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Showing posts with label TAM. Show all posts
Showing posts with label TAM. Show all posts

Saturday, 5 February 2011

Too much of a good thing? Brazil's airports are suffering a growth crisis




Images: Wikipedia

One of the countries that has been experiencing sustained growth in the last decade is Brazil. The country's magnificent rates of growth have had its reflection on the aviation sector too and the number of air passengers in Brazil has more than doubled in less than a decade, from 71 million in 2003 to 154 million in 2010. This growth has taken place amidst a total transformation of Brazil's airline sector, that included the demise of what used Brazil's traditionally two largest carriers, Vasp, in 2005, and Varig, that in 2006 got absorbed by GOL, one of the entrants that have managed to take a significant part of Brazil's market. The emergence of Star-Alliance member TAM and low cost carriers GOL and Azul (founded by David Neeleman of JetBlue fame, by the way it is not a coincidence that "azul" is Portuguese for "blue"!) have more than made up for the disappearance of the traditional carriers.

But all this growth is reaching a bottleneck: the country's airport infrastructure. Capacity at Brazil's airports hasn't expanded quite as fast as traffic and the country may be heading for serious turbulence if it does not upgrade its infrastructure before the upcoming World Cup and Olympic Games, due to take place in 2014 and 2016 respectively. There are serious doubts about the capacity of Infraero, the government institution with links to the military, that manages most Brazilian airports, to deliver in the face of such such an important challenge. We will see whether a solution is found, either in the form of more public investment or through the privatisation of some of these airports. In any case, I am sure this is a problem that many countries would like to have right now (just thinking about our series on Spain's empty airports), and a reminder that not everyone is currently in crisis!

Sunday, 13 June 2010

What airlines does Barcelona need in order to become a truly global airport?

As a continuation to my post about the arrival of Qatar Airways to Barcelona I am going to do an exercise on airline fiction and try to imagine what airlines could best complement Barcelona's airport current network and put it in the league of the major global airports. In short, if I was Barcelona airport's manager which airlines I would like to fly into my airport in order to maximize my travelers' options?

As in real life resources are limited, and in order to make this exercise look a bit more real, and, thus, more interesting, we are going to set some constraints. The airport manager will only be able to choose one airline per continent (well, actually Asia will have two, but it's ok as we are not considering Australia for technical reasons: to far away for direct flights), the choices would also need to be realistic and take into account the market realities at BCN (for example, a route to the Maldives might be nice, but there might not be enough realistic demand for it or the connections to feed it).

These constraints would likely tip the balance in favour of Star Alliance airlines. Why? because of Spanair, the only network airline that is currently intent on building a hub at BCN while working together with one of the major alliances. This is not to say that the other airlines at BCN are not doing a good job, but frankly, I think that their current operational model would make it difficult to reach the type of coordination and code-share agreements that Spanair's membership of Star Alliance could facilitate. Moreover, it looks like Star Alliance's networks really fills the gaps at BCN quite nicely...here are the choices, in no particular order:

United Airlines to Chicago



The American carrier's hub at Chicago O'Hare (ORD) would be a good complement to Barcelona's current connections with the East Coast of the US, particularly with, recently merged, Continental's service to New York-Newark (other direct routes BCN-US are New York-JFK served by Delta and American Airlines, Philadelphia, PHL, served by US Airways and Atlanta, ATL, served by Delta). Flying into Chicago will open the door to the Mid-West and Western states for the Barcelona travelers, and Barcelona's tourist sector would surely benefit from having a direct connection to one of America's biggest and more prosperous cities.

All Nippon Airlines to Tokyo



A connection with Japan would be very important for BCN. Many Japanese companies are based in Catalonia, such as Nissan and Sony, and, as anyone visiting Barcelona's famous Gaudí monuments might have noticed, Barcelona remains a very popular destination among Japanese tourists. All Nippon Airways has a relatively small international network, but does fly to cities where it can code-share with Star Alliance partners, such as Lufthansa in Frankfurt, why not Barcelona then?

TAM to Sao Paulo



A regular and frequent connection with Latin America is missing at BCN despite the strong business links and the large Latin American community in Barcelona (there are some weekly flights to Buenos Aires and Bogota but with very sporadic frequencies) and where else to start other than Sao Paulo, the largest city and economic capital of up-and-coming Brazil, with its growing economy and large population? It's geographic position would also enable travelers to connect with TAM's regional network to access the rest of the continent. Moreover this route could fit well in the European expansion plans of TAM, also a Star Alliance member.

Air China to Beijing



No need to repeat what everyone has already heard about China, the World's new economic giant. A direct connection to China, with an airline that can give access to a large domestic and regional network is a must for any airport with aspirations. Air China is a member of Star Alliance as well and, like its home country, is also in a period of expansion. Great potential for this route that could handle a mix of business and leisure traffic both ways.

