With all 13 PLUNA CRJ-900's grounded since the airline's shutdown, one reader of this blog recently asked where are they currently located ?
The editor of the excellent Uruguayan aviation blog http://aeronavescx.blogspot.com, Martin Blanco, informed me two weeks ago that all of the planes were parked in front of the old passenger terminal at Montevideo's Carrasco International Airport (MVD). They are presumably still there since nothing has changed in their status since then.
With all of the CRJ-900's idle, the Uruguayan government continues to accumulate debt and lease payments on the fleet of leased and owned aircraft.
Monday, September 24, 2012
Sunday, September 23, 2012
ROUTE UPDATES: Aerolineas Argentinas New Flights to Miami, Rio Hondo & Summer Charters to Brazil and Mexico
Aerolineas Argentinas route news from the last couple of months:
New Rio Hondo Flights
The airline's smaller sister carrier, Austral, started EMB-190 service from Buenos Aires Aeroparque (AEP) to Rio Hondo (RHD) on 24Aug12 with twice-weekly flights on Fridays and Sundays. The destination is known for its thermal hot springs resort. The two flights were transferred from the airport of the nearby provincial capital, also named Santiago del Estero (SDE).
The Rio Hondo airport is a brand-new facility which was inaugurated on 25Jul12, a few days before the first Austral flight. There was some debate about the need for the new airport since it is located only 37 miles (60km) from Santiago del Estero and 55 miles (90km) from Tucuman, an important northwestern city.
Source: www.aeropuertosarg.com.ar
Second Daily Miami Flight
Aerolineas Argentinas is introducing a second daily Buenos Aires Ezeiza (EZE) - Miami (MIA) flight on 08Dec12 for the southern hemisphere summer season. The flight, AR1304, will depart EZE in the morning, arriving in MIA the same afternoon and fly back overnight to EZE as AR1305.
The airline's Miami service will then look like this:
Flight Routing Dep Arr Equipment Days
AR1304 EZEMIA 1030 1740 A340-300 Daily
AR1302 EZEMIA 2315 0625+1 A340-300 Daily
AR1303 MIAEZE 0845 1945 A340-300 Daily
AR1305 MIAEZE 1945 0645+1 A340-300 Daily
Source: http://airlineroute.net/2012/08/10/ar-mia-dec12update2/
Summer Charters
Aerolineas and probably sister carrier Austral will fly summer charter service, primarily from Buenos Aires Ezeiza (EZE) to the beach destinations of Cancun (CUN) Mexico, and Rio de Janeiro (GIG), Florianopolis (FLN), Porto Seguro (BPS) and Salvador (SSA), all in Brazil. Service will likely be with AR 737-700's and 737-800's and possibly AU EMB-190's too.
Source: Aviacion News
New Rio Hondo Flights
The airline's smaller sister carrier, Austral, started EMB-190 service from Buenos Aires Aeroparque (AEP) to Rio Hondo (RHD) on 24Aug12 with twice-weekly flights on Fridays and Sundays. The destination is known for its thermal hot springs resort. The two flights were transferred from the airport of the nearby provincial capital, also named Santiago del Estero (SDE).
The Rio Hondo airport is a brand-new facility which was inaugurated on 25Jul12, a few days before the first Austral flight. There was some debate about the need for the new airport since it is located only 37 miles (60km) from Santiago del Estero and 55 miles (90km) from Tucuman, an important northwestern city.
Source: www.aeropuertosarg.com.ar
Second Daily Miami Flight
Aerolineas Argentinas is introducing a second daily Buenos Aires Ezeiza (EZE) - Miami (MIA) flight on 08Dec12 for the southern hemisphere summer season. The flight, AR1304, will depart EZE in the morning, arriving in MIA the same afternoon and fly back overnight to EZE as AR1305.
