TRANSATLANTICA ARGENTINA DE AERONAVEGACION, S. A.: Argentina (1958-1962). A group of former Fuerza Aerea Argentina (air force) officers form Transatlantica at Buenos Aires in March 1958. After an 18-month delays spent obtaining necessary permits and purchasing three former Trans World Airlines (TWA) Lockheed L-1649A Starlin-ers, the new entrant inaugurates twice-weekly roundtrip service to Zurich on September 21, 1960 via Rio de Janeiro, Recife, and Lisbon.
Early in 1961, the overseas network is altered somewhat; Recife is dropped in favor of a Dakar stop, Geneva replaces Zurich in Europe, and the route is stretched from Switzerland on to Tel Aviv in Israel. A fourth Starliner arrives from Howard Hughes’ carrier during the year’s first half.
The carrier joins IATA on July 1; however, by this time, the company has begun to deteriorate badly. By year’s end, layoffs occur, workers are unpaid, and accusations of fraud are made. Operations are suspended on November 5.
All operations are shut down in February 1962. Overextended financially, any hope of restarting must be abandoned; company officials resign from IATA on August 21 and shut the doors. As assets are sold off, one of the L-1649As will be returned to Trans World Airlines (TWA) two years later; it will be sold to the FAA for a spectacular crash test at Deer Valley Airport, Phoenix, Arizona, on September 3, 1964.
TRANSAVIAAIRLINES (LUCHTVAARTMATTSCHAPPIJ TRAN-AVIA, N. V.): P. O. Box 7777, Westelyke Randweg 3, Schiphol Airport, Amsterdam, NL-1118ZM, The Netherlands; Phone 31 (20) 604-6555; Fax 31 (20) 648-4637; Http://www. teldesign. nl/transavia. html; Code HV; Year Founded 1986. The 612-employee Dutch charter carrier Transavia Holland, N. V. changes its name to Transavia Airlines during the summer of 1986 in preparation for the launch of scheduled services. Chairman Peter J. Legro’s fleet of 9 B-737-2K2s/2K2Cs and 2 B-737-3K2s receives new livery, a new logo is provided, and new uniforms are introduced. On October 26, scheduled service is launched by Transavia’s B-737-2K2s from Amsterdam (Schipol Airport) to London (LGW).
For the year and under both names, the carrier boards 765,350 passengers and hauls 284,000 FTKs. A $10-million profit is reported.
The payroll is increased by 12.1% in 1987 to 686 and a fourth Amsterdam to London frequency is added in March.
Passenger boardings accelerate 24.8% to 1,006,699, but cargo drops 12% to 11.34 million FTKs.
Two more B-737-3K2s join the fleet in 1988, as orders remain outstanding for four more. After competing with Transavia for two years on the Amsterdam-London route, KLM (Royal Dutch Airlines, N. V.) drops out and purchases a 40% shareholding in its former competitor; shareholding in Transavia is now divided between the Dutch flag carrier, Nedloyd (40%), and institutional investors (20%).
Customer bookings rise 10.8% to 1,100,586. Freight declines another 59.2%.
Company employment grows 13% in 1989 to 686. The airline becomes the first in Holland to offer charter flights to Turkey, including Anatolia, Izmir, Ankara, and Dalatan. A code-sharing agreement is signed with Continental Airlines, allowing the Dutch carrier to feed the U. S. major at London (LGW) from Amsterdam. In early fall, scheduled flights begin to Mombasa via Luxor. Scheduled five-times-per-week B-737-3K2 flights are inaugurated in November from Amsterdam to Tenerife and Las Palmas.
Enplanements during the 12 months rise to 1,155,547.
The fleet in 1990 includes 8 each B-737-3K2s and B-737-2K2s/2K2Cs. Following Iraq’s August 2 invasion of Kuwait, fuel prices rise from 580 to $1.60 per gallon and service is suspended to a number of Mideast points, including Baghdad, Cairo, and Tel Aviv. When the Mombasa route becomes too expensive to operate in December, it is turned over to Air Holland, N. V.
Passenger boardings jump 7.7% to 1,251,946, but freight drops 16.1% to 387,000 FTKs.
The workforce grows to 900 in 1991 and the fleet is increased by the addition of 2 B-757-236s and 2 B-737-3K2s. Several machines are now leased out: a B-737-2K2 to Britannia Airways, Ltd. one B-737-2T5A and B-737-212A to KLM (Royal Dutch Airlines, N. V.), along with a B-737-3K2, one B-737-2K2C to L’Aeropostale, S. A., and two B-737-3K2s to Transmed Airlines, Ltd. of Egypt.
In January, a cooperative agreement is signed with the Danish charter operator Sterling Airways, A. S. The two airlines pledge cooperation on operational, commercial, and technical matters. KLM (Royal Dutch Airlines, N. V.) acquires 80% shareholding in July and the two companies almost immediately join their frequent flyer programs.
Like other European carriers, Transavia suffers an off year in bookings as a result of the Gulf crisis, with enplanements declining to 1,159,465. Despite the traffic downturn, income exceeds expenses and leaves profits: $10.48 million (operating) and $10.69 million (net).
The employee population is boosted a whopping 30% in 1992 to 1,026 as two more B-757-236s arrive.
Customer bookings recover and ascend 28% to 1,610,368. Revenues ascend 18% to $242.85 million while expenses climb 23% to $239.6 million. The happy difference allows an operating surplus of $3.24 million and a net gain of $7.94 million.
President/CEO Peter J. Legro oversees a workforce of 1,003 in 1993, down 2% from the previous year. Nine scheduled destinations are visited, including Alicante, Faro, Funchal, Heraklion, Las Palmas, London (LGW), Malaga, Malta, and Tenerife.
A leased 757-236 is delivered by Boeing in March, allowing roundtrip service to begin at month’s end from Mulhouse, France, to Athens. A second B-757-236 arrives in April.
Passenger boardings for the year continue their upward trend, rising 2% to 1,653,365, but revenues drop 10% to $217.75 million. Expenses swell 13% to $208.21 million and the resulting operating profit climbs to $9.54 million. A net $13.21-million profit is generated.
Airline employment is increased by 12.7% in 1994 to 1,130 and services to Palma de Mallorca starts in April. During the summer, a B-757-2K2 receives a colorful new livery in honor of the Dutch national football team. Adorned with soccer balls and the team logo, the aircraft transports the national team to and from the U. S. in support of its participation in the World Cup ‘94 matches.
Customer bookings this year increase 21% to 2,004,877.
Much of 1995 is spent preparing for the company’s thirtieth anniversary. A total of $1 million is committed to a revision of the corporate image. The change will extend to ticket counters, uniforms, and advertising and, as is usually the case with marketing makeovers, a new aircraft livery. The color scheme applied is chosen by both employees and passengers and retains the company’s signature dark green and white in a more modern motif. The first aircraft painted in the spring is a B-737-3K2.
When KLM (Royal Dutch Airlines, N. V.) withdraws from Tunis on October 29, the carrier takes over the route, operating it from Amsterdam to Tunisia twice weekly.
Enplanements this year total 2,285,297 and there are profits: $9.7 million (operating) and $10.7 million (net).
