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dcajet
Topic Author
Posts: 5343
Joined: Sun Aug 01, 2004 9:31 am

TAP Portugal to close its Rio de Janiero GIG maintenance subsidiary

Thu Jan 13, 2022 9:07 pm

As a precondition imposed by the European Commission in order to receive government assistance, TAP Air Portugal is closing its TAP M&E (TAP Manutenção e Engenharia) base located in Rio de Janeiro´s Galeao airport. The facility employs aprox 500 people; TAP tried, unsuccessfully, to sell it. The facilities used to be (back in the 80s and 90s), VARIG's main maintenance base, and at the time the largest facility of its type in South America. Larger ones have since been built by Aerolíneas at EZE and Azul at VCP.

https://aeroin.net/tap-confirma-o-encer ... no-brasil/
 
crosscheckyyz
Posts: 117
Joined: Mon Mar 02, 2020 1:50 am

Re: TAP Portugal to close its Rio de Janiero GIG maintenance subsidiary

Fri Jan 14, 2022 12:43 am

Does this affect any carriers that were using TAP M&E? I think TS did send their widebody to GIG....but unsure if it continues with everything going on.
 
AF086
Posts: 589
Joined: Sun Jan 14, 2007 11:45 am

Re: TAP Portugal to close its Rio de Janiero GIG maintenance subsidiary

Fri Jan 14, 2022 1:51 am

crosscheckyyz wrote:
Does this affect any carriers that were using TAP M&E? I think TS did send their widebody to GIG....but unsure if it continues with everything going on.


All work that is underway will be finished before closing. After that they should look elsewhere for their MRO needs. That's sad actually, RG built a very good structure there and the MRO center is about an hour drive away from a GE Aviation engines maintenance facility at Petropolis. Perhaps someone else acquires the former TAPME facility in GIG. Time will tell.
 
jfk777
Posts: 7594
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Re: TAP Portugal to close its Rio de Janiero GIG maintenance subsidiary

Fri Jan 14, 2022 2:18 am

Very sad to see one successful Varig businesses close its doors to please some silly things in Portugal. This is a talented pool of people and to loose that is regressive for Brazil. So Sad.
 
dcajet
Topic Author
Posts: 5343
Joined: Sun Aug 01, 2004 9:31 am

Re: TAP Portugal to close its Rio de Janiero GIG maintenance subsidiary

Fri Jan 14, 2022 2:46 am

AF086 wrote:
crosscheckyyz wrote:
Does this affect any carriers that were using TAP M&E? I think TS did send their widebody to GIG....but unsure if it continues with everything going on.


All work that is underway will be finished before closing. After that they should look elsewhere for their MRO needs. That's sad actually, RG built a very good structure there and the MRO center is about an hour drive away from a GE Aviation engines maintenance facility at Petropolis. Perhaps someone else acquires the former TAPME facility in GIG. Time will tell.


Apparently they tried to sell it without success, hence why it's being shut down. All 3 large Brazilian airlines (GOL, Azul & LATAM) each have their own MROs, all state of the art. Even AA built its own MRO hangar in Sao Paulo GRU. I think it will be hard to find a buyer.
 
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airportugal310
Posts: 3771
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Re: TAP Portugal to close its Rio de Janiero GIG maintenance subsidiary

Fri Jan 14, 2022 8:17 am

jfk777 wrote:
Very sad to see one successful Varig businesses close its doors to please some silly things in Portugal. This is a talented pool of people and to loose that is regressive for Brazil. So Sad.


Brazil is more than regressive on its own…one maintenance base closure changes nothing in that regard and you know that
 
Jomar777
Posts: 693
Joined: Tue Oct 20, 2015 8:45 am

Re: TAP Portugal to close its Rio de Janiero GIG maintenance subsidiary

Fri Jan 14, 2022 9:40 am

airportugal310 wrote:
jfk777 wrote:
Very sad to see one successful Varig businesses close its doors to please some silly things in Portugal. This is a talented pool of people and to loose that is regressive for Brazil. So Sad.


Brazil is more than regressive on its own…one maintenance base closure changes nothing in that regard and you know that


I would like to highlight that politically motivated comments should not be welcome here.

Having said that, then the RG (now TP's) M&O Facility was built in GIG, it was not only state of the art but also basically the only one.

As mentioned before on this thread, all Brazilian Carriers have their own M&O now facilities now plus the big AA one in GRU - all top facilities so Brazil, if anything, is well covered.

I believe that TP's facility was not sold because of its overall costs and demand as a whole. It will certainly be dilapidated further on the time.

As for the EU's demand on TP to actually sell it in exchange for debt relief, I have my own opinions incl about the whole EU economic and aviation politics - but this is not for A.Net.
 
latinthug23
Posts: 13
Joined: Tue Aug 01, 2017 12:12 pm

Re: TAP Portugal to close its Rio de Janiero GIG maintenance subsidiary

Fri Jan 14, 2022 1:07 pm

jfk777 wrote:
Very sad to see one successful Varig businesses close its doors to please some silly things in Portugal. This is a talented pool of people and to loose that is regressive for Brazil. So Sad.


Firstly, maybe way back in the early VARIG days it was successful.
However when TAP bought it ( there's rumours of an agreement with the Brazilian gov to take it in order to get awarded more flights for TAP on the bilateral, at the time), it did nothing but post huge losses every year!

