1) Rio is the most strong base of customers RG
has (as well as where fidelity to Varig is stronger due to the size of their operations in the past at GIG
and the shuttle service Rio-SP)
2) Sao Paulo for Varig is a connections hub, if someone can prove to me something different i can change my mind:
in the near past runs flights from POA
, AJU, all to GRU
allowing connections and feeding their international ops. GRU
is not the main Sao Paulo airport and G3/JJ use to offer "discount" fares while CGH
prices are even higher.
has only: POA
is O&D for domestic flights (note that RG
use to fly GIG
4x and GIG
8x, while only GRU
2x and GRU
2x just to feed the international flights)
c) Any RG
employee would confirm that GIG
is at least 65% O&D GIG
is stronger on connections.
d) Every day GRU
"shuttle" carry more than 1000 daily pax from Rio.
3) Cargo in Rio is not so strong as GRU
and VCP and due to this the demand for cargo on the flights is higher than Sao Paulo (where a lot of cargo planes use to fly to US and Europe)
4) Rio is under served, São Paulo isn't !
5) Lets compare:
A332 / AA
772 / AA
A332 / AA
772 / JL
77W / JJ
744 / JJ
A332-A320-F100 / AR
735 / G3 738
A332 / LA
763 / TA
A320 non stop
* For me Sao Paulo customers will decide on Tam, AF
, and others (it's easy for them as they just need to go to GRU
). Varig will remain strong on POA
... but they are weak nowadays due to the problems they face. Who expect RG
selling F again ?
And why GIG
- Without RG
/IB/TP are not in conditions to take care of the non-stop demand to Europe.
- Their base of customers is really high (RG
use to be 50% of GIG
till april 2005)
- High demand for new foreign business of Rio corporations (Petrobras, Vale do Rio Doce, All other oil market, Shipyards..) and also The Pan American Games.
- Rio still receive close to 30% of all business trips to Brazil (but only 15% as intl pax at GIG
). Sao Paulo get around 55% but GRU
is almost 4x higher than GIG
in terms of passengers.
Well, and just to let all know, i will be transferred to New York effective september with 6x trips/year to Rio. More one claiming for a JFK
non stop service!
could be the king as the market is under served and willing for non-stop service to places like LHR
with good fares. RG
will be one more, and will need to charge lower fares to gain the market confidence again.
But it's only my opinion... RG
seems that decided in favor of GRU
, and also it's very clear: high demand for connections (low fares on trips like FOR
), but the Sao Paulo O&D is on someone else hands (AF,AA,JJ....) and the profit will be hard to be obtained. F customers will only return in one year, may be two. C customers, it depends on each corporate (my company will pay me GIG
, and in the past i use to fly GIG
!) but it takes some time also. Y customers are even more sensitive for past problems and will avoid flying RG
during a long time.
NOTE: Even JJ
will stop F class service on JFK
routes. Only two A332 GE
powered will keep First Class Service, just for CDG