Maintenance of Former PLUNA Operation has Cost US$ 13 million

Maintaining all 13 former PLUNA CRJ-900's and flightcrew current since the airline's shutdown on 05Jul12 plus making loan payments on the seven owned aircraft has cost US$ 13.1 million to date. The trust in charge of the aircraft has paid these costs financed by public funds. 

Approx. US$ 8.8 million of the total has gone to ScotiaBank for installment payments due on the loans for the seven company-owned planes with another US$ 4.3 million going to maintaining the 13 aircraft flight-ready and flight crews current.

50 CRJ-900 flightcrew members have traveled to Madrid for simulator training.  The goal is to maintain the pilots ready to fly and avoid possibly more expensive retraining should their type ratings lapse.

In addition, 40 personnel are employed in doing the minimum maintenance required to avoid deterioration of any of the aircraft systems compared to 80 employees doing full-maintenance on the planes prior to PLUNA's shutdown.  Maintenance work includes testing altitude and flightspeed equipment plus short test flights between Montevideo (MVD) and Punta del Este (PDP). 

Source: El Observador Uruguay 29Nov12   

ROUTE UPDATES: Aerolineas Argentinas, Andes & LAN Argentina to fly Argentina-Originating Charters this Summer

Andes Lineas Aereas will be operating many charters from Argentina to Brazil and the Dominican Republic this summer with their MD-80's.  Pictured is Andes MD-83, LV-BTH, landing at Buenos Aires Aeroparque (AEP) on 24Sep10.  Photo: Phil Perry  

Three airlines have been authorized by the Argentine ANAC to fly charters from Argentina to foreign destinations during the upcoming southern hemisphere summer - Aerolineas Argentinas, Andes and LAN Argentina.

The process was lengthy with the conclusion only arrived at recently.  Aerolineas Argentinas was given first choice of routes with other carriers only allowed to fly the routes that Aerolineas agrees to, effectively giving the national carrier a regulatory role in Argentine aviation policy.

The ANAC also required that the airlines operating charters from Argentina must be Argentine, operate regularly scheduled services (not charter-only operators) and use aircraft registered in Argentina.  This ruled out charter-only carriers like Leal Lineas Aereas that flew two MD-83's and an MD-87 on charters in the past and the use of foreign aircraft such as Vueling A320's leased in by Andes last year. 

Some of the seats that were sold to tour operators will be operated on a pure-charter basis while others will be part-charters using regularly-scheduled flights. 

Charter flights will include:

Aerolineas Argentinas 

Buenos Aires Ezeiza (EZE) - Porto Seguro (BPS), 4x/week 

Buenos Aires Ezeiza (EZE) - Salvador de Bahia (SSA), 4x/week

Because these destinations are in the far northeastern coast of Brazil, Aerolineas will likely operate 737-700/800's or A340's on these routes (not Austral's EMB-190's).

Part-charters with extra sections will also be operated from Buenos Aires Ezeiza (EZE) to Caracas (CCS), Rio de Janeiro Galeao (GIG), Florianopolis (FLN), and Cancun (CUN)

Andes Lineas Aereas

Buenos Aires Ezeiza (EZE) - Punta Cana (PUJ), Dominican Republic

Cordoba (COR) - Punta Cana (PUJ), Dominican Republic

Rosario (ROS) - Punta Cana (PUJ), Dominican Republic

Buenos Aires Ezeiza (EZE) - Salvador de Bahia (SSA)

Cordoba (COR) - Salvador de Bahia (SSA)

Rosario (ROS) - Salvador de Bahia (SSA)

Buenos Aires Ezeiza (EZE) - Porto Seguro (BPS) 

Cordoba (COR) - Porto Seguro (BPS) 

Buenos Aires Ezeiza (EZE) - Samana (AZS), Dominican Republic

Rosario (ROS) - Samana (AZS), Dominican Republic

Buenos Aires Ezeiza (EZE) - La Romana (LRM), Dominican Republic

Cordoba (COR) - Talara (TYL) in northwestern Peru, unconfirmed

All to be operated 1x/week with MD-80's. 

