years, was finally ready for what Pinto was brought to Lisbon to do (privatize the once floundering Portugese flag carrier). But he had to wait a few years before the Portuguese government was finally able to place (TAP) into private hands.
"We are doing our part, which is improving the airline every year," Pinto said in an interview at (TAP)'s outdated head office at Lisbon's bustling airport, which is slated to be replaced in 2017. "The previous year, (TAP) had very good results. Looking at return on investment, (TAP) was at 7%, which was very good in terms of the industry. It was the best in (TAP)'s history."
But like nearly every other airline (CEO), Pinto has struggled to find ways to offset skyrocketing oil prices (at that time) and stay in the black. "His preview for the cost of fuel that year was €500 million out of €2 billion total revenues.
Pinto added his team was trying to make up the €250 million difference through higher fares and load factors, but "all the calculations we've made didn't reach even close to that. If they stayed profitable, they would have passed the test."
Despite the challenges Pinto seemed to be enjoying himself in Portugal. He has had no desire to leave (TAP) and is in no hurry to complete his mission, which he said was "nearly complete," with privatization the only hurdle.
It was not surprising that Pinto, who grew up in Brazil and before joining (TAP), spent 4 years as (CEO) of (VAR), did not find adjusting to life in Portugal difficult. The two countries have tremendous cultural and historical ties, which Pinto fully exploited in turning around (TAP). Pinto has steadily grown (TAP)'s Brazilian network over the last years from 17 to 67 weekly flights. (TAP) flew >1 million passengers to and from Brazil and Pinto said all 10 of its Brazilian routes were profitable, except Lisbon - Belo Horizonte, which launched later and now "is growing well."
"In terms of Brazil, we dominate the market definitely," Pinto said. "We have such a great link with Brazil. It was not explored before."
(TAP) now has almost as many flights to Brazil as all the major European carriers combined. It has been able to outsell 7 larger European carriers, which fly to only 1 or 2 cities in Brazil compared to (TAP)'s 8, by offering more convenient connections and more Europe - Brazil city pairs.
With the demise of (VAR), TAM (TPR) has been the only carrier that comes close to matching (TAP) in the Europe - Brazil market, and the 2 carriers are now partners, having signed a comprehensive code share pact. (TPR), which operates 49 weekly flights to 5 European cities, but does not serve Portugal, now places its code on all of (TAP)'s flights to Brazil. In exchange, (TPR) carries about 10 to 15% of (TAP)'s Brazil passengers beyond the 8 gateways it now serves. "We are helping a lot the air traffic system in Brazil. Instead of putting everybody in 1 or 2 airports and distributing from there, we are spreading it around Brazil," Pinto said.
Pinto also has made sure (TAP) exploited Portugal's links with its former African colonies, including Angola, Cape Verde, Guinea-Bissau, Mozambique, and Sao Tome. It now serves 8 African destinations, including 6 in Portuguese Africa, plus Dakar, and Johannesburg. (TAP) had 35 weekly flights to Africa, compared to only 15 in 2000. (TAP)'s long-haul network also includes Newark, and Caracas in Venezuela.
Overall, (TAP) tripled its long-haul business under Pinto, as the carrier expanded its wide body fleet from 9 to 16 airplanes. Capacity also was added through significant improvement in airplane utilization and replacing 188-seat, A310s with 268-seat A330s. (TAP) retired its last A310.
Growth in the long-haul operation in turn helped (TAP) grow its short-haul European network. (TAP) carried 6 million passengers on European routes, with 800,000 connecting to its long-haul flights. Since 2000, (TAP) has expanded its European network from 15 destinations and 272 weekly flights, to 31 destinations and 714 weekly flights. This was achieved by improving utilization of its A320 fleet to >12 hours per day and acquiring regional carrier Portugalia (POR).
Under Pinto, (TAP) nearly doubled its revenues and traffic, from €1.1 billion and 5 million passengers in 2000, to €1.9 billion and 8 million passengers in 2007. Through the 1st 4 months of 2008, (TAP) had grown passenger numbers by another +21% compared to 2007. Pinto said growth on Brazilian routes, made possible by the expansion of its A330 fleet, accounted for about half of the +21% increase. Growth on European routes made possible by (TAP)'s acquisition of (POR) accounted for the other half.
(TAP) agreed in late 2006 to acquire (POR) from its private owners for €140 million after years of on-off negotiations. The deal was completed in June 2007, after it was approved by Portuguese competition authorities. (TAP) immediately began integrating (POR) into its network and in just a few months turned around the carrier, which had been incurring losses of about -€5 million per month.
