The restructuring of the Brazilian subsidiary of Maintenance & Engineering (TAP M&E) is reaching its final stage. The company is now focusing on the improvement of processes and methods, says TAP M&E’s Deputy Vice President - Operations Brazil, Nelson Vaz.
IT, logistics, HR, sales, and operations are all on a solid footing and “we are confident that in the short term TAP M&E Brazil will be a profitable business,” he asserts. TAP bought the former Varig maintenance and repair provider in 2005 and the company has reported heavy losses since then.
TAP M&E Brazil now is mainly a third party MRO provider with facilities in Rio de Janeiro and Porto Allegro. Up to 60% of its work is for Brazilian operators, while the remainder of the revenue is generated from carriers in other Latin American countries, Africa and increasingly North America.
Backed by the exponential growth of air transport in Latin America and particularly in Brazil, revenue has grown 100% in the past five years, Vaz asserts. The slowing of the growth rate of air transport in the country has not translated to a reduced workload and “our slots are almost 100% occupied until February,” he says.
TAP M&E Brazil works in an integrated way with its Lisbon facilities and manpower shifts over the three locations when needed. The company is now focusing on standardizing procedures across the network and adopting “best practices” of Brazil in Lisbon, and vice versa.