First Quarter 2013 Highlights
- Avianca Holdings earns net income of $75.3 million (USD) for 1Q 2013, an increase of more than $75 million over the profit recorded for the same period in 2012.
- First quarter operating revenues increased to USD$ 1.11 billion, up 5.9% from 1Q 2012 due mainly to a 6.5% increase in passenger revenues driven by an 8.6% growth in passenger traffic over 1Q 2012 figures. Cargo and other revenue increased by 2.5%, primarily as a result of an increase in our Freight and Loyalty revenues.
- Operating Cost per available seat kilometer (CASK) decreased by 1.5% from 10.98 cents in 1Q-12 to 10.81 cents in 1Q-13 and CASK excluding Fuel decreased by 1.8% from 7.31 cents in 1Q-12 to 7.17 cents in 1Q-13.
- Operating Income (EBIT) increased to USD$ 108.1 million, a 31.1% increase from USD$ 82.4 million in 1Q-12. Excluding special items in 1Q-12 operating income increased by 48.5%. Operating Margin for 1Q-13 rose to 9.7% compared to 7.8% in 1Q-12, primarily as a result of lower unit costs.
- Capacity, measured in ASK’s (available seat kilometers), increased by 5.4% during 1Q 2013, mostly due to expansion in our domestic operations in Colombia and Peru. In addition, passenger traffic, measured in RPK’s (revenue passenger kilometers) grew 7.8%, reaching a consolidated Load Factor of 80.8%, surpassing 1Q-12 Load Factor by 2.3 percentage points.
- In Line with the fleet renewal program, the company continues to incorporate new aircraft. During the first quarter, one (1) Airbus A330 Freighter, one (1) Airbus A330 and two (2) Airbus A320 passenger aircraft (one of which is equipped with sharklets) were incorporated.
- During the first quarter the Company inaugurated its new VIP lounge in Terminal Eldorado International Airport in Bogotá. Lifemiles members can now enjoy over 2,000 square meters of services and innovations in different environments. The lounge has capacity to simultaneously serve nearly 670 travelers, 505 Gold Elite and 165 Diamond Elite members.
Copyright Photo: Bruce Drum. Avianca’s (Colombia) Airbus A320-214 N664AV (msn 3664) arrives at Miami International Airport.
AviancaTaca Holding reports net income rose by 73.9% to $191 million in 2012, TACA cuts routes from San Jose
AviancaTaca Holding and its subsidiaries reported an increase of 12.9% in passenger numbers compared to 2011.
During 2012, AviancaTaca Holding S.A. recorded net profit of COP$351,684 million ($190.9 million), up 73.9% compared to 2011.
In 2012 AviancaTaca Holding S.A. continued work on expanding its network of routes and creating new air services for travelers flying to and from the Americas and Europe.
According to AviancaTaca’s CEO, Fabio Villegas: “Following the integration of Avianca and TACA operations the Company has launched 46 new routes, and over the last year has emphasized connectivity between high demand points in the local markets of Colombia, Peru and Central America, and throughout the Americas and the Caribbean. This expansion process is taking place in parallel with the renewal of the aircraft fleet and the development of an intensive campaign to further improve the internal service culture.”.
As a result of the increase in seat capacity, flight services to key destinations and also an improvement in service standards, AviancaTaca Holding and its subsidiaries transported 23.1million passengers in 2012, an increase of 12.9% compared to 2011.
Between January and December 2012 the number of travelers transported in markets within Colombia, Peru and Ecuador was 13,255,502, up 18.5% compared to 2011. The number of passengers transported by the Company on international routes was 9,837,031, an increase of 6.1% compared to 2011.
Between January and December 2012, Avianca, TACA and subsidiaries recorded an operating income of $4,254 million (USD), up 11.2% from 2011. Operating profit for the year was $282 million (USD).
The EBITDAR (earnings before interest, taxes, depreciation, amortization and aircraft leasing payments) for 2012 was USD$737.5 million and net profit totaled $195.6 million (USD).
Consistent with an increase of 10.3% in ASK capacity (seats available per kilometer flown), passenger traffic in RPK (passenger revenue per kilometer flown) increased by 10.3%. The average Load Factor was 79.6%.
In the first quarter of 2013, the Company reported net income of $75.3 million (USD).
During 2012 the Company incorporated 14 new jet aircraft: two Airbus A330s, four Airbus A319, seven Airbus A320 and one Airbus A330F exclusively for cargo. It also announced the firm order for 15 ATR 72-600 aircraft and rights to purchase 15 more, which will be assigned to cover regional routes within Colombia and short and medium-haul markets in Central America.
