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Pluna Reports Record Profit  
User currently offlineHardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 50
Posted (4 years 8 months 3 weeks 3 days 1 hour ago) and read 3589 times:

Uruguay's PU reported 1S09 operational profit of USD 2.5 million, the best result in 10 years. The last year PU posted profit was in 1999, when the airline reported profit of USD 0.403, six times smaller than the present result.

PU has modernised its fleet with CRJ900s aircraft of 90 seats, expanded frequencies in key markets such as GRU and SCL, and opened a number of secondary routes (eg COR and CWB) establishing an inter-regional hub in MVD. The airline also phased out its widebody B767s and cut all long-haul routes which are now operated in codeshare (MIA with AA and MAD with IB, in addition to an important codeshare with TAM on MVD-GRU). TAM and PU operate about 35 weekly flights on GRU-MVD.

PU has an ontime performance of 90% and different from the regional and global trend PU's passenger traffic increased 84% in April, 63% in May and 31% in June. The airline will continue expanding and MVD-POA is due to start while ASU-SCL is also to be considered as a future destination.

More info -

http://www.larepublica.com.uy/econom...positivo-de-25-millones-de-dolares

Rgs,

[Edited 2009-07-27 09:09:00]

20 replies: All unread, jump to last
 
User currently offlineLAXintl From United States of America, joined May 2000, 24307 posts, RR: 47
Reply 1, posted (4 years 8 months 3 weeks 3 days ago) and read 3549 times:

Great news, and amazing turn around from the very sick state PU found itself.

I suppose the persistence and fortitude by Leadgate Investment against some strong criticism at times is starting to pay off.

I did read last week however that Pluna was looking for further financing and a partnership with a foreign carrier.

Here is the WSJ story
http://online.wsj.com/article/BT-CO-20090716-707189.html



From the desert to the sea, to all of Southern California
User currently offlineLipeGIG From Brazil, joined May 2005, 11365 posts, RR: 59
Reply 2, posted (4 years 8 months 3 weeks 3 days ago) and read 3516 times:
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Thanks for the news Hardi. Interesting that the business model created to link markets is getting good results.
PU is able now to deal with a lot of markets, and i expect they confirm introduction of POA, in the near future CNF, BSB, SSA and may be a 2nd flight to GIG, plus more places in Argentina. There's a lot of space in Brazil to grow even more, specially now that they have the market at Sao Paulo protected (the agreement with TAM).

Good job PU !



New York + Rio de Janeiro = One of the best combinations !
User currently offline757GB From Uruguay, joined Feb 2009, 676 posts, RR: 1
Reply 3, posted (4 years 8 months 3 weeks 3 days ago) and read 3500 times:

Sorry to sound negative, but the source is not the most reliable one. It's markedly pro government, and this is an election year, so they're trying to throw any good light they can on anything the government is part of. I would be ok with that if the information was 100% accurate, but if things were so rosy Leadgate would be willing to invest more, and they're looking for another partner to throw money in (they're in talks with Jazz and another CRJ operator for what I understand). PU lost money in May and June. The airplanes are certainly not paid for, and the government will likely be the one to foot that bill.

I've worked in PLUNA and want them to succeed, but got really tired of all the lies since Leadgate came on board. ESPECIALLY about money.

Just my  twocents 



God is The Alpha and The Omega. We come from God. We go towards God. What an Amazing Journey...
User currently offlineHardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 50
Reply 4, posted (4 years 8 months 2 weeks 9 hours ago) and read 3221 times:



Quoting LAXintl (Reply 1):
I did read last week however that Pluna was looking for further financing and a partnership with a foreign carrier.

Here is the WSJ story
http://online.wsj.com/article/BT-CO-....html

Thanks for the link.

