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GOT-2005-01 2004 STATS
GOT-2005-06 737-83N WINGLETS
GOT-2005-08 737-700 WINGLETS
GOT-2006-01 TOP LCC 2005
GOT-2006-04 737-800 WINGLETS
GOT-2008-09 VARIG OPS
GOT-2011-09 - 10 YRS
GOT-2013-07 - ASK CUTS TOP 12 AIRPORTS
GOT-2015-07 - 737 New Look-A.jpg
GOT-2015-07 - 737 New Look.jpg
GOT-2015-09 - Top 12 INTNL Airlines Brazil.jpg
GOT-2016-02 - Sao Paulo to Chapeco.jpg
GOT-VISIT COPACABANA BEACH RIO
GOT-VISIT RIO - 2012-03
GOT-VISIT RIO 2011-11
GOT-VISIT RIO SUGAR LOAF 2012-03
ESTABLISHED IN 2000 AND STARTED OPERATIONS IN 2001. A K A GOL TRANSPORTES AEREOS AND GOL LINHAS AEREAS INTELIGENTES. DOMESTIC AND INTERNATIONAL, PASSENGER AND CARGO JET AIRPLANE SERVICES (ALONG THE LINES OF SOUTHWEST AIRLINES (SWA) WITH "NO FRILLS").
Praca Commanante Linneu Gomes, s/n - Portaria 3
Sao Paulo, CEP-04547-006, Brazil
BRAZIL (FEDERATIVE REPUBLIC OF BRAZIL) WAS ESTABLISHED IN 1822, IT COVERS AN AREA OF 8,511,965 SQ KM, ITS POPULATION IS 165 MILLION, ITS CAPITAL CITY IS BRASILIA, AND ITS OFFICIAL LANGUAGE IS PORTUGESE.
DECEMBER 2000: GOL AIRLINES (GOT) IS A SUBSIDIARY OF GRUPO AUREA.
CONSTANTINO DE OLIVEIRA JUNIOR, PRESIDENT & (CEO).
TO 14 ROUTES IN BRAZIL, INCLUDING RIO DE JANEIRO, PORTO ALEGRE, BRASILIA, NATAL, FORTALEZA, AND RECIFE.
(GOT) IS BASED IN SAO PAULO, WITH AIRPLANE MAINTENANCE DONE AT BRASILIA.
PLANS FOR 10 737-700'S BY THE END OF 2001. 1 +1 ORDER 737-76Q (30273; 30947), BOULLIOUN (BOU) LEASED. 2 737-7L9's (28004, /98; 11-28005, /98) EX-MAERSK (MRS), GECAS (GEF) LEASED.
JANUARY 2001: STARTS OPERATIONS WITH 50 DAILY FLIGHTS TO 7 POINTS IN BRAZIL. "GOL" MEANS "GOAL" WHICH IS INTENDED TO APPEAL TO SOCCER-MAD BRAZILIANS.
IS A PAPERLESS AIRLINE WITH 100% ELECTRONIC RESERVATIONS AND TICKETING. USES E-SYSTEMS & myboeingfleet.com. INITIAL 7 DESTINATIONS OF BRASILIA, SAO PAULO, RIO DE JANEIRO, AND THE STATE CAPITALS OF PORTO ALEGRE, FLORIANAPOLIS, BELO HORIZONTE AND SALVADOR WERE CHOSEN WITH BUSINESS TRAVELLERS IN MIND.
4 737-75B'S (28099; 28101; 28105; 28106), EX-GERMANIA (GER), BOEING CAPITAL (TBC) LEASED.
APRIL 2001: ADDS SERVICE TO RECIFE AND CAMPINAS. ALSO, TO CURITIBA, CAPITAL OF STATE OF PARANA.
MAY 2001: IN APRIL 2001, 55.5% LF (LOAD FACTOR) & CARRIED 140,000 PASSENGERS. CURITIBA - SAO PAULO/PORTO ALLEGRE.
JULY 2001: CARRIED 170,000 PASSENGERS IN JUNE 2001, TO REACH 62% LF LOAD FACTOR.
STARTS CHARTER FLIGHTS TO KEEP ITS 737-700'S BUSY DURING WEEKENDS. 1 TOUR OPERATOR HAS ALREADY BOOKED 13 CHARTERS FROM SAO PAULO TO FORTALEZA, IN NORTHEASTERN BRAZIL.
737-76Q (30275), BOULLIOUN (BOU) LEASED.
AUGUST 2001: IN 1ST 6 MONTHS, HAS REACHED 5.08% DOMESTIC MARKET SHARE. BY COMPARISON, TRANSBRASIL (TBL), WHO STARTED IN 1956, HAS 10.4%. IN JULY 2001, GOL (GOT) CARRIED 200,000 PASSENGERS, WITH A 70% LF (LOAD FACTOR).
GOVERNMENT OK'S CHARTERS TO BUENOS AIRES, AND SANTIAGO. CHANGES NAME FROM "GOL TRANSPORTES AEREOS" TO "GOL LINHAS AEREAS INTELIGENTES." BEGINS FLIGHTS TO BELEM, CURITABA, & CAMPO GRANDE.
8TH 737-700 DELIVERY. 5 ORDERS (FEBRUARY 2002) 737-700'S, 3 (GEF) LEASED, 2 (GAX) LEASED, AND 2 ORDERS (FEBRUARY 2002) 737-800'S, (GAX) LEASED.
SEPTEMBER 2001: 1 737-76N (32440, PR-GOH), GECAS (GEF) LEASED. CAMPINAS - CURITIBA.
OCTOBER 2001: 1 737-76N (32574, PR-GOI), GECAS (GEF) LEASED.
NOVEMBER 2001: INCREASES ITS ROUTE STRUCTURE TO 16 CITIES.
DECEMBER 2001: TO BRASILIA - MACAPA. TO FORTALEZA, PARA, AND AMPA, IN AMAZON REGION.
JANUARY 2002: IN 2001, BRAZILIAN DOMESTIC TRAFFIC (RPK) INCREASED 8.1% WITH MARKET SHARE: TAM BRAZIL (TPR) 36.68%, VARIG (VAR) 28.3%, VASP (VSP) 14.1%, RIO SUL (ROS) 8.9%, GOL (GOT) 8.1%, NORDESTE (NOD) 3.2%, AND OTHERS 1.5%.
2001 = 2.2 MILLION PASSENGERS.
FLIES TO 17 DESTINATIONS.
FEBRUARY 2002: NOW SERVES 17 DESTINATIONS. PROJECTS ATTAINING 13% DOMESTIC MARKET SHARE BY END OF 2002, AND 5 MILLION PASSENGERS. PORTO ALEGRE - RECIFE (737-800).
1ST 737-8CX DELIVERY. 11TH 737-700 DELIVERY. +2 737-76N'S (28613; 30051), EX-MIDWAY AIRLINES (MID), GECAS (GEF), 85 MONTH LEASED.
MARCH 2002: IN JANUARY 2002, DOMESTIC MARKET SHARE: (VAR) 38.8%; (TPR) 37.4%; (GOT) 8.3%. GOL (GOT) HAD 70% LF (LOAD FACTOR).
MAY 2002: GOL (GOT) SURPASSED VETERAN VASP (VSP) TO OCCUPY THE 3RD SPOT IN BRAZIL BY NUMBER OF PASSENGERS (PAX). EVEN LURED PASSENGERS AWAY FROM FLAGSHIP CARRIER VARIG (VAR), WHOSE FLIGHT OCCUPANCY FELL FROM 60% TO 52% BETWEEN MARCH 2002 - APRIL 2002.
July 2002: Intends to fly international, by end of 2002, with services to Buenos Aires, Cordoba, and Bariloche in Argentina, as well as to destinations in the Caribbean.
Previous plans to build a maintenance hangar in Viracopos outside of Sao Paulo may be scrapped, due to inability to meet the building requirements at the airport, within the planned budget. The search has now shifted to Brasilia, in the center of Brazil.
2001 = 1.26 billion (RPK) (traffic); 60.2% LF (load factor); 1.65 million passengers (PAX); 4.11 million (FTK) (freight traffic).
2 orders (September 2002) 737-700's (33417, PR-GOQ; 33380, PR-GOR), GECAS (GEF) leased, and 2 orders (August 2002) 737-800's (30621, PR-GOP; 30625, PR-GOT), Tyco (TCI) leased.
August 2002: 1 737-800 (30621, PR-GOP), (TCI) leased.
October 2002: 1 737-76N (33417, PR-GOQ), (GEF) leased.
November 2002: Domestic Market share: 1 Varig (VAR) 40.34%; 2 TAM Brazil (TPR) 32.4%; 3 Gol (GOT) 14.82% (+3.83%); 4 VASP (VSP) 10.97% (-1.3%).
1 737-76N (33380, PR-GOR), (GEF) leased & 1 737-88K (30625, PR-GOT), (TCI) leased.
December 2002: To construct new maintenance hangar at Campinas, starting 3rd Quarter 2003.
January 2003: Global insurance giant, American International Group (AIG), invests $26 million for a 20% stake in GOL (GOT). (AIG) is the parent of mega-lessor ILFC (ILF).
Domestic market share for month: (VAR) 35.91% (+.2); (TPR) 32.94% (-4.52); (GOT) 16.66% (+8.26); (VSP) 13.27% (-.82).
737-7Q8 (28219, PR-GOU), ex-LAPA (LAZ), (ILF) leased, delivery. 2 737-76N's (28580, PR-GOV; 28584, PR-GOW), ex-Varig (VAR), (GEF) leased.
April 2003: 1,800 employees.
December 2003: INCDT: (GOT) 737-76N (30135, PR-GOO) was substantially damaged in an overrun incident at Navegantes = all 7 (FC)-(CA)/141 PASSENGERS OK & uninjured.