Nine new workers are hired in 1996 and the owned fleet includes 2 B-757-2K2s, 8 B-737-3K2s, 1 of which is chartered to KLM (Royal Dutch Airlines, N. V.), and 1 B-737-2K2Athat is out on lease to Bouraq Indonesia Airlines. Orders are outstanding for eight B-737-8K2s and one B-757-2K2.
During June, Transavia is heavily booked to transport Dutch soccer fans to the U. K. to cheer on the successful Netherlands national team in the European football championships.
Customer bookings inch up 1% to 2,308,380, but operating income plunges 11% to $297 million. Fortunately, costs also drop 11%, to $289.3 million. The bottom lines also decline with operating gain down to $7.7 million and a net $2.4-million profit recorded.
The employee population falls 8.7% in 1997 to 1,040. During the spring, single-class service and simplified fare structures are initiated on all flights. The company is employed by Ukraine International Airways to operate scheduled flights on its behalf from Kiev.
By the end of July, the carrier visits 15 scheduled and 60 charter markets and transports 37% of all Dutch charter passengers. Weekly return service is inaugurated on September 24 from Amsterdam to Kathmandu, Nepal. Refueling and a crew change is made at Sharjah.
With the start of the winter schedule on October 1, the carrier offers dual-designator flights with KLM (Royal Dutch Airlines, N. V.) from Amsterdam to Casablanca.
Passenger boardings jump 16% to 2,674,440.
Service is maintained in 1998. During the year, three Next Generation B-737-8K2s are scheduled to enter service.
During the first week of November, the company becomes the first nonGreek airline to transport local passengers in Greece. Aviation authorities in Athens permit the KLM affiliate to transport local passengers on its Am-sterdam-originating twice-weekly services between Rhodes and Crete.
Customer bookings this year surge another 15% to 3.07 million.
By the beginning of 1999, airline employment has been increased by 17.1% to 1,218. Two of the three Next Generation B-737-8K2s due for delivery are received by April. On May 28, an order is placed with Boeing for four more, which will begin delivery in 2000.
Passenger boardings rise 14% to 3.5 million. Revenues of $379 million are generated and expenses are $363 million. The operating profit slides to $16 million, while net gain slips $1 million to $18 million.
Airline employment at the beginning of 2000 stands at 1,502, a 16.8% increase over the previous 12 months. The “classic” B-737 fleet still includes 6 Dash-3K2s and 1 Dash-3L9. Also operated are 6 Next Generation B-737-8K2s, which are joined by a 7th on March 25, and 4 chartered B-757-2K2s.
Thrice-weekly B-737-3K2 nonstop roundtrips are initiated on April 6 from Amsterdam to Naples. The eighth B-737-8K2 is delivered on April 25 and a B-757-236 is leased from Royal Airlines, Ltd. for three months, beginning on April 26. Two more Next Generation B-737-8K2s arrive in May, one each on the 11th and 16th.
In a new kind of advertising campaign that will also be adopted by easyJet, Ltd., a Transavia Next Generation B-737-8K2 emerges from the paint shop on June 15 wearing large “www. transavia. nl” titles.
On August 31, five Next Generation B-737-7Q8s are chartered from ILFC for delivery beginning in April 2002; a Next Generation B-737-8Q8 will arrive in June of the same year.
Just after takeoff from Iraklio Airport on the Island of Crete on September 25, an engine aboard a B-757-2K2 with 228 passengers en route to Amsterdam, catches fire. After dumping fuel, the plane returns to its point of origin. The Dutch tourists aboard are deplaned and sent to Holland aboard another company aircraft later in the day.
A chartered B-757-23A is returned to its lessor at Amsterdam on October 30. Two Next Generation B-737-8K2s are leased to Air Berlin, GmbH. for five months beginning November 13; the aircraft are delivered in a hybrid livery complete with Web site titles.
Twice-daily, no-frills, low-fare scheduled B-737-3K2 Basiq Air roundtrips are inaugurated on December 18 from Amsterdam to both Barcelona and Nice. Options to purchase two additional B-737-8Q8s are turned into firm orders on December 22; the new planes will be delivered in 2002.
Customer bookings during these 12 months jump 7% to 3.76 million.
TRANSAVIA EXPORT CARGO AIRLINE: Zakharova Str 44, Minsk, 220034, Belarus; Phone 375 (0172) 363 641; Fax 375 (0172) 275 101; Code AL; Year Founded 1992. With government backing and $6.5 million in capitalization provided by the MAZ truck concern, Gor-izont electronics, and the Atlant appliances firm, a plan is made in December 1992 to turn a military enterprise to civil use. In early spring 1993, the privately owned TransAvia Export is founded at Minsk as an all-cargo carrier.
The Belarus military transport regiment, together with 300 of its personnel, ground equipment, and 10 Ilyushin Il-76MDs are transferred to it. In addition, the former Soviet Air Force bases at Machulischi and Vitebsk are made available. Sergey Mankhaev is named president and scheduled international cargo charters, ad-hoc charters, and fixed contract services commence in May.
The first Il-76MD roundtrip charter to Western Europe is operated in early June; for a two-week period, the giant freighter is contracted to fly German-produced pesticides daily from Luxembourg to cotton producers in Kazakhstan.
Among the scheduled cargo charters now undertaken are thrice-weekly services to Delhi, Sharjah, and Brussels; cargos back from the latter destination include large quantities of Philip Morris cigarettes destined for resale in Minsk and Moscow.
Under auspices of the UN, a fixed contract is received from the government of Angola; four Il-76s are dispatched to the African nation to transport supplies to high-altitude destinations that are inaccessible due to the large quantities of land mines left over from the civil war. When Belarus agrees to participate in the Somalia relief operation, TransAvia Export’s Ilyushins airlift the required military equipment.
Operations continue apace in 1994-1997. During these years, the company operates 20 Il-76MDs and places orders for 8 Boeing 737800s. The Russian currency crisis of 1998-1999 has a significant fiscal impact and forces abandonment of the Boeing order. By the start of 2000, the fleet has been reduced by two Ilyushins.
TRANSAVIA HOLLAND (LUCHTVAARTMAATSCHAPPIJ TRANSAVIA HOLLAND, N. V.): The Netherlands (1965-1986). Transavia Limburg, N. V. is founded in November 1965 with former Martinair Holland, N. V. official John Block as CEO. The original shareholders are KNSM (Koninklijke Nederlandse Stoomboot Maatschappij, N. V.) (40%) and Foundation Transavia Luchtvaart (60%). Plans to begin charter operations with a Douglas DC-3 are shelved in favor of larger planes now ordered.
Three DC-6Bs begin charter and inclusive-tour service on November 17, 1966 by flying a Dutch dance troupe from Amsterdam to Naples.
During 1967, the present name is adopted and enplanements total
130,000. The first Boeing 707-123B, originally flown by American Airlines, is delivered in 1968 as passenger boardings triple to 390,000. As tour traffic increases in 1969 and flights are planned to additional destinations, a Sud Est SE-210 Caravelle III is placed in service on February 11.