Quoting LipeGIG (Reply 2):
Thanks for the news Hardi. Interesting that the business model created to link markets is getting good results.
PU is able now to deal with a lot of markets, and i expect they confirm introduction of POA, in the near future CNF, BSB, SSA and may be a 2nd flight to GIG, plus more places in Argentina. There's a lot of space in Brazil to grow even more, specially now that they have the market at Sao Paulo protected (the agreement with TAM



Quoting 757GB (Reply 3):
Sorry to sound negative, but the source is not the most reliable one. It's markedly pro government, and this is an election year, so they're trying to throw any good light they can on anything the government is part of. I would be ok with that if the information was 100% accurate, but if things were so rosy Leadgate would be willing to invest more, and they're looking for another partner to throw money in (they're in talks with Jazz and another CRJ operator for what I understand). PU lost money in May and June. The airplanes are certainly not paid for, and the government will likely be the one to foot that bill.

I've worked in PLUNA and want them to succeed, but got really tired of all the lies since Leadgate came on board. ESPECIALLY about money.

Thanks for the other perspective on Pluna results.

After MVD-POA, PU is planning to start MVD-IGU in Brazil by the end of 2009. I find IGU interesting destination in terms of tourism, but personally would think thatb reinforcing MVD-GIG or launching MVD-CNF would produce more results in terms of density and yields.

As I mentioned above, by end of 2009 PU is also planning to start ASU-SCL. The airline is still expanding in the middle of the recession.

Rgs,


User currently offlineCRJ900 From Norway, joined Jun 2004, 2152 posts, RR: 1
Reply 5, posted (4 years 8 months 2 weeks 6 hours ago) and read 3169 times:
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Will they convert remaing CRJ900 options to firm orders for CRJ900 or CRJ1000?

Or will they perhaps lease some of the available CRJ900s that were previously flown by AtlasJet and MyAir, they all have 90 seats already, but are not NextGen so the overhead bins are smaller though... I'm sure that would be cheaper than buying new-builds.



Come, fly the prevailing winds with me
User currently offline757GB From Uruguay, joined Feb 2009, 676 posts, RR: 1
Reply 6, posted (4 years 8 months 2 weeks 5 hours ago) and read 3150 times:



Quoting CRJ900 (Reply 5):
Will they convert remaing CRJ900 options to firm orders for CRJ900 or CRJ1000?

We're getting mixed signals on that. On one hand they say they want the 15 aircraft (they have 7 now). At the same time, they painted a CRJ in Aerovip's colors (an Argentinian regional airline) to lease it to that airline (it has also been said that PLUNA wanted to buy 60% of Aerovip). When questioned about this, airline sources have responded that they have too many airplanes anyway and leasing one or two of them was good business. As of today Aerovip's CRJ has been sitting at the airport for more than a month. Argentina so far has not authorized the operation, and as the airplane was re-registered in Argentina now it can't fly for PLUNA (sounds silly, but there you go...).

I gather that more airplanes MIGHT be needed if they operate all the routes they keep announcing, however few of those projects have become reality. We'll have to wait and see a little more. Part of the problem is that the government in its share of 25% of PLUNA is also guarantor for the aircraft, for nearly 180 million dollars. Since Leadgate came on board the government has spent around 60 million dollars, while Leadgate has spent 15. You can see why we taxpayers are not all that happy with this state of affairs.



God is The Alpha and The Omega. We come from God. We go towards God. What an Amazing Journey...
User currently offlineDiegoDangers From United States of America, joined Jul 2009, 19 posts, RR: 0
Reply 7, posted (4 years 8 months 2 weeks 3 hours ago) and read 3107 times:

The aerovip plane was authorized at all? How exactly were they able to register the a/c? Whats the reason that they do not allow it to fly under Pluna?

I miss living right by Carrasco, I was young, but it was great.

- Diego


User currently offlineHardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 50
Reply 8, posted (4 years 8 months 2 weeks 2 hours ago) and read 3087 times:



Quoting 757GB (Reply 6):
I gather that more airplanes MIGHT be needed if they operate all the routes they keep announcing

After MVD-POA, PU already mentioned ASU-SCL (the routing is planned to operate MVD-SCL-ASU-SCL-MVD therefore using an iddle aircraft which currently overninghts in SCL which means no need for extra aircraft anyway). This also means very poor late night schedule.

The other new routes mentioned by PU is MVD-IGU, as I already mentioned I think MVD-CNF would work better.

