Colombia

Avianca 3Q net profit down 7.6%, passengers up 7.5%

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BOGOTA, Colombia–Panama City-registered Avianca Holdings reported third-quarter net profits of $33.2 million, down 7.6% from $35.9 million posted in the year-ago period. Operating revenues were $1.23 billion, up 3.9% year-over-year, as expenses rose 10.2% to $1.16 billion. Resulting operating income for the quarter came to $70.3 million, down 46.9% from $132.2 million in the September 2013 quarter. Avianca attributed the results to “redeployed capacity (ASKs) as well as the strong demand observed in the Colombian domestic market and … the entry into operation of the Bogota-London route.” Avianca’s third-quarter traffic grew 5.3% year-over-year to 8.7 billion RPKs on a 6.1% rise in capacity to 10.7 billion ASKs, creating a quarterly load factor of 81.3%, down 0.7 point from the 2013 third quarter. The company carried 6.9 million passengers during the quarter, up 7.5% from the 6.4 million passengers transported in the third quarter of 2013. Yield dropped 0.8% year-over-year to 11.9 cents. CASK excluding-fuel was up 5.8% year-over-year to 7.5 cents.nThird-quarter EBITDAR fell 14.8% year-over-year to $202.5 million. In the company’s quarterly results analysis, Avianca Holdings CEO Fabio Villegas Ramirez said, “Our cargo traffic expressed in RTKs grew 27% … resulting in an improvement of 600 basis points in load factor when compared to the third quarter of 2013,” Villegas said. “In addition, we have made further progress … with the completion of the acquisition of a stake of Aerounion in Mexico and the new commercial agreement with Etihad … which enables the company to improve its inbound cargo operation from Los Angeles via Mexico as well as enhancing connectivity to Europe.” On October 20th, Avianca Cargo and Etihad Cargo announced a commercial partnership agreement involving the deployment of freighter flights from Avianca’s Bogotá, Colombia, hub at El Dorado International Airport to Milan’s Malpensa Airport and Amsterdam’s Schiphol Airport. The twice-a-week service commenced operations November 12th. During the quarter, Avianca took delivery of 10 new aircraft: two Airbus A321s, two A320s and two A319s, plus four ATR-72s slotted to operate on the company’s domestic Colombian and Central American routes. Two ATR-42s were taken out of service. As of September 30th, Avianca’s fleet comprised 180 aircraft—165 of which are currently operational—including: 58 A320s (27 on operating lease); 36 A319s (17 on operating lease); 12 Embraer E-190s (two on operating lease); 11 ATR-72s; 11 A330s (10 on operating lease); 10 A318s (all on operating lease); 10 Cessna Grand Caravans; nine ATR-42s (five on operating lease); eight A-321s (six on operating lease); five A330 freighters; five Fokker 100s; three Boeing 767 freighters (one on operating lease) and two Fokker 50s.

Avianca 3Q net profits are down.
Avianca’s 3Q in 2014 net profits are down.
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Avianca to London

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BOGOTA, Colombia–“Avianca has decided effective July start flights between Bogota and London non-stop, as part of the new push of our commercial and political relations between the two nations”, informed Colombian President Juan Manuel Santos. This will be the first Colombian airline to start flights between El Dorado International Airport and Heathrow Airport in the U.K. The airline already operates wide bodied Airbus A-330 from Bogota to Madrid and Barcelona in Spain. Avianca will be receiving four Boeing 787 Dreamliner by September 2014, long haul aircraft that will dedicated for the European routes, indicated Fabio Villegas. Frankfurt and Paris are also being considered by the second biggest airline in Latin America. The flights to London will start in July using the wide bodied Airbus A-330. The flight will be fed by Avianca flights from Central America, Mexico, Caribbean and South America into El Dorado for connections to the U.K. London-Heathrow will become an important connecting point for Avianca with other Star Alliance airlines and one in particular, Air India that should become a full member by the end of 2014. The growth of commerce between Latin America and India has been important in the recent years. Another European airline, TAP Portugal announced future services to Bogota (Avianca’s main hub) and Panama City (COPA Airlines main hub) from Lisbon.

Avianca will operate the A-330 between Bogota and London-Heathrow.
Avianca will operate the A-330 between Bogota and London-Heathrow.

Cayman Airways expansion

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GEORGE TOWN, Grand Cayman–National flag carrier Cayman Airways Ltd. could enter a new phase of expansion during 2014 that could include new routes to Costa Rica, Panama and Colombia. The airline was established and started operations on August 7th, 1968. It was formed following the Cayman Government’s purchase of 51% of Cayman Brac Airways from LACSA (the now defunct Costa Rican flag carrier) and became wholly government owned in December 1977. A few months after it was formed, Cayman Airways flew its first international route to Kingston, Jamaica leasing a LACSA BAC-111-500. The airline acquired its first jet aircraft in 1978 and began services to Houston. In 1982 the airline acquired a Boeing 727-200 aircraft to strengthen the airline’s regional and international capability, also allowing for the introduction of first class service. These jets were eventually replaced with Boeing 737-300 series, and during the 1980s Cayman Airways offered scheduled or charter service to Atlanta, Baltimore, Boston, Chicago, Detroit, Minneapolis, Newark, New York, Philadelphia, & St. Louis. As the national flag carrier for the Cayman Islands, Cayman Airways now operates non-stop Boeing 737 jet service between Grand Cayman and the following major US cities: Miami and Tampa, Florida; Washington DC; New York, New York; and Chicago, Illinois. Nonstop jet service is also provided between Grand Cayman and regional destinations, including: Kingston and Montego Bay, Jamaica; Havana, Cuba; and La Ceiba, Honduras.The airline’s Cayman Airways Express service also operates Twin Otter aircrafts between Grand Cayman and the Sister Islands of Little Cayman and Cayman Brac. 