The fleet in 1970 comprises 6 Douglas DC-6s, 1 Boeing 707-123B, and 2 SE-210s. Orders are placed for 5 Boeing 737-200s. Additional service is provided to even more points in southern Europe, the Mediterranean, and North Africa during 1971-1972. Enplanements in the latter year total 544,440.
The employee population in 1973 numbers 480. Two B-737-2K2s are delivered, the first on May 17.
Passenger boardings jump 22% to 698,000 and the carrier is now flying almost half of all Dutch charter service; freight traffic accelerates by 41%.
Ten more employees are hired in 1974. Three more B-737-2K2s are placed in service, making a total of 5 short-haul Boeings, 7 Caravelle III/VIRs, 1 707-123B, and 1 Piper PA-31-310 Navajo on hand.
An SE-210 Caravelle VIR is destroyed in a ground accident at Schiphol Airport on June 22. No injuries are reported.
The oil crisis causes significant financial problems; however, KNSM increases its holding from 40% to 60%.
Although passenger boardings dip 1% to 689,680, the number of FTKs flown skyrockets 124.8% to 5.33 million.
Two additional B-737-2K2s and a B-707-320C are added in 1975 as the company enters the airliner leasing business. Lauda Air Luftfahrt-gesellschaft, A. G., Indian Airlines Corporation, and CPAir, Ltd. are among the first to charter Transavia’s excess capacity during winter seasons.
Atotal of 738,750 passengers are carried and net earnings total 6 million guilders.
In 1976, airline employment stands at 481. A contract is received from Saudia (Saudi Arabian Airlines) to fly teachers and Hadj pilgrims.
Cargo traffic skyrockets 160% to 28.63 million FTKs and passenger bookings move upward 3% to 761,598. Net income ascends to 20 million guilders.
The carrier becomes wholly owned by KNSM in early 1977. A new logo is now introduced, the repainting of all aircraft in a new livery begins, and new uniforms are adopted for flight attendants, cockpit crews, and ground personnel.
The last SE-210s, the 707-320C, and the Piper Navajo are retired in 1978 as boardings decline. Managing Director P. D. O. Hanrath oversees a workforce of 450 and his fleet comprises 1 B-707-120B, 5 B-737-2K2s, and 3 B-737-2K2Cs. Enplanements drop 6% to 891,380 in 1979.
Peter J. Legro, Netherlands manager for Pan American World Airways (1), succeeds John Block as chairman in January 1980. Two B-737-2K2s enter winter contract operations for British Airways, Ltd. (2), one for Austrian Airlines, A. G., and one for Air Djibouti, leaving three B-737-2K2Cs and one B-707-123B to be operated on the carrier’s charters.
On June 6, a B-737-2K2C with 96 passengers arrives on the island of Rhodes in the Mediterranean on a charter service from Amsterdam and as the baggage is being off loaded, an unexploded bomb tumbles out.
Beginning in November, the company wet-leases the three “Baby Boeings” to Air Malta, Ltd. to fly that carrier’s European route system.
In 1981, the carrier becomes wholly owned by Royal Nedlloyd Group as a result of KNSM’s merger into that organization and reaches a high point in its history in 1982 by transporting 943,800 holiday travelers. The fleet is now an all-737 unit as the lone B-707-123B is sold. The company now agrees to lease one of the new B-737-2A3As acquired by PLUNA (Primeras Lineas Uruguayas de Navegacion Aerea, S. A.)
Every northern summer to help cover its peak charter activity (at which point the southern summer is PLUNA’s low season).
The wet-lease charter of three B-737-2K2Cs to Air Malta, Ltd. is concluded in April 1983. Severe traffic reversals set in as the carrier finally begins to suffer the impact of the world’s recession.
Passenger boardings drop 32% to 715,000. The downturn forces the carrier to layoff 6.2% of its workforce.
As forecast during the height of its 1983 woes, the charter airline experiences a turnaround in 1984 even more remarkable than its decline.
Although the workforce is cut 2% to 397, passenger bookings soar 43.9% to 778,600 and cargo skyrockets an incredible 338.1% to 13.98 million FTKs.
Recovery continues in 1985 as the fleet is strengthened through the acquisition of two more B-737-2K2s for a total of nine; orders are placed for two B-737-300s.
Boardings increase 18% to 801,000, but freight dips 2% to 13.7 million FTKs.
The employee population is increased by 13.1% in 1986 to 612 and the fleet includes 9 B-737-2K2s/2K2Cs and 2 B-737-3K2s, with orders outstanding for 2 more Dash-300s.
In January, one of the former is leased to Challenge International Airlines. During the summer, the carrier changes its name from Transavia Holland B. V. to Transavia Airlines, N. V. A new paint scheme and logo are provided for all aircraft and new uniforms are introduced by pilots, cabin attendants, and other passenger-greeting staff. Emphasis will now be placed on scheduled services.
TRANSAVIO, S. p.A.: Italy (1980-1996). Originally established at Milan in 1980 as an air taxi operation for the Tuscany region, Transavio quickly elects to offer scheduled daily services during the summer. The commuter’s single Britten-Norman BN-2 Islander flies nonstop from Pisa to Marina di Campo Airport on Elba.
In 1981-1984, General Manager Italo Ballerio’s company inaugurates Pisa to Grosseto flights as a fleet is created that includes two Islanders, a Piaggio P-166, and various Piper lightplanes.
Service to Rome is started in 1987-1988, at which point three Fairchild-Swearingen Metro IIIs are acquired. Florence joins the growing route network in 1989. In 1990, a Fokker F.27-200 is leased from the Swiss operator Sunshine Aviation and is employed to initiate a frequency to Lugano. The Metroliners are withdrawn in 1991.
Operations continue between 1992 and 1996 as the fleet is revamped to emphasize larger equipment. By the latter year, it includes 13 Boeing 737-200s and 3 B-757-200s and charter services are provided from Milan and Pisa to Elba, Grosseto, Florence, and Bastia while a scheduled route connects Lugano-Agno with Rome.
TRANSBRASIL, S. A. (LINHAS AEREAS TRANSBRASIL): Rua General Pantaleao Teles 40, Transbrasil Aeroporto, Sao Paulo-SP, CEP-04355-040, Brazil; Phone 55 (11) 525-4600; Fax 55 (11) 543-8048;
Http://www. transbrasil. com. br; Code TR; Year Founded 1972. In June 1972, owner Omar Fontana changes the name of his earlier airline enterprise, SADIA, S. A. (Transportes Aereos) to its present designation. The updated BAC 1-11-500 fleet is repainted in a bright new “jelly bean” livery (designed to project Brazil’s natural richness) and the carrier receives an entirely new corporate image as its headquarters are moved to Brasilia from Sao Paulo’s Congohas Airport, now grown too small.
Orders are placed in 1973 for Boeing 727-100s, despite the onset of financial difficulties occasioned by a sudden rise in fuel prices and a decline in the nation’s economy. The carrier is also, in March, the first in the world to order the new Embraer commuter liner, the EMB-110B Bandeirante; the initial aircraft are placed in service on southern routes on April 16.
Meanwhile a cash-and-exchange agreement is reached with British Midland Airways, Ltd. (BMA). In exchange for three Transbrasil Dart Heralds and an undisclosed sum of cash, the U. K. independent sells three of its British Aircraft Corporation BAC 1-11-523s to Chairman Fontana’s company.
