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TAM Postpones JNB - 2010 World Cup Charters  
User currently offlineLipeGIG From Brazil, joined May 2005, 11438 posts, RR: 58
Posted (5 years 1 month 1 week 10 hours ago) and read 3130 times:
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TAM today during its conference to their 2Q results advised that all operations to South Africa during the World Cup will be as charters which also confirms that JNB flight will not begin before June 2010 (and in my view will not happen anytime).

No info on quantity or origin, but i believe will be between 30 and 40 flights from both GIG and GRU.

Also, TAM released their 2Q results with a very strong result due to financial results (mainly due to US$ devaluation as TAM has a big long term liability in US$), however, EBIT margin was negative and EBITDAR face a drop of 40% showing huge drop on revenue and yields leading to an operational loss.

Plus, they expect demand to recover strongly during the next months.


New York + Rio de Janeiro = One of the best combinations !
12 replies: All unread, jump to last
 
User currently offlineSA7700 From South Africa, joined Dec 2003, 3431 posts, RR: 25
Reply 1, posted (5 years 1 month 1 week 8 hours ago) and read 3032 times:
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Thanks for the update LipeGIG. On a side note: I just saw an SA FF mileage redemption special on the JNB-EZE-JNB route. You can fly business class return for a mere 76500 miles (excl taxes). It's a bargain!  Smile


Rgds

SA7700



When you are doing stuff that nobody has done before, there is no manual – Kevin McCloud (Grand Designs)
User currently offlineLipeGIG From Brazil, joined May 2005, 11438 posts, RR: 58
Reply 2, posted (5 years 1 month 1 week 7 hours ago) and read 3004 times:
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Quoting SA7700 (Reply 1):
Thanks for the update LipeGIG. On a side note: I just saw an SA FF mileage redemption special on the JNB-EZE-JNB route. You can fly business class return for a mere 76500 miles (excl taxes). It's a bargain!

My pleasure.

Wow, that's a very interesting deal ! By the way, you know how EZE is performing ? I hope SA performs very well and then decides to launch JNB-GIG for the world cup !



New York + Rio de Janeiro = One of the best combinations !
User currently offlineSA7700 From South Africa, joined Dec 2003, 3431 posts, RR: 25
Reply 3, posted (5 years 1 month 1 week 4 hours ago) and read 2953 times:
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Quoting LipeGIG (Reply 2):
By the way, you know how EZE is performing ? I hope SA performs very well and then decides to launch JNB-GIG for the world cup !

I'm not 100% sure how SA is doing on the EZE route. Tomorrow’s flight (SA226) JNB-EZE is wide open in all classes, as well as the return (SA227). Granted that is only tomorrow’s loads – one can not jump to conclusions based on the load factors for one day… However, given the fact that SA are usually very stingy with FF seats + upgrades and are now offering FF redemption seats at “mileage keeper” levels….. it seems as if SA is trying their best to promote the route.


Rgds

SA7700



When you are doing stuff that nobody has done before, there is no manual – Kevin McCloud (Grand Designs)
User currently offlineNeo From Brazil, joined Jan 2001, 672 posts, RR: 6
Reply 4, posted (5 years 1 month 6 days 23 hours ago) and read 2871 times:



Quoting LipeGIG (Thread starter):
TAM today during its conference to their 2Q results advised that all operations to South Africa during the World Cup will be as charters which also confirms that JNB flight will not begin before June 2010 (and in my view will not happen anytime).

No info on quantity or origin, but i believe will be between 30 and 40 flights from both GIG and GRU.

Also, TAM released their 2Q results with a very strong result due to financial results (mainly due to US$ devaluation as TAM has a big long term liability in US$), however, EBIT margin was negative and EBITDAR face a drop of 40% showing huge drop on revenue and yields leading to an operational loss.

I never really bought JJ intentions to start JNB service, as SA (*Alliance partner) already does a good job covering this route, especially after competition significantly increased with EK, EL and TK new services to GRU.

In addition the 2Q results just shows that JJ has to focus on improving their operation, (yields, domestic marketshare, LF) and thus not rely on financial assets to post profits, because we all know how quickly that can turn around.

Rgs,

Neo


User currently offlineLipeGIG From Brazil, joined May 2005, 11438 posts, RR: 58
Reply 5, posted (5 years 1 month 6 days 20 hours ago) and read 2766 times:
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Quoting Neo (Reply 4):
In addition the 2Q results just shows that JJ has to focus on improving their operation, (yields, domestic marketshare, LF) and thus not rely on financial assets to post profits, because we all know how quickly that can turn around.

That's very true. Probably because mainly of the economic situation their revenue dropped but something i noticed is that the international revenue, even with a currency devaluation (fares are in US$, measured in the end in BRL) it fell just 3 PCT and this seems to be because of the new routes they open.
With routes to EZE recovering, and looking to the advance booking improving (as per CFO's comments yesterday) to the United States, TAM expects recover revenue, which is also very important.
But they need to look closer to the expenses which increased a little even with a major fuel expense drop.