 

Cayman Airways is expected to open new routes in 2014 to Central America and Colombia.
Cayman Airways is expected to open new routes in 2014 to Central America and Colombia.

 
 
 
 

Problems for Tiara-Air Aruba

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Tiara Air Aruba operates one Boeing 737-300 to several international destinations.
Tiara Air Aruba operates one Boeing 737-300 to several international destinations.

ORANJESTAAD, Aruba–The Aruban airline, Tiara Air recently filed for an automatic stay which will prevent creditors and collectors from trying to collect debts from the ailing air company. Tiara Air N.V., operating as Tiara Air Aruba, is an airline headquartered and based on the grounds of Aruba, in the Dutch Caribbean, which began operations in 2006. The airline currently operates scheduled flights to Bonaire, Colombia, Curacao, Fort Lauderdale and Caracas, Maracaibo and Punto Fijo in Venezuela. The airline operates a fleet consisting of the Shorts 360 and one Boeing 737-300 aircraft for passenger operations, with a Learjet 35 for ambulance and private operations. The airline has been camping with financial trouble for a while now. The government headed by Prime Minister Mike Eman has recently approved a bridge loan from a special emergency fund to keep the airline operating while waiting for the Venezuelan Commission for the Administration of Currency Exchange (CADIVI). CADIVI is one of the main causes of financial problems for various airlines in the Caribbean region, including the Curacao airline Insel Air. According to CADIVI reports, Venezuela owes Tiara Air about 40 million dollars.The automatic stay will give the company the required space to adjust its operations and to reduce its flights to Venezuela. The airline announced that it will increase its operations to Curacao, Bonaire and Colombia. The airline had expansion plans into Panama and Costa Rica, but at the moment new routes are not considered. The Netherlands Antilles have lost several national airlines: ALM Antillean Airlines (Antilliaanse Luchtvaart Maatschappij) that ceased operations in 2001, Air Aruba that ceased operations in 2000 and Dutch Antilles Express ceased in 2013.

Conviasa to Nicaragua

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MANAGUA,Nicaragua–The Venezuelan flag carrier CONVIASA (Consorcio Venezolano de Industrias Aeronauticas y Servicios Aereos) started one weekly flight connecting Caracas with the Nicaraguan capital. The second Central American city after CONVIASA started daily flights to Panama City. The airline is going through expansion plans that include new Brazilian Embraer E-190s. In addition to Managua and Panama City the flag carrier connects Caracas with Bogota, Colombia; Buenos Aires, Argentina; Dominica, Grenada, Havana, Cuba; Madrid, Spain and Port of Spain, Trinidad & Tobago. Future cities include Georgetown, Guyana; Lima, Peru; Manaus and Sao Paulo in Brazil; Mexico City; Paramaribo,Suriname; San Jose, Costa Rica; San Salvador, El Salvador; and Santa Cruz, Bolivia. It also has been rumored CONVIASA will try to start non-stop flights to Miami, Florida or in any case via Managua. The airline has a fleet of one Airbus A-340-200, two Boeing 737-300, four Bombardier CRJ700 and six Embraer E-190s.

CONVIASA's E-190 are used for the Caracas-Managua run.
CONVIASA’s E-190 are used for the Caracas-Managua run.

The End of Yerex’s Airline

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TACA adopted a new livery in 2008. The airline will be finally merged into AVIANCA in 2013.
TACA adopted a new livery in 2008. The airline will be finally merged into AVIANCA in 2013.

SAN SALVADOR, El Salvador.  After eighty two years in service in just a couple of months (possibly by the end of May), TACA Airlines (once TACA Airways, TACA International Airlines and GRUPO TACA) will dissapear into the entrails of Colombian flag carrier AVIANCA. In 2009 both airlines created the AviancaTACA Holding Company. For several months airline experts believed the airline would have operated as Air France/KLM, mantaining their individual images, logos, liveries and hubs. But in 2012 the company’s CEO Fabio Villegas informed the TACA branding was being dropped and that the marketing sole name was going to be AVIANCA. It is also expected the end of the use of IATA codes like “TA”, “LR” and “GU” for simply “AV”. TACA was founded in 1931 in Honduras by the New Zealander Lowell Yerex. He later sold the airline to TWA, the latter sold it to Waterman Steamship Company of New Orleans and finally in the 1950s the airline was bought by the Salvadorean Kriete family. Indeed 2013 is the end of an era, Yerex once great airline.