BRAZILIAN CARRIER Transbrasil, which lost 7% of its domestic market in 1996, is planning a major shake-up to increase revenues and cut expenses. The airline, which is owned by its president and founder Omar Fontana, says that it is looking for partners to inject cash.
The carrier plans to double its fleet from 23 aircraft by 2010, adding Airbus A330/ A340s, Boeing 777s or McDonnell Douglas MD-11s. Transbrasil says that British Airways-owned consultant Speedwing is carrying out a diagnosis of the carrier's problems, and has been asked to come up with possible solutions.
The findings are to be announced in July, but Fontana is opposed to a suggestion that Transbrasil should cut back on its European services. The Brazilian carrier now serves Amsterdam, London Gatwick and Vienna and is also proposing to provide services to Lisbon, Moscow, Munich and Porto.
Once the report is complete, Fontana, who holds 70% of the voting capital, will decide on suitable partners, the best way to cut costs and new domestic and international routes.
Transbrasil reported profits of Real 46.7 million ($44 million) in 1996, compared to Real 46.2 million in 1995, on revenues up from Real 780 million to Real 871 million. Its domestic market share fell from 28% to 21% after it suspended some routes, which it hopes to re-introduce this year.
Source: Flight International