Quoting SA7700 (Reply 3):
I'm not 100% sure how SA is doing on the EZE route. Tomorrow’s flight (SA226) JNB-EZE is wide open in all classes, as well as the return (SA227). Granted that is only tomorrow’s loads – one can not jump to conclusions based on the load factors for one day… However, given the fact that SA are usually very stingy with FF seats + upgrades and are now offering FF redemption seats at “mileage keeper” levels….. it seems as if SA is trying their best to promote the route

Thanks. We have to think that it's a difficult time for a lot of routes. But i do expect EZE to do well.



New York + Rio de Janeiro = One of the best combinations !
User currently offlineShankly From United Kingdom, joined Jan 2000, 1543 posts, RR: 1
Reply 6, posted (5 years 1 month 6 days 15 hours ago) and read 2598 times:

As an aside, have already bagged tickets for me and seven mates to the world cup next year, flying from London.

Our search began as early as May and we were on the button the second flights were released...Qatar being our quick choice, ahead of a comparable deal with Turkish

Expect airlines will make some hay in the sun on all routes to CPT & JNB during June & July next year (not that it will be sunny in CPT that time of year!)



L1011 - P F M
User currently offlineLipeGIG From Brazil, joined May 2005, 11438 posts, RR: 58
Reply 7, posted (5 years 1 month 6 days 6 hours ago) and read 2358 times:
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Quoting Shankly (Reply 6):
Expect airlines will make some hay in the sun on all routes to CPT & JNB during June & July next year (not that it will be sunny in CPT that time of year!)

Yes, it was a very smart decision from you and friends to book in advance. Fares will be very high for sure during world cup!



New York + Rio de Janeiro = One of the best combinations !
User currently offlineOP3000 From United States of America, joined Jun 2009, 1767 posts, RR: 2
Reply 8, posted (5 years 1 month 6 days 6 hours ago) and read 2353 times:



Quoting Shankly (Reply 6):
As an aside, have already bagged tickets for me and seven mates to the world cup next year, flying from London.

Out of curiosity, what range of prices were you finding? I have an awards reservation on hold through IB using miles, but if the price is right I might choose to buy as the miles required are enough for three nice trips to Europe or South America in low season.


User currently offlineShankly From United Kingdom, joined Jan 2000, 1543 posts, RR: 1
Reply 9, posted (5 years 1 month 6 days 3 hours ago) and read 2304 times:



Quoting OP3000 (Reply 8):
Out of curiosity, what range of prices were you finding?

OP. We've paid £963/each return LHR-DOH-CPT and back with Qatar, fully flexible economy. The DOH-CPT flight also tech stops in JNB. So £/take-off and landing its not bad!

The Turkish deal was £996 LHR-IST-CPT. There are seats currently available but from London you are looking at £1,300 upwards with the highest i've seen being £1,700 with SAA - economy!

Not sure about what happened in the US, but in the UK SAA and BA had their reservations held back by FIFA and the SA Govt until their people had bagged their tickets!

The typical low season economy fare on the LHR-CPT route is £499, although QR and EK often provide deals in the £350 range.



L1011 - P F M
User currently offlineOP3000 From United States of America, joined Jun 2009, 1767 posts, RR: 2
Reply 10, posted (5 years 1 month 5 days 16 hours ago) and read 2199 times:



Quoting Shankly (Reply 9):
Not sure about what happened in the US, but in the UK SAA and BA had their reservations held back by FIFA and the SA Govt until their people had bagged their tickets!

Shankly: thanks for the input.

Here its been even more difficult. I suspect we had the same issues with the SAA direct flights. The other direct choice is DL which got into the act late and only started selling tickets a week ago (all the US majors allow bookings 330 days in advance at most), and is going for US $4000 cheapest in Y.

The cheaper option (about $3000) is going across the pond to LHR, FRA, ZRH, MAD, DXB, CAR or DOH and then to SA. But that's been hard to do because of the 330 day thing, since the USA-Europe fares had been much higher early when US carriers (AA, DL, CO, UA) had not realesed their inventory. And now that they have, there's almost nothing but full-fare Y left on Europe-SA!


User currently offlineShankly From United Kingdom, joined Jan 2000, 1543 posts, RR: 1
Reply 11, posted (5 years 1 month 5 days 14 hours ago) and read 2132 times:



Quoting OP3000 (Reply 10):
Shankly: thanks for the input

If you make it out there mate pm me and we can hook up for a beer. We will be in Cape Town from 10th-25th June

Regards, Shankly



L1011 - P F M
User currently offlineOP3000 From United States of America, joined Jun 2009, 1767 posts, RR: 2
Reply 12, posted (5 years 1 month 5 days 11 hours ago) and read 2064 times:



Quoting Shankly (Reply 11):
If you make it out there mate pm me and we can hook up for a beer. We will be in Cape Town from 10th-25th June

Sure thing bud. Our group of six will be at the cape June 23-25 if all goes as planned.

And who knows, we may end up flying through the gulf too....EK has yet to open up their flights for late June. Rgds.


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