The airline's Miami service will then look like this:
Flight Routing Dep Arr Equipment Days
AR1304 EZEMIA 1030 1740 A340-300 Daily
AR1302 EZEMIA 2315 0625+1 A340-300 Daily
AR1303 MIAEZE 0845 1945 A340-300 Daily
AR1305 MIAEZE 1945 0645+1 A340-300 Daily
Source: http://airlineroute.net/2012/08/10/ar-mia-dec12update2/
Summer Charters
Aerolineas and probably sister carrier Austral will fly summer charter service, primarily from Buenos Aires Ezeiza (EZE) to the beach destinations of Cancun (CUN) Mexico, and Rio de Janeiro (GIG), Florianopolis (FLN), Porto Seguro (BPS) and Salvador (SSA), all in Brazil. Service will likely be with AR 737-700's and 737-800's and possibly AU EMB-190's too.
Source: Aviacion News
Saturday, September 22, 2012
PLUNA CRJ-900 Auction Postponed from September 12 to October 1
The Uruguayan government postponed the auction of the seven company-owned PLUNA CRJ-900's from September 12 to October 1 only three hours before the event was to take place.
The Uruguayan congress passed a law in mid-July setting the base price of the aircraft, to be sold as one lot, at US$ 136 million, the same amount of money owed on the aircraft to ScotiaBank and covered by a Uruguayan government guarantee. Failing any bids for that amount a new floor bid amount of US$ 100 million was to be established. If there were still no bids, then the auction would be considered a failure and the congress was to take up the matter of the aircrafts' disposition once again.
BQB Lineas Aereas' owner, Juan Carlos Lopez Mena, considered the asking prices to be excessive with the market values of the CRJ-900's estimated at US$ 11-12 million each. Also, the idea was to sell the aircraft to a party that would restart PLUNA, or at least resurrect a large part of the former airline's route structure centered around a Montevideo (MVD) hub with at least 250 of its former employees taken on to work the operation.
Several companies expressed an interest in the auction, including BQB, Sol Lineas Aereas (Argentina), Conviasa (Venezuela), LATAM ,and CUTCSA (Uruguayan bus line). In all, seven parties paid the US$ 5,000 fee to inspect the aircraft and all the documents detailing the individual aircraft histories, which appeared promising for the auction. However, at 9:00am on the morning of September 12, three hours before the auction was to start at 12:00 noon, the government postponed it with the official reason being to give more time to potential buyers to study the offer. However, the real reason appears to be that it was clear that no party was to present itself at the auction, which would have been a failure and a very public embarrassment for the government.
EDITOR'S COMMENTS:
There are several problems with the conditions of the auction:
1) Excessive Price
The asking price of the CRJ-900's is in excess of their market value by about US$ 8-9 million each or about 60% more than they are actually worth. Furthermore, if they were to be bought as one lot, any potential buyers would probably seek a volume discount. The Uruguayan congress determined the asking price on the basis of the amount the government would have to pay to cover the outstanding debt on the purchase price of the planes but potential buyers are not concerned with that amount, only what the planes are worth.
2) Former PLUNA Route Rights not Guaranteed
It was stipulated that potential buyers of the planes would be airlines that would operate them on the former PLUNA routes but the route rights were not part of the purchase price. The government only stated that the buyers of the aircraft would have priority in the route negotiations, without any guarantees, making the aircraft purchase less attractive and giving little incentive to pay the premium price that the government was asking.
3) Route Rights Controlled by Other Governments Too
Even if the aircraft buyer was awarded rights to all the routes that PLUNA formerly operated, the purchaser would need several more new routes for the MVD hub to be viable. The lack of certain key routes was the main reason behind PLUNA's failure.
For example, PLUNA flew east/northeast from MVD to nine cities in Brazil, including Sao Paulo (GRU), Campinas (VCP), Rio de Janeiro (GIG), Porto Alegre (POA), Belo Horizonte (CNF), Brasilia (BSB), Florianopolis (FLN) , Curitiba (CWB) and Iguassu (IGU). However, PLUNA flew west/northwest to only a few cities for all of these Brazilian passengers to connect to, such as Asuncion (ASU), Santiago (SCL), Buenos Aeres Ezeiza (EZE) and Aeroparque (AEP) plus Cordoba (COR).
