E-NEWS UPDATE VOLUME 20 NUMBER 0204
Posted 05/02/2010
COLOMBIA: POSITIVE BUSINESS OUTLOOK
Is the headline in this week's Latin Business Chronicle by Joachim Bamrud, He starts out by stating: "Foreign multinationals are upbeat on Colombia despite challenges that include lagging infrastructure". A Latin Business Chronicle survey of seven foreign firms that do business in Colombia reveals strong optimism, with few seeing the political uncertainty (the delay in US approval of the FTA and questions about whether president Alvaro Uribe will and can run for reelection in May) as a challenge. Rather, issues like Colombia's still-lagging infrastructure is widely seen as the key challenge facing foreign companies. The companies surveyed represent a wide range of sectors, spanning accounting, beverage, consumer products, energy, law, technology and travel. "It is one of my favorite markets" says James Maximoff, Latin America general manager for US giant, Intel. Others quoted optimistically include Mauricio Nicholls, general manager for the region for Chevron Products Company; Mathew Wyatt, with UK-based brewing giant, SABMiller; Marta Alfonso, partner with Morrison, Brown, Argiz and Farra; Jorge Rincon, Vice President of Priority Pass. For the 'must read' article, with more details, go to www.latinbusinesschronicle.com Thanks, Joachim for another excellent insight article on one of our favorite countries in the region.
CONTINENTAL REPORTS JANUARY OPERATING PERFORMANCE
The report for January includes a consolidated load factor of 77.2%, four points above the same month last year. Consolidated RPMs were up 8.5% in the month, with domestic growth at 2.4%, with international up 14.7%; Transatlantic up 13.25, Pacific up a record 27% with Latin America up 10.4%. At the same time, Latin America had the best load factor in January at 80.5%, with consolidated at 77.2%. On time performance in the month was 82.3% up 4.9 points from the same month last year, with completion factor at 99.5% compared to last year's 99.3%. Way to go, Continental!
Other news, briefly
Brazilian industrial output jumped 18.8% in December
Brazil's national statistics agency reports that industrial output soared 18.8% in December 2009 compared to the same month last year. According to Finance Minister, Guido Mantenga, Brazil's economy will grow between 5% and 5.5% in 2010. "The economy can now stand on its own feet" according to the Minister. Viva Brasil, with an "S".
Air Jamaica is canceling some routes
The Jamaican national airline is suspending routes such as New York to Grenada and Jamaica to Orlando which will be suspended March 9. It will also suspend flights from Jamaica to Grenada and Orlando along with flights from Jamaica to Curacao, Chicago, Havana, and Nassau on April 12. Stay tuned.
Avianca and TACA have officially closed their shareholder agreement
Having obtained all the approvals needed from the various government agencies, the new joint venture company is now ready to start operating under the name of AVIANCA-TACA Limited, based in the Bahamas. Synergy Group, which controls Avianca, owns 67% of the new holding company, with Kinsgly Holding Limited, owner of TACA
owning 44%. Roberto Kriete, of TACA will be chairman of the board, with Avianca's Fabio Villegas as CEO. One to watch.
Shell to invest $12 billion in Brazil
Shell International Petroleum Company has signed an agreement with Brazil's Cosan to create a joint venture and invest $12 billion for the production of ethanol, sugar and energy, and the subsequent distribution and sales to energy retailers for transportation. Way to go!
Air France and KLM increasing their capacity to Brazil
Thanks to their code sharing agreement with Brazil's "intelligent airline", GOL, The two airlines are increasing their presence in the Brazilian market as they add more service to seven domestic destinations in Brazil. Jointly the two carriers currently operate 31 weekly flights from Paris and Amsterdam to Sao Paulo and Rio de Janeiro. Viva Brasil, with an "S".
American Airlines is adding three new flights to Mexico from Dallas
The US carrier has announced that it will be adding three flights between Mexico and the United States on April 6. The new flights are between Dallas and Monterrey, Guadalajara and San Luis Potosi. The new service will increase the airline's service to Mexico to 47 daily flights. The yanks keep coming.
Buenos Aires' Aeroparque airport will serve regional destinations
The approval for airlines to operate from the capital city's convenient airport to Brazil, Chile and Paraguay is effective as of March 1. The request for the authority came from Aerolineas Argentinas. It is not clear whether other regional airlines will be authorized, but this is a good step in making Argentina more accessible. Stay tuned.
ICAO is forecasting a 4.5% growth in 2010 and a boom in 2011
The International Civil Aviation Organization (ICAO) is forecasting a 4.5% growth in airline traffic in 2010 and 6% growth in 2011 and 2012. In 2009 world wide traffic fell the greatest percentage since WWII. I believe Latin American traffic will increase at a greater rate. It's the economy, stupid.