May 2004: GOL (GOT) currently operates >150 flights/day on 29 domestic routes with a fleet of 18 737-700's and 4 737-800's.
$2.7 billion, 15/28 orders (February 2007) 737-800's.
June 2004: Plans an Initial Public Offering (IPO) this month on the New York Stock Exchange and on the Bolsa de Valores de Sao Paulo (Bovespa), which it estimates will raise some BRL 460 million/$144 million.
July 2004: +3 737-300's to launch regular service to Buenos Aires in October 2004. Converted 2 options 737-800's to firm orders for total 17.
August 2004: 74% of sales came through the Internet in 1st 6 months 2004 (58%), & ((39%)).
Plans to add Joinville, Porto Velho, Rio Branco, & Uberlandia in 2004.
October 2004: Will add 4 737-300's and 2 737-700's before end of 2004 to boost the number of destinations served to 37 from the current 31, including launching its first international service to Buenos Aires. Cities to be added in Brazil include Uberlandia, Joinville, Foz do Iguacu, Caxias do Sul, & Teresina. In December 2004, Sao Paulo Guarulhos to Buenos Aires (2/day nonstop).
Is participating in the AeroConnect system, a flight network linking Regional carriers' routes with its flights.
November 2004: Sao Paulo - Fortaleza - Teresina. Will expand its Sao Paulo - Rio de Janeiro shuttle service with +10 new daily flights to meet growing demand. Now offers 36 daily flights on route.
December 2004: 1st international service, Sao Paulo to Buenos Aires. Later, Salvador to Aracaju.
Exercises options to purchase +4 737-800's. 2 737-7K9's (28088; 28089), ex-Transaero (TRX), Bavaria (BAV) leased.
January 2005: 2004 = +R$384.7 million (+R$175.5 million).
In conjunction with the Minas Gerais state government and with the support of Infraero, GOL (GOT) signed a letter of intent to build a maintenance center at Tancredo Neves International Airport in Confins.
Navegantes to Buenos Aires via Porto Alegre, with return flight nonstop (2/week). International Air Navigation Studies Commission OK's regular flights to Santa Cruz de la Sierra, Bolivia to start in 1st half of 2005.
Plans to grow capacity +30% (ASK)'s this year through the addition of 6 airplanes. Plans to launch service to Santa Cruz (Bolivia) in first half of year with possible routes to Montevideo and Asuncion.
Averages 25-minutes turn times and achieves daily utilization of 14 block hours with an average of 10.6 departures/airplane. 30% of its airplanes fly 24 hours/day. 80% of its bookings are made online or via the airline's call centers. Approximately 50% of its (RPK) traffic is continuing or connecting and 70% of passengers are traveling on business.
February 2005: Expects to gain 25% of domestic market. Will grow +30% (ASK) capacity in 2005 with 21/22 737-800's.
Petrolina - Recife (daily). In April 2005, to Santa Cruz, Bolivia.
Exercises 5 options for 737-800's.
March 2005: 4 737-83N's (28648; 28653, PR-GIA; 32348; 32576), ex-ATA (AAT), GECAS (GEF) leased.
May 2005: 1st Quarter = +131.1 million reais/+$53.1 million (+44.6%) (+R$90.7 million): due to 3 new airplanes, 88 new flight frequencies, & 2 new destinations: Joao Pessoa & Petrolina.
737-76N (29904, PR-GID), (GEF) leased.
June 2005: Next month will start construction of a 35 million reais/$12.8 million airplane maintenance center in Confins to be completed in early 2006.
July 2005: Intends to establish a low-cost carrier in Mexico in partnership with Inversiones y Tecnicas Aeroportuarauas SA de CV, Fernando Chico Pardo, and (CPH). Gol (GOT) and its Mexican business partners submitted a preliminary business plan to Mexican civil aviation authorities covering their proposal to create a low-cost carrier. Plans are to begin service in the second quarter of 2006.
With $1.85 billion, increased its size of total orders for 737-800's from 63 to 101, doubling the firm orders to 60 and options to 41.
August 2005: Code share with Copa (COP), Brazil - Panama, starting with Rio de Janeiro & Sao Paulo to Panama City.
September 2005: Gol (GOT) will launch direct flights to Buenos Aires from Porto Alegre and Florianople Friday, offering a single daily round trip in each market. The carrier began international service to Buenos Aires eight months ago.
(GOT) increased the number of 737-800s scheduled for 2006 delivery to 11 from six previously. It said the airplanes will be equipped with winglets and have a special performance package permitting operation to all airports served by the carrier.
October 2005: Gol (GOT) begins operating six weekly flights from Sao Paulo to Campina Grande via Recife.
(GOT) announced completion of the first phase of its new airplane maintenance center in Confins just north of Belo Horizonte. The completed hangar is authorized to perform maintenance on 737-300s, 737-700s and 737-800s. The complex is scheduled to be finished in the second quarter of 2006.
737-76N (29905, PR-GIE), ex-Aloha Airlines (ALO), (GEF) leased.
November 2005: "Through the addition of airplanes and flight frequencies during the quarter, Gol (GOT) significantly increased its domestic market share to 29% and consolidated its position as the second-largest domestic airline in Brazil."
(GOT) is finalizing plans to start a new, yet to be named, low-cost airline in Mexico next year. The airline would operate as many as 10 737s to 7 destinations in Mexico expanding to the USA.
(GOT) added four leased 737s and 38 daily flight frequencies in the third quarter and plans to add more airplanes and regular service to Montevideo, Asuncion and Santa Cruz de La Sierra in the current period. (GOT) began operating four-times-weekly service between Campo Grande, Brazil, and Santa Cruz de la Sierra, Bolivia. Santa Cruz is (GOT)'s second international destination after Buenos Aires.
737-322 (24668, PR-GLK), ex-United Airlines (UAL). 737-7Q8 (28224, PR-GIF), ex-Varig (VAR), (ILF) leased. (GOT) announced that it signed a contract with Boeing (TBC) to exercise options for five additional 737-800s, increasing the number of firm orders to 65. The airplanes are scheduled for delivery between 2006 and 2012. (GOT) reached a deal in July to extend its May 2004 737-800 order to 60 firm and 41 options.
December 2005: Gol (GOT) launched its Voe Facil (Fly Easy) Program allowing Brazilian residents to pay for tickets in up to 36 monthly installments. Customers can apply for a Fly Easy card and make purchases through the carrier's website.
(GOT), will launch a low cost airline in Mexico next year. The new, yet to be named, carrier is expected to be based in Toluca, near Mexico City, and is awaiting approval by the authorities. The proposed holding company for the new airline has been incorporated in Mexico as Controladora Prosea, with (GOT) holding 25% of the voting capital stock and approximately 47.6% of the total capital stock. The remaining capital is subscribed by Mexican investors. The company is capitalized at $40 million, of which $19 million will come from (GOT). Start up of service is expected in mid-2006. The airline will operate domestically initially, adopting (GOT)'s business model.
(GOT) will inaugurate service on the Sao Paulo Guarulhos - Porto Alegre - Montevideo route on January 1st operating a daily flight using its 737-700/800s.
737-322 (24670, PR-GLL), ex-United Airlines (UAL). 737-7Q8 (30635, PR-GIG), ex-Varig (VAR), (ILF) leased.
January 2006: Gol (GOT) marked its fifth anniversary of operations. In December, its market share rose to 30%, making it the second-largest domestic carrier in the Brazilian market.
(GOT) starts daily service from Sao Paulo Guarulhos to Asuncion via Curitiba. It began a nightly Sao Paulo - Montevideo flight via Porto Alegre. Gol (GOT) launched service from Rio de Janeiro and Sao Paulo to Cordoba, its second destination in Argentina, Sunday. Thrice-weekly flights from Rio Galeao will stop in Porto Alegre and thrice-weekly service from Sao Paulo Guarulhos will fly through Curitiba and Asuncion. The Asuncion - Cordoba segment will be (GOT)'s first between two foreign South American countries. (GOT) launched 3X weekly Rio de Janeiro Galeao - Rosario service via Porto Alegre.
February 2006: The Latin American Airline Association announced that the 2005 Federico Bloch Award was given to Constantino de Oliveira Junior, CEO of Gol (GOT). The award honors Federico Bloch, the visionary CEO of Grupo Taca (TAC) who was murdered in an apparent holdup attempt in 2004.
(GOT) launched daily Buenos Aires - Asuncion (Paraguay) service.
(GOT) unveiled Brazil's first pre-paid cargo transport service. Gollog Prepaid is accessible online and allows customers to transport shipments weighing up to 1 kg to any domestic destination at a single price.
(GOT) announced the expansion of its Gollog cargo operation to Rosario, Cordoba, Montevideo and Asuncion. Gollog is a pre-paid, online freight service the carrier unveiled earlier this month. It already was available on (GOT) flights to 38 Brazilian destinations and Buenos Aires.
March 2006: Gol (GOT)'s year of explosive expansion ended with record annual and quarterly profits as (GOT) posted net earnings of +BRL513.2 million/+$236 million for 2005, an increase of +33.4% over the previous year's +BRL384.7 million. Profit for the fourth quarter ended December 31 was +BRL170.6 million, a +37.6% rise over net income of +BRL123.9 million in the year-ago quarter.
Annual revenues grew +36.1% to BRL2.67 billion against a +47.9% rise in expenses to BRL2.05 billion, driven by a +76% jump in fuel costs to BRL808.3 million. Operating profit climbed +7.8% to +BRL621.4 million. The airline did not release annual operating or unit performance statistics.
In the fourth quarter alone, the carrier added four 737s, +58 daily frequencies and two new destinations. In January, it ramped up its international network, adding flights to Cordoba, Rosario, Montevideo and Asuncion. The addition of three more 737s in the current quarter will result in a +45% increase in seat capacity compared to the year-ago quarter.