The airline needed several other cities, all in Argentina, to feed / get feed from for the MVD hub concept to have a chance at viability, such as Rosario (ROS), Mendoza (MDZ), Bariloche (BRC), Mar del Plata (MDQ) and possibly Trelew (REL) and Salta (SLA) too. However, the Argentine government, in an effort to protect state-owned carrier Aerolineas Argentinas from competition, has denied many route requests by foreign carriers wanting to fly into Argentina. It should be noted that even with the route rights that PLUNA wanted, there would have been no guarantee of success.
4) Requirement to take on 250 former PLUNA Employees
The Uruguayan government was going to make the hiring of at least 250 former PLUNA employees a condition of granting route rights, involving itself in the strategic decision-making of the aircraft buyer. Private enterprise never welcomes government intervention in its business decisions.
Stay tuned as the next attempt at selling the CRJ-900's and resurrecting at least part of the PLUNA operation is scheduled to take place on Monday, October 1.
Sources: El Pais Uruguay, several articles, 12-14Sep12
The Uruguayan congress passed a law in mid-July setting the base price of the aircraft, to be sold as one lot, at US$ 136 million, the same amount of money owed on the aircraft to ScotiaBank and covered by a Uruguayan government guarantee. Failing any bids for that amount a new floor bid amount of US$ 100 million was to be established. If there were still no bids, then the auction would be considered a failure and the congress was to take up the matter of the aircrafts' disposition once again.
BQB Lineas Aereas' owner, Juan Carlos Lopez Mena, considered the asking prices to be excessive with the market values of the CRJ-900's estimated at US$ 11-12 million each. Also, the idea was to sell the aircraft to a party that would restart PLUNA, or at least resurrect a large part of the former airline's route structure centered around a Montevideo (MVD) hub with at least 250 of its former employees taken on to work the operation.
Several companies expressed an interest in the auction, including BQB, Sol Lineas Aereas (Argentina), Conviasa (Venezuela), LATAM ,and CUTCSA (Uruguayan bus line). In all, seven parties paid the US$ 5,000 fee to inspect the aircraft and all the documents detailing the individual aircraft histories, which appeared promising for the auction. However, at 9:00am on the morning of September 12, three hours before the auction was to start at 12:00 noon, the government postponed it with the official reason being to give more time to potential buyers to study the offer. However, the real reason appears to be that it was clear that no party was to present itself at the auction, which would have been a failure and a very public embarrassment for the government.
EDITOR'S COMMENTS:
There are several problems with the conditions of the auction:
1) Excessive Price
The asking price of the CRJ-900's is in excess of their market value by about US$ 8-9 million each or about 60% more than they are actually worth. Furthermore, if they were to be bought as one lot, any potential buyers would probably seek a volume discount. The Uruguayan congress determined the asking price on the basis of the amount the government would have to pay to cover the outstanding debt on the purchase price of the planes but potential buyers are not concerned with that amount, only what the planes are worth.
2) Former PLUNA Route Rights not Guaranteed
It was stipulated that potential buyers of the planes would be airlines that would operate them on the former PLUNA routes but the route rights were not part of the purchase price. The government only stated that the buyers of the aircraft would have priority in the route negotiations, without any guarantees, making the aircraft purchase less attractive and giving little incentive to pay the premium price that the government was asking.
3) Route Rights Controlled by Other Governments Too
Even if the aircraft buyer was awarded rights to all the routes that PLUNA formerly operated, the purchaser would need several more new routes for the MVD hub to be viable. The lack of certain key routes was the main reason behind PLUNA's failure.
For example, PLUNA flew east/northeast from MVD to nine cities in Brazil, including Sao Paulo (GRU), Campinas (VCP), Rio de Janeiro (GIG), Porto Alegre (POA), Belo Horizonte (CNF), Brasilia (BSB), Florianopolis (FLN) , Curitiba (CWB) and Iguassu (IGU). However, PLUNA flew west/northwest to only a few cities for all of these Brazilian passengers to connect to, such as Asuncion (ASU), Santiago (SCL), Buenos Aeres Ezeiza (EZE) and Aeroparque (AEP) plus Cordoba (COR).
