Virgin Atlantic Airways will add the daily London Heathrow – São Paulo Guarulhos route starting on May 13, 2024.
Azul Linhas Aereas Brasileiras (Campinas-Viracopos) is adding another route to Orlando. The carrier will launch a new daily route connecting Sao Paulo (Guarulhos) and Orlando starting on December 15.
This is in addition to the Belo Horizonte – Orlando route due to start on November 16.
Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Airbus A330-243 PR-AIW (msn 462) lands at Campinas-Viracopos (VCP).
LAN Airlines (Chile) (Santiago) will introduce the Boeing 787 Dreamliner on the Santiago – Sao Paulo (Guarulhos) – Milan (Malpensa) route on March 2, 2016 per Airline Route.
Copyright Photo: Michael B. Ing/AirlinersGallery.com. Boeing 787-8 Dreamliner CC-BBI (msn 38480) departs from Los Angeles International Airport.
LATAM Airlines Group S.A. and TAM S.A. (TAM Linhas Aereas) (Sao Paulo), announced that TAM will adjust its domestic network in Brazil. The group issued this statement:
In order to allow TAM Airlines to remain committed with its long term sustainable development and growth plans for Brazil, the Company has decided to implement an adjustment to its domestic network at this time.
Given the impact of the challenging economic scenario in the country, caused by an increase in inflation and an appreciation of the U.S. dollar versus the Brazilian real, resulting in a slowdown in the airline industry, TAM is now implementing a gradual reduction of its domestic operations in Brazil of approximately 8% to 10%. As a result, the company has revised its capacity growth (ASK) guidance for this year for the domestic market in Brazil from 0% growth to a contraction of 2 to 4% as compared to 2014.
TAM has been working to adopt several measures to limit the impact of this adjustment on its employees. Nonetheless, the Company estimates it will reduce its staff by less than 2%, considering its normal turnover. Given the Company’s mid-term growth plans, this adjustment will not impact flight crew personnel. TAM will provide support to the affected employees with an outplacement program.
In order to guarantee the best service to its passengers, TAM will continue to serve all domestic destinations that it currently operates.
The Brazilian airline industry has suffered from declining demand, according to National Civil Aviation Agency (ANAC) data. Furthermore, data from the Market Readout of the Brazilian Central Bank released on July 10 indicates that the market projects a further decline of the Brazilian GDP, in 2015, with estimates revised down from a contraction of 1.3% to a 1.5% decline. They also estimate that inflation should end the year at over 9%, while the U.S. dollar is expected to continue to strengthen against the Brazilian real.
“TAM is taking this measure to face the difficult economic scenario of the country. It is necessary to make adjustments to our network while maintaining the connectivity we offer our passengers, and strengthening even further the Company’s competiveness in Brazil ”, said Claudia Sender, CEO of TAM S.A.
“We continue to believe in the country’s recovery and this adjustment in no way affects the Company’s long-term strategy, which include the renewal of the fleet, the feasibility study for the Northeastern hub and the continuous strengthening of our hubs in Brasília and São Paulo/Guarulhos”, she added.
Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Airbus A321-231 PT-MXM (msn 5987) with Sharklets departs from the Sao Paulo (Guarulhos) hub.
Gol Linhas Aereas Inteligentes (Sao Paulo) has agreed to enter into several strategic transactions with the Constantino Family, Gol’s controlling shareholder, and Delta Air Lines (Atlanta) to strengthen the airlines’ strategic alliance and enhance Gol’s financial position and liquidity.
The airline continued;
As part of the agreement, Gol’s controlling shareholder will invest up to $90 million (US) in newly issued preferred shares of Gol and Delta will invest up to $56 million in newly issued preferred shares of Gol. Delta also will guarantee a term loan to be entered into by Gol with third party lenders of up to $300 million. In connection with these transactions, Gol and Delta will extend their commercial cooperation arrangements.
The consummation of each of the strategic transactions is subject to the execution and delivery of definitive documentation and customary closing conditions, including receipt of required regulatory approvals.
Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Gol’s Boeing 737-76N PR-GOH (msn 32440) departs from Sao Paulo (Guarulhos).
Airbus (Toulouse) is bringing the new Airbus A350-900 on a tour of the Americas. The A350-900 XWB, arrived in Sao Paulo–Guarulhos International Airport, officially kicking off the aircraft’s Americas Demo Tour.
The Demo Tour will continue taking flight test aircraft msn 002 to other major airports in Latin America, stopping in Campinas, Brazil and Bogota, Colombia before heading to the United States.