Pinto said (POR) only lost -€3 million during the last 6 months of 2007, the 1st period it was incorporated within (TAP)'s financials. He said turning around (POR) was relatively easy, compared with turning around (TAP), which took years to restructure. At (POR), the restructuring was done almost overnight, as headcount was reduced from 800 to 450 with all back office functions transferred to existing (TAP) staff. "It was not so hard," Pinto said. "The structural costs went to almost zero, because now (TAP) people provided service for the back office. The sales were also being provided by (TAP) completely. So all these structures (POR) doesn't have anymore. They only fly the airplane."
Unit costs were further reduced by increasing utilization of (POR)'s fleet of 8 Embraer ERJ-145s and 6 Fokker F 100s by +20% to almost 12 hours per day. Sales also increased, as feed from (TAP) and Star Alliance (SAL) members provided an almost instant improvement in (POR)'s load factor from 50% LF to 65% LF. "We increased sales enormously," Pinto said. "All (POR) flights also have (TAP) flight numbers, so we were selling all around the (TAP) system, including the Star Alliance (SAL)."
(POR), which continues to operate under its own name and brand, has also helped to boost sales on (TAP)-operated flights. Pinto said in the last six months of 2007, (POR) brought €18 million into the (TAP) system: "That was revenue we were not catching. It has to do with passengers brought into the (TAP) system. It's feed (that's the most important part. It's bringing passengers into the long-haul routes."
Pinto said (POR) has particularly helped (TAP) in Porto, where (TAP) began long-haul flights to Newark, Rio de Janeiro, and São Paulo in 2006, as part of an effort to avoid relying too much on Lisbon, where expansion was limited to about 10%, until a new airport opens in 2017. "One of the reasons we bought (POR) was to increase the feed at Porto. They were very active in Porto [with direct flights to several European cities]. That helped a lot to feed the international flights we have."
The acquisition has also allowed (TAP) to better match capacity with demand on routes within Portugal and to France, Italy, and Spain. (POR)'s smaller airplanes are used on secondary routes and during off-peak hours on some primary routes. This ensured a better load factor on routes the carriers used to compete on and freed up airplanes to launch new routes, including Seville and Hamburg from Lisbon and Rome, and Brussels from Porto.
"The network had to be completely redone," Pinto said. "Most of the cities (POR) used to fly to, it continued to fly to, but we did a completely different schedule, reinforced some of the destinations and reduce others. We changed a lot."
Pinto looked at renewing (POR)'s fleet with more fuel efficient airplanes and using (POR) to open new routes to North Africa. "We didn't have anything to North Africa. The most north in Africa we went to then was Senegal. There were some closer countries we could use the (POR) fleet for."
Pinto said (TAP) also analyzed potential new gateways in the USA, in particular Chicago and Washington, both of which are hubs for Star (SAL) partner, United Airlines (UAL). "That was a study going on (what to do in the USA so we could have better connections with the Star Alliance (SAL)."
In addition, (TAP) lookedat resuming services to Asia, but Pinto said this was more a long-term ambition, that could be made possible after the 1st of at least 12 new A350s were delivered. (TAP)'s easternmost destination is Budapest, and it last served Asia in 1999, when it pulled out of Macau. "With the A350 we could think of Asia. Of course we thought about China. Japan was also a possibility. There's a good link between these 2 countries."
In the medium-term, (TAP) was more likely to further build up its Latin American network. Pinto said (TAP) had looked at Buenos Aires and other cities in South America, but would probably 1st add more cities in Brazil. He pointed out that Brazil rotations could be completed within 24 hours, which has helped (TAP) achieve an exceptionally high utilization rate of nearly 17 hours for its wide body fleet, while a daily service to destinations deeper into South America would require 2 airplanes.
"We have received a lot of offers from the Brazilian governors. They would all like (TAP) to fly there," Pinto said. "We continue to analyze 2 or 3 cities there. But with fuel prices, we had to make sure that the investment of the ones we had today was really paying off, before we started going to others."
Pinto is focused on further improving the load factor at (TAP) and (POR): "Now we are trying to grow our seat load factor. It was at 70% LF, and we wanted it to grow to 75% LF."
Pinto said a higher load factor is crucial for (TAP) to stay in the black, because for every extra euro, (TAP) has to pay for oil, it is only able to recover 30 to 35 cents through higher fares or fuel surcharges. Frustratingly for Pinto, high fuel prices are now wiping out years of efficiency gains he has worked so hard to secure. While doubling revenues, Pinto cut the size of (TAP)'s workforce from over 9,000 to 8,400, including the 2,000 employees who transferred in 2004 to a new joint venture handling firm. (TAP) now has lower seat mile costs and a higher passenger per employee count, than most European network carriers.
"In the years he had been here, we actually reduced headcount by -10% and grew the airline two-fold. We're now very efficient here. We have to be because the ticket prices here are very low. This is survival. That's the only way," Pinto said. "In Portugal a lot of the traffic has always been tourists. Some time ago, we didn't even consider low-cost. Nowadays, there are 22 low-cost carriers (LCC)s flying into Portugal from 70 destinations. They are very strong."