The airline needed several other cities, all in Argentina, to feed / get feed from for the MVD hub concept to have a chance at viability, such as Rosario (ROS), Mendoza (MDZ), Bariloche (BRC), Mar del Plata (MDQ) and possibly Trelew (REL) and Salta (SLA) too. However, the Argentine government, in an effort to protect state-owned carrier Aerolineas Argentinas from competition, has denied many route requests by foreign carriers wanting to fly into Argentina. It should be noted that even with the route rights that PLUNA wanted, there would have been no guarantee of success.
4) Requirement to take on 250 former PLUNA Employees
The Uruguayan government was going to make the hiring of at least 250 former PLUNA employees a condition of granting route rights, involving itself in the strategic decision-making of the aircraft buyer. Private enterprise never welcomes government intervention in its business decisions.
Stay tuned as the next attempt at selling the CRJ-900's and resurrecting at least part of the PLUNA operation is scheduled to take place on Monday, October 1.
Sources: El Pais Uruguay, several articles, 12-14Sep12
Wednesday, August 29, 2012
FLEET UPDATE: Retired Austral MD-83 LV-AYD to Enter Service with Andes Lineas Aereas
Austral MD-83 LV-AYD landing on Buenos Aires
Aeroparque (AEP) runway 31 on 03Oct10.
Austral MD-83 LV-AYD, which operated the carrier's last MD-80 Series scheduled service on 10Apr12, will soon enter service with Andes Lineas Aereas. LV-AYD will be the third former Austral MD-80 to be transferred to Andes, the other two being LV-ARF and LV-BAY.
As part of the process of returning the aircraft to the lessor and transferring operators, LV-AYD was due to fly from Buenos Aires Aeroparque (AEP) to Montevideo, Uruguay (MVD) and back to Buenos Aires Ezeiza (EZE) on August 28.
Source: Linea ALA
Photo: Phil Perry
Tuesday, August 28, 2012
FLEET UPDATE: Aerolineas Argentinas takes delivery of its 21st & 22nd 737-700's
Aerolineas Argentinas recently took delivery of two 737-700's from ILFC (International Lease Finance Corporation), LV-CXN (msn 30638) and LV-CYJ (msn 30647). Both aircraft are approximately 10 years old and were previously operated by Virgin Australia. They are the seventh and eighth aircraft of a 10-plane order from the aircraft lessor and 21st and 22nd 737-700's to join Aerolineas' fleet since 2009. The two remaining planes from ILFC, LV-CYN and VH-VBL are expected to arrive in the coming weeks.
Source: http://www.aeropuertosarg.com.ar/noticias/2012/08/dos-boeing-737-700ng-mas-para-la-flota-de-aerolineas-argentinas/
Source: http://www.aeropuertosarg.com.ar/noticias/2012/08/dos-boeing-737-700ng-mas-para-la-flota-de-aerolineas-argentinas/
Monday, August 27, 2012
PHOTO GALLERY: BRAZIL PHOTOGRAPHY: Rio de Janeiro's Santos Dumont Airport - Part 2 of 3
Part 2 features aircraft from the fleets of Azul, Trip and Avianca Brasil. All photos were taken as the aircraft were about to land or take off from runway 02R on Monday, 13Aug12.
