Brazilian regional airlines OceanAir and Total are absorbing routes discarded by the country's larger carriers, which are dropping low-profit regional services in a bid to improve finances.
Rio de Janeiro-based OceanAir has taken over many of Rio-Sul's southern and south-eastern destinations and several routes discarded by TAM. OceanAir operates four Embraer EMB-120 Brasilias and is about to take two Fokker 50s. It has firm plans to add seven destinations, while eight more are pending the completion of a route analysis. The carrier is looking to lease two Boeing 737-300s and two 727-200 freighters, say industry sources.
Meanwhile, Belo Horizonte-based Total Linhas Aéreas is looking to tap into the regional airline market. Total has absorbed routes formerly flown by Varig's Rio-Sul division and expects to add more destinations this year.
Cargo accounted for nearly 70% of Total's revenue last year, and it aims to expand this area of business by seeking further large contracts from customers such as Petrobras and the Brazilian mail service.
Source: Flight International