(GOT) said it will continue to expand both domestically and internationally this year while reducing (CASK) excluding fuel. It forecast a first-quarter yield of BRL26-28 cents and an +18% to +20% growth in the Brazilian air travel market, which will absorb its planned capacity increases. For the year, it expects net revenues of BRL4.1 billion and an operating margin of 26% to 28%.
(GOT) said its wholly owned Gol Finance priced its previously announced offering of $200 million aggregate principal amount of 8.75% senior unsecured perpetual notes. The notes have no fixed final maturity date, but will be callable at par after five years. Proceeds will be used to finance acquisition of 737NGs "as a complement to its USA Eximbank guaranteed bank financing." The transaction is expected to close April 5. "We plan to continue to popularize air travel in South America through expansion, technological innovation, improved operating efficiency, strict cost management, the lowest prices and high quality passenger service," the airline concluded.
(GOT) signed a contract with STG Aerospace to retrofit its 24 737s with the SafTGlo photoluminescent floorpath marking system by the end of the month. It will be installed on future deliveries as well.
(GOT) exercised two more options from its order for 101 737-800s, increasing the number of firm orders to 67 from 65 and leaving 34 options. It currently operates 43 737s and will begin taking delivery of its 737NGs this year. By year end, it will operate 12 737-300s, 26 737-700s and 20 737-800s. By 2012, it plans a fleet of 90 airplanes comprising 19 737-700s and 71 737-800s.
737-322 (24379, PR-GLN), ex-United Airlines (UAL), Automatic leased. 737-7L9 (28011, PR-GII), delivery.
April 2006: Gol (GOT) followed up a highly profitable 2005 with a record quarterly performance, posting first-quarter 2006 net income of +BRL179.9 million/+$82.9 million, a +37.2% increase over a profit of +BRL131.1 million in the year-ago period. (GOT) attributed its continued success to strict cost controls. "(GOT) remains committed to its virtuous cycle of maintaining low costs, allowing us to offer the lowest fares and achieve the highest load factors in the Brazilian market," CEO, Constantino de Oliveira Junior said.
(GOT) said its ability to control and reduce costs even as it boosted capacity allowed it to maintain its strong profitability. It added three leased 737s during the quarter, increasing its fleet to 45 airplanes, and plans four deliveries in the current quarter. It plans to increase capacity by another +45% and projects rising profits for the year, citing a strong Brazilian economy.
(GOT) said its wholly owned subsidiary Gol Finance closed the sale of $200 million in 8.75% perpetual notes.
The Latin American Airline Association announced (AITAL) that (GOT) and Click Mexicana (AEB) have joined, bringing membership to 29 airlines. Later, (AITAL) changed its name to Asociacion Latinoamericana de Transport Aereo (ALTA) to reflect its expanding role in representing all of the region's carriers, not simply those that fly internationally, according to Executive Director, Alex de Gunten. (ALTA)'s mission also is changing, he explained. In the past, the association was "very focused" on regulatory and governmental issues. These are still important, but (ALTA) is moving aggressively to help members with commercial concerns. "My mandate is to help airlines become more safe and efficient," de Gunten said. For example, (ALTA) facilitated a fuel-purchasing consortium for Latin American and Caribbean carriers in Miami, enabling them to take advantage of volume discounts. It also worked with five of the region's airlines as they negotiated a joint price on carbon brakes for 767s. "Because Latin America is so fragmented, it creates a lot of inefficiencies, not just for airlines but also for their suppliers," he pointed out. Under de Gunten, who was named Executive Director in November 2003, the organization has nearly doubled its membership from 16 to 29, including two of Latin America's low-fare airlines, (GOT) of Brazil and Click (AEB) of Mexico, both of which joined this month. (ALTA) also has absorbed the formerly independent Cargo Maintenance and Aeronautical Materials Committee. Turning to safety, all (ALTA) members must pass an (IATA) (ITA) Operational Safety Audit (IOSA) by the end of 2007 or lose their membership. The association also is leading an effort to standardize safety procedures among member airlines.
(GOT) increased the frequency of flights to Cordoba and Rosario (Argentina) from 2 to 4 a week last Tuesday. The airline now operates these routes as follows:
Porto Alegre - Cordoba = Mondays, Wednesdays, Fridays, & Sundays;
Cordoba - Porto Alegre = Mondays, Tuesdays, Thursdays, & Saturdays;
Porto Alegre - Rosario = Mondays, Tuesdays, Thursdays, & Sundays;
Rosario - Porto Alegre = Mondays, Tuesdays, Wednesdays, & Fridays;
All flights are operated with 737NGs.
(GOT) received authorization from Brazil's National Agency of Civil Aviation to operate 21 weekly flights to Santiago. (GOT) said it is beginning preparations for 737-800 flights to the Chilean capital, which would become its seventh international destination. (GOT) added its 50th destination: Santarem in the state of Para. The airline now operates 2 daily flight, one with the routing Rio de Janeiro Galeao - Santarem and back, the other with the routing Sao Paulo Guarulhos - Manaus - Santarem and back, both operated with 737s.
(GOT) likely will emerge a much more significant force in the domestic market owing to Varig (VAR)'s financial problems, according to a new report from JP Morgan forecasting that Varig (VAR) will reduce domestic flying 50% - 100% within the year. JP Morgan's Jamie Baker pins the probability that (VAR) will downsize at 70%, but says a 20% probability exists that the airline will close its doors for good. (VAR)'s capacity share of the domestic market is estimated at close to 20% currently, with (GOT) having 26%, TAM (TPR) around 43% and other operators 11%. Were (VAR) to cease operating, Baker estimates that the market could absorb around 80% of the displaced capacity, boosting (TPR)'s share to 53% and (GOT)'s to 43%.
(GOT) announced the reelection of independent directors and Audit Committee members Alvaro Antonio Cardoso de Souza, Antonio Kandir and Luiz Kaufmann.
737-8BK (33027, PR-GIE), CIT Group (TCI) leased.
May 2006: Gol (GOT) secured a R$75.7 million/$33.6 million loan from the Brazilian National Economic and Social Development Bank and plans to use the money to finance the building of an airplane maintenance facility at Confins International Airport in Minas Gerais.
Set to benefit from expected downsizing at Varig (VAR), (GOT) said it will take delivery of an additional two 737-700s this year and an additional eight in 2007 along with two 737-300s.
Currently operating a fleet of 47 737s, (GOT) now plans to have 60 airplanes by year end and 74 at the end of 2007, comprising 12 737-300s, 30 737-700s and 32 737-800s. The first 737NG that was part of its order for 67 firm and 34 options will be delivered in July. (GOT) said it expects South American passenger traffic to increase by more than >+7% each year for the next five years, while Brazilian passenger traffic should grow by more than >+18% in 2006.
(GOT) said it filed a registration statement with the USA Securities and Exchange Commission for a proposed primary offering of 2.5 million preferred shares and a secondary offering by ASAS Investment Fund, a fund of (GOT) controlling shareholders, of 10 million preferred shares. International and Brazilian underwriters will be granted the option to purchase an additional 1,875,000 preferred shares to cover overallotments.
A second registration statement filed recently covers proposed international and Brazilian offerings of convertible notes due 2026 worth $100 million, plus the option for underwriters to purchase up to $15 million principal amount of convertible notes and debentures to cover overallotments. Net proceeds from both the share and bond offerings will be used to finance the acquisition of airplanes, equipment and materials, (GOT) said.
(GOT) has increased its 2006 fleet plan by 2 737-700s and its 2007 fleet plan by 8 737-700s and 2 737-300s. As a result, the airline is planning to operate :
2006: (60) 12x 737-300, 28x 737-700, 20x 737-800.
2007: (74) 12x 737-300, 30x 737-700, 32x 737-800.
2008: (80) 10x 737-300, 27x 737-700, 43x 737-800.
2009: (84) 03x 737-300, 27x 737-700, 54x 737-800.
2010: (88) 00x 737-300, 26x 737-700, 62x 737-800.
2011: (92) 00x 737-300, 23x 737-700, 69x 737-800.
2012: (96) 00x 737-300, 20x 737-700, 76x 737-800.
June 2006: Gol (GOT) placed its 49th and 50th 737s into service and revised its fleet plan for 2006 - 2008, adding two 737-700s this year, one next year and another in 2008. The additions follow a more extensive fleet plan revision announced last month.
July 2006: Demand that outpaced capacity, floundering competition and effective cost and fuel management resulted in another good quarter for Gol (GOT), which finished the three months ended June 30 with a net income of +BRL106.7 million/+$48.8 million, an increase of +45.4% over the +BRL73.4 million earned in the second quarter of 2005. "Through the addition of airplanes and flight frequencies during the quarter, (GOT) significantly increased its domestic market share [by 6 points to 35%] and further consolidated its position as the second-largest domestic airline in Brazil," CEO, Constantino de Oliveira Junior said.
(GOT) added five leased 737s - - bringing its fleet to 50 airplanes - - 62 flights and one destination (Santarem) during the quarter.
(GOT) said it expects a "solid" third quarter during which it will add six airplanes and increase year-over-year capacity by +45%. The revenue environment will be "improved" as yields come in at BRL26-28 cents, and it plans to reduce its non-fuel (CASK) further. It issued full-year guidance forecasting BRL4.1 billion in revenues and annual earnings growth of more than +50%.
(GOT) earlier announced the addition of two daily flights to Buenos Aires, doubling its daily frequency to four. One is routed Rio de Janeiro Galeao - Sao Paulo Cumbica - (EZE) and the second starts in Florianopolis with a stop in Porto Alegre.
(GOT) entered into an agreement for $50 million in long-term financing from International Finance Corporation (ILFC) (ILF), the private sector arm of World Bank Group. The (ILF) financing is intended to support (GOT)'s investment in spare parts inventory and working capital requirements.