The government recommends Transbrasil’s merger with equally hard-pressed Cruzeiro do Sol, S. A. in 1974, but Fontana is unable to obtain the 42% loan guarantee from the National Development Bank that would allow him to become a more financially secure organization and to buy out the older airline.
A BAC 1-11-520FN with 8 crew and 88 passengers hydroplanes off the runway while landing at Sao Paulo on February 1; there are no fatalities. Later in the month, a replacement BAC 1-11-530 is chartered from British Caledonian Airways, Ltd. (BCAL) for 11 months.
The government now pushes the sale of both carriers, but Fontana refuses to sell out to VARIG Brazilian Airlines (Viacao Aerea Rio-Grandense, S. A.), believing his funding difficulties can be overcome. The first two B-727-100QCs are delivered on October 2 and will enter service before Christmas. Over the next quarter century, the airline will become the largest operator of this aircraft type in all of South America.
On October 7 and in cooperation with the Brazilian Mail and Telegraph Company, a BAC 1-11-523 begins night airmail flights over a new Rede Postal Nortuma (nocturnal postal network). Late in the year, BCAL charters two BAC 1-11-518s to Transbrasil, with the first delivered on December 6. They, too, will be purchased.
Additional Boeings are ordered in 1975 and an employee participation plan, the Fundacao dos Funcionarios da Transbrasil (Transbrasil Employees Foundation), is established on October 10, along with a corporate social security system. On November 12, the government decrees a new Sistema Integrado de Transportes Aereos Regional and authorizes the establishment of five new regional carriers to serve the nation.
An EMB-110C, with two crew and seven passengers, fails its takeoff from Chapeco on January 22, 1976, and crashes (seven dead).
In early June, Transbrasil joins with the State of Bahia to form the third-level airline Nordeste (Linhas Aereas Reginais, S. A.) as one of the five government-ordained regionals. The new operator begins service on June 15, replacing a number of Transbrasil’s domestic flights. Having been withdrawn from the Ponte Aerea Air Bridge service, the last three Dart Heralds are sold. Buyers are also sought for the BAC 111-518 and BAC 1-11-523s.
The route network in 1977 now includes points along the eastern seaboard and southeast, plus lines, via Brasilia, to the northeast and Amazon area.
A BAC 1-11-520FN with 5 crew and 37 passengers lands heavily down the runway at Sao Paulo on January 4, causing its nosegear to collapse. The jetliner swerves off the runway, over a trench, and skids 360 m. to a stop. There are no serious injuries reported.
A new hanger, briefly the largest in South America, is dedicated at Brasilia in March.
Enplanements for the year total 1,186,000 and the financial problems of 1974 appear overcome.
All of the propeller equipment and the final six BAC 1-11-500s by now having been withdrawn and some transferred to Nordeste (Linhas
Aereas Reginais, S. A.), Transbrasil’s fleet in 1978 comprises eight B-727-100QCs and two B-727-100s. An all-cargo service to Miami is opened in March.
Passenger boardings soar 16% to 1,412,000 and freight traffic accelerates by 21%.
In 1979, orders are placed for two B-727-200s. Enplanements jump 16.3% to 1,642,000 and cargo climbs 35.2%.
Airline employment grows by 10.1% in 1980 to 3,261. The fleet is strengthened by the addition of six B-727-100s.
While on initial approach to Florianopolis after an April 12 flight from Sao Paulo, a B-727-27C with 8 crew and 47 passengers goes off course and crashes into a hill (55 dead).
The all-freight AeroBrasil Cargo (Aerobrasil Servicios Aereos, S. A.) subsidiary is created on May 29 to offer flights to overseas destinations with retired Transbrasil aircraft. Night services, under a low-fare Tarifa Economica Noturna (TEN) plan, are inaugurated on October 1-2.
Passenger bookings leap 23.7% to just over two million while cargo rises 14.7%. In terms of passenger km. flown, the carrier is now ranked as the ninth largest in Latin America.
The number of employees is reduced by 11% in 1981 to 2,903. One more B-727-100 is added and the order for two Dash-200s is cancelled in favor of a major request in August for three B-767-200s and nine B-757-200s. In addition, $35 million is committed to the construction of new hangars.
Two additional efforts to generate additional bookings are now initiated: the low-fare, non-peak time program and a scheme for family travel Tarifas Diferenciadas—Promocionais e Familiares.
As the world economic recession continues to damage Brazil, passenger boardings rise only 0.4% to 2,040,000 while freight is up only 0.9% to 74.99 million FTKs. A $2-million operating loss is suffered; however, the net profit is $3.7 million.
The employee population in 1982 numbers 4,083, a 10.5% boost. A B-707-341C freighter is acquired by lease from VARIG Brazilian Airlines (Viacao Aerea Rio-Grandense, S. A.); it is assigned exclusively to the night mail, Rede Postal Noturna, route between Sao Paulo and Manaus. In preparation for upcoming charter operations, the subsidiary Transbrasil Airlines, Inc. is formed at Miami; Marise Fontana is named general manager. In June, the company seeks permission from the DAC to launch flights from Manaus to Point-a-Pitre on French Guadeloupe; the request is denied.
The carrier remains the only one, other than Delta Air Lines, to have both the B-767 and B-757 on order; however, on November 12, the B-757 request is postponed as the B-767 order is confirmed for three machines at $42 million a copy.
Passenger boardings grow 8.8% to 2,219,633 and cargo climbs 10.3% to 51.72 million FTKs. Revenues ascend 10.9% to $214.3 million and expenses grow only 6.8% to $208.6 million, providing a $5.6-million operating profit and a net gain of $5 million.
Airline employment is increased 10.3% in 1983 to 4,503. The first of three B-767-2Q4s to be delivered on the year arrives on June 23. Government approvals are won to operate outside of Brazil for the first time and on July 2, a B-767-2Q4 makes the first nonscheduled Brazil to the U. S. charter flight, Brasilia-Orlando. Also in July, B-767-2Q4s are placed in service over the carrier’s four major domestic routes. The company is the first in the Southern Hemisphere to operate the advanced Boeing jetliner.
At year’s end, the B-757 order is cancelled as several B-727-100QCs are taken in hand for conversion to passenger-only configuration.
Enplanements for the year fall 6.1% to 2,084,171, but freight swells 19.5% to 61.8 million FTKs. Expenses jump to $177.7 million against revenues of f $166.7 million, leaving losses of $10.9 million (operating) and $2.2 million (net).
A total of 77 new employees are added in 1984 as is one B-727-100. Service to the U. S. is suspended. The cancelled B-757 orders are replaced by contracts for three B-737-300s. Weekly stratoliner passenger charters are undertaken (under the marketing name Aero Brazil, S. A.) from Sao Paulo and Rio de Janeiro via Manaus to Orlando and freight charters to Orlando and on to New York; both services commence on November 3.
Following cancellation of the B-707-341C lease by VARIG Brazilian Airlines (Viacao Aerea Rio-Grandense, S. A.), Transbrasil places orders for the world’s only B-707-320QCs. The thirtieth anniversary is celebrated in public events throughout the year.