In other news, TACA is eliminating routes from San Jose, Costa Rica and laying off 261 employees. The airline issued this statement:
Starting May 17, the Airline adjusts operations to and from San Jose, Costa Rica, in order to meet market needs
The airline will keep direct flights between San Jose and Caracas, Mexico, Miami, Guatemala, Tegucigalpa, San Pedro Sula, Managua, and Panama, as well as the connecting flights to hubs in El Salvador, Bogota, and Lima
All travelers with a reservation in flights from San Jose to Caracas, Mexico, Miami, Guatemala, Tegucigalpa, San Pedro Sula, Managua and Panama, as well as to our hubs in El Salvador, Bogota and Lima, will keep their itinerary as scheduled.
Flights canceled as of May 17, 2013:
|LR661||San Jose CR – Quito|
|LR660||Quito – Guayaquil – San Jose CR|
|LR660||San Jose CR – Nueva York|
|LR661||New York – San Jose CR|
|AV693||San Jose CR – Panama – Medellin|
|AV692||Medellin – Panama – San Jose CR|
|LR652||San Jose CR – Havana|
|LR653||Havana – San Jose CR|
|LR672||Panama – San Jose CR|
|LR673||San Jose CR – Panama|
|LR604||San Jose CR – Los Angeles|
|LR605||Los Angeles – San Jose CR|
|LR684||San Jose CR – Monterrey|
|LR685||Monterrey – San Jose CR|
|LR678||San Jose CR – Managua|
|LR679||Managua – San Jose CR|
Flights canceled as of June 16, 2013:
|TA953||San Jose CR – Lima|
|TA952||Lima – San Jose CR|
|TA454||Tegucigalpa – Miami|
|TA455||Miami – Tegucigalpa|
TACA was founded in 1931 and boasts more than 80 years of history. It links the Americas together through its four Hubs (Colombia, El Salvador, Costa Rica and Peru), and its extensive route network from Canada to Brazil, flying to 50 destinations in 22 countries. Its fleet consists of Airbus A319, A320 and A321 aircraft and new Embraer 190 aircraft. In addition, its regional operations service 39 destinations in Central American countries with a fleet of ATR 42, Short SD3-60, Twin Otter and Cessna Grand Caravan aircraft.
Copyright Photo: Bruce Drum. The TACA name and brand will be retired at the end of May ending a long history. TACA’s Airbus A320-233 N682TA (msn 3581) arrives at Miami painted in the last (2008) livery for the company. All TACA aircraft will be repainted into the red and white Avianca brand and operate under the Avianca name. Goodbye TACA.
In the first two months of 2013, Avianca and TACA recorded a 9.7% increase in passenger numbers compared to the same period of 2012.
During 2012, AviancaTaca Holding SA reported net income of COP $351,684 million ($192.1 million), up 73.9% from net income obtained in 2011.
In February 2013, attached to the Holding airlines transported nearly two million passengers.
In the first two months of the year, airlines mobilized attached to 3,982 .201 AviancaTaca Holding passengers, registering an increase of 9.7% from January to February 2012.
Only in the month of February, Avianca, TACA and its subsidiaries 1,866 .367 mobilized passengers, 6.8% above the passengers carried in February 2012. The capacity, measured in ASKs (available seats per kilometer flown) increased 1.6%, while passenger traffic measured in RPKs (paying passengers per kilometer flown) grew 5.5%. The load factor for the month reached 80.7%.
Domestic markets of Colombia, Peru and Ecuador
During January and February 2013, the number of passengers moved in markets within Colombia, Peru and Ecuador amounted to 2,278 .645, 11.4% more than in 2012. The capacity (ASKs) in these markets increased by 15.1%, while passenger traffic (RPKs) increased 14.1%. Consequently, the load factor stood at 79.5%.
In February, the carriers assigned to the Holding transported within these markets a total of 1,089 .289 travelers, up 7.9% from February 2012. The capacity (ASKs) in these markets increased 13.6%, while passenger traffic (RPKs) increased 11.1%. As a result, the load factor stood at 78.8%.
During January and February 2013, the number of passengers on international routes mobilized amounted to 1,703 .556, 7.4% higher than the figure recorded in the same period of 2012. The capacity (ASKs) rose 1.9% and passenger traffic (RPKs) increased by 6.7%. As a result, the load factor reached 82.9%.