(GOT) doubled the number of flights into Buenos Aires from 2 to 4. From the 2 new daily flights, one operates from Rio de Janeiro via Sao Paulo, while the other operates from Florianopolis via Porto Alegre. All are operated with 737s.
Boeing (TBC) said design enhancements that increase the short-field performance of the 737NG earned USA (FAA) certification after a four-month test program. The improvements allow carriers to fly increased payload at airports with runways shorter than <5,000 ft and include a two-position tail skid that reduces approach speeds, sealed leading-edge slats for lift and increased spoiler deflection on the ground. The features are standard on the 737-900ER and optional on the 737-600, 737-700 and 737-800. (GOT) is the launch customer for the short-field performance package. Other operators who have placed orders are Alaska Airlines (ASA), Air Europe (ARE), Air-India Express (AIN), EgyptAir (EGP), GECAS (GEF), Hapagfly (HAP), Japan Airlines (JAL)/(JAS), Pegasus Airlines (PGS), Sky Airlines and Turkish Airlines (THY). (EASA) certification is expected soon, the manufacturer said.
737-8EH (34474, PR-GTA), delivery.
August 2006: Gol (GOT) said it received authorization to operate 14 weekly flights to Lima aboard 737-800s. It did not announce a launch date. It already flies to Argentina, Paraguay, Uruguay and Bolivia, and intends to start service to Chile this year.
2 737-8EH (34277, PR-GTC; 34475, PR-GTB), deliveries.
September 2006: Gol (GOT) announced the withdrawal of the May registration statement filed in Brazil and the USA for a secondary and primary preferred share offering totaling 14.4 million nonvoting shares. (GOT) did not give a reason for the move, but "Bloomberg News" reported that prospects for the sale, worth approximately BRL1 billion/$463.5 million were hurt by a -13% drop in the Bovespa index since May.
(GOT) launched daily Sao Paulo Guarulhos - Ilheus (Southeast Bahia) flights. Daily service is Sao Paulo - Ilheus - Salvador. (GOT) inaugurated service at Juazeiro do Norte. The daily flight operates from Rio de Janeiro's Galeao Airport via Fortaleza using a 737. (GOT) inaugurated service at Santiago this week. (GOT) now operates a daily service from Rio de Janeiro to Santiago via Sao Paulo and Buenos Aires as well as a daily service from Florianopolis to Santiago via Porto Alegre and Buenos Aires all using 737NGs.
(GOT) opened its R$30.5 million/$14.1 million Aircraft Maintenance Center in Confins and said the facility will allow it to stop using third-party maintenance providers. Annual cost reductions from performing its own maintenance are expected to be -$2 million, with further revenue generated by performing maintenance for other airlines. "In a moment of expansion, (GOT) will reduce its airplane expenses and obtain another source of future revenues," Technical VP, David Barioni said. It will operate a fleet of 62 737s by year end, an increase of 20 from the end of last year.
ACCDT: No survivors have been found in the wreckage of the Gol (GOT) 737-8EH (34653, PR-GTD), that collided in midair with an Embraer 600 Legacy business jet - see report above. The Legacy, operated by ExcelAire, landed safely at Cachimbo Air Base with all five passengers and two crew unharmed, according to Flight Safety Foundation's Aviation Safety Network (ASN). Embraer said in a statement that the executive jet was involved "in a midair collision."
The (GOT) jet was carrying 149 passengers and a crew of four. The wreckage of the airplane was located Saturday in the Amazon jungle about 30 km/18.8 miles from the town of Peixoto Azevedo in the state of Mato Grosso in the center of the country.
(GOT) Flight 1907 departed Manaus at 15:35 local time September 29 on a scheduled flight to Brasilia and Rio de Janeiro, according to (ASN). Contact was lost at 16:48, while the airplane was at a cruise altitude of FL360. The accident is (GOT)'s first and is the worst in Brazil's history. It is also the first loss of a 737-800. The 737-800 was delivered new on September 12 and had only 200 flight hours, according to the airline. The (GOT) 737-800 collided mid-air above the Amazon rain forest, being struck by the wingtip of an ExcelAire Legacy 600 business jet = all fatalities of 6 (FC)-(CA)/149 passengers on 737-800 and the business jet was able to make a safe emergency landing at an air force base, showing the left winglet was sheared off.
The USA National Transportation Safety Board (NTSB) is sending a team to assist Brazil's Aeronautical Accident Prevention and Investigation Center looking into possible causes of the midair collision. According to "Reuters," recovery workers began removing bodies from the crash site on Sunday, a day after the wreckage was located in a densely forested section of the Amazon rain forest that is very difficult to approach on the ground.
The 737's flight data recorder (FDR) and cockpit voice recorder (CVR) reportedly have been recovered. The (FDR) of the Legacy has been removed for analysis. Photographs of the business jet, which made an emergency landing at an air force base, show the left winglet was sheared off. The ExcelAire Legacy 600 pilots (FC) in control of the airplane when it clipped a (GOT) 737-800 last week have been ordered to remain in Brazil, but have not been arrested, while authorities investigate the cause of the accident that killed 155 people, according to press reports. "O Globo" reported that the business jet ignored instructions to descend to 36,000 ft from 37,000 ft. The government's news service said the smaller airplane was supposed to be flying at the lower altitude. In addition, the head of the country's airports authority reportedly told "Estado de Sao Paulo" that the Legacy's transponder was not functioning at the time of the accident. Brazilian media are reporting that speculation is centering on the actions of the two American pilots (FC) of the Legacy and investigation into possible negligent or criminal conduct has begun. Examination of the voice and data recorders from the downed 737 commenced recently.
(GOT) 737-800 crash investigators have concluded that the ExcelAire Legacy 600 had its transponder switched off before colliding with the passenger airplane, "Estado de Sao Paulo" reported. The transponder, which alerts air traffic controllers to a plane's position, apparently was turned on after the midair collision. The Legacy's two American pilots (FC), who are being held in Brazil for questioning, have denied turning off the transponder. "Estado" said investigators determined that the Legacy, which landed safely, flew just underneath the larger jet, cutting off part of the 737-800's right wing and a stabilizer.
Later, (GOT) 737-800/ExcelAire Legacy 600, accident investigators released a report indicating that the Legacy pilots, who have been detained at a Rio de Janeiro hotel since the September collision, attempted to contact Brasilia air traffic control (ATC) 19 times in the 8 minutes prior to the crash without success. The report was translated from Portuguese by "Newsday" and indicates that (ATC) and the airplane lost contact with each other repeatedly during the 54 minutes before the collision, but does not address accusations that the Legacy pilots (FC) shut off their radio and/or transponder. Ground radar lost contact with the smaller airplane 18 minutes prior to impact. A partial message from Brasilia (ATC) came through 3 minutes before the crash and records showed the Legacy pilots (FC) attempted to call seven times before the crash, according to "Newsday." The report did not say if the Legacy was ordered to descend to 36,000 ft from 37,000 ft, as some claimed initially. The airplane collided at the higher altitude. A Brazilian air force spokesperson said that an analysis of the recordings had not been completed. Efforts to have the two Legacy pilots released continue. The head of the Brazilian government's investigation told "Reuters" that the pilots (FC) should be freed, but that it was up to the courts. The International Federation of Air Line Pilots Associations (IFALPA) released a statement calling on Brazil "to expedite the conclusion of an independent technical investigation," saying that there "is no valid reason for the continued detention of the . . . pilots (FC)" and insisting that "Brazilian authorities immediately return" their passports. "Thus far, only contradictory facts, rumor and unsupported allegations have been forthcoming from Brazilian government officials," (IFALPA) said.
3 737-8EH's (34278, PR-GTE; 34279, PR-GTF; 34653, PR-GTD), deliveries.
October 2006: GOL (GOT) provides a low-fare domestic and international schedule from Sao Paulo.
3,303 employees (including 415 Fight Crew (FC); 754 Cabin Attendants (CA); & 347 Maintenance Technicians (MT)).
(IATA) Code: G3 - 127. (ICAO) Code: GLO - (Callsign - GOL TRANSPORTE).
Parent organization/shareholders: AeroPar Participacoes (77%); Venture (17.6%); & American International Group (5.4%).
Alliances: Copa Airlines (COP); & Cruiser Linhas Aereas.
Main Base: Sao Paulo Congonhas International Airport (CGH).
Hubs: Rio de Janeiro Santos Dumont airport (SDU); Rio de Janeiro Galeao International airport (GIG); Brasilia International airport (BSB); Salvador airport (SSA); Fortaleza airport (FOR); Porto Alegre airport (POA); Recife Guarapes International airport (REC); & Curitiba Afonso Pena airport (CWB).
Domestic, scheduled destinations: Aracaju; Belem; Belo Horizonte; Boa Vista; Brasilia; Campina Grande; Campinas; Campo Grande; Caxias do Sul; Cuiaba; Curitiba; Florianapolis; Fortaleza; Goiania; Iguassu Falls; Joinville; Londrina; Macapa; Maceio; Manaus; Maringa; Natal; Navegantes; Palmas; Petrolina; Porto Alegre; Porto Seguro; Porto Velho; Recife; Ribeirao Preto; Rio Branco; Rio de Janeiro; Salvador; Sao Jose Do Rio Preto; Sao Luiz; Sao Paulo; Teresina; Uberlandia; & Vitoria.
International, scheduled destinations: Asuncion; Buenos Aires; Cordoba; Montevideo; Rosario; & Santa Cruz.
(GOT) exercised 20 737-800 options, bringing its firm orders for the type to 87. It also added 20 options, bringing the total back to 34. It took delivery of the first airplane under the order on July 30. By year end, it will operate 14 737-300s, 30 737-700s and 21 737-800s. At year end 2012, it will have 10 737-700s and 91 737-800s in its fleet.