Senior Airline representatives from TAM, the A350 XWB’s launch customer in the Americas, as well as personnel from other Latin American airlines, government officials and media, boarded msn 002 for a static display and demonstration flight over Sao Paulo.
LATAM Airlines Group, made up of LAN Airlines and TAM Airlines, has ordered 27 A350-900s. Synergy Aerospace, Avianca’s main shareholder and owner of Avianca Brasil, has ordered 10 A350 XWB.
The A350-900 that was displayed in Sao Paulo is an Airbus flight test aircraft fitted with a two class cabin with 42 lie-flat business class seats in a four abreast configuration and 210 economy-class seats set at nine abreast. The aircraft is also fitted with special on-board flight test equipment.
With more than 950 aircraft sold and a backlog of nearly 500, 27 customers operate nearly 600 Airbus aircraft throughout Latin America and the Caribbean. In May, Airbus celebrated its 500th aircraft delivery in Latin America.
Copyright Photo: Olivier Gregoire/AirlinersGallery.com. The pictured Airbus A350-941 F-WWCF 9msn 002) in the Carbon Fiber livery is the Americas tour aircraft.
The Star Alliance has issued this statement from Warsaw, Poland touting the accomplishments of the alliance. In the report, Avianca Brazil (OceanAir Linhas Aereas dba) (Sao Paulo) has been granted membership and will join the group on July 22:
Star Alliance member carrier LOT Polish Airlines hosted the mid-year Chief Executive Board (CEB) Meeting during which the member carrier CEOs endorsed enhancements to further improve the network travel experience offered to customers and gave the go-ahead for the inclusion of a new member in Brazil.
As hosting carrier, LOT outlined its new strategy – a new LOT in a new Europe – under which it plans to double in size over the next five years. In addition to three new connections to Asia – Tokyo, Seoul and Bangkok – it plans more than a dozen new European routes. Announcing the most dynamic growth in the company’s history, LOT said it was competing for leadership in the region and aimed to become the largest network carrier in New Europe.
In their joint discussions, the CEOs reaffirmed the objectives set out by the Alliance’s founding fathers more than 18 years ago, agreeing to continue to build on its key strengths – a global network, a high standard of customer service and making use of modern technology to drive business strategies.
Star Alliance’s aim at launch in May 1997 was to become the leading global airline alliance for the high value international traveller and contribute to the long-term profitability of its member airlines beyond their individual capabilities.
“As a mature Alliance with a comprehensive network and good, close relationships between our member airlines we are excellently placed to offer continuous enhancements in various ways that together improve the Alliance travel experience,” said Star Alliance CEO Mark Schwab.
Avianca in Brazil will be added to the network as of July 22nd this year, allowing Star Alliance once again to offer its customers domestic flights in Latin America’s largest and most important market.
“We are delighted that we can include Avianca in Brazil as of next month, which, together with various new hub-to-hub services announced by individual members, signifies that we will boost network connectivity this year,” Schwab added.
The alliance continued in their meeting notes:
2015 has already seen a steady stream of route additions and more new routes will be introduced by the end of the year. These include for example further increasing choice at the Alliance’s Houston hub, with new long-haul flights by Air New Zealand, ANA and EVA Air from Auckland, Tokyo and Taipei. Air China has launched a new flight between Beijing and Montreal while Air Canada will start flying from Toronto to Delhi in December. A new Lufthansa flight from Frankfurt to Panama will establish an important link between a major hub in Europa and Latin America from late November.
Complementing the network expansions, member carriers are deepening their bilateral cooperation by signing code-share agreements. Recent examples include Air India and Air New Zealand, Air India and Avianca, Copa and TAP and EVA Air and Turkish Airlines.
In parallel to this organic network growth, the Alliance continues to monitor market developments and will seize opportunities for membership expansion if and when they arise.
With customer service improvement at the very heart of its activities, the member airlines are continuously looking for joint initiatives that will deliver a better experience – in many cases by introducing new behind the scenes technology to improve transactions between the carriers.
The most recent example of how such background changes can bring visible change for customers is demonstrated by Star Alliance’s award- winning home in London Heathrow Terminal 2, now one year old. The Queen’s Terminal, formally opened on June 23rd, 2014 by H.M. Queen Elizabeth II, uses new technology and processes that allow airlines to work together in its check-in hall, providing a highly automated and efficient service. Customer feedback on the new terminal has been extremely positive.
Dialogue with airports is essential in realising ground service improvements. “We would ask airports around the world to engage with us at a very early stage, as they redevelop terminals or build completely new infrastructures. As the experience at Heathrow shows, this can bring advantages for all,” Schwab said.