Rgs,


User currently offlineLAXintl From United States of America, joined May 2000, 24307 posts, RR: 47
Reply 9, posted (4 years 8 months 2 weeks 2 hours ago) and read 3065 times:

The August issue of Airline Business has a brief story and interview with Matias Campiani CEO of Pluna where he mentions that Argentine authorities are giving the airline a very hard time and has been blocked it from launching additional cities(a new route to Patagonia was rencently denied). He feels the Argentine government is trying to protect AR by forcing people living outside BUE to to fly to the capital first on AR instead of accessing direct international air service from these secondary cities.

He also mentions Pluna is exploring opening a "regional hub" in Asuncion a market that lacks a true home carrier, while its geography is "perfect location" in the middle of South America.



From the desert to the sea, to all of Southern California
User currently offlineHardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 50
Reply 10, posted (4 years 8 months 2 weeks 2 hours ago) and read 3055 times:



Quoting LAXintl (Reply 9):
The August issue of Airline Business has a brief story and interview with Matias Campiani CEO of Pluna where he mentions that Argentine authorities are giving the airline a very hard time and has been blocked it from launching additional cities(a new route to Patagonia was rencently denied). He feels the Argentine government is trying to protect AR by forcing people living outside BUE to to fly to the capital first on AR instead of accessing direct international air service from these secondary cities.

TAM had the same issue when it wanted to start GRU-COR which led the airline to abandon such plan.

Rgs,


User currently offline757GB From Uruguay, joined Feb 2009, 676 posts, RR: 1
Reply 11, posted (4 years 8 months 1 week 6 days 19 hours ago) and read 2988 times:



Quoting LAXintl (Reply 9):
The August issue of Airline Business has a brief story and interview with Matias Campiani CEO of Pluna where he mentions that Argentine authorities are giving the airline a very hard time and has been blocked it from launching additional cities(a new route to Patagonia was rencently denied).

That's very true. The route from Trelew to Brazil got denied like 2 days before starting the route  Wow!
It was then given to AR. It's likely the same thing is happening with Aerovip.

Quoting DiegoDangers (Reply 7):
The aerovip plane was authorized at all? How exactly were they able to register the a/c? Whats the reason that they do not allow it to fly under Pluna?

There were no problems registering the bird, and even Argentinian crews were being trained. But once again the government there put it all in the freezer (with the airplane ready in this case).

As far as why it can't fly for PLUNA, you've got to understand that aeronautical legislation here can be very archaic in some areas. The airplane couldn't even be kept inside the hangar after a while! It's sitting outside, certainly not generating any income. Those are the types of things that many of us suspect are left out of the positive reports when they're given. As far as I know, the airplanes are not yet being paid for (I'm not 100% sure of that though). If you bring all those numbers in, numbers are likely to look somewhat different IMO.



God is The Alpha and The Omega. We come from God. We go towards God. What an Amazing Journey...
User currently offlineOP3000 From United States of America, joined Jun 2009, 1678 posts, RR: 2
Reply 12, posted (4 years 8 months 1 week 6 days 11 hours ago) and read 2919 times:

Quoting 757GB (Reply 6):
Part of the problem is that the government in its share of 25% of PLUNA is also guarantor for the aircraft, for nearly 180 million dollars. Since Leadgate came on board the government has spent around 60 million dollars, while Leadgate has spent 15. You can see why we taxpayers are not all that happy with this state of affairs.

Its seems that the operators of PLUNA do not have enough skin in the game, and are probably more in the business of trying milk the government first and run a profitable airline second (hopefully not to the extent the MARSANS group did when they took over AR).

Having said that, my feeling is that the regional-jet model will work well for PLUNA. I'm very curious to see how far they can take it in terms of expansion (if they can keep their act together on a sustained basis).

The idea of operating a small hub in ASU is a good in theory, but operating in Paraguay offers its own set of complications as displayed by TAM Mercosur.