Passenger boardings dip 3.1% to 2,019,673; cargo jumps upward by 23.3% to 76.31 million FTKs. Revenues increase 12% to $186.8 million and expenses climb only 0.7% to $176.5 million; profits are $15.1 million (operating) and $12.4 million (net).
The workforce is increased 14.4% in 1985 to 5,238. Five frequencies per week now fly to Orlando from Concordia, Florianopolis, Belem, Fortaleza, and Manaus. The Orlando route is stretched to Freeport, Bahamas, on July 5. The fleet is altered to reflect the growing charter and freight success; 8 B-727-100QCs are replaced by 3 B-707-320QCs and 2 more Stratoliner freighters, B-707-349Cs.
The B-737-300 order, meanwhile, is increased to five and two more B-707-320Cs are also requested. Applications are made for the resumption of U. S. service with flights to Washington, D. C., via Orlando and Atlanta.
Passenger boardings accelerate 14.2% to 2,307,000 and freight skyrockets 57% to 119.84 million FTKs. Revenues swell 17.4% to $223.2 million and expenses ascend 15.3% to $201.9 million, leaving record profits: $21.3 million (operating) and $19.9 million (net).
The employee population grows by 15.7% in 1986 to 6,062 as the requested B-707-320Cs are added, along with two B-737-375s.
Passenger charter services are undertaken to Orlando (113 flights, carrying 27,300 passengers) while all-cargo charters (145 flights) are flown to Montreal.
Recovery of the national economy and new government regulations assist the carrier in boosting its customer bookings by 33.6% to 3,081,189 and its freight traffic by 62.4% to 194.59 million FTKs. Revenues ascend 28.9% to $287.7 million, but costs are up 32.6% to $267,71 million, shrinking the operating profit to $10 million. Net gain, however, increases to $32.53 million.
The workforce is cut 5.8% in 1987 to 5,713 as the company, early in the year, is designated by the military government as the nation’s second flag carrier with permission to service the U. S. Unfortunately, authority is not received from the U. S. due a failure by the two nations to sign a new bilateral agreement. Transbrasil is unable to inaugurate American frequencies and this has a significant impact on the carrier’s ability to earn hard currency revenues.
To lower expenses, the carrier not only lays off employees, engages in general cost cutting, reduces the number of directors, and rationalizes its flight operations, but also sells five B-707-320s and three B-727-100s. The eight aircraft are succeeded by three leased B-737-3Q4s. The equipment employed on the Aero Brazil, S. A. movements now includes one chartered B-707-323C first flown by American Airlines, and a B-707-365C, initially delivered to British Eagle Airways, Ltd.; the cargo flights are made by an ex-Deutsche Lufthansa, A. G. B-707-330C(F).
Back debt is reduced by almost half through these maneuvers, from $120 million to $67 million.
The B-707-330C freighter is destroyed as the result of a bad landing at Manaus in heavy rain on April 11; there are no fatalities among the seven crew.
In October, the carrier seeks a $50-million loan from the government which, in November, provides $40 million, with preferential interests rates, saving the airline from bankruptcy. The government, in exchange, acquires 51% controlling interest. Despite this rearrangement, shareholding continues to be held by the employee-owned Transbrasil Foundation (40%), the Fontana family (32%), and miscellaneous minority owners (28%).
Passenger boardings plunge 15.9% to 2,548,593 while cargo drops 16.5% to 173.62 million FTKs. Revenues drop 5.2% to $272.6 million, costs rise 1.9% to $269.6 million, and the operating profit is $3 million. A net $50.3-million loss is suffered.
The employee population is reduced by another 11.7% in 1988 to 5,050 and the remaining 6 B-727-100s (sold for $60 million) are replaced with 3 more leased B-737-300s, Dash-3YOs, and 1 B-707-349C. Orders are placed for 3 B-737-400s.
At the April general shareholders meeting, founder Capt. Omar Fontana retires as chairman/president/CEO and is succeeded by Brazilian Air Force Brig. Gen. Jose Mil-Homens. Discussions are held aimed toward a merger with VASP Brazilian Airlines (Viacao Aerea Sao Paulo, S. A.), with the first step toward the arrangement being the establishment of a joint shuttle service between Sao Paulo’s downtown airport and Rio de Janeiro.
In May-July, Mil-Homens, now fully in charge, reduces the workforce by 5% and shelves earlier plans for the establishment of international services and a union with VASP. Only charters will be operated in the international market following the government’s August cancellation of its earlier approval of international rights.
In August, the board of directors votes to file an action for damages against the Brasilia government, claiming that it has broken the financial equilibrium of the public air transport concession. The federal government retaliates for the legal action during September when it intervenes in the airline’s affairs, by sacking its new chairman/CEO, Gen. Mil-Homens, and taking over control.
Customer bookings fall again, by 16.2% to 2,134,875 and cargo is down 16.9% to 144.33 million FTKs. Revenues decline 2.9% to $261.4 million, the operating profit rises to $3.17 million, and net loss is the same figure as the year before.
The number of company workers is increased by 4.7% in 1989 to 5,288 and the first B-737-4Y0 is received in early spring.
While making a high speed approach into Sao Paulo on a March 21 service from Manaus, the left wing of the B-707-349C with three crew hits a building 2 km. short of the runway, causing the Stratofreighter to crash into a residential area and burst into flames. All aboard the aircraft are killed, along with 22 people on the ground.
During July, a new four-point program of renewal is announced in the wake of losses since the previous September of $87 million. An end to state control is promised by a proposal that would have Air Force Gen. Mil-Homens reassume a seat on the board of directors and be replaced as president/CEO by Vice President Flavio Bierrenbach.
The company is able to renegotiate payment of $120 million in debt, with repayment on a fixed schedule between 1992 and 1997 and takes delivery of its second B-737-4Y0; a third “Dash 400” Baby Boeing arrives in August. An agreement is signed with Ansett Worldwide Aviation Services for the lease of two B-757Fs to replace its two Stratoliner freighters and the last nine B-727-100s and six spare engines are sold for $33 million.
The carrier’s first international scheduled service is inaugurated in September when thrice-weekly B-767-2Q4 roundtrips begin between Sao Paulo and Orlando and Miami; as a result of a marketing plan labeled “Ecology Tourism,” two of the three flights stop over at Manaus.
During October, the regional TAM (Transportes Aereos Regionais, S. A.) inaugurates direct competition over the Rio de Janeiro-Sao Paulo Air Bridge, offering a higher class of service than that provided by Transbrasil and the other majors now operating the shuttle in pool. Also, regularly scheduled service to Orlando is authorized, ending a 15-year monopoly on scheduled international service held by VARIG Brazilian Airlines (Viacao Aerea Rio-Grandense, S. A.).
The so-called “government intervention” ends in December with the restoration of founder Omar Fontana to the positions of chairman/CEO.
Traffic regains its upward momentum during the year as passenger boardings rise 11.7% to 2,462,652 and freight climbs 1.7% to 146.72 million FTKs. Although the carrier suffers an operating loss of $30.6 million, there is a net profit of $3.4 million. Still, $140 million is owned to the state bank.