Projects are already under way at Sao Paulo – Guarulhos Airport as well as at Tokyo’s Narita Airport. In both cases the check-in halls face space constraints which cannot be resolved by expanding the current infrastructure.
Another service which is currently being rolled out across the network is Gold Track Security – a dedicated security lane for First and Business Class passengers as well as Star Alliance Gold Card holders. This Alliance product is currently available at over 25 major airports and will progressively expanded to the majority of Star Alliance hubs during the course of the year.
The CEOs also reviewed the successful implementation of several new IT systems. These use latest technologies to provide a more reliable and faster service, with better reporting systems in place to diagnose any errors and allow them to be quickly fixed.
An IT hub infrastructure forms the backbone for the majority of the systems required to deliver the Alliance customer promise. This has gradually being extended to handle different forms of business logic and further similar projects will follow. Examples to date include through check-in: which allows passengers to receive their boarding passes for their entire trip from the first point of check-in. Last year saw the introduction of two systems in the field of loyalty programmes.
The one allows faster and better exchange of the frequent flyer data, with the aim of all but eliminating the need to manually claim miles after a flight. The other system ensures the faster communication of status changes across all airlines in the Alliance, allowing customers to make use of their Gold benefits even before a new card is issued.
Schwab said: “Connecting the data networks is just as important as offering ideal flight options as part of our Airline’s schedule. Having our IT Hub infrastructure in place puts us into a unique position to provide the necessary IT technological support required for speedy implementations of new Star Alliance customer benefits.”
In closing, the CEOs reiterated that while adding new members to the Alliance no longer is of the same importance as some years ago, the Alliance business model continues to offer many opportunities for creating additional value for their individual companies. As a consequence, Alliance membership remains an important and integral part of individual member’s business plans, with each airline being able to decide how much value they wish to extract from their Alliance membership.
Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Avianca (Brazil) (OceanAir Linhas Aereas) Airbus A320-214 WL PR-ONZ (msn 6110) with Sharklets arrives ath the Sao Paulo (Guarulhos) base.
Delta Air Lines (Atlanta) has filed for regulatory approval to offer new nonstop flights between Orlando, Florida, and Sao Paulo, Brazil, beginning December 19, 2015. Delta expects to serve the two cities with four (4) weekly flights. The airline’s strategic alliance with Gol Linhas Aereas Inteligentes (Sao Paulo) extends the reach of this service to 20 interior Brazil destinations and provides seamless connections at Guarulhos International Airport.
The proposed service would be operated using a Boeing 767-300 aircraft, with 35 seats in Delta One, 32 seats in Delta Comfort+ and 143 seats in the Main Cabin.
Delta’s proposed schedule between Orlando (MCO) and Sao Paulo (GRU) is as follows:
Copyright Photo below: Michael B. Ing/AirlinersGallery.com. Boeing 767-332 ER N180DN (msn 25985) climbs away from Los Angeles International Airport.
United Airlines (Chicago) is planning to introduce the Boeing 787-8 Dreamliner on the Houston (Bush Intercontinental) – Sao Paulo (Guarulhos) route in April. The 787 will operate daily on the route starting on April 7 per Airline Route.
Copyright Photo: Antony J. Best/AirlinersGallery.com. Boeing 787-8 Dreamliner N20904 (msn 34824) departs the runway at London’s Heathrow Airport.
United Airlines aircraft slide show (current livery):
Gol Linhas Aéreas Inteligentes S.A. (Gol Transportes Aereos) (Sao Paulo) reported a third quarter net of BRL 245.1 million ($95.2 million), a notable larger loss than BRL 197 ($76.5 million).
The company issued this full CEO report:
Operating income (EBIT) registered R$ 152 million in 3Q14, R$ 115 million up over 3Q13, with an operating margin (EBIT) of 6.2%, up by 4.5 percentage points. The last twelve months (LTM) EBIT totaled R$ 497 million, with an operating margin of 4.9%.
Net revenue reached R$ 2.5 billion, 10% up over the 3Q13, of which R$ 2.2 billion refers to passenger revenues. Net revenue from cargo and others totaled R$ 272 million, increasing its share from 8% in 3Q13 to 11% of the total revenue. Net revenue LTM stood at R$ 10 billion, a new record, with international revenue accounting for 11% of total revenues, reaching R$ 1.1 billion.
EBITDAR totaled R$ 463 million, 24% up on 3Q13. The EBITDAR LTM came to a record registering R$ 1.9 billion, reducing the financial leverage ratio (adjusted gross debt/EBITDAR) by 4.6 points, from 10.9x in 3Q13, to 6.3x in 3Q14.
