TAP To Make A Profit?

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Despite difficult conditions in the industry, Portugal's national airline TAP Air Portugal is targeting a return to net profit this year after slashing its losses dramatically during 2002.

The airline's net loss of EUR6 million (USD$6.35 million) was an 86 percent improvement on the previous year and the change in its fortunes is underscored by comparing the result to the EUR122 million losses of three years ago.

Although the carrier narrowly missed its planned net target, it nevertheless posted an operating profit for the second consecutive year as passenger traffic grew by 3.3 percent to over 5.5 million.

Last year TAP decreased its accumulated debt by EUR100 million, whilst increasing the company's operating revenue by 2.4 percent. It also held operating costs at the same level as the previous year.

Forecasts for 2003 point to the company returning to net profit, despite the unfavorable conditions which continue to impact on the markets at present, TAP stated.

Fernando Pinto, TAP Chief Executive said: "These results were only made possible due to the combined efforts of our entire team... and our ability to adapt our capacity to the ever changing market".
******From Airwise.com******
It is good to see TAP making a profit though how long it continues to do this is another matter. I would like to see TAP join an alliance soon,however, what it could offer any alliance could be questioned.

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24 years 2 months

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TAP to make a profit ? Don't tell me they've reissued "Smell The Glove" ? (lol, sorry couldn't resist)

Seriously though, thanks for the info I used to enjoy seeing them at GLA in the summer months a while back.

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TAP used to serve Glasgow? I never knew that.

This is probably actually quite good for the Portuguese Government. They were trying to half privatize the airline, as it is State Owned. Swissair was going to take a stake, however, due to obvious reasons it could not happen. Now that it is profitable then it could attract more interest.

I wonder how the airline is doing on its niche market to Brazil? With the current problems of Varig it is probably making quite a lucrative business.

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Good comment Saab.

Does anyone feel that TAP can complement Iberia on the South American runs? Oneworld membership would appear a dead cert if so.

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I haven't seen them at GLA since the early 80's. Mainly a summer service as I recall.

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i think if they did manage to get into a parntership be it oneworld or star Portugal and its dependancies could be a useful staging point for any Transat Traffic - the Azores could be one such stopover as well as the mainland fields

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Generally if TAP were to lean towards an Alliance it would obviously be Oneworld. Code-share agreements with American and Iberia would almost suggest the start of a “marriage” if you will.

However, my feeling is if TAP want to become an attractive partner then just flying to a few points in Brazil is not enough. I think that TAP could offer nothing new to the Oneworld alliance that is not covered by Iberia. Therefore, in my opinion TAP’s best option would be to develop strategic alliances with individual airlines by which they could connect to more cities in Europe and the Americas.

Expanding on my earlier statement about its profitability, I think one of its major reasons is down to the airlines strategy- It is only flying to its niche market on a major basis (Brazil, Angola, Cape Verde islands, Sao Tome etc). As a relatively small airline I think it has made the best decision to fly to areas where it knows it can make a profit unlike many other European Majors.