TAP sale completes

The sale of TAP Portugal has now been completed (See  BTN  15 June). 
 
The new owners expect the loss-making airline to return to profit next year due to new routes to Brazil and the United States and an investment of €600m.  Called ‘The Atlantic Gateway consortium’ it is made up of American-Brazilian aviation investor David Neeleman and Portuguese bus company owner Humberto Pedrosa.  It would add new routes but at the same time focus on cost-cutting.

"This year it will be difficult to have a profit because of the crisis in Brazil and other things.  But next year, when we've implemented our changes, we expect to have a profit, and post profits going forward," said Neeleman, who is the Chief Executive of Brazilian airline Azul.

He said that TAP would introduce 10 new destinations in the United States, where it now has two – Miami and New York, and eight to 10 new destinations in Brazil, where it already has 11. 

The consortium has said it will buy 53 new Airbus aircraft for TAP.  Neeleman noted that new orders would include 14 wide-body A330s and 39 narrow-body A321s.

No mention was made of its existing membership of Star Alliance.   Rival domestic carrier Avianca of Brazil has joined the consortium (See in this issue).    www.flytap.com

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