In February, Avianca, TACA and its subsidiaries carried 777,078 passengers on international routes to an increase of 5.4% over the same period of 2012. Product of a reorganization of the operation, capacity (ASKs) decreased 1.2% while passenger traffic (RPKs) increased by 4.1%. The load factor stood at 81.2%.
Copyright Photo: Arnd Wolf. The TACA fleet will start to be repainted in the Avianca brand in the second quarter. TACA’s Embraer ERJ 190-100 IGW N984TA (msn 19000273) arrives at Miami International Airport.
AviancaTaca Holding S.A. (subsidiary of Synergy Group) (Bogota), formed in February 2010 with the merger of Avianca (Bogota) and the TACA Group (San Salvador) has decided to consolidate all operations under the Avianca brand. All carriers in the new group will retain their legal names in their respective countries. A new livery is expected for the “new Avianca”. The group issued the following statement:
After rigorous market research and business analysis carried out with Lippincott – a world recognized marketing firm - Avianca was selected to be the single commercial brand for the airlines that today comprise AviancaTaca Holding S.A.
According to the results of the studies, positioning brand equity, and history of Avianca make it the best choice to expand and commercialize the products and services of all the airlines integrated in AviancaTaca Holding S.A.
From its official launch in 2013, the Avianca brand will be adopted as the commercial name for: Aerovías del Continente Americano S.A. Avianca and Tampa Cargo S.A., incorporated in Colombia, Aerolíneas Galápagos Aerogal S.A., incorporated in Ecuador and the airlines of the TACA Group: TACA Internacional Airlines S.A. incorporated in El Salvador, Líneas Aéreas Costarricences S.A. LACSA, incorporated in Costa Rica, Transamerican Airlines S.A. (TACA Peru) incorporated in Peru and Aviateca S.A., incorporated in Guatemala.
The companies will retain their legal name and add the trading name Avianca in their respective territory of incorporation. The airlines will maintain their respective legal and labor structures. The brand Avianca will be used in communication with clients and marketing in all the territories where the airlines operate.
After an intense reorganization of operations, with the goal of providing a superior travel experience to customers in Latin America and travelers from across the world, the airlines that conform AviancaTaca Holding S.A. prepare their migration to a single commercial brand. With this decision, the companies are seeking to consolidate their presence in markets and be more competitive in an increasingly complex and demanding environment.
Since the integration announcement in October 2009, the member airlines have moved forward with its modernization and growth program along with its plan to capture synergies. 45 routes to new destinations have been launched, capacity has been expanded by more than 37% and the fleet has been simplified from 11 to 4 types of aircraft families. These efforts, coupled with the adoption of a single technological platform for customer service, unification of the frequent flyer programs under the LifeMiles brand and integration to Star Alliance, sets the foundations to commercialize our products and services under a single brand.
The official launch of the new image and the start of commercialization under the brand will be carried out during the first half of 2013, after complying with the legal requirements in each country. Implementation will be rolled out throughout the year, beginning in the first half with the airlines of the TACA Group, Avianca and Tampa Cargo and Aerogal in the second half (once the Ecuadorean airline completes its technological standardization process and operational integration with the other airlines).
The CEO of AviancaTaca Holding S.A., Fabio Villegas Ramirez, said that: “As part of the integration process, the organization has been very visible driving activities that are highly relevant to the travelers and regions served by the group’s airlines. In parallel with the modernization of infrastructure, both on ground and on board, the network expansion and incorporation of new technologyl to improve the travel experience, the companies have simultaneously yielded sought after results in domestic and international markets, as well as impressive customer satisfaction figures, which drive growth and positive financial results.”
In announcing the decision to adopt a single commercial brand for the integrated airlines, the Chairman of the Board, Roberto Kriete, noted: “The goal is to position the airlines under the Avianca brand as the Leading Airline in Latin America and the traveler’s favorite. It is a company with Latin American roots with the best human talent of the industry in the region, looking to anticipate customer needs and renowned for the superior quality of service. This is how we can make sure that the new Avianca reflects the best operational practices of the airlines of the group enabling a strong presence. Under the brand Avianca we continue to fulfill our mission of integrating El Salvador, Costa Rica, Guatemala, Colombia, Peru, Ecuador, and the nations of the Americas with the world at large through commercial aviation, which has been the inspiration since the companies were founded. We offer travelers a service that is both competitive, efficient and sustainable and we’ll continue creating jobs and aiding the development in the countries where we operate.”
