In addition to EDP, another privatisation that is raking in the cash is Portugal’s formerly State-owned national airline which carried more than 14.2 million passengers last year, a credit to Gateway, the new shareholder at TAP whose experience is paying off.
Last year, TAP transported 14,274,000 passengers, 2.55 million more than in 2016, a growth of 21.7% over the year.
TAP management says the all important occupancy rate for seats went up by 4.3%, to 82.9%.
The Lisbon-Oporto route carried more passengers in 2017, “a total of 726,000, 8% more than in 2016," said the airline which also opened a new route to Toronto - joining the routes to Boston and New York JFK which started in 2016 and showed 50% like-for-like growth in 2017.
Flights to Brazil were up 14%, with TAP transporting 1.6 million passengers. For the first time on African routes, TAP hit the one million passenger mark, with 29% more seats sold.
It has been the European routes where the number of passengers increased the most, with 1.6 million more flying than in 2016, a record 8.7 million, 22% more than in 2016.
Even TAP Cargo closed 2017 with a growth rate of 25%.
David Neeleman and Humberto Pedrosa, the controllers of the Gateway consortium that successfully bid for the rights to run TAP and that owns a shade under 50% of the former State-owned company, are succeeding where State appointed management had failed. It helps that Neeleman actually has previous experience in running an airline.
Comments
These improvements have been rapid and weighty. What has Gateway done differently? And why did TAP not do these things when it was state-owned?