Low-cost carriers initially built up a strong presence in the Portuguese Mediterranean city of Faro, where (TAP) only had a few domestic flights, but in recent years, they have rapidly expanded at (TAP)'s Lisbon base. (LCC)s now have a 25% share of the Lisbon market, compared to about 60% for (TAP).
(TAP) has responded to the changing competitive landscape by cutting costs and changing its fare structure. Under a 5-tier fare structure, passengers flying on the lowest bucket still receive free food and drinks but cannot choose a seat in advance and can only receive frequent flyer credit for 10% of actual miles flown. For economy (Y) passengers on higher fares, not only will full miles and advanced seat selection be offered, but (TAP) opened a dedicated check-in area and fast track security lane using the ex-(POR) area of Lisbon airport. "We really changed the way we took care of the higher yield passengers. They have felt the difference," Pinto said. "The others felt the price."
Fernando Pinto credited the Star Alliance (SAL) as playing a key role in (TAP) Portugal's turnaround, and said (SAL) helped (TAP) stay independent, as other medium-sized European carriers looked towards consolidation to survive in today's difficult market.
(TAP) joined (SAL) in 2005, and Pinto said the alliance generated an additional +€40 million per year in revenues for the carrier. "By now, we've shown it's possible to grow in a niche market," Pinto said. "We are doing OK. Together with (SAL), we have shown it's possible" to remain independent.
(TAP) now code shares with almost every other Star (SAL) member and also has code shares with several non-aligned carriers, including Greece's Aegean Airlines (CRM), Italy's Air One (ADH), Mozambique's (LAM), Cape Verde's TACV (TCV), Brazil's TAM (TPR), Ukraine International Airlines (UKR), and SATA of Portugal's Azores Islands. Pinto said (TAP) may have more code shares than any other carrier in the world: "It's part of our strategy. It's a very important way of growing without investing."
While (TAP) acquired (POR), and looked at buying (VAR) in 2006, Pinto said the carrier was not interested in buying stakes in other carriers. He said it was looking to offload its 15% stake in Air Macau (MCU), and reduce its 90% stake in former (VAR) maintenance unit (VEM) to about 45%. But (TAP)'s Lisbon-based maintenance business, which previously generated €302 million in revenues, will remain 100% owned. "We think it's very important for it to be with the airline," Pinto said, adding that there are no plans to spin it off if (TAP) was privatized.
MICHAEL CONOLLY, CHIEF FINANCIAL OFFICER (CFO).
TREY URBAHN, CHIEF COMMERCIAL OFFICER (CCO).
VALTER FERNANDEZ, EXECUTIVE VP OPERATIONS, (TAP) M&E BRAZIL.
NELSON VAZ, DEPUTY VP OPERATIONS, (TAP) M&E BRAZIL.
MANOEL TORRES, SENIOR EXECUTIVE VP AIR TRANSPORT.
VASCO MOURA, SENIOR EXECUTIVE VP FLIGHT OPERATIONS.
ANGELO ESTEVES, SENIOR EXECUTIVE VP HANDLING.
JORGE SOBRAL, SENIOR EXECUTIVE VP MAINTENANCE (1996-07), (firstname.lastname@example.org) (LISMATP).
FERNANDO MATOS, HEAD INFORMATION TECHNOLOGIES (IT) TAP MAINTENANCE & ENGINEERING.
DAVID JACINTO, HEAD CENTRAL & EASTERN EUROPEAN SALES + USA.
ANTONIO CARRACA, HEAD "MINOR CHECKS" PROJECT, (TAP) M&E, BRAZIL (2013-01).
VP Finance, Teresa Lopes.
JORGE LEITE, VP QUALITY & SAFETY - TAP MAINTENANCE & ENGINEERING SAFETY MANAGER.
LUIS MONTEIRO, VP MARKETING.
MARIO ARAUJO, DIRECTOR ENGINEERING (LISMBTP) (email@example.com) (1998-10).
JOAO SANTOS, DIRECTOR ENGINE OVERHAUL (1996-10).
JOSE GUEDES DIAS, VP EXTERNAL RELATIONS & ALLIANCES.
RUFINO DE OLIVEIRA, DIRECTOR HEAVY MAINTENANCE (10/96).
MARQUES DA CRUZ, DIRECTOR PLANNING, CONTROL AND DEVELOPMENT
ANTONIO MONTEIRO, DIRECTOR TECHNICAL DEVELOPMENT PLANNING.
JOSE GUEDES DIAS, EXTERNAL RELATIONS & AGREEMENTS DIRECTOR.
VITOR PINTO, DEPUTY DIRECTOR ENGINEERING & MAINTENANCE (1996-10).
PETER SZOLNOK, SALES MANAGER.
J PICADO FLORO, QUALITY MANAGER (firstname.lastname@example.org) (1998-10).