[Edited 2009-08-06 22:40:39]

User currently offlineHardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 50
Reply 13, posted (4 years 8 months 1 week 6 days 9 hours ago) and read 2889 times:



Quoting OP3000 (Reply 12):
The idea of operating a small hub in ASU is a good in theory, but operating in Paraguay offers its own set of complications as displayed by TAM Mercosur.

ASU market is very thin. I really do not think PU is planning any hub operation in ASU apart from the added ASU-SCL service (which in fact is expected to use the same aircraft of MVD-SCL).

Rgs,


User currently offlineHardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 50
Reply 14, posted (4 years 7 months 4 weeks 1 day 3 hours ago) and read 2651 times:

Now is official - Pluna will operate ASU-SCL nonstop in direct competiton with TAM.

PU will operate ASU-SCL 3 x week CRJ900 starting 15 September 2009.

Apparently MVD-IGU will be the next route to be operated by PU.

Rgs,


User currently offline757GB From Uruguay, joined Feb 2009, 676 posts, RR: 1
Reply 15, posted (4 years 7 months 4 weeks 5 hours ago) and read 2539 times:

Following up on the new start up Uruguayan carrier BQB, it is well on it's way to have full authorization to fly the MVD-MAD route abandoned by PU. Now initially they were talking about using A343 for the route, then they switched to 763. Digging a little further, the word is that the aircraft they have in mind is no other than the old CX-PUG:

Big version: Width: 200 Height: 133 File size: 9kb
CX-PUG - the last aircraft used by PU on the MVD-MAD route


Now this 763 has been on the ground since the route was abandoned (around October last year IIRC), and word is that the lessor has not taken it back and PU is still paying the lease  Wow!

At least the inside of the aircraft was not in very good shape from reports I've read, and a huge problem was that apparently the aircraft was modified in ways not acceptable to the lessor and could not be certified to flight under another flag. I want to make it clear that this is a rumor, but it does ring true. Time will tell I guess, as BQB will have to give more details if they indeed start the route towards the end of the year. I hope they do, I just wish it was a better aircraft. I love the 767, but this one was in terrible shape as per trip reports.



God is The Alpha and The Omega. We come from God. We go towards God. What an Amazing Journey...
User currently offlineHardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 50
Reply 16, posted (4 years 7 months 4 weeks ago) and read 2484 times:



Quoting 757GB (Reply 15):
Following up on the new start up Uruguayan carrier BQB, it is well on it's way to have full authorization to fly the MVD-MAD route abandoned by PU. Now initially they were talking about using A343 for the route, then they switched to 763. Digging a little further, the word is that the aircraft they have in mind is no other than the old CX-PUG:

Would the route also go back and operate via GIG? MVD-GIG-MAD at the time was a winner route also with cargo. The issue is that BQB would not be able to feed traffic in MVD relying solely on O&D.

Rgs,


User currently offline757GB From Uruguay, joined Feb 2009, 676 posts, RR: 1
Reply 17, posted (4 years 7 months 3 weeks 6 days 23 hours ago) and read 2456 times:



Quoting Hardiwv (Reply 16):
Would the route also go back and operate via GIG?

That's a good question. Back in April they said they were considering a stop in Brazil (GIG seems logical), but that's also when they said they would use an A343. Information is hard to come by and many times you know it's wrong. As an example, only recently they talked about routes to the US and talked about a Boeing 787-300 Dreamliner for that route  Yeah sure

One of the great mysteries after Leadgate bought most of PLUNA was why they let go of the GIG connection, since it indeed was a good market for pax & cargo (the 767 had a higher useful load that way).

One thing that MIGHT work is that for a lot of folks in Argentina it would be easier to travel to MVD and from there to Europe, instead of flying to BUE and having to change airports between AEP & EZE.

BTW: I found a picture of the BQB 767, though I suspect it's photoshopped:


Big version: Width: 320 Height: 198 File size: 9kb



Other routes BQB has asked for:

Montevideo-Aeroparque, Montevideo-Ezeiza, Punta del Este-Buenos Aires, Punta del Este-Porto Alegre, Colonia-Córdoba, Colonia-Rosario, Colonia-Mar del Plata, Colonia-Rivera y Salto-Porto Alegre.

