Gol and TAM invest in terminals and stores for air cargo
Valor Econômico 09/15/10
When amounting almost 1,7 thousand daily flights to 100 cities and nearly 262 aircrafts, the two largest Brazilian airline companies reached, also, the leadership of air cargo. With the crisis of VarigLog and the expansion of its flight network, TAM and Gol are already among the top three in this sector, although they do not have any cargo aircrafts or plans in that regard. The two companies take advantage of the cargo compartment of the aircraft. Therefore, the total capacity to ship orders next to the luggage, depends on the rate of occupancy of the aircraft. Regardless of that, Gol, the second largest, and TAM, the leader in flights for passengers, are investing in more storage capacity and cargo handling at terminals located in airports like Guarulhos and Congonhas.Gol and TAM are also planning on increasing the number of stores of the cargo division, Gollog and TAM Cargo, respectively. This business area has similar weight in the earnings of both companies and is more profitable than the passengers transport. Cargo transportation in TAM is already responsible for 10% of its revenues. At Gol, this area has the greatest share of the revenue from auxiliary services, which represents 11.3% of company sales. Both data are for the second quarter of 2010.
The Gollog is more than quadrupling its capacity for storage and cargo handling at Congonhas Airport. The total area of the terminal is being increased from 800 square meters to 3.5 square meters. The branch of cargo transport of Gol currently has 86 stores around the country serving 1,2 thousand municipalities. The company wants to end 2010 with 120 units in 2 thousand cities. Of such total, only two are of its own and the other are franchises.
"Gollog earnings at the second quarter of 2010 grew 57.8% over the same period in 2009, while the market grew 22%", says Gol cargo officer, Carlos Figueiredo. For the executive, the performance of the Gol flights network contributed for this growth, as well as the highest number of cities assisted. Despite being launched a year ago, express shipments already account for 20% of the earnings.
In a recent interview, the president of the holding company TAM SA, Marco Antonio Bologna said that the company "does not give up the domestic market leadership" Castetllo Branco says that Absa, which has as shareholder the Chilean Group LAN, is the second major company in the cargo sector. Gol, therefore, would be the third. In August, LAN and TAM announced the merger of their operations, with the creation of Latam. TAM Cargo plans to invest in a cargo terminal with 8.5 million square meters in Guarulhos International Airport. Castello Branco says that the project should be completed in 2011. TAM Cargo also has terminals in Recife and Manaus. The company also intends to open new TAM Cargo stores in Petrolina (PE) and in Colombia later this year. In the future, Castello Branco does not ruled out to grow through franchising.