Azul Embraer ERJ-195LR, PR-AYK
Azul Embraer ERJ-195AR, PR-AYV
in special Brazilian flag scheme
Trip ATR-42-300, PT-MFE
Trip ATR-72-212A, PT-PTR
Trip Embraer ERJ-175SR, PP-PJG
Trip Embraer ERJ-190LR, PP-PJK
Azul Embraer ERJ-190AR, PR-AZC
in special Brazilian flag scheme
Avianca Brasil A318, PR-AVJ
Avianca Brasil A319, PR-AVC
Avianca Brasil Fokker 100, PR-OAE
Photos: Phil Perry
Sunday, August 26, 2012
ROUTE UPDATE: LAN to introduce 787 on Santiago (SCL) - Buenos Aires Ezeiza (EZE) route on November 1
Airline Route and World Airline News report that LAN Airlines will introduce their first Boeing 787-816, CC-BBA, into scheduled service on November 1 flying between Santiago (SCL) and Buenos Aires Ezeiza (EZE). This route will be followed soon thereafter by Santiago (SCL) - Lima (LIM) on November 4.
This will be the first use of the 787 in commercial service in South America.
This will be the first use of the 787 in commercial service in South America.
Saturday, August 25, 2012
PHOTO GALLERY: BRAZIL PHOTOGRAPHY: Rio de Janeiro's Santos Dumont Airport - Part 1 of 3
The editor of this blog traveled to Brazil for business recently but found time to visit Rio de Janeiro's Santos Dumont Airport (SDU) for some photography courtesy of the generosity of a couple of local spotters/photographers.
Santos Dumont is one of two airports with commercial airline flights serving the Rio de Janeiro area, the other being Galeao (GIG). SDU is adjacent to Rio's "Centro" business district and has all domestic flights, with about half serving the "air bridge" to Sao Paulo's Congonhas (CGH) Airport, while GIG has a mix of domestic and international flights with service to the US, Europe, the Middle East, South Africa and around South America.
SDU is built on a man-made island reclaimed from Guanabara Bay and has two parallel runways, 2L/20R and 2R/20L, 4,134 ft. and 4,341 long, respectively, with the waters of the bay at either end so there is little room for error when operating to/from this airfield. The runways are apparently too close to one another for simultaneous operations as your editor witnessed aircraft lining up for takeoff on 2R with none using 2L at the same time, which is actually closer to the terminal. This would also explain why SDU is slot-controlled with a maximum of 23 operations per hour. It could also be that all planes opt for 2R/20L because of its extra 200 ft. !
Six airlines operate out of Santos Dumont using the equipment listed below. There are no small commuter airlines flying from SDU.
TAM Airlines: A319
Gol Transportes Aereos: 737-700, 737-800
Webjet (owned by Gol): 737-300, 737-800
Azul Linhas Aereas: Embraer 190, 195
Trip (owned by Azul): ATR-42, ATR-72, Embraer 175, 190
Avianca Brasil: A318, A319, F100
Many business jets operate into Santos Dumont, some small private aircraft, plus the Brazilian Air Force has an office at SDU with a steady number of passenger flights operating from the facility.
Your editor visited SDU with his gracious host on early Monday morning, August 13, when the airport is at its busiest serving business travelers. Morning operations are almost always departing/arriving using 2R with a switch to 20L around noon. All aircraft shot below are landing on or taking off from 2R.
Santos Dumont is one of two airports with commercial airline flights serving the Rio de Janeiro area, the other being Galeao (GIG). SDU is adjacent to Rio's "Centro" business district and has all domestic flights, with about half serving the "air bridge" to Sao Paulo's Congonhas (CGH) Airport, while GIG has a mix of domestic and international flights with service to the US, Europe, the Middle East, South Africa and around South America.
SDU is built on a man-made island reclaimed from Guanabara Bay and has two parallel runways, 2L/20R and 2R/20L, 4,134 ft. and 4,341 long, respectively, with the waters of the bay at either end so there is little room for error when operating to/from this airfield. The runways are apparently too close to one another for simultaneous operations as your editor witnessed aircraft lining up for takeoff on 2R with none using 2L at the same time, which is actually closer to the terminal. This would also explain why SDU is slot-controlled with a maximum of 23 operations per hour. It could also be that all planes opt for 2R/20L because of its extra 200 ft. !
Six airlines operate out of Santos Dumont using the equipment listed below. There are no small commuter airlines flying from SDU.