Total load factor increased by 8 percentage points to 77.5% in the quarter. This increase more than compensates the 2% decline in yield. As a result, RASK and PRASK increased by 13% and 9% over 3Q13, respectively.
Total CASK grew 7% over 3Q13, while CASK ex-fuel increased by 10%. As RASK moved up 3 percentage points above the CASK ex-fuel, GOL maintained its margin expansion in the quarter reflecting its focus on controlling the manageable costs and increasing revenue.
GOL continued its liability management initiatives in the quarter, which aims to optimize the amortization schedule and reduce the Company’s cost of debt. GOL concluded two senior notes tender offer, totaling US$ 411 million, besides the new issuance of US$ 325 million in bonds due to 2022, at a rate of 8.875%. Its subsidiary Smiles S.A. also concluded a R$ 600 million debenture issuance to finance part of its capital reduction.
In the 3Q14, we recorded operating income (EBIT) of R$ 152 million, an expansion of R$ 115 million when compared to the same period last year, while the EBIT margin moved up 4.5 percentage points registering 6.2%. This was the seventh consecutive quarterly improvement in this indicator, reflecting the continuity and consistent delivery on our results.
Net revenue in the last 12 months totaled R$ 10 billion, a new record, even in a scenario of soft economic growth. GOL’s demand for seats (RPK) grew by 8.3% year over year in the first nine months, representing 53% of the industry’s growth, which reflects the greater attractiveness of our products and services. Domestic supply, however, fell by 2.9%, demonstrating the rationalization strategy that the Company took in place since April 2012. From January to September, 2014, we were the market leader in terms of passengers boarded in the domestic market, reaching the record mark of 27.5 million.
In order to offer greater connectivity, we launched during this quarter two new regional destinations on the domestic market, Carajás and Altamira (Pará), as well as new international flights to Santiago (Chile) from Guarulhos (São Paulo), Miami from Campinas, and to Punta Cana from Guarulhos (São Paulo), Confins (Minas Gerais) and Brasília. In this way, we are the Brazilian airline with the greater supply to the Caribbean, with 78 weekly flights.
The strategy of increasing our international presence has been further reinforced by the expansion of our alliances. This has also strengthened revenue in other currencies, which accounted for 11% of our total revenue in the last 12 months. We implemented a two-way codeshare partnership with Aerolineas Argentinas, allowing us to sell its tickets on our website. We will shortly begin offering the same facility for AirFrance-KLM flights.
In order to ensure an even better flying experience, we extended our GOL+ Conforto seating to our entire domestic route network, with an even greater reclining angle and even more distance between seats. Currently, 94% of our fleet is configured as GOL+ and, by the end of the year, 100% of our fleet will have this configuration. In the third quarter, we also launched an exclusive service in Brazil, our express bag drop service at Congonhas airport. With this new service, the customers can complete one more check-in stage at the self-service totems, labeling and weighing their own baggage, as well as paying for any excess. This is one more simple and intelligent innovation providing our passengers with even greater control and visibility throughout the entire process, since the ticket purchase to the flight.
These new facilities have strengthened our capacity to ensure an even better flying experience for leisure passengers, and to be more attractive to the corporate client. Even in the midst of a challenging economic scenario in Brazil, resulting in reduced demand from corporate customers, GOL was the airline company leader in tickets issued for the corporate segment, according to Abracorp (Brazilian Travel Agents’ Association).
Continuing with our measures to strength our balance sheet, we concluded two senior notes tender offers totaling US$ 411 million. Also, we concluded a senior notes issuance this quarter, totaling US$ 325 million at 8.875% p.a. due on 2022. These actions aim to optimize the debt profile, avoiding major amortization pressure in the next three years and reduce the financial cost. We closed the quarter with R$ 2.7 billion in cash position, equivalent to 27% of revenue in the last 12 months, which is essential to pass through periods of high market volatility. The financial leverage ratio (adjusted gross debt/EBITDAR) stood at 6.3x, 4.6 points down on 3Q13.
I would like to thank our customers for their loyalty, our Team of Eagles for their commitment and investors for their confidence posted on the Company. We celebrated on September 8, 2014 in the New York Stock Exchange (NYSE) the 10-year listing of GOL, in which we reiterated our commitment to the transparency and communication with our shareholders, which reinforces our vision of being the best company to fly with, work for and invest in.
Paulo Sérgio Kakinoff
CEO of GOL Linhas Aéreas Inteligentes S.A.
Copyright Photo: Marcelo F. De Biasi/AirlinersGallery.com. Gol’s Boeing 737-7Q8 PR-GIL (msn 30635) approaches the runway at Sao Paulo (Guarulhos).
Gol aircraft slide show: