antiuser
Posts: 646
Joined: Thu May 27, 2004 9:43 am

Is TAM Operating In The Red?

Tue Nov 15, 2005 5:31 pm

I was under the impression that, of all Brazilian majors, RG was the only one not posting profits, but someone on another forum recently said JJ was also starting to shift into the red zone. Is this information true? From what I've seen and heard from/about TAM and Gol, both companies seem to be financially solid and keep profitable operations...

Thanks in advance!
Azzurri Campioni del Mondo!
 
LipeGIG
Posts: 5048
Joined: Tue May 03, 2005 7:33 am

RE: Is TAM Operating In The Red?

Wed Nov 16, 2005 12:21 am

Quoting Antiuser (Thread starter):
I was under the impression that, of all Brazilian majors, RG was the only one not posting profits, but someone on another forum recently said JJ was also starting to shift into the red zone. Is this information true? From what I've seen and heard from/about TAM and Gol, both companies seem to be financially solid and keep profitable operations...

No Antiuser, TAM just post their best result for the 3Q: R$ 93,3 million (US$ 42,4 million). All the numbers are better than last year, including a 50% increase in the number of pax (nowadays TAM is a 20 mm pax / year company ). Both EBIT and EBITDAR are better (+11% and + 22%) over 2004 numbers.
TAM keep R$ 708 million of cash on hand (US$ 321 million).
Their long term debt is R$ 492 million, or in other words, they can pay at sight!

No doubt they hold a very confortable financial position.

Regards,
Felipe
New York + Rio de Janeiro = One of the best combinations !
 
hardiwv
Posts: 4341
Joined: Sat Oct 09, 2004 11:30 pm

RE: Is TAM Operating In The Red?

Wed Nov 16, 2005 12:31 am

Quoting LipeGIG (Reply 1):
No doubt they hold a very confortable financial position.

Lipe's information is correct. TAM has a very comfortable financial situation, and has posted record profits so far.

It is also important to note that from a purely operational point of view, RG is also a profitable airline. RG's problems lies on its huge debt. Last year and this year RG posted operating profits as far as I know.

Rgs,
 
A342
Posts: 4017
Joined: Sun Jul 31, 2005 11:05 pm

RE: Is TAM Operating In The Red?

Wed Nov 16, 2005 1:03 am

I read an article about TAM in the German Aerointernational. There it was also said that TAM was in the red, but because, attention now, in TAM papers red is used for marking positive results while blue is for negative ones. It was also speculated if the entry into the "red" was the reason to repaint the aircraft from blue tails to red ones...
Exceptions confirm the rule.
 
PPVRA
Posts: 7865
Joined: Fri Nov 12, 2004 7:48 am

RE: Is TAM Operating In The Red?

Wed Nov 16, 2005 1:44 am

Quoting A342 (Reply 3):
I read an article about TAM in the German Aerointernational. There it was also said that TAM was in the red, but because, attention now, in TAM papers red is used for marking positive results while blue is for negative ones. It was also speculated if the entry into the "red" was the reason to repaint the aircraft from blue tails to red ones...

Man I don't buy that....

JJ did post negative results for Q2 though. Maybe that's what it is.

Cheers
"If goods do not cross borders, soldiers will" - Frederic Bastiat
 
LipeGIG
Posts: 5048
Joined: Tue May 03, 2005 7:33 am

RE: Is TAM Operating In The Red?

Wed Nov 16, 2005 2:35 am

Quoting A342 (Reply 3):
I read an article about TAM in the German Aerointernational. There it was also said that TAM was in the red, but because, attention now, in TAM papers red is used for marking positive results while blue is for negative ones. It was also speculated if the entry into the "red" was the reason to repaint the aircraft from blue tails to red ones...

On it's biography, Mr. Rolim Amaro (former TAM President) made a statement in CGH about 10 years ago " In some years we will be the only aircraft ON blue ". It's just because in 1995 TAM was the only red tail airline (and a minor player) against the Blue tails of RG and TP. Seems he's right...

Felipe
New York + Rio de Janeiro = One of the best combinations !
 
antiuser
Posts: 646
Joined: Thu May 27, 2004 9:43 am

RE: Is TAM Operating In The Red?

Wed Nov 16, 2005 2:36 am

Quoting Hardiwv (Reply 2):
Lipe's information is correct. TAM has a very comfortable financial situation

As I expected. Thanks Lipe and Hardi.
Azzurri Campioni del Mondo!
 
JJMNGR
Posts: 924
Joined: Wed May 26, 2004 9:06 pm

RE: Is TAM Operating In The Red?

Wed Nov 16, 2005 6:24 am

Gentlemen,

A342 is correct. The executives of the company are monitored in their particular budged using graphics and statistic information using colours.

It is right when he says that when an executive has a RED issue, means is on track and everything is good (red is the colour of the company). The there is a BLUE, seems things are not very weel and improvements must be done. The average result is printed in YELLOW.

Might be curious but it is like this...

Cheers,