TAM Airlines: A319
Gol Transportes Aereos: 737-700, 737-800
Webjet (owned by Gol): 737-300, 737-800
Azul Linhas Aereas: Embraer 190, 195
Trip (owned by Azul): ATR-42, ATR-72, Embraer 175, 190
Avianca Brasil: A318, A319, F100
Many business jets operate into Santos Dumont, some small private aircraft, plus the Brazilian Air Force has an office at SDU with a steady number of passenger flights operating from the facility.
Your editor visited SDU with his gracious host on early Monday morning, August 13, when the airport is at its busiest serving business travelers. Morning operations are almost always departing/arriving using 2R with a switch to 20L around noon. All aircraft shot below are landing on or taking off from 2R.
Afternoon shot of Santos Dumont (SDU) taken from Rio's famous
Sugarloaf Mountain. Note the TAM A319 climbing out from runway 20L.
TAM A319, PR-MBU, about to land on SDU's runway 2R
TAM A319, PT-TMA, with "4000 A320 Family" sticker commemorating
that milestone for Airbus. The plane is getting ready for takeoff on 2R.
Gol 737-700, PR-VBW, about to touch down on 2R.
Gol 737-800, PR-GUD, taxis out to the 2R threshold for takeoff.
Webjet 737-300, PR-WJL, gets ready to roll on 2R.
One of Webjet's new 737-800's, PR-GGF, landing on 2R. Note Corcovado
& the Cristo Redentor statue in the distance between the landing gears.
Photos: Phil Perry
Thursday, August 23, 2012
LAN to take delivery of its first 787 on August 31
Flight Global reports that LAN Airlines will take delivery of its first 787, registration CC-BBA, on August 31. Assembly of the aircraft was completed in late July.
Photo of LAN 787-816, CC-BBA: www.airliners.net/search/photo.search?id=2148146
Boeing will hold a ceremony unveiling the 787 at its Everett, Washington production facility on August 30 with the plane departing for Santiago at about 5:00pm on August 31 and arriving in Chile at approx. 9:00am local time on September 1.
LAN will be the first airline in South America to take delivery of the 787 and fourth overall after ANA, Japan Airlines, and Ethiopian Airlines. It has 32 787's on order, including 22 of the 787-8 model and 10 of the larger 787-9 model.
The 787 will first see regularly-scheduled service between Santiago and Buenos Aires or Los Angeles.
Source: www.flightglobal.com
Photo of LAN 787-816, CC-BBA: www.airliners.net/search/photo.search?id=2148146
Boeing will hold a ceremony unveiling the 787 at its Everett, Washington production facility on August 30 with the plane departing for Santiago at about 5:00pm on August 31 and arriving in Chile at approx. 9:00am local time on September 1.
LAN will be the first airline in South America to take delivery of the 787 and fourth overall after ANA, Japan Airlines, and Ethiopian Airlines. It has 32 787's on order, including 22 of the 787-8 model and 10 of the larger 787-9 model.
The 787 will first see regularly-scheduled service between Santiago and Buenos Aires or Los Angeles.
Source: www.flightglobal.com
Friday, August 3, 2012
PLUNA Update: Several Entities Reportedly Interested in Auction of PLUNA Routes & Aircraft
Reports of several parties interested in the auction of the former PLUNA routes and aircraft have surfaced in the last two weeks.
The PLUNA employees union claims interest on the part of Brazilian businessmen, an investor fund based in Madrid, and the Chilean airline LAN.
Al Ahli Holding Group
Dubai-based Al Ahli Holding Group, a powerful consortium of several companies, presented a letter to the Uruguayan government months ago indicating an interest in taking over PLUNA, including its employees and debt, but has not received a response, according to the group's representative in Uruguay, Enrique Gorgas. The group is looking to own an airline in Latin America motivating it to take a serious look at PLUNA. Ahli Holding Group CEO, Mohammed Kammas was due to meet with undisclosed parties in Madrid on July 24 to discuss the next steps, according to Gorgas.