LAN Argentina

Cordoba (COR) - Salta (SLA) - Porto Seguro (BPS) - Maceio (MCZ), Daily with A320

Source: Aviacion News 01Nov12

Please note that La Voz, Cordoba's daily newspaper, reported in its online edition on 26Oct12 that charters to be operated from Cordoba (COR) will be the following, somewhat different from Aviacion News: 

Andes Lineas Aereas 

Recife (REC)
Salvador de Bahía (SSA)
Punta Cana (PUJ)
La Romana (LRM)
Punta Sal / Talara (TYL) 

All above with 1x/week flights. 

Porto Seguro (BPS) with 2x/week flights.

LAN Argentina

Maceio (MCZ), 1x/week

ROUTE UPDATES: Airlines Increase & Introduce New Service to Montevideo (MVD) Replacing PLUNA

Several airlines have increased existing service or introduced new service from Montevideo (MVD) since PLUNA shut down in early July, including:

Austral Lineas Aereas 

New Service with Embraer 190 to:

Buenos Aires Aeroparque (AEP), 5x/day

BQB Lineas Aereas 

New Service with ATR-72-500 to:

Asuncion (ASU), 5x/week initially, later increased to daily

Buenos Aires Aeroparque (AEP), 2x/day

Florianopolis (FLN) starting in December

LAN

Increased Service with A319 to:

Santiago (SCL), from 2x/day to 3x/day

TAM

Increased Service with A320 to:

Sao Paulo Guarulhos (GRU), from 2x to 3x/day

New Service with A320 to:

Rio de Janeiro (GIG), 1x/day

In addition, Gol is rumored to be considering increasing its MVD to GRU flights from 1x/day to 2x/day and starting daily MVD to GIG flights next year. 

Sources: Aviacion News
             El Pais Uruguay 27Oct12
             El Observador Uruguay 01Dec12
             www.flightstats.com
   

BQB - No Agreement with Iberia to Codeshare between MVD & MAD - Negotiating with other Airlines

It turns out that BQB Lineas Aereas' agreement to codeshare with Iberia on the Uruguayan airline's planned new service between Montevideo (MVD) and Madrid (MAD) in April was announced prematurely as the two carriers made no such agreement.  BQB is instead pursuing codesharing or similar partnerships with other European carriers to connect passengers through Madrid (MAD) to other European cities.

Separately, the airline announced plans to hire approx. 100 personnel, including pilots, flight attendants, mechanics and other ground personnel to operate the new route.

But will the service start without marketing agreements with other carriers being in place ?     

Source:  El Observador Uruguay 09Dec12 

BQB Announces Intention to Fly Montevideo (MVD) - Madrid (MAD) with 767-300ER's

BQB Lineas Aereas has announced its intention to operate the Montevideo (MVD) - Madrid (MAD) route six-times weekly effective April 2013 on a codeshare basis with Iberia now that the Spanish airline has officially announced that it will stop flying the route effective April 1.  The Uruguayan airline is looking to lease two 767-300ER's for the service, which it hopes to operate with Uruguayan pilots, cabin crew, ground staff, and mechanics.

Editor's Comments:  

The proposed service seems viable given that it would be operated on a codeshare basis with Iberia which means that seats on the flights would be sold using the Spanish airline's huge market presence, both through its own marketing resources and those of its oneworld airline alliance partners.  The codesharing would presumably extend on flights beyond Madrid (MAD) connecting to other European points served by Iberia, thereby enhancing the possibilities of this service.

At least for now, this would be the best way for Iberia to continue serving the Montevideo (MVD) to Europe market.  However, with reports that TAM will likely join the oneworld alliance as part of its merger with LAN, it might be better for Iberia to codeshare with TAM from Montevideo (MVD) to Sao Paulo (SAO) to Madrid (MAD) to keep the revenue in the oneworld alliance although such a service would not be nonstop to Madrid (MAD) as BQB's is planned to be. 