In line with the decision to adopt a single commercial brand, expert staff and external consultants are working on the integration project of the Avianca brand image. The new image will be extended to all the products and services of the company, as well as the aircraft, uniforms and spaces used as customer touch points.
Both shareholders and executives of AviancaTaca Holding S.A. are confident that the consolidation of business activities under the Avianca brand constitute a new opportunity to reach the integration objectives. These goals are focused on providing a safe, friendly and efficient service for travelers in the region and across the world, who day after day choose to fly on the route network of the AviancaTaca Holding S.A. airlines.
Company management extend their gratitude and appreciation to the authorities of El Salvador and other countries where the companies of the TACA Group are incorporated, for their continuous support in the business development initiatives over nearly 85 years of uninterrupted operations in the region, enabling progress and improvements in the quality of life for Central American countries and the Americas as a whole.
Top Copyright Photo: Bruce Drum. The Avianca familiar red brand will once again be updated for the larger group. Airbus A320-214 N446AV (msn 4046) taxies to the gate at Miami International Airport.
Bottom Copyright Photo: Michael B. Ing. The TACA brand will now be retired. Airbus A320-233 N680TA (msn 3538) prepares to land at Los Angeles International Airport.
AviancaTaca Holding (Avianca Colombia and Taca Airlines) (Bogota) reported second quarter 2012 operating revenue of $1.0 billion, a 12.9% increase compared to the same period in 2011. This result is mainly due to a 12.9% increase in pax revenue fueled by an 11.6% increase in passenger traffic compared to the second quarter in 2011.
Capacity, measured in ASK (Available Seats per Kilometer), increased 9.6% in the second quarter of 2012 as a result of the ongoing growth and consolidation strategy of the 4 hubs (Bogota, Lima, San Salvador and San Jose, Costa Rica). During the second quarter the Company opened 5 new routes and added 19 flights to existing routes.
Load factor for the second quarter of 2012 remained unchanged at 77.7% compared to the same period last year.
Operating income in the second quarter of 2012 increased to $22.5 million, boosting operating income for the semester 19.3% compared to the year-earlier period to $70.7 million.
Net profit in the second quarter of 2012 increased 334.3% versus the same period in 2011 to $4.9 million, increasing net profit for the quarter to $40.1 million.
On June 21, 2012, Avianca and Taca Airlines officially joined the Star Alliance.
Copyright Photo: Brian McDonough. Embraer ERJ 190-100 IGW N936TA (msn 19000215) lands at Miami.
Avianca (Colombia) (Bogota) and TACA Airlines (San Salvador) yesterday (June 21) announced their official entry into the Star Alliance. The airline network is the world´s largest in terms of daily flights, route network, service excellence and number of airline members.
After two years of work in the approval process and with the adoption of the highest standards of operation and service, Avianca and TACA Airlines now offer passengers the opportunity to access this global network, which brings together 28 internationally renowned airlines. It operates more than 4,200 latest generation aircraft, servicing 21,500 daily flights to 1,356 airports in 193 countries.
Star Alliance, with 15 years of experience (since 1997) is recognized as the first truly global airline alliance. Consistent with its goal of offering customers worldwide the largest number of destinations and a great travel experience, it now offers exclusive services and assistance to frequent flyers in 990 airport lounges on all five continents. It has the support of nearly half a million employees in America, Europe, Asia, Africa and Australia.
The Alliance transports an average of 650 million passengers per year and has sales revenues of USD 160bn.
The combined Star Alliance network will provide Avianca and TACA Airlines an opportunity to strengthen their presence in Latin America and the Caribbean in general. Passengers of the global network can quickly and seamlessly fly to over 50 destinations in the region through Avianca and TACA Airlines Hubs in Bogota (Colombia), San Salvador (El Salvador), Lima (Peru) and San Jose (Costa Rica).
Top Copyright Photo: Jay Selman.
Bottom Copyright Photo: Brian McDonough.
Read the full report (in Spanish): CLICK HERE
Top Copyright Photo: Luimer Cordero.
Avianca Slide Show: CLICK HERE
TACA Slide Show: CLICK HERE
Bottom Copyright Photo: Christian Volpati.
Avianca (Colombia) (Bogota) and TACA Airlines (Grupo TACA) (San Salvador) (AviancaTaca) reported a combined net income of $109 million in 2011, an increase of 229.7 percent.