Company employment grows 15% in 1990 to 4,932. In January, the company opens negotiations with Aeroflot Soviet Airlines for pooled
U. S.S. R. to Brazil services. During the first month, a $105-million recapitalization plan, agreed to at the conclusion of “government intervention,” provides $35 million in initial new equity from the airline’s current shareholders. Negotiations are undertaken with American Airlines, Deutsche Lufthansa, A. G., and several others aimed at securing an additional $35 million by May in ownership investment.
The number of weekly charter flights to Miami and Orlando is increased from three to five in April and service is initiated to several domestic points. Biweekly nonstop scheduled roundtrips are initiated in August from Rio de Janeiro and Sao Paulo to Miami and Orlando. In October, Transbrasil becomes the second Brazilian airline to receive permission to undertake international services north of Florida.
Despite the national recession, customer bookings ascend 5.7% to 2,602,845 and cargo rises 6.4% to 156.14 million FTKs. Revenues jump 33.9% to $394.5 million and with the lowest operating costs of any airline in Brazil, the operating loss is cut to $3.2 million. Still, there is a $51.9 million net loss.
The payroll inches up 0.5% in 1991 to 4,959 and President Omar Fontana’s fleet now includes 1 owned Cessna 550 Citation II and 3 B-767-2Q4s. Leased units are 3 B-737-3Q4s, 6 B-737-3Y0s, 2 B-737-375s, 4 B-737-4Y0s, 2 B-767-3Y0ERs, and 2 B-767-231ERs. Orders are outstanding for 2 B-737-4Y0s and 1 B-767-3Y0ER.
Employing five B-737-3YOs, the company begins a joint operation with VASP Brazilian Airlines (Viacao Aerea de Sao Paulo, S. A.) in April over the Rio de Janeiro-Sao Paulo Air Bridge.
Good feelings toward VASP Brazilian Airlines (Viacao Aerea de Sao Paulo, S. A.) largely evaporate in June as the two carriers engage in intense fare wars under deregulation. So disturbed is Transbrasil that it files an action against VASP Brazilian Airlines (Viacao Aerea de Sao Paulo, S. A.) with the Brazilian Department of Civil Aviation (DAC), the national air transport body, claiming that its Air Bridge colleague is engaged in “predatory competition.” DAC, in its capacity as a regulatory body, rules in July that VASP Brazilian Airlines (Viacao Aerea de Sao Paulo, S. A.) is not guilty as charged by Transbrasil; the ruling is seen as a further affirmation of national airline deregulation. Employing a B-767-2Q4 leased from the GPA Group, biweekly nonstop roundtrip service is inaugurated from Rio de Janeiro, Sao Paulo, and Brasilia to Washington, D. C. (lAD) on August 7, followed by beyond flights to New York (JFK) on October 26.
The Brasilia to D. C. route is the first direct capital-to-capital service between Brazil and the U. S. On November 11, a B-737 plunges in flames into the public square of Recife (17 dead).
Despite this route expansion, passenger boardings drop 9.3% to 2,360,532 while freight plunges 31.1% to 107.47 million FTKs. Revenues decline 14% to $339.6 million and with costs up, the operating loss jumps to $35.06 million. The net loss reaches $60.3 million.
Recession causes the necessity of a 7.2% cut in the employee population in 1992 to 4,603, despite the arrival of two B-737-3Y0s and a B-767-231ER. In January, the company’s share in the Air Bridge shuttle rises from 7% to 20%, promising $25 million in additional annual revenues. Frequencies to Washington, D. C. are increased to six per week in February.
As a result of a worsening financial picture caused by high inflation rates, recession, and political instability resulting from the impeachment of the country’s chief executive, President Fontana studies whether his concern should either become a public corporation or consider the possibility of a merger with VASP Brazilian Airlines (Viacao Aerea de Sao Paulo, S. A.). Neither move is made; however, a major technical and operating agreement is signed with VASP Brazilian Airlines (Viacao Aerea de Sao Paulo, S. A.) in April, largely at the urging of GPA Group.
Joint fares and a joint maintenance pool are established and other pooled activities are studied; a breach of contract lawsuit is, meanwhile, filed against the government over its route award policy.
To take advantage of heavier traffic, a VASP Brazilian Airlines (Vi-acao Aerea de Sao Paulo, S. A.) MD-11 is assigned, during June, to take over certain of Transbrasil’s frequencies from Sao Paulo to Miami and
Orlando. The New York service introduced the year before proves so popular that its frequency must be increased to daily in July; four flights are made via Miami and three via Washington, D. C.
Customer bookings plunge 13.2% to 2,048,923; however, cargo climbs 25.4% to 134.81 million FTKs. Revenues decline 3.7% to $327 million, but expenses grow 2.4% to $383.61 million. As a result, the operating loss deepens to $64.91 million and there is a huge $88.06-million loss.
The workforce is increased by 7.5% in 1993 to 4,947 and orders are placed for three Boeing 777s. In June, a broad commercial alliance is signed with United Airlines; its terms feature unified reservation services and frequent flyer programs, mutual blocked-seat arrangements, joint check-in, and code-sharing.
The deal with the North American megacarrier is followed, in October, by the signing of a similar, but domestic accord with longtime national flag carrier VARIG Brazilian Airlines (Viacao Aerea Rio-Grandense, S. A.). The arrangement is designed to keep the capacity of the two airlines adjusted to demand and to rationalize operating costs. It involves coordination of schedules and frequencies and block-space code-sharing on a number of domestic routes, including Sao Paulo to Goiacircnia, Sao Paulo to Foz do Iguaccedilu, and Rio de Janeiro to Brasilia.
In November, a letter of intent is signed with Embraer for eight EMB-145 Amazon regional jets, which will begin delivery in late 1996.
Now the nation’s second largest airline, Transbrasil’s passenger boardings jump 22% to 2,499,572 while freight swells 26.8% to 563,000 FTKs. Revenues increase 29% to $421.95 million while expenses grow only 19.2% to $467.19 million. Consequently, the operating loss is cut to $45.24 million and the net loss drops to $68.97 million.
Airline employment is reduced by 8.6% in 1994 to 4,520 but, during the first quarter, orders are placed for three Boeing 777-200s. At the same time, requests are made for three more Embraer EMB-145 Amazons, the first jet airliner to be designed and built in Brazil. In the first half of the year, Transbrasil suffers a $35.7-million operating loss.
The government’s new economic Plano Real, designed to boost the value of currency by tying it to the U. S. dollar, is instituted in July. The company is restructured during the third quarter, a number of aircraft leases are renegotiated, and layoff notices are given to 8% of the workforce.
Late in September, service is inaugurated linking Sao Paulo, Curitiba, and Porto Alegre to Buenos Aires. This initiation is followed in December by the start of twice-weekly B-767-3Y0ER flights from Sao Paulo and Rio de Janeiro to Vienna via Fortaleza. Plans are announced to inaugurate services to Amsterdam the following summer.
Simultaneously, a new regional subsidiary is established at Brasilia: InterBrasil Star (Sistema de Transporte Aereo Regionais, S. A.). It will operate in the south and southeastern regions of the country.
