TAP Portugal is plotting further long-haul expansion, to be supported in part by new feed from future subsidiary Portugalia.
Chief executive Fernando Pinto says TAP plans to add at least three second-hand Airbus A330s between June and December, giving it the capacity to launch new services to Africa and Brazil and bolster some of its existing long-haul routes. "We have some new routes to Africa and we're thinking about flying to the Brazilian capital [Brasilia]," Pinto says.
TAP now serves seven African and six Brazilian destinations plus Caracas and New York with 12 Airbus widebodies. Three A330s were added last year, driving a 15% increase in capacity and supporting the launch of long-haul services from Portugal's second largest city, Porto.
Pinto says the new Porto services, which operate thrice weekly to New York, Rio de Janeiro and Sao Paulo, are already enjoying 80% load factors and will be increased after the additional A330s are delivered. Buyout demand for its long-haul services drove TAP back into the black last year. The Star Alliance carrier in mid-March posted a €7 million net profit ($9 million), reversing a €10 million loss from 2005. Its traffic surged by 16%, outstripping the 15% capacity increase, and revenues soared 22% to €1.7 billion. TAP says 64% of its revenues came from outside Portugal, a testament to the success of TAP's strategy of pursuing passengers from other European countries heading to Africa and Brazil.
Pinto says the purchase of Portugalia will support further long-haul expansion by providing feed from about 20 European destinations, most of which TAP does not currently serve. On the few routes both carriers serve schedules will be co-ordinated.
TAP inked a €140 million deal late last year with Portugalia's majority owner Group Espirito Santo. It is now waiting for approval from local competition authorities. "I hope it takes two months" to complete, Pinto says.
"Portugalia will not add capacity directly because it will remain independent, but it will feed our system, which will allow us to add capacity and airplanes. We're counting on that for additional services to Brazil and Africa."
The two start codesharing at the beginning of April. Portugalia previously codeshared with Air France of SkyTeam, which Portugalia had been planning to join as an associate member before the deal with TAP was forged.
Source: Airline Business