Source:  El Observador Uruguay 07Dec12

ROUTE UPDATE: Iberia Discontinuing Montevideo (MVD) - Madrid (MAD) Flights in April 2013

Iberia Airlines announced in mid-November that it was going to reduce flights between Montevideo (MVD) and Madrid (MAD) from six per week to five-times weekly on 01Jan13 only to recently announce that it is going to discontinue all service between the two cities effective next April.

The airline has recorded high load factors on the route with the first quarter of 2012 having 89% seat occupancy and the second quarter 84%.  

Editor's Comments:  While this might suggest good profitability, a lot depends on the average fare yield on the route.  Even with high load factors, if nearly all the tickets sold were discounted economy-class fares, Iberia might be losing money on the route.  On most routes, a full-service carrier like Iberia would need for 10% or more of the passengers to be higher-fare paying business travelers.     
There was speculation initially that LAN or COPA would replace Iberia on the route but neither carrier is authorized to fly between Montevideo (MVD) and Madrid (MAD) plus COPA does not have long-range aircraft for transoceanic flights nor would MVD-MAD fit into its route system.  The route would not make sense for LAN either as they would be competing with TAM, part of the same ownership group, whose flights from Montevideo (MVD) to Sao Paulo Guarulhos (GRU) connect to TAM's Madrid (MAD) flights.

BQB Lineas Aereas' owner Juan Carlos Lopez Mena has expressed interest in flying the route on a codeshare basis with Iberia.  How this would work given BQB's lack of long-range aircraft is uncertain but a reader of El Pais Uruguay online suggested that BQB might fly the A320 that they are supposed to receive early next year from Montevideo (MVD) to Guarulhos (GRU) or Rio de Janeiro Galeao (GIG) connecting to Iberia.  But with LAN/TAM likely to stay in the oneworld airline alliance which Iberia also belongs to, this would seem unlikely because it would compete with TAM's Montevideo (MVD) flights to Guarulhos (GRU) connecting to Iberia to Madrid (MAD).  

Sources: Aviacion News 29Nov12
             El Observador Uruguay 01Dec12
             El Pais Uruguay 01Dec12

Montevideo (MVD) Passenger Traffic down 45% without PLUNA

Passenger traffic at Montevideo (MVD) was down 45% during the three months of June, July, and August 2012 compared to the same months in 2011.  This period coincides with the demise and eventual shutting down of PLUNA on July 6.

MVD had the following passenger traffic in those months of 2011: June 137,953; July 185,734; and August 189,446 for a total of 512,773 passengers.  By comparison, in 2012 the passenger numbers fell to 73,830 travelers in June, 102,780 in July, and 103,782 in August for a total of 280,392 travelers.  The drop of 232,381 travelers representing a 45.3% year-over-year decline. 

The year had started off very well for MVD with a 17.1% increase in travelers during the January to May months (477,393 passengers in 2011 to 559,156 in 2012) but the subsequent decline in passengers the following three months yielded an 8.9% drop in cumulative numbers through August.       

Aerolineas Argentinas was one beneficiary of PLUNA's shutdown as it operated 78 more flights between Buenos Aires and Montevideo during June-August than in the same months in 2011 carrying 4,004 more passengers in the process.

Source: El Pais Uruguay 03Nov12

FLEET UPDATE: All Six Leased ex-PLUNA CRJ-900's departed Montevideo (MVD) to Canada Today

All six ex-PLUNA CRJ-900's that were leased-in from Export Development Canada departed Montevideo (MVD) today, one after another with the first one taking off at 8:40am.  The aircraft reportedly had their PLUNA titles and Uruguayan registrations removed with Canadian registrations added.  Their flights to Canada were going to reportedly route via Peru, presumably Lima (LIM).

