- Passenger numbers: 2.9 million, +13.0% year-on-year;
- Cargo volume: 52,600 tonnes, +17.4%;
- Aircraft movements: 21,400, +9.5%.
Shenzhen Airport pax up 13%, cargo up 17% in Feb-2014
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TAP Portugal Part 1: the national carrier needs privatisation to tap fresh capital
Portugal is widely expected to relaunch the privatisation of TAP Portugal before the end of 2014, possibly offering a 49% stake and a management contract. It is likely to seek assurances on issues such as the retention of TAP's Lisbon hub and connectivity with the Azores.
Although debt is falling, TAP needs fresh equity to increase its fleet expansion options. The privatisation must ensure that the airline, and not the government, benefits from external investment. Through operating leases, TAP has grown its fleet in 2014 (the first time since 2010), but its first Airbus A350 deliveries had to be pushed out to 2017 from 2015.
The delay since the first attempt at privatisation has allowed for some improvement in financial results, but the TAP Group remained in loss at the net income level in 2013 and in 1H2014. Selling or closing loss-making activities such as the Brazil Maintenance division may help the privatisation. In this first part of our analysis, we review TAP's financial track record.
In Part 2, we will look at TAP Portugal's competitive position and its appeal to potential bidders.
Croatia Airlines Part 2: Privatisation will require finding bidders with a strategic motive
In the first part of our analysis of Croatia Airlines, we examined its finances and highlighted an improving trend. The Croatian government's attempts to find a buyer for a 49% stake in the airline met with insufficient interest in 2013, but it is easier to sell a business where there are clear signs of profit returning than it is to sell a perennial loss-maker.
The potential privatisation has come back onto the agenda.
However, airlines rarely make a good investment on purely financial grounds and Croatia Airlines' prospects are likely to depend on finding a bidder with a strategic interest.
This second report looks into Croatia Airlines' network and market position and considers their possible appeal.