2 737-8EH's (34654, PR-GTG; 34655, PR-GTH), deliveries.
November 2006: Gol (GOT) ended a third quarter touched by tragedy +BRL190 million/+$88.6 million in the black, a +37.5% increase over a profit of +BRL138.2 million in the year-ago quarter.
(GOT) launched daily Sao Paulo Guarulhos - Chapeco service via Florianopolis.
(GOT) took delivery of four airplanes during the quarter - - including the first 737-800 designed specifically for operation on shorter runways - - added three destinations and 78 frequencies and opened its new Maintenance Repair & Overhaul (MRO) center at Confins International Airport in Belo Horizonte.
That progress was overshadowed, however, by the September 29 midair collision and crash that killed 154 passengers and crew aboard a (GOT) 737-800. "The company continues to cooperate fully with all regulatory and investigatory agencies to determine the cause of this accident," it said, adding that it "believes that the costs to defend any claims and any potential liability exposure will be covered by the insurance" and that it "does not expect any liabilities arising from the accident . . . to have a material adverse effect on [its] financial position or operating results."
The average fare was up +11.7% to BRL217 but yield fell -2.9% to BRL24.6 cents, as stage lengths increased during the quarter.
(GOT) said it anticipates a "solid" fourth quarter, during which it will add 11 airplanes and grow year-over-year capacity by +50%. It expects a load factor of 73% - 75% LF, and yields of BRL26-28 cents.
Later, (GOT) slightly lowered its financial outlook for the full year, citing "the recent problems with the air traffic in Brazil." The airline said "a higher number of delayed and cancelled flights" have "inhibited" traffic and lowered short-term demand, reducing projected 2006 net revenues to BRL4 billion/$1.85 billion from the previously forecast BRL4.1 billion. Projected operating margin was lowered to 23% from 26% - 28%, while earnings per share decreased to BRL3.75 - 4.00 from BRL3.90 - 4.30.
The airlines of Latin America and the Caribbean region are enjoying strong traffic demand and face a bright future, Merrill Lynch airline analyst, Michael Linenberg told attendees at the third annual Latin American Airlines Leaders Forum sponsored by Asociacion Latinoamericana de Transporte Aereo (ALTA) in Cancun. "The [stock] market has recognized opportunities in Latin America," Linenberg said, pointing to the successful Initial Public Offerings (IPO)s of Copa Airlines (COP), Gol (GOT), (LAN) Airlines and TAM (TPR)over the past decade and the strong stock performance. He noted that Latin American traffic growth, at +6.9% per year, "is second only to China," while +4% (GDP) growth for the region is slightly ahead of the world average. He compared the situation to the one USA airlines enjoyed in the 1960s, a period he described as "the golden era" of the USA airline industry, with strong growth matched by strong profitability. Airline equities "were the tech stocks" of the period, he said.
Also at the conference, (ALTA) Chairman & Copa Airlines CEO, Pedro Heilbron noted that while the Latin America/Caribbean region generates just 4.9% of world airline passengers, its population is 9.2% of the world total, suggesting ample room for additional growth. Traffic growth has exceeded +12% in each of the past two years, and although it was down nearly -1% through the first nine months of 2006, this was owing to Varig (VAR)'s downsizing. Excluding Varig (VAR), growth would be around +9%. Domestic traffic represents 67% of the total, with intra-region traffic accounting for 16%.
Among the challenges facing the region's airlines is improving safety, which (ALTA) is addressing by mandating that members pass an (IATA) (ITA) Operational Safety Audit (IOSA). Fuel costs also are an issue. Carriers pay an average of +15% more for their fuel than those in North America and Europe, Heilbron said. Airport and air navigation charges also are a concern.
Nevertheless, air transport in the region "is a growing industry at a rate above other parts of the world," he concluded. (ALTA) has more than doubled its membership since 2003, growing from 15 airlines to 33, Executive Director Alex, de Gunten said.
(GOT) placed an order for 20 737-800s by converting options it held on 20 airplanes. (GOT) increased the number of firm orders from 67 to 87 and took another 20 options for a total of 121 737-800s, if all options are converted.
3 737-8EHs (34280, PR-GTI; 34281, PR-GTK; 34656, PR-GTJ), deliveries.
December 2006: This month, Brazilian police officially charged two ExelAire Legacy 600 pilots (FC) with endangering airplane safety in the September 29 midair collision with a Gol (GOT) 737-800, a serious criminal charge that could land the USA citizens in a Brazilian prison for up to 12 years, if they are convicted. The charges came the same week the pilots (FC), Joseph Lepore and Jan Paladino, were given back their confiscated USA passports and allowed to leave Brazil for the first time since the accident, to return to their homes in New York. But they apparently will have to go back to Brazil for the trial, for which the starting date has not been determined. Former Brazil Justice Minister Jose Carlos Dias, who is serving as the pilots' lawyer in the case, blasted the police in comments to reporters in Brazil. He said charging the pilots was "prejudiced and discriminatory" and merely a way for the police to "find someone to blame" for the worst air crash in the country's history, in which all 154 aboard the nearly new 737-800 were killed. The pilots themselves left Brazil without comment but Dias said they would return willingly when necessary. An accident investigation report released last month said the Legacy pilots (FC) attempted to contact air traffic control (ATC) 19 times in the 8 minutes prior to the crash without success. The Brazilian (ATC) has come under increasing scrutiny as air traffic has been slowed in the country in recent weeks, including last week when a communication system breakdown led to extensive flight delays and cancellations. Airlines in Brazil also have been affected by controllers staging work slowdowns to protest poor work hours and low pay. ExcelAire said in a statement that "to criminalize this accident investigation runs counter to the safety of the international flying public" and predicted the police would be subject to "worldwide criticism." A joint letter sent to Brazilian authorities and released publicly last week by several international aviation organizations - - including the Flight Safety Foundation, the International Federation of Air Traffic Controllers and the International Federation of Air Line Pilots' Associations - - heavily criticized the treatment of the pilots. "A criminal inquiry has no place in the investigation," the letter said. "We do not seek to put our colleagues above the law. However, criminal investigations into aviation accidents like the one on September 29 are at odds with efforts to discover root causes of accidents and avoid future mistakes."
Brazilian officials investigating the collision said that air traffic controller (ATC)s were at least partly at fault in the accident. The two ExcelAire pilots (FC), who were detained in Brazil for more than a month after the crash, were charged this month with endangering airplane safety and face the prospect of a criminal trial. The official investigation is not over, but the Associated Press reported that the inquiry's lead investigator told media in Rio de Janeiro that actions by (ATC) would be cited, when the final report is released.
January 2007: Gol (GOT) is lowering its full-year earnings per share (EPS) and revenue forecasts following a plunge in its December load factor. The Brazilian Low Cost Carrier (LCC) now predicts revenues of BRL3.85 billion/$1.79 billion rather than BRL3.9 billion and (EPS) of BRL3.15 to 3.30, rather than BRL3.40 to 3.65. It flew 1.53 billion (RPK)s passenger traffic in December, up +48.4% from the year-ago month, but capacity soared +65.4% to 2.26 billion (ASK)s, dropping load factor -7.8 points to 67.4% LF.
February 2007: Gol (GOT) said it plans to operate a Sao Paulo - Lima - Mexico route later this year and will launch the service once it receives regulatory approvals.
The Cockpit Voice Recorder (CVR)transcript from the ExcelAire Legacy 600 that collided with a (GOT) 737-800 in midair and resulted in the deaths of all 154 aboard the airliner, was published by "Folha de S Paulo," Brazil's largest newspaper. It indicated that the Legacy pilots (FC) had difficulty communicating with Air Traffic Control (ATC) throughout the flight. "I've got a problem with the radio here," one said, according to the "Associated Press." While the pilots (FC) may be found criminally liable, the Brazilian (ATC) has come under considerable scrutiny in recent months, as communication system failures have led to delays and cancellations. Following the collision, the pilots (FC) complained they had been abandoned by (ATC), the transcript revealed.
Aviation Partners Boeing (APB) said that (GOT) placed an order for +27 additional Blended Winglet systems for installation on 737-800s the airline has on order for delivery through 2012. It already has 10 winglet-equipped 737-800s in service.
March 2007: Gol (GOT) reached an agreement to acquire Varig (VAR) from VarigLog (VLO) and Volo, the controlling shareholders of the airline that was Brazil's market leader before hitting hard financial times in recent years and barely surviving bankruptcy last summer. The deal is worth an aggregate $320 million. The purchase consists of $98 million in cash and approximately 6.1 million nonvoting shares issued by (GOT), or 3.2% of (GOT)'s shares, collectively valued at $177 million. (GOT) also is assuming $45 million in (VAR) debt. The carriers will maintain separate financials and operate under their own brands with independent executive teams. "(GOT) will maintain focus on its low-cost, low-fare business model, with a single class of service in the Brazilian domestic market and South America," it said in a statement. "(VAR) will offer differentiated services, with direct flights and a mileage program [that] currently serves more than five million clients." (GOT) said Varig (VAR) will offer two-class (C/Y) service on long-haul international flights but a single service class (Y) in the domestic market. It will prioritize "flights between the main economic centers of Brazil," (GOT) said, noting that (VAR)'s principal bases of operation will be Sao Paulo Guarulhos, Congonhas and the Rio de Janeiro airports of Galeao and Santos Dumont. (GOT) and (VAR) will "explore synergies" to improve efficiency and Varig (VAR)'s international flights will feed into the domestic networks of both (GOT) and (VAR). (GOT) said the two airlines combined will carry more than >20 million passengers annually, and will be "capable of competing on the South American and world stages against other large international airlines . . . The acquisition represents the best opportunity for operations under the (VAR) brand to remain a Brazilian-managed and controlled airline."