They were the six most recent CRJ-900's that PLUNA received, joining the fleet in 2010 and 2011. The six specific aircraft were, as previously reported:

CX-CRH (c/n 15233)
CX-CRI (c/n 15234)
CX-CRK (c/n 15239)
CX-CRL (c/n 15273)
CX-CRM (c/n 15274)
CX-CRN (c/n 15275)

Source:  El Observador Uruguay 04Dec12
             El Pais Uruguay 04Dec12

Former PLUNA Workers' New Airline Project Moves Forward

Former Buenos Aires employees of PLUNA in front of ex-PLUNA ticket counter at Buenos Aires Aeroparque (AEP) in mid-October 2012.  The workers were protesting that they were not paid for the last month of work prior to PLUNA's shutdown.  (photo taken with permission of workers)  

President Jose Mujica of Uruguay recently signed a law that would enable the trust managing the seven former company-owned PLUNA CRJ-900's to negotiate the sale, lease, or transfer of the aircraft to an entity formed by the former PLUNA workers.  The law bill will now go to the Uruguayan congress to be voted on.  

If passed, the seven aircraft will end up in the hands of the workers' cooperative being formed by a group of former PLUNA employees to start a new airline replacing the defunct national carrier, though on a smaller scale than the original airline. The entity receiving the aircraft will negotiate route rights and frequencies with the Uruguayan government. 

Though the terms of the handover of the planes have not yet been determined, it was previously reported that the Uruguayan government was considering giving the aircraft to the workers for free.  One condition that has been imposed is that the workers will have 180 days to get the airline up-and-running using the seven CRJ-900's.  If they fail to meet this deadline, the planes would be made available to other parties.  Whatever happens will require the president's approval before going forth.  

The head of the workers' union, Cesar Iroldi, indicated that the workers' cooperative will approach the Fondes (Development Funds Office) for the start-up capital in the next few days.  Fondes was formed by the present government to fund entrepreneurial efforts and is capitalized with 30% of the  Banco de la Republica's (Uruguayan national bank) income.

The workers claim that they expect the new airline to be operational by 01Apr13 with 450 employees and their business plan projects a US$ 7 million loss in the first year of operations.  The new airline's name is yet to be determined.  President Mujica remarked that they will need to get somebody with significant managerial experience and a substantial presence in the business world to run the airline.                

Sources:  El Pais Uruguay 28Nov12, 29Nov12
              El Observador Uruguay 28Nov12

Photo:     Phil Perry
              

Aeroparque - No More General Aviation Flights effective 30Nov12

The Argentine Civil Aviation Administration recently announced that all general aviation traffic and commercial flights operated by aircraft with fewer than 31 seats will be banned from Buenos Aires Aeroparque (AEP), effective 30Nov12.  The only exception to this will be official government flights, such as the president's aircraft, and declared emergencies.  Air taxi companies and FBO's (fixed base operators) that are based at Aeroparque will be allowed to operate out of AEP until 31Jul13.  

This means that small airlines such as Aerochaco and LAER that use 19-seat Jetstream 32's will have to move their operations north to San Fernando (FDO) if they continue service at all.  Sol operates Saab 340A's and 340B's that have between 34-37 seats so they meet the 31-seat cutoff and will presumably be allowed to continue operating from AEP.

The reason behind the measure is the "saturation" of the airport from an air traffic standpoint since regional international flights were introduced at AEP in early 2010 plus the growth of domestic flights at the airfield in recent years.  

Editor's Comments:

I have been to Aeroparque many times in recent years to spot and take photos and far from perceiving the airport to be a very busy place it has struck me as having relatively little traffic for one of two main airports of a major cosmopolitan city.  

Compared to some other major one-runway airports, Aeroparque does not seem especially busy. 8.25 million passengers travelled through AEP in 2011 and the airport has 295 daily movements by commercial airlines.  By comparison, San Diego (SAN) had 16.8 million passengers in 2010 and has 342 daily commercial flights and London-Gatwick (LGW) had 33.6 million travellers in 2011 and has 550 daily flights, nearly double Aeroparque's.  I suspect the difference is explained by greater investment in equipment and infrastructure. Rather than turn away aircraft, it would be better to invest more in AEP, which is an important contributor to the Argentine economy.      