Other reports speak of at least seven parties interested in the auction that have requested information on the "auction process, matters related to the employees, and the transactions involved in becoming the official national carrier".
Employee Cooperative
Cesar Iroldi, president of the PLUNA employee union OTAU-OFP, disclosed that the union has talked with two financial investors about a US$ 200 million loan to the union for it to bid at the auction as a "cooperative". The investors would not actually participate in the management of the new airline nor hold equity in it.
Sol Uruguay
Sol Uruguay, a company formed to fly the Montevideo - Madrid route (which it did not operate) is also reported to be interested in the auction but has said that the opening price of US$ 135 million is too high. The company commented that "The aircraft are appropriate for some routes, but not for short legs like the Montevideo - Buenos Aires air bridge." which was PLUNA's main route and would be its successor's too.
CUTCSA
The Uruguayan bus company Cutcsa is also looking at participating in the auction of PLUNA's assets. Cutcsa president Juan Salgado has said the company is analyzing the possibility as an opportunity that should be at least looked at. Were Cutcsa to acquire PLUNA's former assets, it might take on the ex-PLUNA employees on something resembling a cooperative, such as the company has with its bus employees, where the workers share in the profits and decision-making but also in the risks. Salgado concluded that he would like "as a Uruguayan that PLUNA be owned by Uruguayans with Uruguayan workers that see the airline as the national carrier".
It remains to be seen how many of the above "interested parties" will actually participate in the auction.
Sources: El Pais Uruguay 10Jul12, 18Jul12, 20Jul12, 22Jul12
Aviacion News 19Jul12
The PLUNA employees union claims interest on the part of Brazilian businessmen, an investor fund based in Madrid, and the Chilean airline LAN.
Al Ahli Holding Group
Dubai-based Al Ahli Holding Group, a powerful consortium of several companies, presented a letter to the Uruguayan government months ago indicating an interest in taking over PLUNA, including its employees and debt, but has not received a response, according to the group's representative in Uruguay, Enrique Gorgas. The group is looking to own an airline in Latin America motivating it to take a serious look at PLUNA. Ahli Holding Group CEO, Mohammed Kammas was due to meet with undisclosed parties in Madrid on July 24 to discuss the next steps, according to Gorgas.
Other reports speak of at least seven parties interested in the auction that have requested information on the "auction process, matters related to the employees, and the transactions involved in becoming the official national carrier".
Employee Cooperative
Cesar Iroldi, president of the PLUNA employee union OTAU-OFP, disclosed that the union has talked with two financial investors about a US$ 200 million loan to the union for it to bid at the auction as a "cooperative". The investors would not actually participate in the management of the new airline nor hold equity in it.
Sol Uruguay
Sol Uruguay, a company formed to fly the Montevideo - Madrid route (which it did not operate) is also reported to be interested in the auction but has said that the opening price of US$ 135 million is too high. The company commented that "The aircraft are appropriate for some routes, but not for short legs like the Montevideo - Buenos Aires air bridge." which was PLUNA's main route and would be its successor's too.
CUTCSA
The Uruguayan bus company Cutcsa is also looking at participating in the auction of PLUNA's assets. Cutcsa president Juan Salgado has said the company is analyzing the possibility as an opportunity that should be at least looked at. Were Cutcsa to acquire PLUNA's former assets, it might take on the ex-PLUNA employees on something resembling a cooperative, such as the company has with its bus employees, where the workers share in the profits and decision-making but also in the risks. Salgado concluded that he would like "as a Uruguayan that PLUNA be owned by Uruguayans with Uruguayan workers that see the airline as the national carrier".
It remains to be seen how many of the above "interested parties" will actually participate in the auction.