Time will tell how much is real and how much fireworks.

Regards,
GB



God is The Alpha and The Omega. We come from God. We go towards God. What an Amazing Journey...
User currently offlineDiegoDangers From United States of America, joined Jul 2009, 19 posts, RR: 0
Reply 18, posted (4 years 7 months 3 weeks 6 days 18 hours ago) and read 2399 times:



Quoting 757GB (Reply 15):
Now this 763 has been on the ground since the route was abandoned (around October last year IIRC), and word is that the lessor has not taken it back and PU is still paying the lease

I just learned that they had 3 76s, when I first read this, I thought I had read in Airliners about a year or two back that the a/c had been transferred to S7, I guess this is another one.

Quoting 757GB (Reply 11):
There were no problems registering the bird, and even Argentinian crews were being trained. But once again the government there put it all in the freezer (with the airplane ready in this case).

As far as why it can't fly for PLUNA, you've got to understand that aeronautical legislation here can be very archaic in some areas. The airplane couldn't even be kept inside the hangar after a while! It's sitting outside, certainly not generating any income. Those are the types of things that many of us suspect are left out of the positive reports when they're given. As far as I know, the airplanes are not yet being paid for (I'm not 100% sure of that though). If you bring all those numbers in, numbers are likely to look somewhat different IMO.

ah, thanks for the info.

offtopic: where in uruguay are you, i lived in Solymar for 3 years in the 80s.


User currently offlineHardiwv From Brazil, joined Oct 2004, 8780 posts, RR: 50
Reply 19, posted (4 years 7 months 3 weeks 6 days 11 hours ago) and read 2335 times:



Quoting 757GB (Reply 17):
Other routes BQB has asked for:

Montevideo-Aeroparque, Montevideo-Ezeiza, Punta del Este-Buenos Aires, Punta del Este-Porto Alegre, Colonia-Córdoba, Colonia-Rosario, Colonia-Mar del Plata, Colonia-Rivera y Salto-Porto Alegre.

Time will tell how much is real and how much fireworks

Thanks for the information. Any dates for operations to start?

Quoting 757GB (Reply 17):
That's a good question. Back in April they said they were considering a stop in Brazil (GIG seems logical)

I am not so sure because now the situation is different: IB operates MVD-MAD nonstop and this would make it difficult to compete with IB in O&D market. On the other hand, the GIG stop over would capture traffic and cargo in GIG market.

Rgs,


User currently offline757GB From Uruguay, joined Feb 2009, 676 posts, RR: 1
Reply 20, posted (4 years 7 months 3 weeks 6 days 6 hours ago) and read 2293 times:



Quoting DiegoDangers (Reply 18):
I just learned that they had 3 76s, when I first read this, I thought I had read in Airliners about a year or two back that the a/c had been transferred to S7, I guess this is another one.

Hi Diego, PU only had one 767 operating at a time. The first one I believe was a 767-200 from Varig. The second one (the one flying now for S7 was CX-PUB:

Big version: Width: 640 Height: 466 File size: 89kb
CX-PUB, now flying for S7


CX-PUG came after that, and it was actually older and like I said, in not such a good shape.

Quoting DiegoDangers (Reply 18):
where in uruguay are you, i lived in Solymar for 3 years in the 80s

No kidding!? I live near Parque Roosevelt in Shangrila, which is about 3KM from Solymar  bigthumbsup 

Quoting Hardiwv (Reply 19):

Thanks for the information. Any dates for operations to start?

You're quite welcome! Actually those routes were asked for recently. There will be some meetings in September, where they will follow up on the certification process for BQB, talk about the Sol route request (maybe) and maybe consider these new routes requested. So at this point they have no authorization yet, so it's premature to give any dates. The other thing is that in the unlikely event all those routes get approved (I get the feeling they're shooting for all of them to be able to get some...) they would need to increase their fleet. So far they're talking about 2 ATR 72s and 1 B763.

Regards,
GB



God is The Alpha and The Omega. We come from God. We go towards God. What an Amazing Journey...
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