Customer bookings swell another 11.2% to 2,781,395, while cargo moves ahead by 16.5% to 656.32 million FTKs. Price increases, as a result of Plano Real, are capped at 1% to 2% a month, allowing the company to receive full value of tickets sold by travel agents. The new economics assist the carrier to record better financial results during the second half of the year. Overall this year, revenues jump 33.3% to $562.23 million and expenses rise only 13% to $527.84 million. There is a pretax profit of $34.38 million and a net gain of $45.6 million.
The workforce grows by 7.4% in 1995 to 4,855 and a B-737-4Y0 is leased from the Spanish charter carrier Futura, S. A. Service is started to Amsterdam in June from Sao Paulo, Rio de Janeiro, and Fortaleza.
With Marcos Antonio Lacerda de Athayde as president and a fleet of three Embraer EMB-120s, the subsidiary InterBrasil Star (Sistema de Transporte Aereo Regionais, S. A.) inaugurates flights on July 3 from the national capital to markets in the interior of Sao Paulo state and the states of Parana and Santa Catarina. The company’s code-sharing agreement with VARIG Brazilian Airlines (Viacao Aerea Rio-Grandense, S. A.) is extended to Brazil-U. S. routes. Later in July, two new weekly frequencies to Vienna are added. A new product, Rainbow Flight, begins in October on a new second daily frequency New York (JFK), this one nonstop from Sao Paulo.
Enplanements increase by 9.8% to 3,059,486 and freight jumps 12.8% to 740.17 million FTKs. Plano Real proves its worth as operating income swells 33.8% to $752.69 million while costs are up an almost equal 33.4% to $703.92 million. Operating gain climbs to $48.77 million and a net $49.69 profit is recorded. The latter figure is later adjusted downward to $47.51 million.
Airline employment is cut by 5.5% in 1996 to 4,590. New service is inaugurated to London (LGW) and to Cordoba.
Customer bookings dip 1% to 3,028,472 and 744.71 million FTKs are operated, a slight 0.6% increase. Revenues climb 11.4% to $838.43 million and expenses are up only 9.8% to $773.57 million. Although the operating profit is up to $64.85 million, net profit slips to $44.96 million.
The employee population climbs 15.2% in 1997 to 5,288. Early in the year, a block-space and code-sharing agreement is signed with Trans World Airlines (TWA) . Also, the Supreme Court of Brazil decrees that the Brazilian federal government must pay the carrier approximately $180 million as compensation for losses suffered between January 1986 and May 1990 as the result of the government’s inflation-fighting efforts.
At the Brazilian capital of Brasilia on July 30, Transbrasil Chairman Dr. Omar Fontana signs a commercial agreement with Delta Air Lines Executive Vice President Robert W. Coggin. Code-sharing will be developed, but in the meanwhile, the two carriers will coordinate their schedules in an effort to improve connections, share airport facilities, and begin to merge their frequent flyer programs.
On October 26, dual-designator service begins with Delta Air Lines over routes from Miami, Orlando, and Washington, D. C. (lAD) to Brasilia, Rio de Janeiro, and Sao Paulo. In addition, code-sharing is begun by Delta on Transbrasil connecting service to the Brazilian cities of Porto Alegre, Florianopolis, Curitiba, Belo Horizonte, Fortaleza, Manaus, and Salvador and by Transbrasil on Delta flights from Cincinnati and Atlanta to Denver, Los Angeles, Chicago, Boston, Dallas (DFW), Las Vegas, and Detroit.
The DAC indicates on December 30 that it will begin to institute domestic airfare deregulation in January.
Passenger boardings fall 4.3% to 2,899,737, while freight plunges 38.3% to 146.9 million FTKs. Despite an operating loss of $96.78 million, a $66.8-million net profit is generated on operating revenues of $686.23 million.
Airline employment stands at 4,965 in 1998 and the fleet, all of which is Stage III certified, includes 24 airplanes: 13 B-737s and 11 B-767s.
The DAC, which regulates civil aviation, promotes a degree of liberalization in January. Prior to internal air force opposition that slows the process, DAC decrees that the monopoly the company shares with VARIG Brazilian Airlines (Viacao Aerea Rio-Grandense, S. A.) and VASP Brazilian Airlines (Viacao Aerea de Sao Paulo, S. A.) on the Rio de Janeiro to Sao Paulo Air Bridge must end.
Simultaneously, trunk lines are granted permission to compete with regional carriers on services between the downtown city-pairs of Sao Paulo and Brasilia or Belo Horizonte and Rio de Janeiro and Belo Horizonte or Brasilia. Further, airlines will be allowed to offer discounts of up to 65% on internal flights and any carrier will be allowed to fly charters on any route, with certain conditions. The move will have the desired end of increasing new business, but it will also set off a devastating fare war.
Transbrasil and VASP Brazilian Airlines (Viacao Aerea de Sao Paulo, S. A.) enter the new city-pair markets in February. Employed to handle Air Bridge traffic, the 61-year-old passenger terminal at Santos Dumont Airport, Rio de Janeiro, burns down on February 13, forcing transfer of connections on that end of the route from Sao Paulo to be transferred to Rio’s international airport. Work is begun immediately on a temporary passenger terminal, which is expected to be completed by July; a completely new facility will not, however, be available until late 1999.
Retaining his chairmanship, but surrendering his day-to-day management responsibilities, founder Fontana eases back in late May, turning the company over to his son-in-law, Antonio Celso Cipriani. The new chairman immediately announces a new strategy designed to increase
Transbrasil’s domestic market share to 25% through streamlining and a possible equity transfer to Delta Air Lines.
In June, VARIG Brazilian Airlines (Viacao Aerea Rio-Grandense, S. A.) announces that it will drop out of the joint Rio de Janeiro-Sao Paulo Air Bridge shuttle and will, in cooperation with Rio Sul (Servi-cios Aereos Regionais, S. A.), offer its own competition against its former partners, Transbrasil and VASP Brazilian Airlines (Viacao Aerea de Sao Paulo, S. A.).
Under a newly signed code-sharing pact with TAP-Air Portugal, S. A., Transbrasil is able to offer daily dual-designator service to Lisbon. The service, which begins on June 29, is flown four times a week by the European carrier, while Transbrasil offers flights thrice weekly. Each of the Brazilian line’s flights stop at a different northeastern city, Fortaleza, Recife, or Salvador.
The VARIG-Rio Sul linkup begins in July. The World Cup now leads to a significant reduction in the number of Brazilians traveling, as they prefer to remain home and watch the month of matches on television.
During the first eight months of the year, domestic market share falls by 23.5%. Through the summer, the international schedule is altered. Flights to New York and Vienna are suspended as a new route is opened to Lisbon and a second daily Sao Paulo-Miami roundtrip is inaugurated.
After months of heavy recruitment by Chairman Cipriani, Rio Sul (Servicios Aereos Regionais, S. A.) CEO Paulo Enrique Coco is recruited in September to become Transbrasil’s new president/CEO.
The following month, a new effort is made to regain the lost domestic market share. The hub at Sao Paulo is reworked into six daily banks, which focus on 10 city-pairs. Frequencies are increased between destinations, with a number of new nonstop segments added. In addition, plans are made to implement a yield-management system and paint company aircraft in new livery.