Sources: El Pais Uruguay 10Jul12, 18Jul12, 20Jul12, 22Jul12
Aviacion News 19Jul12
Thursday, August 2, 2012
PLUNA Update: Lopez Mena of BQB Interested in Former PLUNA Routes but not the CRJ-900's
Juan Carlos Lopez Mena, owner of BQB Lineas Aereas, has said that he is interested in the former PLUNA routes but not the seven CRJ-900's that the government plans to auction off in September. He described the airline business as "very risky" and that growth needs to be "a little at a time" indicating that acquiring seven aircraft all at once would be talking on too much risk, too quickly. Referring to his successful Buquebus ferry business between Argentina and Uruguay, Lopez Mena said that he started with one "little ship" and grew from there. He added that there are "perhaps cheaper or better aircraft" in the market than the CRJ-900's.
Lopez Mena claimed that BQB made plans "to acquire long-range aircraft to fly all around South America. This was in place before what happened with PLUNA." The airline "bought planes for delivery later this year and next year" he said without giving further details. Earlier reports indicated that BQB was looking to buy CRJ-200ER's.
Sources: El Pais Uruguay 17Jul12, 18Jul12
Lopez Mena claimed that BQB made plans "to acquire long-range aircraft to fly all around South America. This was in place before what happened with PLUNA." The airline "bought planes for delivery later this year and next year" he said without giving further details. Earlier reports indicated that BQB was looking to buy CRJ-200ER's.
Sources: El Pais Uruguay 17Jul12, 18Jul12
Wednesday, August 1, 2012
Aerolineas Argentinas Financial Losses Continue to Grow
Through the first half of 2012, the Aerolineas Argentinas / Austral airline group already used 76.4% of the subsidies budgeted by the Argentine Congress to cover its operating deficits for the entire calendar year 2012. AR$ 2.48 billion (US$ 550 million at the official exchange rate) was budgeted with AR$ 1.9 billion (US$ 420 million) already spent by the end of June. Much of the money was spent to cover June salaries and the 1/2 "aguinaldo" (two bonuses equal to 1/2 monthly salary, one paid in June and the other in December).
At this rate, as in recent years, Aerolineas will need further subsidies from the Congress to stay solvent through the end of the calendar year. The government (read taxpayer) subsidies to the airline totalled US$ 804 million in 2011.
The airline's DAILY losses have grown from AR$ 5.32 million in 2010 to AR$ 7.32 million in 2011 and AR$ 13.07 million so far in 2012. Projecting current losses for the rest of the year, Aerolineas will close out 2012 with a AR$ 4.64 billion loss or US$ 989 million at the official exchange rate, surpassing 2011's loss by over 20%. Calculated on a per passenger basis, government/taxpayer subsidies to Aerolineas have cost AR$ 702 / US$ 159 for every boarding.
Editor's Opinion: It seems like common sense that as long as the government covers losses at Aerolineas, that there will be little incentive for the airline's management and employees to run an efficient operation. They can relax knowing that they will be protected and the airline will not be allowed to close down. As long as those are the rules they operate by, the losses will likely continue to grow.
Source: Clarin through Aviacion News 21Jun12
La Nacion through Aviacion News 26Jul12
At this rate, as in recent years, Aerolineas will need further subsidies from the Congress to stay solvent through the end of the calendar year. The government (read taxpayer) subsidies to the airline totalled US$ 804 million in 2011.
The airline's DAILY losses have grown from AR$ 5.32 million in 2010 to AR$ 7.32 million in 2011 and AR$ 13.07 million so far in 2012. Projecting current losses for the rest of the year, Aerolineas will close out 2012 with a AR$ 4.64 billion loss or US$ 989 million at the official exchange rate, surpassing 2011's loss by over 20%. Calculated on a per passenger basis, government/taxpayer subsidies to Aerolineas have cost AR$ 702 / US$ 159 for every boarding.
Editor's Opinion: It seems like common sense that as long as the government covers losses at Aerolineas, that there will be little incentive for the airline's management and employees to run an efficient operation. They can relax knowing that they will be protected and the airline will not be allowed to close down. As long as those are the rules they operate by, the losses will likely continue to grow.
Source: Clarin through Aviacion News 21Jun12
La Nacion through Aviacion News 26Jul12
Subscribe to:
Posts (Atom)