TAP is to suspend seven medium-haul routes. The measure is part of the company's adjustment plan to reduce costs on under-performing winter routes.
The service to Oviedo (Spain), Gothenburg (Sweden), Helsinki (Finland), Warsaw (Poland) and Zagreb (Croatia) will be suspended as will links to Tallinn (Estonia) and St. Petersburg (Russia).
With this measure, the company says it will reduce fuel and personnel costs and generating savings that are essential for the state ‘to get the maximum revenue from the sale of 61% stake in TAP.’
The goal of TAP now is to promote its services this summer through an 'aggressive marketing strategy' and reduce losses incurred in the winter months.
The first move in TAP’s ‘aggressive marketing strategy’ was released today aimed at the corporate traveller and introducing a loyalty scheme ‘where points mean discounts.’
The more trips made by corporate passengers on TAP flights, the more Corporate Points will be accumulated and the more free tickets or upgrades accumulated.
These two actions serve to highlight what a shambles TAP truly is. Long overdue analysis of route profitability has led to the obvious suspension of low-yield routes in the off-season and the launch of a rewards scheme of a type that other airlines have used to their advantage for years makes TAP look antediluvian.
If this is the best that TAP can come up with in Fernando Pinto’s last few days of being in command, there is little doubt that with the application of up-to-date marketing techniques focussing on customer loyalty and value-for-money, that the new owners will be able to increase passenger numbers and revenue in a short space of time.
The words 'aggressive,' 'marketing' and 'strategy' appear awkward ones when referring to TAP but in time the patient could be revived.
Meanwhile in Brussels, Germán Efromovich, the unsuccessful bidder for TAP, has instructed his lawyers to prepare a detailed complaint for the European Commission to mull over.
Efromovich remains suspicious that the dice were loaded in the bidding process for TAP and the Council of Ministers' choice of Gateway, a company owned by David Neeleman, Chairman of Azul Brazilia, and Humberto Pedrosa of Barraqueiro, was suspicious as it broke EU laws.
The Colombian entrepreneur has asked Parpública, the holder of TAP shares on behalf of the taxpayer, to give his legal team full access to all documents relating to the sale of TAP, including the company’s internal report and choice of new owner.
A team of lawyers wants to explore Efromovich’s doubts about whether the selection of Gateway complied with the European Union rules, especially the one banning non-European investors from controlling airlines based in Europe.
David Neeleman clearly was identified with the Gateway bid for control of TAP but when the deal was analysed, Humberto Pedrosa owned 51% of Gateway so as to comply with the EU’s 'anti-foreigner' law.
Efromovich believes that Neeleman is the architect of the whole operation, not Pedrosa, adding that the business requires a high financial investment and Pedrosa does not have sufficient funds.
Comments
Not with a fractious cabin crew and TAP regulars, inconvenienced by the recent strikes, now much more aware that - by going low cost - they only need pay one third of any TAP flight. So discounts would be irrelevant if the regulars have voted with their wallets.