(VAR)'s fleet of 17 airplanes will increase to 34, comprising 20 737s and 14 767s, Gol (GOT) said. International destinations will include Frankfurt, London Heathrow, Madrid, Milan, Paris Charles de Gaulle, Miami, New York (JFK), Mexico City, Buenos Aires, Santiago, Bogota and Caracas.
The sale's closing is conditioned on regulatory approvals from the Brazilian Antitrust Agency and the National Civil Aviation Agency. No timeline for completing the transaction was released.
737-8EH (34962, PR-GTL), delivery.
April 2007: Brazil's air traffic control (ATC) system will transfer from military to civilian control following a one-day walkout by top-level (ATC) officials, that forced the temporary closure of airports throughout the country and again highlighted the nation's ongoing (ATC) woes, which Brazilian airlines claim have cost them more than $48 million since September. The Brazilian (ATC) has been troubled for months, with workers staging periodic slowdowns and walk-offs that have resulted in delays and cancellations becoming routine. Airlines are seeking government compensation for the money lost from system failures since last September, when protests over pay and work rules began following the mid-air collision of an ExcelAire Legacy 600 and a Gol (GOT) 737-800 that resulted in the deaths of all 154 aboard the airliner. While the ExcelAire pilots face criminal charges, investigative authorities in Brazil have conceded that (ATC) was at least partly responsible for the crash. Among the controllers' complaints is that the Brazilian Air Force, subject to rigorous regulations, lacked the flexibility to manage and modernize (ATC) successfully. Ceding to workers' demands, the air force issued a statement saying it would relinquish (ATC) to a new civilian agency that will report to the Defense Ministry but will not be bound by military rules. No date for the new agency's establishment was set. The government also agreed to give controllers a one-time bonus and begin negotiations on work rules and compensation.
President Luiz Inacio Lula da Silva said in his weekly radio address that he backed the new civilian (ATC) agency and negotiations with controllers, but he criticized the workers' methods. "I think it's serious and irresponsible [for] people with essential and delicate jobs [to stage walk-outs], because they are dealing with thousands of passengers flying across the country," he said. "If they want to discuss a salary increase, let's talk, but without endangering humans."
The disruptions bedeviling the Brazilian air transport market proved to be too much for (GOT) during the first quarter, with (GOT) reporting a +BRL116.6 million/+$57.3 million profit that represented a -35.2% fall from earnings of +BRL179.8 million in the first three months of 2006. (GOT) also lowered its full-year forecast to account for its acquisition of Varig (VAR). It touted its new service to Peru, 15-hour-per-day utilization and declining unit costs, but said the bottom line could not overcome "the continued challenges caused by the external difficulties that affected the airline sector in Brazil. A high level of well-publicized flight cancellations contributed to suppressed demand, producing lower than expected yields and load factors." Revenue climbed +20.7% to BRL1.04 billion against a +43.3% surge in operating expenses to BRL916.2 million driven by a +42.1% rise in fuel cost to BRL361.3 million. Operating profit declined -44.1% to +BRL125.1 million.
The airline flew 4.89 billion (RPK)s passenger traffic during the three-month period, an increase of +59.6% from the year-ago quarter. Capacity was up +61.5% to 7.01 billion (ASK)s and load factor fell -0.8 point to 69.8% LF. A -21.8% drop in average fare to BRL182.62 and a +20.4% increase in stage length contributed to a -26.5% year-over-year decline in yield to BRL0.199. Operating (RASM) fell -25.3% to BRL0.149, while unit cost dropped -11.3% to BRL0.131, or -10.8% to BRL0.079 excluding fuel.
(GOT) said it still expects to enjoy a more than >+60% year-over-year increase in annual revenues to approximately BRL6.1 billion and a unit cost reduction in excess of -12%, but noted that its recent purchase of (VAR) required revised guidance. It now projects earnings per share of BRL4.20 to BRL4.70, rather than the previously forecast BRL5.20 to BRL5.65, and an operating margin of around 20% rather than 23%. Yield is expected to fall -8% and capacity will jump about +80% rather than +50%, with load factors around 72% LF. The carrier posted a +BRL569.1 million profit in 2006.
(GOT) launched a daily Rio de Janeiro Galeao - Sao Paulo Guarulhos - Lima service.
(GOT) detailed its fleet plan for (VAR) in conjunction with its first-quarter earnings release. It said the (VAR) fleet, which will continue to operate independently of the new parent company, will comprise 14 737-300s and two 767-300ERs at the end of the current quarter. By year end, (VAR) will operate nine 737-300s, five 737-800s and eight 767-300ERs. The 737-300s will be phased out by 2009, when Varig (VAR) is scheduled to fly eight 737-700s, nine 737-800s and 16 767-300ERs. By 2012, it will operate 14, 15 and 22 of the respective types. (GOT) said (VAR) "will provide an attractive service offering to business travelers in the domestic market and offer new services to high-traffic destinations in South America, Europe and North America."
737-8EH (34963, PR-GTM), delivery.
May 2007: The International Federation of Air Line Pilots Assns (IFALPA) said it was "outraged" to learn Brazil's Policia Federal recommended prosecution of Joseph Lepore and Jan Paladino, the pilots (FC) of the Embraer Legacy that collided with a Gol (GOT) 737-800 last September. Charges would be brought under section 261 of the Brazilian Penal Code "for placing a vessel or airplane in jeopardy," according to (IFALPA). It called the action "flawed on a number of levels," noting among other things that the exclusion of the military-run air traffic control (ATC) system from the investigation "is a staggering oversight." It called on the Brazilian Ministry of Justice "to take the opportunity to comply with the guidance of (ICAO) Annex 13 concerning post-accident prosecution, and to correct the premature action of the Policia Federal by waiting until the findings of the technical investigation are reported by (CINTRA)."
June 2007: Gol (GOT), as well as the recently acquired Varig (VAR), issued updated second-quarter and full-year guidance, that reflects the difficulty of integrating the floundering flag carrier. For the full year, (GOT) reduced its earnings per share projection to BRL3.70 to BRL4.20/$1.94 to $2.20 from the original forecast of BRL4.20 to BRL4.70, and its operating margin guidance to approximately 18% from 20%. Revenues should be BRL6 billion, rather than BRL6.1 billion, but capacity still is expected to rise +80% year-over-year, and load factor remains pegged at 72% LF. The company expects a full-year nonfuel (CASK) of BRL0.081. (GOT) officially assumed control of (VAR) on April 9. Year-over-year traffic and capacity comparisons, also are affected by the addition of (VAR), which is expected to end the current quarter, operating 16 737s and three 767s. Both will increase substantially. The two airlines expect a combined second-quarter load factor of approximately 68% LF, yield of BRL0.18, and unit revenue of BRL0.14. Nonfuel unit cost is expected to drop -5% from the year-ago quarter to BRL0.088. Each figure is slightly worse than the company's forecast for (GOT) as a standalone entity.
Continental Airlines (CAL) will partner with (GOT) and sell tickets to (CAL) customers for (GOT) flights throughout Brazil and South America.
Delta Air Lines (DAL) and (GOT) announced an interline agreement effective July 1 under which (DAL) passengers will be able to connect through Rio de Janeiro or Sao Paulo to each of (GOT)'s 58 Brazilian destinations, as well as eight in South America.
July 2007: Gol (GOT) said that it will slow its growth, owing to sluggish traffic in the Brazilian market, which has been beset by air traffic control (ATC) problems. The carrier projects just +12% capacity growth in the domestic market for 2007 and 2008. As recently as March, its monthly domestic capacity increased +46.8%. While all Brazilian airlines have been hurt by (ATC) problems, the disruptions have hit (GOT), which counts on high airplane utilization and fast turnarounds, especially hard. (GOT) also revised its long-term fleet plan, lowering its expected 2012 fleet size to 143 airplanes from a previously planned 152. This year, it will take delivery of two more 767-300s than it had planned, but one fewer 737-700. The 2008 fleet plan has been reduced by eight 737-300s and two 737-700s, and increased by three 737-800s. For 2009, two fewer 737-300s will be received, but it will take delivery of an additional 737-800. "The revisions to the fleet plan are expected to reduce the average age of the fleet and [lower] maintenance costs," it said. (GOT) said its second-quarter passenger traffic (RPK)s grew +41% on a +56% capacity (ASK) increase.
3 737-8EHs (34267, PR-GTN; 34964, PR-GTO; 34965, PR-GTP), deliveries.
August 2007: Brazil's ongoing Air Traffic Control (ATC) problems, and costs associated with recently acquired Varig (VAR), sunk Gol (GOT) to a second quarter net loss of -BRL35.4 million/-$18.3 million, reversed from a profit of +BRL73.4 million in the year-ago quarter. "The loss was driven by the incorporation of (VAR)'s results [and] sub-optimal yields in the domestic market," (GOT) said. The carrier again revised down its full-year earnings forecast, projecting earnings per share of BRL3.00 to BRL3.50, decreased from BRL3.70 to BRL4.20 previously, and well below its original forecast of BRL4.20 to BRL4.70, at the beginning of the year. The carrier noted that passengers are suffering "unbelievable hardships," as Brazil seeks to fix its (ATC) system in the aftermath its two worst air accidents, one involving a (GOT) 737 last year, and last month's TAM (TPR) A320 crash.
Revenue rose +36% to BRL1.15 billion, but that wasn't enough to overcome a -19.2% decrease in consolidated yield to 18.04 cents as (RASK) lowered -26.7% to 13.05 cents. Average fares fell -11.5%. (CASK) dropped -6.2% to 14.10 cents. Consolidated traffic jumped +64.6% to 5.8 billion (RPK)s on a +86.1% lift in capacity to 8.82 billion (ASK)s, producing a load factor of 65.7% LF, down -8.6 points.
