RCS763AV From Colombia, joined Jun 2004, 4279 posts, RR: 14 Posted (4 years 12 months 2 days 10 hours ago) and read 3180 times:
Colombian regional operator AIRES has announced the purchase of 20 Dash-8Q400 aircraft to Colombian press, in order to replace the current fleet, this purchase is said to have a value of over $400 million dollars. It has also announced the start of US operations (it has 33 approved frequencies) in November. AIRES currently operates 12 aircraft of the Dash8 family. It flies within Colombia as well as to Aruba, Curaçao, Panama City and Maracaibo.
I find it surprising that this small airline has the capital to buy all those Q400s, buy/lease 150-seaters for US operations, and start US operations at once.
I would think the Q400 purchase will be 10+10 options....
Has the airline had a reinvestment or something? Do they plan to finance this with the extra revenue from US flights?
Arrow From Canada, joined Jun 2002, 2582 posts, RR: 2 Reply 1, posted (4 years 12 months 2 days 10 hours ago) and read 3108 times:
Quoting RCS763AV (Thread starter): Has the airline had a reinvestment or something? Do they plan to finance this with the extra revenue from US flights?
I'm sure the Canadian federal government will step up to the plate with very attractive financing to make this sale go through. That's the way aircraft sales are made these days.
Nice to see more Q400s rolling off the assembly line. Amazing what $130/bbl oil can do.
Never let the facts get in the way of a good story.
AA737-823 From United States of America, joined Mar 2000, 5336 posts, RR: 11 Reply 3, posted (4 years 12 months 2 days 6 hours ago) and read 2896 times:
RCS763AV From Colombia, joined Jun 2004, 4279 posts, RR: 14 Reply 5, posted (4 years 12 months 2 days 3 hours ago) and read 2790 times:
Quoting Cf105Arrow (Reply 2): I have tried searching about this order but couldn't find any info on the net or on Bombardier's website. Any chance for an english version?
Well, the order hasn´t been made official yet, this is the CEO (Francisco Mendez) talking to Colombian newspaper EL TIEMPO. It should be announced soon though.
Quoting AA737-823 (Reply 3): They're gonna fly Q4's to the USA???
A Q400 wouldn´t even be comfortable on Northern Colombia-South Florida routes.
Really, is it that diffcult?
Quoting RCS763AV (Thread starter): I find it surprising that this small airline has the capital to buy all those Q400s, buy/lease 150-seaters for US operations, and start US operations at once.
SJOtoLIR From Costa Rica, joined Jul 2007, 4073 posts, RR: 5 Reply 6, posted (4 years 12 months 1 day 15 hours ago) and read 2615 times:
AIRES has the rights for BOG-FLL and it was rumored some months backward that they would fix an arrangement with NK in order to operate such route.
However, the US DOT has awarded NK with 7x weekly frequencies to operate BOG-FLL and using their own planes. Starts: July 24th.
RCS763AV From Colombia, joined Jun 2004, 4279 posts, RR: 14 Reply 8, posted (4 years 12 months 10 hours ago) and read 2268 times:
Quoting A999 (Reply 7): Could some of these be ex-SAS aircraft?
That is an idea...the article doesn´t specify wether these aircraft will be factory-fresh. But guessing by the amount of money they will be investing (around 480 million dollars), maybe the SAS aircraft could come out cheaper, and these are indeed new.
RCS763AV From Colombia, joined Jun 2004, 4279 posts, RR: 14 Reply 12, posted (4 years 12 months 1 hour ago) and read 2029 times:
Quoting MAH4546 (Reply 11): If they want South Florida, they should switch to MIA.
Maybe its cheaper to operate from FLL for them, they are kinda low-cost oriented actually. Of course, i don´t know what their apprach will be for the South Florida market.
MAH4546 From Sweden, joined Jan 2001, 31107 posts, RR: 74 Reply 13, posted (4 years 12 months 1 hour ago) and read 2016 times:
Quoting RCS763AV (Reply 12):
Quoting MAH4546 (Reply 11):
If they want South Florida, they should switch to MIA.
Maybe its cheaper to operate from FLL for them, they are kinda low-cost oriented actually. Of course, i don´t know what their apprach will be for the South Florida market.
It's actually not. When an airline is flying only one or two daily round-trips, MIA is typically cheaper. The per-passenger costs are higher, but there is no need to lease gate space and pay for a lot of other services that are "inclusive" at MIA, but have to contracted out at FLL. There are less fixed cost involved with operating at MIA, which makes it cheaper for airlines with only one or two flights.
Summa767 From United Kingdom, joined Mar 2004, 2386 posts, RR: 7 Reply 14, posted (4 years 11 months 4 weeks 1 day 21 hours ago) and read 1956 times:
It is puzzling that Aires says that it wants to start US routes in November, and does not even know what aircraft they would use!
Only possibility I can think of is that there are still negociations, with Spirit and/or another company that might operate on Aires's behalf. There are persisting rumours about Spirit's intenions to serve MDE, even though there are simply no more frequencies available to them.
