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More Aerolineas Woes

Thu May 23, 2002 6:50 pm

AR1182 EZE-AKL-SYD departed AKL with 126 pax today. (cap 249).

AR1183 SYD-AKL-EZE departed AKL with 51 pax.

ouch!  Sad
Airbus Lover
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RE: More Aerolineas Woes

Thu May 23, 2002 7:00 pm

The outbound flight to EZE from AKL is really surprising but how much cargo is carried and the number of Biz and First pax?

But on AR1182 how many pax arrived in AKL from EZE?
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RE: More Aerolineas Woes

Thu May 23, 2002 7:00 pm

Now thats what i call a whipping!!

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RE: More Aerolineas Woes

Thu May 23, 2002 7:04 pm

Poor AR I hope things improve for them maybe we will see when QF quit EZE.
How are QF's loads I take it they are a little better.
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Joined: Sat Dec 02, 2000 9:40 am

RE: More Aerolineas Woes

Thu May 23, 2002 10:34 pm

I think AR should concentrate on their long haul money makers at least until the situation in Argentina improves. In my opinion they should concentrate on Miami, Madrid and Rome the others like JFK, AUK, SYD they should suspend until the situation in Argentina improves.
Fly the Flag!!!!

RE: More Aerolineas Woes

Thu May 23, 2002 11:07 pm

Well, with the state Argentina is in at the moment, it is a wonder they are still alive! Which routes are the most profitable for AR? Is it Europe, America or even Australia/Pacific?

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RE: More Aerolineas Woes

Fri May 24, 2002 3:00 am

Their routes to Europe are their most profitable, I think they average a 78% load factor on those. Their system wide load factor is 57%. I think AR is waiting for QF to drop EZE and then their loads should increase, but now they are at 48%, not good.

The airline just reported they losses for the first quarter, 39 million which is much lower than the 88 million lost in 2001 (even though traffic in Argentina has reduced by 62%). The airline seems to be doing well considering how awful Argentina is right now.

Source :
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RE: More Aerolineas Woes

Fri May 24, 2002 4:35 am

Yes, the MAD/ROM flights are the most productive for the carrier. The North American routes have averaged a 58% load factor while the South American and Oceania route have turned extremely low levels.

In my opinion, I think that QF's withdrawal from the market will probably not benefit AR too much, since Lan Chile will now directly compete with AR and this is probably going to be even harder competition than what QF constituted.

Although the $39 million loss is seemed to be low, compared to the airline's past history, it is still hefty considering that it represents 3 months of operation. What can be expected for the rest of the year?

I believe that many positive things have been achieved. Employee morale seems to be at an all time high and the employees are aware that they need to give it their best considering such unstable climate; therefore, productivity is very good.

However, the administration of the airline should adopt a philosophy of not just flying for pride but to fund the future. Unless the route to Australia promises growth and potential in the near future, keep it. However, I don't think this will be the case. Concentrate on the routes that are breaking even: Miami, Madrid, Rome, maybe JFK. Drop Auckland and Sydney, return a 747 and leave that A340 free to increase frequencies on a routes were the airline's assets can be more productive.

 Smile LatinPlane
Pan Am - The World's Most Experienced Airline.
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RE: More Aerolineas Woes

Fri May 24, 2002 6:06 am

I don't know how much will Lan's flight affect Aerolineas. Don't forget 3 factors:

*Via aerolineas, the flight would have one stop less (nonstop to AKL), and thus, it would be the fastest way to get to New zealand/Australia from Argentina.

*In these times of crisis, I see our people trying to benefit a bit more our country's company's, and would prefer to fly Aerolineas, just because it employs Argentinian people, so the money goes to our country, not Chile.

*I would guess Lan's prices will be higher.

Given these three factors, and considering QF's withdrawal from EZE, AR should be doing better in the pacific, and that's why this route is being kept.

PS: For those who talk about the crisis:

Yeah perhaps flying for Argentinians is too expensive, but, with the Dollar so high, foreign people may visit Argentina at a lower price, and AR may not be flying Argentinians to Australia, but Australians to Argentina

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Joined: Tue May 08, 2001 4:28 am

RE: More Aerolineas Woes

Fri May 24, 2002 7:18 am

True 39 million is a lot for just a quarter, remember that it's 55% less than last year and Argentina is a hundred times worse this year than last. I think the new owners are doing well. They are installing a maintenance facility in BA that they expect will save them 25 mill a year (at a cost of 10 mill). The owners expect to break even by the end of this year and with the domestic competiton in Argentina basically gone (LAPA or ARG is going charter basically and SW is not doing so well), AR will be the main carrier for the country. My hopes are high.  Smile
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Joined: Sun Jun 24, 2001 7:40 am

RE: More Aerolineas Woes

Fri May 24, 2002 9:07 am

It's neither LAPA nor ARG... from past monday (I think), it's called AIRG, due to a dispute with Aerolineas Argentinas (actually, ARG's name was Linea Aerea ARGentina, quite similar). I didn't know SW wasn't doing so well, every time I flew them, planes where chock full.... There's only Austral (Owned by the same owners of Aerolineas-they are expected to be merged by the end of the year-), and DINAR, the other one that's doing acceptebly.

It's true Aerolineas has almost no competition, last I read, they had about 70% market share (not counting Austral), compared with about 30% same quarter 2001.

They are going to break even by the end of the year. I believe in them .Morale is awesomely high, and passengers are becoming "loyal" to Aerolineas.


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