VRG Linhas Aereas, the new (VAR), said it has begun selling tickets for a daily Sao Paulo Guarulhos - Paris Charles de Gaulle - Rome Fiumicino service. It did not reveal a launch date.
737-8EH (36146, PR-GTQ), delivery.
September 2007: Gol (GOT)'s consolidated traffic (including Varig (VAR) operations) increased +20.8% in August to 1.63 billion (RPK)s on a +71.8% rise in capacity to 2.99 billion (ASK)s, producing a load factor of 54.2% LF, down -22.9 points. It attributed the load factor drop to "a reduction in demand during August, as a result of [the late July, TAM (TPR) A320 crash], reflecting immediate aversion by customers." Domestic traffic grew just +0.5% in August, as rampant flight delays and "intense press coverage of an accident translated into a reduction in demand."
737-8EH (34966, PR-GTR), delivery.
October 2007: Gol (GOT) and Varig (VAR), issued a revised full-year guidance indicating a significant decline in projected earnings due to "flight network alterations and higher fuel prices." Full-year revenue is expected to be BRL5.2 to BRL5.4 billion/$2.83 to $2.94 billion, down from the previously forecast BRL5.5 to BRL5.7 billion, while load factor is expected to fall to 64% LF to 66% LF, from 68% LF to 70% LF. As a result, operating margin should drop to 7% to 11% from the previous guidance of 12% to 15% and earnings per share will fall to BRL1.60 to BRL2.10 from BRL3 to BRL3.50. Capacity growth is expected to be approximately +75% rather than +80% (including (VAR)) and (CASK), excluding fuel, will be around BRL0.083 instead of BRL0.08.
(GOT) continued its resurrection of (VAR) with the launch of "(VRG) Linhas Aereas" (VAR) daily Rio de Janeiro Galeao - Sao Paulo Guarulhos - London Heathrow service. (VRG) (VAR) already served Frankfurt, Paris Charles de Gaulle, and Rome Fiumicino. (GOT) launched (VAR)'s new identity, featuring a new logo and blue and orange livery "with waves that simulate the aerodynamics of an airplane during flight." In conjunction with the unveiling, (VAR) launched inflight product enhancements including an Espaco Vita Concept in business class (C) with significantly upgraded amenity kit, inflight health and nutrition guide, plus expanded on-demand food options, with traditional food in economy.
(GOT) said it concluded a committed airplane pre-delivery payment loan facility worth $310 million covering the 21 737-800s scheduled for delivery from July 2008 through 2009. It said the financing comprises eight banks and was led by Calyon and Citigroup.
Fernando Rockert de Magalhaes, Executive VP Technical, responsible for Flight Operations, Fleet Flight Safety, and Maintenance.
AWAS (AWW) delivered the second of four 767-300ERs to (GOT). The airplanes will be operated by VRG Linheas Aereas, the new (VAR), that now is a (GOT) subsidiary. Two further 767s will be delivered over the next six months.
3 737-8EHs (34268, PR-GTT; 34269, PR-GTU; 34270, PR-GTV), deliveries.
November 2007: Gol Linhas Aereas Inteligentes (GOT), as well as the new Varig (VAR), concluded a third quarter it called "a period of growth, consolidation and innovation" with a net income of +BRL45.5 million/+$26.1 million that was -76% lower than the +BRL190 million profit posted in the year-ago quarter (USA GAAP). The company said its principal focus was the enhancement of (VAR)'s product and route network, bringing its costs in line with those of (GOT), and readjusting its routes in response to the new restrictions resulting from the July TAM (TPR) A320 accident at Sao Paulo Congonhas. "By the end of September, the company had implemented adjustments to its flight network, redirecting connecting passengers through other airports and alleviating passenger traffic in the Sao Paulo airspace," it said, adding, "The Brazilian air transportation system is returning to regular and efficient standards of operation."
Third-quarter turnover climbed +20.4% year-over-year to BRL1.3 billion, as falling yields and load factors were offset by a significant capacity increase and the incorporation of (VAR)'s revenue, (GOT) said. Costs rose +49.8% to BRL1.27 billion, as the airline expanded, and operating profit plummeted -86.8% to +BRL30.8 million from +BRL233.1 million in the third quarter of 2006.
Operating statistics were influenced heavily by the "demand retraction" that followed the TAM (TPR) accident, the company admitted. It added five 737-800s to the (GOT) fleet and one 767-300 to (VAR), contributing to a year-over-year capacity increase of +71.6% to 8.94 billion (ASK)s. Traffic climbed +33.2% to 5.47 billion (RPK)s, dropping load factor -17.6 points to 61.2% LF. (GOT)'s standalone load factor fell -15.5 points to 63.3% LF.
Yield declined -11.7% to 21.73 USA cents as operating unit revenue dropped -29.9% to 14.58 cents, and operating (CASK) fell -12.8% to 14.23 cents. Excluding fuel, (CASK) was down -7.9% to 8.69 cents.
(GOT) will take four new 737-800s in the current quarter and return two 737-300s, while (VAR) will add seven 737-800s and six 767-300s, and return six 737-300s. At year end, (GOT) and (VAR) will be operating 76 and 27 airplanes respectively to 64 combined destinations.
The company said it will continue to expand and expects "to benefit from economies of scale as we continue to add new airplanes to our already well-established and highly efficient operating network" going forward. It adjusted its full-year guidance and now expects revenue to be BRL5.2 to BRL5.3 billion, rather than BRL5.2 to BRL5.4 billion, operating margin to be 5% to 8%, rather than 7% to 11%, and earnings per share to come in at BRL1.50 to BRL1.80, instead of the originally forecast BRL1.60 to BRL2.10.
2 737-8EHs (34271, PR-GTX; 34272, PR-GTW), deliveries.
December 2007: Gol (GOT) and Varig (VAR) parent, Gol Linhas Aereas Inteligentes reduced its full-year profit outlook once again, while offering a preliminary indication of next year's performance. The carrier now expects its operating margin for 2007 to be in the 4% to 5% range. Just one month ago, it predicted a full-year 2007 operating margin of 5% to 8% rather than the 7% to 11% foreseen in October. The latter figure was a reduction from an earlier 12% to 15%. But based on its plans "to benefit from economies of scale, as the company continues to add new airplanes" and to reduce nonfuel unit cost, it expects operating margin to soar to 13% to 15% in 2008.
(GOT) is targeting 27.4 million passengers next year, compared to an expected 24.1 million this year, along with a +41% increase in capacity to 50.2 billion (ASK)s from 35.6 billion. The percentage of international (ASK)s will rise +10 points to 32% in 2008. Traffic is expected to climb +37.6% to 32.2 billion (RPK)s from an anticipated 23.4 billion in 2007. Interestingly, (GOT) expects to spend less on a liter of fuel next year, with the per-liter price falling to BRL1.60/$0.91 from BRL1.65 in 2007. Unit cost, excluding fuel, is expected to drop to BRL0.082 from BRL0.085.
(VAR) launched daily Sao Paulo Guarulhos - Santiago service.
For (GOT)/(VAR) plans - SEE ARTICLE "(VAR)/(GOT) PLANS 2007-12."
(VAR), now plans to have 111 airplanes by year end (36 737-700s, 61 737-800s, and 14 767-300ERs), 116 the following year (31 737-700s, 71 737-800s, and 14 767s), and 151 at the close of 2014 (137 737-800s, and 14 767s).
(GOT), Brazil's largest airline by market value, ordered 40 737-800 airplanes valued at $2.8 billion at list prices as part of a move to standardize its fleet. The purchase brings (GOT)'s total orders for the single-aisle 737-800 to 161 airliners to be delivered through 2014, the Sao Paulo, Brazil-based carrier said in a statement. (GOT) also exercised options for 34 737-800 NG airplanes under a contract signed in 2006.
3 737-8EHs (34273, PR-GTY; 34274, PR-GTZ; 35063, PR-GGA), deliveries.
January 2008: 2007 statistics: 19.74 billion (RPK)s passenger traffic +34.4%; +45.7% capacity (ASK)s; -5.7 load factor for 67.6% LF. SEE ATTACHED COMPARISON CHART TO SELECTED OPERATORS - "GOT-2007-STATS."
Gol (GOT), which acquired unprofitable Brazilian competitor Varig (VAR) in March, seeks to increase capacity +41% (ASK) and traffic by 38% (RPK) in 2008. (GOT) plans to buy at least 14 widebody airplanes and is looking at the 787 and the A350, CFO, Richard Larke said.
(IATA) (ITA) blasted the Brazilian government's proposal to raise per-hour airplane parking fees at Sao Paulo Guarulhos (GRU), significantly, asserting that the hike could cost international airlines operating there, as much as $90 million per year, and likely violates bilateral aviation accords. It is not uncommon for airplanes operated by international carriers to land at (GRU) early in the day and remain parked before departing again that night. In an effort to ease congestion at the crowded airport, Brazil is trying to either force carriers to keep airplanes moving or pay large fees for leaving them parked for extended periods.
(IATA) (ITA) Director General & CEO, Giovanni Bisignani argued in a letter sent to Brazilian President, Luiz Inacio Lula da Silva that a significant rise in parking fees likely would lead to reduced international service to the country by airlines unwilling or unable to pay. He added that the fee increase would violate "various bilateral aviation agreements" and "provoke strong international protests," that could include other nations "applying similar measures to Brazilian airlines operating overseas."
Gol Linhas Aereas Inteligentes, parent of (GOT) and (VAR), announced a one-year share repurchase program of up to 5 million preferred shares, representing 8.8% of the total outstanding. The shares will be held in treasury and resold or canceled, the company said.