Secondly TAP has been forced to sell/close it by the European commission ( as well as other non core areas, such as catering and handling).

Best to inform yourself before making silly assumptions.
However I hope the workers are able to find new work. Losing a job is never initially good for anyone.
 
airbazar
Posts: 10737
Joined: Wed Sep 10, 2003 11:12 pm

Re: TAP Portugal to close its Rio de Janiero GIG maintenance subsidiary

Fri Jan 14, 2022 1:28 pm

jfk777 wrote:
Very sad to see one successful Varig businesses close its doors to please some silly things in Portugal. This is a talented pool of people and to loose that is regressive for Brazil. So Sad.

Successful? Like Varig was successful? The entire thing was a political backroom deal in a last minute ditch to pump money into Varig. The then CEO of TAP which had come from Varig bought VEM for pennies on the dollar in exchange for favorable conditions in Brazil (i.e. extra frequencies). It was already a loss making enterprise when it was bought and it continued to bleed money every year since.
 
AF086
Posts: 589
Joined: Sun Jan 14, 2007 11:45 am

Re: TAP Portugal to close its Rio de Janiero GIG maintenance subsidiary

Fri Jan 14, 2022 5:48 pm

dcajet wrote:
AF086 wrote:
crosscheckyyz wrote:
Does this affect any carriers that were using TAP M&E? I think TS did send their widebody to GIG....but unsure if it continues with everything going on.


All work that is underway will be finished before closing. After that they should look elsewhere for their MRO needs. That's sad actually, RG built a very good structure there and the MRO center is about an hour drive away from a GE Aviation engines maintenance facility at Petropolis. Perhaps someone else acquires the former TAPME facility in GIG. Time will tell.


Apparently they tried to sell it without success, hence why it's being shut down. All 3 large Brazilian airlines (GOL, Azul & LATAM) each have their own MROs, all state of the art. Even AA built its own MRO hangar in Sao Paulo GRU. I think it will be hard to find a buyer.


That's unfortunate. Brazilian carriers have their own MRO facilities (VCP, CNF and QSC/GRU) however none of them provide service to other carriers. That was the difference. VEM (or TAPME GIG) did not only service TAP but also others such as TS. Now such services will no longer be exported.

It's an structural problem actually. It's very expensive and difficult to do business in Brazil. For instance: LH Technik could set up a South American operation at GIG using the structure that is present there but can't blame them for not doing that.

Hope that does not hurt GE Aviation's operations at their Petropolis facility that much.
 
Skywatcher
Posts: 1056
Joined: Sat Sep 14, 2002 11:19 am

Re: TAP Portugal to close its Rio de Janiero GIG maintenance subsidiary

Fri Jan 14, 2022 9:14 pm

All I can say is that there's a reason nobody wanted to buy it. The sad truth is it has no value.
 
boeingbus
Posts: 1548
Joined: Sat May 29, 2004 12:37 am

Re: TAP Portugal to close its Rio de Janiero GIG maintenance subsidiary

Sun Jan 16, 2022 1:13 am

Skywatcher wrote:
All I can say is that there's a reason nobody wanted to buy it. The sad truth is it has no value.


Exactly. A money pit that the Ex-CEO created for political and personal reasons. Thank goodness the current CEO as well as the EU is closing down.
 
PB26
Posts: 76
Joined: Sat Dec 15, 2018 10:09 am

Re: TAP Portugal to close its Rio de Janiero GIG maintenance subsidiary

Sun Jan 16, 2022 1:50 pm

As told above, the VEM purchase by TAP was for political, as Fernando Pinto was VARIG's CEO prior the TAP and he belongs a prestigious family of pilots in the RG.

The RG MRO was one of the prides of the company, with many foreigns airlines doing services there, as SAS, Thai Airways, LAB, TAAG, TAP, LAP, JAL, Brazilian Air Force, etc. They had two big facilities: GIG and POA, both called CEMAN - Maintenance Center, there was a minor facility in CGH too. The MRO expertise was very known, the best of Latin America, this recognization came because RG's german roots, known for the high maintenance levels.

In 2001, as a way to divest assets and raise money, the MRO facilities was spun-off of RG and became VARIG Engenharia e Manutenção (VEM) and they wanted to sell a part to pay VARIG's debts. But this never happen, because the dismanagement of FRB-Par, RG's largest shareholder.

Besides be one of the world top 10 MRO and the prestigious, VEM never gave a penny to RG. Instead, RG deployed somes employees in VEM and the MRO never pay for them.

When the RG financial troubles became more intensive, they sold VEM and VarigLog to TAP and MatlinPatterson. TAP, or Fernando Pinto, was a bidder to buy VARIG operations and the VEM purchase was seen as a signal of firm intention.

The main VEM's revenue, obviously, came from VARIG and when they stopped the operations, VEM was hit too. Since they became a zumbi company and a financial trouble for TAP. In that time, there aren't many MRO facilities in Brazil: TAM in São Carlos was small, VASP had some services in CGH prior the bankrupt and Gol was investing in facilities in CNF.

IIRC, during the Atlantic Gateway management they closed the CEMAN POA. For a portuguese point of view, it was better to close the brazilian MRO, for financial reasons.

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