TAP Portugal Finds Ways To Manage Operational Uncertainty

TAP Portugal is using buffer time and closer cooperation, particularly with airports, to protect against operational disruption and unpredictable events.

“Deliveries are a challenge,” TAP Portugal's group head of strategy, Henri-Charles Ozarovsky, told delegates at Routes Europe in Aarhus, Denmark.

He gave an example where aircraft deliveries slip from the first quarter to the third quarter. “To be frank, we have put in some buffers—both with our redelivieries and our delivery streams—to make sure that we account for that. Because, rather than trying to complain about it, you actually have to just be smart and plan for it.”

TAP uses this approach with supply chain issues, maintenance plan changes, parts delays and engine issues. “We've put in some buffers because we’re doing our first few engine-performance restorations on the Leap now,” he said.

However, Ozarovsky acknowledged that allowing too much of a buffer can add costs, so it is essential to find the right balance. “The quicker you start doing that—and practice doing that day by day—the better you become,” he said. “Half the time it [the issue] happens, and half the time it doesn’t, and you get that time back.”

TAP and ANAC, the Portuguese civil aviation authority, are also rigorous about testing when accepting aircraft deliveries. “Although it’s difficult, they help us triple-check everything, so literally right after the plane comes in, it goes for a 14-hr. day.”

Another important part of TAP’s strategy is supplier relations, particularly airport relations, which has been a focus area for TAP this year.

“If you don't learn to manage your hub, your relationship with your airport, you're dead. And that's been critical. I say this openly, that our airport relationship is 10 million times better than it was—and it is the most critical thing, because then you help each other,” Ozarovsky said.

He said this has come into its own when TAP has needed to park aircraft for maintenance or to do an engine check, or when the carrier has wanted assistance with building airport lounges. This has improved TAP’s on-time performance, with a 99%-100% completion rate, and cut missed connections to less than 2%. These improvements need cooperation from the whole customer service chain.

“We swapped a slot by 10 min., just to help another carrier have a better on-time performance. That helps all of us in the airport with slot discrepancies,” Ozarovsky said.

Ultimately, “there isn't a magic wand,” but Ozarovsky said the important thing is to be dynamic and agile. He used the example of LCC Wizz Air, which has “had it worse than anybody,” with the impact of Israel-Gaza war, Russia’s invasion of Ukraine and the Pratt & Whitney geared turbofan issues.

“They're going to be incredibly resilient after this—actually the most dangerous competitor that we have,” he said.