On December 30, the Brazilian DAC scraps its last regulations over passenger airline fares, a year to the day after it had launched domestic deregulation. DAC does, however, indicate that it will remain vigilant to abuse, including dumping, cartels, monopolies, and predatory pricing. As domestic competition stiffens, additional alliances with foreign airlines are expected.
Customer bookings for the year inch up 2% to 2.95 million, while cargo traffic drops 5.6% to 138.77 million FTKs. The year’s operating loss climbs to $152.4 million.
The nation’s economic downturn, together with toughening competition, leads Transbrasil to initiate a new restructuring plan during the first quarter of 1999. As part of its long-term cost-cutting effort, the airline lays off 300 employees in mid-February.
The April 26 issue of Gazeta Mercantil reports that Brazil’s airlines will have laid off 3,000 employees by June due to the restructuring programs they have started since the first of the year. Transbrasil, having reduced its domestic flights, has laid off another 300 workers since February.
In September, the government proposes that the nation’s four major carriers find a way to merge some or all of their activities under a joint operating agreement or some other form of umbrella.
At the beginning of October, the Brazilian National Development Bank (BNDES) adds to the discussion of airline mergers when its president, Andrea Calabi, announces that BNDES will broker and finance an amalgamation of VASP, VARIG, Transbrasil, and TAM, which may be accomplished in “the medium term.” Stating that such a move without additional capital would be pointless, the initiative is publicly opposed by Transbrasil, TAM (Transportes Aereos Regionais, S. A.), and VASP Brasilian Airlnes (Viaceo Aerea Sao Paulo, S. A.). VARIG Brazilian Airlines (Viacao Aerea Rio-Grandense, S. A.), which also does not want to give up any of its market regions in order to participate, begins negotiations with BNDES about a debt roll-over loan and an extension of its debt payments.
Under pressure from BNDES CEO Calabi, TAM and Transbrasil undertake and maintain cooperation negotiations during November and into December. It is suggested that an accommodation will allow for consolidated capacity, which can produce higher rates for the partners.
A $50 million net loss is reported.
Two B-737-3K9s, previously operated by Germania Flugge-sellschaft, GmbH., are added on January 4, 2000. Just after landing at Porto Alegre on a February 27 service from Sao Paulo, Flight 202, a B-737-3Q4 with 123 passengers, overruns the wet runway and comes to rest in a ditch 1,000 ft. off the end. The nosegear collapses into the fuselage and the left engine is torn from the wing, but there are no injuries.
On March 9, a B-737-382, previously operated by TAP-Air Portugal, S. A., is also received.
The spring is marked by continuing financial loss. To help reverse fortunes, company executives, facing the necessary return of seven jetliners to GE Capital Aviation Services on June 1, continue discussions with their colleagues from TAM Transportes Aereos Regionais, S. A. concerning possible measures that may be implemented for joint profitability.
Additionally, the workforce is reduced by 19% and a 36% cut is made in fixed costs. Negotiations are also undertaken with VARIG Brazilian Airlines (Viacao Aerea Rio-Grandense, S. A.), and DAC, the government civil aviation authority, concerning a possible route swap.
It is announced on April 27 that Transbrasil is interested in taking over the long-haul international routes of VASP Brasilian Airlines (Vi-acceo Aerea Sao Paulo, S. A.) to Europe and North America. The pioneer will be forced to suspend them on May 15 when its last four MD-11s are returned to their lessors.
Officials from Transbrasil and TAM reveal a joint operational agreement on May 3 designed to save upwards of $6 million per month for the two carriers. Officials from TAM and Transbrasil announce a joint operational agreement on May 3 designed to save upwards of $6 million per month for the two carriers. The initial phase of the pact, which includes code-sharing, is to run for six months and if successful, may well lead to a merger of the two concerns.
Also in May, Transbrasil adds one each B-737-3Y0 and B-737-3M8 and suspends its daily B-737-3Q4 roundtrip route from Sao Paulo to Florianopolis via Curtiba in light of the code-share with TAM.
On August 21, daily B-737-300 roundtrips are inaugurated from Recife to Florianopolis via Maceio, Salvador, and Sao Paulo. Simultaneously, B-737-3Q4 return frequencies are initiated to Florianopolis from Belem, via Brasilia, Sao Paulo, and Curitiba.
The cost-cutting, code-sharing, operational agreement with TAM Transportes Aereos Regionais, S. A. is not renewed on November 3. Airline Business, in its December issue, will quote the speculation of analysts who believe that a merger was aborted because TAM does not offer Transbrasil sufficient cash. In any event, all talk of merger ends.
As a direct result of the TAM pact failure, Transbrasil increases frequencies from Sao Paulo to Buenos Aires on November 6 from one daily roundtrip to two. A B-737-33A is dedicated to the service. At the end of the month, the DAC approves a route swap with VARIG Brazilian Airlines (Viacao Aerea Rio-Grandense, S. A.), under which Transbrasil turns over its twice-weekly roundtrip service to London and VARIG gives up its three weeklies to Lisbon. The move allows Transbrasil to offer daily service from Rio de Janeiro to the Portuguese capital.
On December 8, the company accepts delivery of a B-737-3L9 previously operated by VASP Brasilian Airlines (Viaceo Aerea Sao Paulo, S. A.) and a B-737-46B last flown by Futura International Airways, S. A. Both planes are leased.
On a less happy note, founder Omar Fontana dies of a heart attack at Sao Paulo during the day. B-767-2Q4 weekly roundtrip charters begin on December 30 from Sao Paulo to St. Martin. The flights will continue through March 2002, after which they will be evaluated and, if successful, will be turned into scheduled flights.
The “classic” B-737 fleet at year’s end includes 3 each Dash-33As and Dash-3Q4s, 2 Dash-3K9s, and 1 each Dash-382, Dash-3L9, Dash-3M8, and Dash-3S3, although the latter is parked out of service in Mexico. One B-737-46B is also operated, along with three B-767-2Q4s and -3P6ERs.
This year’s loss is R212.83 million.
TRANSCARGA (TRANSPORTES AEREOS DE CARGA, S. A.): Venezuela (1968-1979). When, on September 14, 1967, LEBCA (Linea Expresa Bolivar, S. A.) is named the nation’s official air cargo carrier by the Ministry of Communications, it is required to undergo reorganization. At this point, all of the company’s shares are purchased by the state flag line VIASA (Venezolana Internacional de Aviacion, S. A.).
On January 10, 1968, VIASA forms Transcarga at Caracas as a wholly owned subsidiary; LEBCA itself stops flying on January 22. On April 24, the former independent’s traffic rights to Florida and other Caribbean destinations are assigned to Transcarga and four Douglas DC-7CFs allow the company to begin, under VIASA’s name, all-cargo flights to Miami.
A DC-8-55F is later added and services are undertaken to New York via Maracaibo, Caracas, and Miami. However, the U. S. refuses to grant Transcarga its own foreign carrier permit for the next decade, due primarily to the fact that the company enjoys no independent shareholding.
Unable to make an impact under its own livery, Transcarga becomes a division of VIASA (Venezolana Internacional de Aviacion, S. A.) in 1979.
World History