Aires's CEO said that "alliances would save airlines", and he specifically mentioned that code-sharing agreement with AereRepublica had been signed.
South Florida-Colombia market seems far from buoyant at the moment, and just not -just yet- reacting to the increased offer. Aerocivil's statistics for April show that the combined load factor on MDE-MIA-MDE (3 freqs, 2 carriers) was just 47.7%. There were 15000 more seats available than the same month last year, but actually, there were 1500 less passengers. No surprise then that AA is reducing its frequencies by 3 between September and December.
On BAQ-MIA-BAQ, the combined load factor was even worse, at just 36%.
SOUTHAMERICA From Colombia, joined Dec 2003, 2496 posts, RR: 15 Reply 15, posted (4 years 11 months 4 weeks 1 day 20 hours ago) and read 1939 times:
Quoting Summa767 (Reply 14): South Florida-Colombia market seems far from buoyant at the moment, and just not -just yet- reacting to the increased offer. Aerocivil's statistics for April show that the combined load factor on MDE-MIA-MDE (3 freqs, 2 carriers) was just 47.7%.
Actually it's not that bad, it could have been much worse. April load-factors in the Colombia-USA market are almost always in the 50s.
Three daily flights on MIA-MDE is just too much for low-season. With 11x weekly the situation should improve.
Quoting Summa767 (Reply 14): There were 15000 more seats available than the same month last year, but actually, there were 1500 less passengers.
Many people travel during Holy Week. Last year's Holy Week was during April, whereas this year's was in March.
SOUTHAMERICA From Colombia, joined Dec 2003, 2496 posts, RR: 15 Reply 16, posted (4 years 11 months 4 weeks 1 day 20 hours ago) and read 1929 times:
It would be interesting to know if these new Q400 would be allowed to operate to EOH, Aires' second base after BOG. EOH was supposed to be restricted to 50-seaters, but Satena recently started operating several daily E-170 flights.
AA737-823 From United States of America, joined Mar 2000, 5336 posts, RR: 11 Reply 17, posted (4 years 11 months 4 weeks 1 day 18 hours ago) and read 1889 times:
MAH4546 From Sweden, joined Jan 2001, 31107 posts, RR: 74 Reply 18, posted (4 years 11 months 4 weeks 1 day 17 hours ago) and read 1860 times:
Quoting Summa767 (Reply 14):
South Florida-Colombia market seems far from buoyant at the moment, and just not -just yet- reacting to the increased offer. Aerocivil's statistics for April show that the combined load factor on MDE-MIA-MDE (3 freqs, 2 carriers) was just 47.7%. There were 15000 more seats available than the same month last year, but actually, there were 1500 less passengers. No surprise then that AA is reducing its frequencies by 3 between September and December.
While the situation has definitley changed considering the price of oil, AA typically needs only a 40-45% load to make money on Miami-Colombia. The break-even load factor on Miami-Colombia is ridiculously low.
Summa767 From United Kingdom, joined Mar 2004, 2386 posts, RR: 7 Reply 19, posted (4 years 11 months 4 weeks 1 day 17 hours ago) and read 1845 times:
Quoting MAH4546 (Reply 18): While the situation has definitley changed considering the price of oil, AA typically needs only a 40-45% load to make money on Miami-Colombia. The break-even load factor on Miami-Colombia is ridiculously low.
It will be interesting to see Spirit's effect on fares now that they have launched FLL-CTG, and will follow with FLL-BOG in July.
It is true that an Easter-less April would be particularly slow on the South Florida- Colombia market. I expect that the second semester of the year will be much more responsive to the increased offer.
RCS763AV From Colombia, joined Jun 2004, 4279 posts, RR: 14 Reply 20, posted (4 years 11 months 4 weeks 1 day 11 hours ago) and read 1770 times:
Quoting AA737-823 (Reply 17): It is if your Spanish isn't so great.... and that's all the article is in...
I explained it in english on the original post.
Quoting Summa767 (Reply 19): It is true that an Easter-less April would be particularly slow on the South Florida- Colombia market. I expect that the second semester of the year will be much more responsive to the increased offer.
Indeed, April tends to be slow, and with Easter in March, it just didn´t make up for the increased offer. I hope that all these new flights are successful, but lots of those will be cut.
For example, IMO
MCO-BOG on B6 wont make it past summer 2009.
MDE-MIA on AA will be 11x weekly only seasonally, the rest of the year operating daily.
AV´s second BOG-JFK is in danger if DL plays it right with their new BOG-JFK frequency.
MAH4546 From Sweden, joined Jan 2001, 31107 posts, RR: 74 Reply 21, posted (4 years 11 months 4 weeks 1 day 7 hours ago) and read 1670 times:
Quoting RCS763AV (Reply 20): MDE-MIA on AA will be 11x weekly only seasonally, the rest of the year operating daily.
MIA-MDE will be at least 10x weekly year-round. AA is no longer allowed to use Colombia frequencies seasonally outside of a very short (I believe 60 day) dormancy period. Ten of their Colombia frequencies are required to be used on MIA-MDE.
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