Read the full report (in Spanish): CLICK HERE
In October 2009 it was announced that Avianca and TACA would merge their assets in a strategic alliance. Each airline in the group will maintain their own trademark and operations.
Top Copyright Photo: Jay Selman.
Avianca (Colombia) Slide Show: CLICK HERE
Avianca (Brazil) Slide Show: CLICK HERE
TACA Slide Show: CLICK HERE
Bottom Copyright Photo: Bruce Drum.
Sky Airline (Santiago) has signed a new code share agreement with TACA (San Salvador). The Chilean airline is also expected to sign another code share agreement with Avianca (Colombia) (Bogota) next year.
Read the full report from Travel Agent Central: CLICK HERE
Sky Airline Slide Show: CLICK HERE
Copyright Photo: Alvaro Romero.
Cubana Tupolev Tu-204-100E CU-T1701 (msn 1450744664035) YUL (Gilbert Hechema), originally uploaded by Airliners Gallery.
Cubana de Aviacion (Havana) has started operating its own aircraft on routes to Canada after it ended its wet lease Airbus A320 agreement with TACA.
Copyright Photo: Gilbert Hechema.
AviancaTaca (Bogota and San Salvador) has signed a Memorandum of Understanding (MOU) with Airbus to acquire 51 A320 Family aircraft including 33 A320neos.
Copyright Photo: Bruce Drum. Please click on the photo for the full story.
North American, Central American and Caribbean Route Map:
South American Route Map:
TACA (taca.com) Embraer ERJ 190-100 IGW N982TA (msn 19000259) SCL (Alvaro Romero), originally uploaded by Airliners Gallery.
TACA Peru (Lima) added the Embraer ERJ 190-100 on the Lima-Santiago route effective on December 15.
Copyright Photo: Alvaro Romero. Please click on the photo for additional details.
TACA (Grupo TACA) (San Salvador) will launch the daily Miami-Lima route on December 1.
Copyright Photo: Bruce Drum. Please click on the photo for further background information.
Avianca Airbus A330-243 N973AV (msn 1043) (90 Anos-90 Years) MIA (Brian McDonough), originally uploaded by Airliners Gallery.
Avianca (Bogota, TACA (San Salvador) and Copa Airlines (Panama City) have been accepted to join the Star Alliance.
Copyright Photo: Brian McDonough. Please click on the photo for additional details about joining the alliance.
Avianca’s (Bogota) CEO German Efromovich gave an interview in Spanish to the Colombian newspaper La Republica. In the interview the CEO talked about the Avianca-TACA merger and what would happen to subsidiaries OceanAir and AeroGal. OceanAir will assume the Avianca brand in Brazil while AeroGal will retain its own brand in Ecuador.
Spanish version of the interview:
Avianca (Bogota) and TACA (Grupo TACA) (San Salvador) have closed their new shareholders agreement. After completing the required regulatory and antitrust approvals to create the new joint venture, announced in October 2009, Synergy Aerospace Corp., majority shareholder of Avianca, and Kingsland Holding Limited, owner of Grupo TACA, announced they have closed their agreement to officially start its strategic integration.
This agreement allows the shareholders to contribute their investments in Avianca and Grupo TACA into a new company which will be named “AVIANCA-TACA Limited” based in the Bahamas, in which Synergy Aerospace Corporation will own 67 percent and Kingsland Holding Limited the other 33 percent.
Grupo TACA includes TACA International, and its share in LACSA, TACA Peru, AVIATECA, SANSA, La Costena, Aeroperlas and Islena Airlines. AVIANCA includes: Avianca, SAM and TAMPA, as well as the purchase option that Grupo Synergy has in AeroGal in Ecuador and OceanAir in Brazil.
US Airways (Phoenix) will defer the delivery of 54 Airbus aircraft from the 2010-2012 period to 2013 and beyond. The A350 XWB first delivery will be deferred from 2015 to 2017.
In other news, US Airways and Grupo TACA will begin a new code-share agreement on January 12, 2010.
Grupo TACA (TACA International) (Transportes Aereos del Continente Americano) (San Salvador) and Avianca (Aerovias del Continente Americano) (Bogota) and all of the subsidiary airlines within the two groups will be merged into one single holding company. The Avianca owners (National Federation of Colombia Coffee Growers and the Synergy Group) will control two-thirds of the new holding company. The Grupo TACA owners will control the remaining one-third of the shares of the new holding company. All airlines will retain their independent brands (however Avianca was consolidating its brands) but each will become subsidiaries of the new holding company.