BRITISH AIRWAYS' French regional partner TAT has revealed that it again racked up heavy operating losses, of Fr583 million ($117 million), over the last financial year, up to the end of March 1995.
The deficit, which has been recorded on sales of nearly Fr1.9 billion, is the second consecutive year of operating losses for the French regional airline. TAT admits that it will show another "small loss" in the current financial year, but is "on target" to break even in the 1996-7 period.
TAT has now accumulated total debts of around Fr1.27 billion since BA took out a 49.9% share at the end of 1992. TAT founder Michel Marchais still has a majority holding in the airline, but BA may take over full control in April 1997, when Europe completes the single air market.
Some of the losses have been incurred because of restructuring at TAT, which lost most of its European routes, apart from the main London services, to concentrate on domestic operations.
"We're already making good money on the Orly-Marseilles and Orly-Toulouse routes we have been operating since May and October [respectively]", says the airline. The carrier adds that TAT is preparing to "...take full advantage" of liberalisation within the French domestic market at the start of 1996.
Source: Flight International