Sources:   http://www.aviacionnews.com/blog/2012/11/tendria-fecha-de-
               salida-la-aviacion-general-de-aeroparque/
               Wikipedia re Sol Saab 340's, SAN, and LGW 
               www.flightstats.com       

ROUTE UPDATE: TACA to Start Flying A330's on its Lima (LIM) to Buenos Aires Ezeiza (EZE) Route on 15Dec12

Airlineroute.net reports that TACA will start flying the Airbus A330-200 once-daily on its already existing Lima (LIM) to Buenos Aires Ezeiza (EZE) route.  The airline currently flies A321's between the two cities twice-daily using this aircraft type for both services.

This will be the first wide-body passenger service by TACA in at least twelve years.  The carrier flew six 767-200's and three 767-300's in passenger service from about 1985 to 2000 and several A300F freighters at least during 1999-2001.

The AviancaTACA group has at least nine A330-200's in service.  They are powered by two Rolls-Royce Trent 700's and have seating for 252 passengers; 30 in business class and 222 in economy. 

The flight schedule for the A330-200 service will be:  

Flight       Routing                                Dep      Arr         Frequency

TA965      Lima - Buenos Aires Ezeiza      2158     0433+1   Daily
TA966      Buenos Aires Ezeiza - Lima      0629     0914       Daily 

Sources:   www.airlineroute.net via Eric Trum
               www.airbus.com
               www.airliners.net
               www.planespotters.net  

Aeroparque - Only for Aerolineas Argentinas & Austral ?

Catching up on some news from the last month:  Aerolineas Argentinas' management is reportedly considering proposing that Buenos Aires' convenient downtown airport Aeroparque (AEP) be reserved for the exclusive use of itself and sister-carrier Austral.  This proposal has been named "Plan Aeroparque".

Other airlines currently flying from Aeroparque include LAN Argentina, LAN (of Chile), Gol, TAM, BQB, Andes, Sol, LADE, plus Aerochaco and Lineas Aereas Entre Rios (both carriers' services operated by MacAir Jetstream 32's).  Under the plan, the jet operators; both LAN's, Gol, TAM, Andes, and LADE would all move their services to Buenos Aires Ezeiza (EZE) with the turboprop carriers; BQB, Sol, Aerochaco and LAER moving to San Fernando (FDO), a smaller airport to the north. 

According to the Argentine business website www.cronista.com, there are currently 295 daily airline operations (both takeoffs + landings) at Aeroparque (AEP) broken down by the following carriers:

Aerolineas Argentinas / Austral: 190
LAN Argentina 55
Sol Lineas Aereas 18
LAN (Chile) 6
Gol 6
TAM 6
Andes 4
BQB 4
Aerochaco 4
LADE 2

These vary by day of week and the editor of this blog believes that LAER also has about 6-12 flights per week.

The main motivation of the plan is to give AR/AU a competitive advantage by being the only carrier flying out of AEP, which is located in the city of Buenos Aires itself and is much more convenient than EZE or FDO, both located about 20 miles (32 km) of the city center.  This would allow AR/AU to raise airfares which would help turn around the US$ 2 million daily deficit that the airline is currently accumulating.

Aerolineas' management justifies the proposed move as a way of compensating for the flights that it operates to unprofitable destinations, while the private carriers only serve cities where they know they can make money.

The plan has not been put on paper or made public yet but it would likely be poorly received by the Brazilian carriers especially, with the likely consequence that AR/AU would not be allowed to fly from AEP to Brazil and would have to move their operations to EZE along with Gol and TAM, thereby cancelling out any competitive advantage that AR/AU sought to gain at least on those routes.  Also, if LAN Argentina were forced to move all of their operations to EZE, they would lose most of their passengers and incur heavy losses, with the parent airline likely shutting down its Argentine affiliate.  The resulting loss of hundreds of jobs would likely have to be absorbed by AR/AU for political reasons further deepening the carrier's already heavy financial losses.

Source: http://www.cronista.com 17Oct12