South African Airways to Johannesburg



This is not just a World Cup-related stunt...because of its geographic position Barcelona could be a good connection point for Europe-Africa traffic. At the moment many travelers in the Western Mediterranean area go North to Paris, Brussels or Frankfurt in order to then travel South again, a direct flight from Barcelona would save time to travelers in Barcelona's catchment area and could also feed flights to other parts of Europe with South African Airways' Star Alliance partners. This route and the possible regional onward connections at Johannesburg would also facilitate new business and tourism opportunities in the Southern part of Africa.

Emirates to Dubai




This is the only one of the lot that it is not a Star Alliance member, but Emirates has shown that it can do it alone...plus Emirates is becoming so big that I think any self-respecting airport would like to have it on-board...If Emirates came to Barcelona it would be competing with Qatar Airways on all routes to the Middle East and beyond: Australia, India and South Asia, East Africa, the Far East. In short, a global super-connector.

What else?

Well, given that this post is about wishful thinking, if Singapore Airlines' (another Star Alliance member) current Barcelona-Milan-Singapore route could become nonstop another portion of the World would be much better covered from BCN!

I would also keep an eye on two other Star Alliance members: Air Canada and Asiana of South Korea. I have not included them, in part to keep with the self-imposed constraint regarding the number of choices available. Their local markets are relatively small compared with their giant neighbors but both countries are economically doing well and there might be interesting opportunities ahead!

The absents

I would have liked to include an Indian airline in the lot, specially considering the dynamism of the Indian economy and its aviation sector. I haven't because I had the feeling that business and tourist flows between the two markets are not big enough yet, particularly given the lack of alliance partners that might help feed the flights at both ends. Moreover, the Gulf carriers Qatar Airways and Emirates already cover most of the major and even secondary destinations in India. I have no doubt that if the Indian economy continues to grow, it won't be long until we see Indian airliners at BCN, in fact, last year it was rumored that Kingfisher Airlines had some interest in operating the Barcelona-Mumbai route (it might help that its owner is regular visitor to the Catalan capital).

Given the complicated political situation in Thailand and the fact that there already is a Singapore Airlines flight to Barcelona that provides connections to South-East Asia, I have decided not to include Star Alliance member Thai Airways in this list this time. Once the political issues are sorted out I am sure that Thailand will remain a popular tourist destination as ever and hopefully we will see the Thai Airways's orchid livery at BCN some day!


Fiction or reality?

So this is it! You just add six carriers and practically the whole globe is within one stop of BCN...

I admit there was a lot of wishful thinking in this post, but, who knows? on one hand, I think there is a latent demand for long-haul flights at Barcelona, that is now using other alternatives, on the other hand there are emerging markets and airlines that are fast expanding into new and under-served markets. There is plenty of capacity now at BCN...I know there are people working hard to make things happen...we might not become a super-hub but we can certainly be a spoke of many interesting hubs, providing convenient access to a vast number of destinations across the globe and this might happen sooner than we think!

Sunday, 18 April 2010

Planespotting at Madrid Barajas

While we wait for the volcanic ash to dissipate, here are some pictures that I took on a recent trip to Madrid Barajas (MAD) a very interesting airport for planespotting and one of Europe's main connecting hubs if you are flying towards Latin America. It is certainly the best place in Europe to spot planes from that part of the globe. I hope you enjoy the pictures!


An Easyjet A319, Easyjet has built an active base at MAD in the past few years despite strong competition from Ryanair, Vueling, Iberia, Spanair and Air Europa, all of them with an important presence at Madrid Barajas.


A Boeing 767 of Venezuelan airline SBA (formerly known as Santa Barbara Airlines), that covers the route to Caracas.


One of Air Europa's A330, Air Europa is the Spanish member of Skyteam


A Philippines Airlines A340. Despite being a former Spanish colony, the air links between the Philippines and Spain are very few. This is actually the first time I see a Philippine plane at Madrid Barajas.


If this post is about MAD, Iberia could not be missed. Here a McDonnell Douglas MD-87, one of the few left in the fleet, that is progressively becoming Airbus-only.


A Boeing 757 operated by Spanish carrier Gestair Cargo. The image quality is not very good as I got some light reflected on the terminal's windows...


An Aerolineas Argentinas Boeing 747 getting ready for the daily night flight to Buenos Aires (EZE)



Swiss A320, a regular visitor at MAD.


A colourful livery by Brazilian airline TAM. Already in a World Cup mood!


A pair of Jumbos operated by Spanish charter carrier Air Pullmantur, usually flying Spanish tourists to the Caribbean beaches.