One year after it joined the TAP Group, the balance of the PGA acquisition is a very positive one, fully confirming goals projected and also emphasizing the fact it has been possible to keep a prestigious national company running as well as preserve its 505 work posts.
The PGA acquisition in July 2007 aimed to strengthen TAP’s competitive edge enabling it to expand the number of destinations within its network significantly increasing in passengers from short to mid-range cities, many of which are not served by the company, taking in point-to-point traffic and feeding its medium and long-haul network.
Figures already available prove that the decision to acquire PGA was correct from the point of view of TAP interests and of great relevance in terms of its corporate plan.
The total number of passengers transported by TAP during the first semester reached 4.1 million, 22% higher than that verified in the same period last year. Around 12 percentage points of this increase correspond to traffic operated by the PGA fleet. This growth has been especially evident at Porto Airport where TAP increased by 38% enabling it to consolidate its hub in the north of the country.
In sales registered throughout the first semester in Portugal through travel agents, TAP increased its share from 46% to 52%, to which revenue registered from flights operated using PGA aircraft also contributed.
At its European outlets, TAP sales increased 24% between January and June but growth was most significant in the Spanish (68%) and French (39%) markets, precisely those in which TAP most increased its offer of flights relying on the PGA fleet.
It is worth noting that all costs associated with this acquisition as well as all debt costs are covered by the PGA operation itself. In this first year of activity (second semester of 2007 and first of 2008) the regional company which in 2006 suffered losses of 60 million euros rose to a negative 3.9 million, confirming it is on the road to recovery. However, the synergies it has brought to TAP, the direct and indirect contribution made to company revenue and the increase in passenger numbers have turned this into a clearly positive balance, confirming our best expectations.
The TAP Group takes the opportunity to congratulate all PGA workers as well as all those at TAP who have contributed to the success of its integration into the Group and results already achieved.
