Argentina Merges Aerolineas & Austral Into One Airline

This week, the Argentinian government announced the fusion of State carriers Aerolíneas Argentinas and Austral. Previously, both airlines…

Argentina Merges Aerolineas & Austral Into One Airline

This week, the Argentinian government announced the fusion of State carriers Aerolíneas Argentinas and Austral. Previously, both airlines belonged to the same group, and their fusion could be a done deal by the end of the year. But not everybody is happy. Let’s investigate further. 

Aerolíneas Argentinas and Austral will merge into one airline. Photo: Getty Images.

What does this mean for both airlines?

Pablo Ceriani, president of Grupo Aerolíneas, said that the fusion would bring a more significant operative efficiency to both carriers. As well, the new airline will have a more thorough growth and will save millions of dollars while opening new markets. 

With both airlines under one brand, Grupo Aerolíneas expect savings of up to almost US$30 million and direct earnings of US$42 million said Argentinian news agency, 

Ceriani added that there’s no sense in having a duplication of structures. Aerolíneas Argentinas has a fleet of 54 aircraft composed of  and 44 Boeing 737. Meanwhile, Austral has a fleet of 26 Embraer ERJ-190. 

As of May 2020, Aerolíneas Argentinas served 37 domestic destinations and 24 international destinations in 16 countries. Austral mainly has domestic destinations, although it does connect with some neighboring countries such as Uruguay, Brazil, and Chile. 

In reality, both airlines are already intertwined. They work on the same route map and share some destinations with Austral operating the low seasons. So, at first glance, there shouldn’t be much difference if both airlines become one. Nevertheless, some people are not happy.

Austral pilots are not happy with the merger. Photo: Edgardo Gimenez Mazó via Wikimedia Commons.

Austral pilots raised their voices

After the news broke, the pilots of Austral raised their voices in unconformity against the decision made. The Pilot Union of Austral (UALA) declared itself in a “state of alert.” 

UALA added, 

“Under fallacious and unsustainable arguments of savings and productivity, the Grupo Aerolíneas administration wants to sacrifice a capitalized airline with market potential.” 

Austral Líneas Aéreas has been flying for over 60 years, and the union believes it is a part of the solution rather than a problem. .

“The Grupo Aerolíneas requires a Plan with political consensus and under a scheme of federal support. We don’t need an improvised plan which will result in a costly and fallacious makeup,” Austral added. 

The Argentinian newspapers also are not too happy about the fusion. They point out that mixing both airlines will create little economic savings. Aerolíneas Argentinas currently has 11,900 employees and a yearly wage cost of over US$50 million. said that the airline had received approximately US$450 million from the Argentinian government this year. 

Aerolíneas Argentinas
Aerolíneas Argentinas plans to set up a cargo division. Photo: Edgardo Giménez Mazó via Wikimedia Commons.

What else is Argentina proposing?

As we know, Argentina is currently the only country in the world to have . Different organizations worldwide . Meanwhile, Aerolíneas Argentinas has maintained a small repatriation operation and some cargo flights. 

Pablo Ceriani announced that the airline will launch two new businesses after the crisis. On the one hand, it will create a cargo operation based on the experience of its flights to Shanghai. Additionally, Aerolíneas Argentinas will launch an MRO service for other airlines. 

“It is necessary to operate with maximum efficiency. We’ve managed to do it in some areas, but we keep inefficiencies in others. We have dragged some problems for so many years,” the airline said in a statement. The carrier also said that those companies that can’t adapt to the current state of affairs would disappear. “Surely, this could be the destiny of Aerolíneas Argentinas if we are not up to the task,” it ended.

What do you think of Aerolíneas’ merger? Let us know in the comments. 

Source : Simple Flying More   

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GOL Reports That April Passenger Numbers Haven’t Fallen

Today, Gol Linhas Aereas Inteligentes shared that its aircraft were almost as full last month as they were…

GOL Reports That April Passenger Numbers Haven’t Fallen

Today, Gol Linhas Aereas Inteligentes shared that its aircraft were almost as full last month as they were a year ago. Despite the COVID-19 outbreak rocking the aviation industry, the Brazilian outfit’s planes were 80 percent occupied on average during April, compared with 81 percent in the same month last year.

Gol is seeing the majority of the seats on its aircraft filled up despite the pandemic. Photo: Boeing

How do the numbers compare?

Reuters reports that these results sharply contrast with Aeromexico, which is the region’s only other carrier to have reported traffic figures for last month. The flag carrier of Mexico’s planes were 48 percent occupied in April, whereas they were 82 percent full a year ago.

Additionally, United States-based carriers have been impacted so much that they have been seeing flights with just one passenger. Regardless, it won’t be physically possible for some operators to reach the same numbers as Gol due to new hygiene measures in place.

Delta Air Lines has blocked all of its middle seats. Therefore, aircraft with three seats on each side of the aisle won’t be more than 67 percent full. Even though Gol’s 129 Boeing 737s are configured in this way, the firm does not have plans to introduce the same methods. However, it will make the wearing of masks compulsory from May 10th.

Gol aircraft interior
The interior of a Gol Boeing 737 plane. Photo: Boeing

Still facing challenges

Even though each jet is still seeing positive numbers on board, the total passenger activity for Gol is not nearly as healthy. Just like the majority of other commercial airlines across the globe, it has been forced to suspend several of its services.

Additionally, much of its fleet remains on the ground due to ongoing travel restrictions. It flew approximately 39 operations a day in April, which is 94 percent fewer than a year ago.

Many members of the airline’s staff remain active. Therefore, there could be a spike of coronavirus cases within the company. Nonetheless, Gol CEO Paulo Kakinoff states that this has not happened so far. With most of its crew members exposed every single day, there have been eight cases of the virus across the company in total.

The firm reported a net loss of $419.28 million (2.3 billion reals) in the first quarter. However, it states that it has enough cash to last the rest of 2020.

Gol Livery
Government figures have been taking up several of the seats on its flights over the last few weeks. Photo: Boeing

The demand is there

Gol’s reporting highlights that there is still a demand for air travel among the population. Additionally, São Paulo authorities are have shared that they are struggling to enforce quarantine rules. So, once restrictions are lifted, it won’t be a surprise to see several passengers flock to buy tickets, naturally increasing the demand for increased frequencies.

Simple Flying reached out to Gol about its passenger activity across its operations. A spokesperson shared that the carrier does not have any additional comments about the subject.

What are your thoughts on Gol’s passenger numbers for April? Do you see the same results repeating this month? Let us know what you think of the situation in the comment section.

Source : Simple Flying More   

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