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AV 1Q Profit, VIP Room Voted Best And More  
User currently offlineRCS763AV From Colombia, joined Jun 2004, 4396 posts, RR: 12
Posted (8 years 7 months 1 week 6 days 14 hours ago) and read 2563 times:

Avianca has made a net profit of 15 million dollars in the first quarter and increased its international passengers by 10% (the new routes to LAX, BCN and the new frecuencies to MEX and UIO havent been launched).

More info:

http://eltiempo.terra.com.co/economi...LO-WEB-_NOTA_INTERIOR-2899313.html

Also, Avianca´s VIP room in BOG was voted the best in latin america and caribbean by Priority Pass associates:

http://www.avianca.com/QuienesSomos/Boletines/2006/308.htm

This comes as a good incentive since they remodeled the lounge not long ago.

Though the results are not impressive, the next quarters should bring in more profits. I expect AV to end the year with a 70-80m dollar profit.

[Edited 2006-05-19 23:10:40]

7 replies: All unread, jump to last
 
User currently offlineSumma767 From United Kingdom, joined Mar 2004, 2569 posts, RR: 6
Reply 1, posted (8 years 7 months 1 week 6 days 12 hours ago) and read 2535 times:

It is interesting also to see that they are already adversing the launch of VLN, although this new route is not, yet, on the reservation systems. I presume that, like the second daily to GYE, it will be operated on F100s.

It is now clear that AV will not just use the F100s to replace the F50s. As the jets will be doing GYE, MDE-BAQ-AUA and possibly VLN. My guess is that in the medium term, some other andean and central american destinations will follow. In turn, the F50s are being deployed to new routes, such are Neiva and Ibagué. So no hurry to get rid of the props!


User currently offlineA388 From Netherlands Antilles, joined May 2001, 10010 posts, RR: 15
Reply 2, posted (8 years 7 months 1 week 6 days 5 hours ago) and read 2471 times:

I heard that as of June 15 AV will be adding two more flights on Wednesday and Sunday to CUR.Till the end of June those flts will be operated by the M83. As of first of July these new flights will be operated by the F100.The departure time will be 19:50.The 2 other flights on Monday and Thursday
will remain unchanged. In short AV will be operating the M83 on Mondays and Thursdays and Wednesdays and Sundays AV will use the F100 departuring CUR around 19:50. Any more info on this? Will this only be a seasonal increase in capacity?

A388


User currently offlineSumma767 From United Kingdom, joined Mar 2004, 2569 posts, RR: 6
Reply 3, posted (8 years 7 months 1 week 6 days ago) and read 2445 times:

Quoting A388 (Reply 2):
Will this only be a seasonal increase in capacity?

I think that the intention is to make this a permanent increase. CUR is among the destinations being advesrtised as having extra frequencies in AV's latest campaign http://www.avianca.com/Promociones/co/nrutnfre.htm

I hope and trust that the extra flights will remain, and that they will become daily soon.


User currently offlineRCS763AV From Colombia, joined Jun 2004, 4396 posts, RR: 12
Reply 4, posted (8 years 7 months 1 week 5 days 20 hours ago) and read 2415 times:

Actually, the F100s can only be used from BOG to Ecuador, Venezuela, the Antilles and Panama, maybe Costa Rica...so we wont be seeing them in the lower andes a lot...

User currently offline777jaah From Colombia, joined Jan 2006, 1403 posts, RR: 0
Reply 5, posted (8 years 7 months 1 week 5 days 18 hours ago) and read 2393 times:

Quoting RCS763AV (Thread starter):
Though the results are not impressive, the next quarters should bring in more profits. I expect AV to end the year with a 70-80m dollar profit.

I think not loosing money is impressive enough for many airlines around the world these days, asn specially AV, that's working hard to be a profitable efficient company. This results prove they're on the right track. Also, this kind of profit is being made while money is invested in their operation like the new VIP lounge in BOG, F100s, improving of the interiors on their 767s, improving the Puente Aereo (self chek in), and many others.

IMO, AV is becoming what it used to be, and Mr Efromovich's team is doing a great job placing the airline in Latinamerica's map as a tough competitor not to be messed around with. AV's plans for the long term are pretty well sustained in a decissions made under the laws of economics, not pure will. I hope they continue in this same track, bc at the end, pax will see an improved service.

Good luck

JAAH



Next flights: AV BOG-ADZ-BOG, AV-UA BOG-IAD-ORD-IAD-BOG, BOG-FLL-BOG, LA BOG-MIA-BOG J
User currently offlineRCS763AV From Colombia, joined Jun 2004, 4396 posts, RR: 12
Reply 6, posted (8 years 7 months 1 week 5 days 17 hours ago) and read 2372 times:

Quoting 777jaah (Reply 5):
improving of the interiors on their 767s, improving the Puente Aereo (self chek in), and many others.

Hadn´t thought about that, theya re indeed investing lots of money and changing the interior on every aircraft, noy only the 767s....well then i see the figures as a nice profit, but remember AV made 130m in 2004....(though they were in Ch.11)

Quoting 777jaah (Reply 5):
IMO, AV is becoming what it used to be, and Mr Efromovich's team is doing a great job placing the airline in Latinamerica's map as a tough competitor not to be messed around with.

Agree 100%.


User currently offline777jaah From Colombia, joined Jan 2006, 1403 posts, RR: 0
Reply 7, posted (8 years 7 months 1 week 5 days 15 hours ago) and read 2354 times:

Quoting RCS763AV (Reply 6):
AV made 130m in 2004....(though they were in Ch.11)

If oyu really look deep into that number, it's more amazing 2006 1Q results than the whole 2005. Here's why:

One of the good things about Bankrupcy laws in the U.S. (Ch. 11 in this case) is that after a corporation goes into it, suppliers must keep doing bussines with them, until a judge says otherwise. This is to protect employees and let both parts, workout and agreement. For all the negotiation period, AV stopped payments to many of it's americans suppliers (IIRC, some leasing fees on it's planes too) while all the selling deal between Santodomingo and Mr E went through. (The judge let this deal go through after a plan was presented by Mr E, in which all debts were suppossed to be paid in a period of time and fresh money was going to be injected in the company). In plain language, they didn't pay a LOT of money they were suppossed to be expending on normal operating costs, and that went directly to their profit. Today, the whole thing is different, they're paying on time to their suppliers, including lease fees, and even have the cash flow to do a little investment much needed. This is why I think 2006 result exceed BY FAR 2004, which were published with great publicity by colombian media, but of course, no journalist took the time and the brains to go a step forward.

On the other hand, the CAXDAC issue with AV is even more complicated than the Ch. 11 issue. That's were AV real financial problems are. For respect for a.netters who might know way more than what i know on this topic, i prefer not to even go a line further.

If anyone has a different view on it, please share it with us.


Good Luck.

JAAH



Next flights: AV BOG-ADZ-BOG, AV-UA BOG-IAD-ORD-IAD-BOG, BOG-FLL-BOG, LA BOG-MIA-BOG J
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