(GOT) said its (VAR) subsidiary will adjust its network in an "aim at improving efficiency and the quality of services." Domestic flights will be reconfigured with business (C) travelers in mind, and making use of a policy reinstating connections at Sao Paulo Congonhas. (VAR) Marketing Director, Murilo Barbosa said the airline intends to replace its 737-300 fleet with 737-700s/737-800s by year end. It will limit its long-haul operation to 767-300ER flights to Paris Charles de Gaulle and Madrid, ending its London Heathrow service on March 1, and flights to Frankfurt and Rome Fiumicino on March 29. Service to the USA is scheduled to start this year.
737-8EH (35064, PR-GGB), delivery.
February 2008: Gol (GOT) and Varig (VAR) flew 2.58 billion (RPK)s passenger traffic in January, up +40.1% from the year-ago month. Capacity rose +54.4% to 3.77 billion (ASK)s and load factor fell -7 points to 68.5% LF.
A turbulent year for Brazilian commercial aviation and the acquisition of floundering flag carrier (VAR) hit hard at (GOT)'s bottom line as the (GOT)'s parent reported a -82% plunge in full-year profit to +BRL102.5 million/+$58.6 million from the +BRL569.1 million earned in 2006, plus an operating loss. The company attempted to put a positive spin on the result, calling 2007 "a year of strategic investment and growth," adding, "The fact that (VAR) was acquired during a difficult year . . . proves we are ready and prepared to manage growth, despite occasional adversity." It said it invested BRL2.2 billion last year on the acquisition of (VAR), fleet expansion, technology and other upgrades. Full-year revenue rose +29.9% to BRL4.94 billion against a +60% surge in costs to BRL4.96 billion, as the average number of operating airplanes climbed +76.8% to 88.6. The operating result sank to a -BRL23 million loss from the +BRL701.5 million profit reported in 2006. Gol (GOT) also cited the regulatory restrictions in place at Sao Paulo Congonhas, the late delivery of seven 767s, that delayed international route launches, and difficulties with Brazil's air traffic controller (ATC)s as contributors to the poor results. It said the government has "worked to restore credibility to the Brazilian aviation sector," an effort it said "will generate effective results and necessary improvements in both the medium and long term."
(GOT) and (VAR) flew 22.67 billion (RPK)s passenger traffic in 2007, up +53% year-over-year, against a +69.5% increase in capacity to 34.35 billion (ASK)s. Load factor slipped -7.1 points to 66% LF. Yield declined -16.6% to BRL0.201 and operating (RASK) dropped -23.4% to BRL0.145. Unit cost improved +5.6% to BRL0.144, or +3.6% to BRL0.089 excluding fuel. (GOT) took delivery of eight airplanes in the fourth quarter and said it suffered as a result of the new regulations at Congonhas, reporting a net loss of -BRL24.2 million compared to a profit of +BRL92.7 million in the final three months of 2006. Operating result swung to an -BRL85.4 million loss from a +BRL112.3 million profit.
JetBlue (JBL) founder & Chairman, David Neeleman is trying his hand at starting yet another airline and signed a contract for 36 EMB-195s to operate in Brazil. The new carrier will be based in Sao Paulo, where Neeleman was born, and is targeting a 2009 launch. It eventually will serve most major Brazilian markets, flying up to 76 EMB-195s by 2013. The agreement with Embraer includes options on 20 airplanes, plus 20 purchase rights. The firm order is valued at $1.4 billion and the 118-seaters will feature LiveTV satellite InFlight Entertainment (IFE), a first for a Brazilian airline. Neeleman has raised $150 from unnamed investors in the USA and Brazil to fund the venture. "The EMB-195 is the perfect airplane for the Brazilian market," he said. "Our target market is the 150 million passengers, who travel annually by long-distance bus as well as those who, for lack of a convenient alternative, don't travel at all." The airline, as yet unnamed, has applied for its air operating certificate (AOC). It plans to take delivery of its first airplane this year. "It's a market that is overpriced and underserved," Neeleman spokesperson Gareth Edmonson-Jones said. "Fares in Brazil are about +50% more expensive than comparable flights in the USA. Cost efficiencies and a focus on the bottom line will bring those fares down." The discount fares offered by the new carrier could triple or quadruple enplanements in the coming years, he added. Neeleman acknowledged the stiff competition the startup will face from (GOT) and TAM (TPR), which are well established. "We respect TAM (TPR) and (GOT) as well-run companies with deep pockets," he said. "We believe, however, that the Brazilian market is ready for a third major airline, and that there is sufficient untapped potential to support all of us."
(GOT) and (VAR) operated a combined fleet of 106 airplanes at year end. The company has 161 airplanes on order. By the end of 2008, it will be flying 111, with all 27 737-300s leaving the fleet and 29 737-800s, and three 767s arriving. It expects 2008 traffic to rise approximately +37% year-over-year, while (ASK)s are forecast to increase at around the same rate.
April 2008: Gol (GOT) and Varig (VAR) flew 2.12 billion system (RPK)s passenger traffic in March, up +43.1% from the year-ago month. Capacity rose +55% to 3.72 billion (ASK)s, dropping load factor -4.7 points to 57.1% LF.
2 737-8EHs (34275, PR-GGD; 35065, PR-GGK), deliveries.
May 2008: Gol (GOT) and VRG (VAR) flew 2.31 billion (RPK)s passenger traffic in April, up +17.8%, against a +25.1% increase in capacity to 3.65 billion (ASK)s. Load factor fell -3.9 points to 63.2% LF.
(GOT) reported a first-quarter net loss of -BRL3.5 million/-$2.1 million, reversed from a profit of +BRL116.6 million in the year-ago period, as last year's acquisition of (VAR) and its subsequent integration with (GOT) weighed heavily and led to sinking load factors. The company noted that it is reorganizing the renamed VRG (VAR)'s loss-making international network, dropping service to Frankfurt, London, and Rome in March, and planning to end Madrid and Mexico City flights during the current quarter. VRG (VAR)'s nine 767-300ERs will be eliminated from its fleet this year, as will Gol (GOT)/VRG (VAR)'s 28 737-300s. Both carriers will operate only 737NGs by year end (108 total) and their networks will be focused on domestic and South American flying. (GOT) claimed these measures will allow it to return to profitability by the third quarter.
Revenue rose 54.3% to BRL1.61 billion, though the company cautioned that year-over-year comparisons show misleadingly large increases/decreases because last year's results do not include VRG (VAR). Expenses climbed +77.7% to BRL1.63 billion, producing an operating loss of -BRL21.4 million, reversed from a +BRL125.1 million profit in the year-ago quarter. Traffic grew +39.7% to 6.84 billion (RPK)s on a +57.7% jump in capacity to 11.06 billion (ASK)s, producing a load factor of just 61.8% LF, down -8 points. Yield lifted +10% to 21.93 BRL cents as RASK fell -2.2% to 14.53 BRL cents, and (CASK) climbed +12.8% to 14.73 BRL cents. (CASK) ex-fuel, increased +10.2% to 8.72 BRL cents.
President & CEO, Constantino de Oliveira Junior said the move to an all-737NG fleet by year end will allow (GOT) to keep operating costs down and offer "demand-stimulating" low fares that will help it return to profitability.
June 2008: Gol (GOT) and VRG (VAR) flew a combined 2.36 billion (RPK)s passenger traffic in May, up +20.7% year-over-year. Capacity climbed +18.6% to 3.61 billion (ASK)s, and load factor rose +1.1 points to 65.4% LF.
(GOT) received permission to complete its acquisition of VRG (formerly Varig) (VAR) "with no restrictions" from the Brazilian Administrative Board for Economic Defense, the final agency from which it needed to gain approval for the transaction. It appears that the two carriers will continue to operate separately, but (GOT) President & CEO, Constantino de Oliveira Jr said the ruling "will allow us to consolidate our investments and improve synergies between the airlines' operations . . . integrating (GOT)'s and (VAR)'s operations will allow the company to optimize revenues and costs as well as maximize the consolidated company's operational, financial and ancillary revenue capabilities." The regulatory agency determined that the acquisition would "have no effect on market competition or consumer options in the Brazilian aviation industry."
(GOT) and (VAR) parent, Gol Linhas Aereas said Executive VP & CFO, Richard Lark will be elevated to the board effective June 16, and serve as an "adviser" to CEO, Constantino de Oliveira Jr. He will transition his former responsibilities to Treasurer, Anna Bettencourt, who will become Finance Director & Investor Relations Officer; Controller, Fabio Pereira; and Accounting & Tax Director, William Cattan, who also will serve as Principal Accounting Officer.
The USA and Brazil announced an enhanced air services agreement that will provide for a nearly +50% increase in passenger flights between the countries, while eliminating restrictions on the number of airlines that can fly the routes. "This agreement will help air carriers meet the growing demand for passenger and cargo services between the USA and Brazil," USA Secretary of Transportation, Mary Peters said. "Now more than ever, it is crucial that we give USA carriers every possible opportunity to compete and succeed wherever passengers want to fly." The previous agreement allowed only four airlines from each country to fly to the other, while the new deal removes those limits. In addition, the number of permissible weekly flights between the nations will increase in four stages to 154 from the current 105 between next month and October 2010.
USA carriers will gain access to Fortaleza, Curitiba, and three additional new cities to be selected by USA authorities. At present, American Airlines (AAL), Continental Airlines (CAL), Delta Air Lines (DAL), and United Airlines (UAL) fly to Sao Paolo and Rio de Janeiro Galeao. USA and Brazilian carriers also now will be permitted to provide certain codeshare services with partners from third countries.
Weekly cargo flights will increase to 35 from 24 immediately, and to 42 in 2010, while the number of cargo charters allowed, also will rise. USA cargo companies now will be permitted to transfer freight from airplanes to ground vehicles for home and office delivery in Brazil. The terms of the agreement will be applied on a reciprocal basis until it enters into force.
July 2008: Gol (GOT) and VRG (VAR) flew a combined 2.23 billion (RPK)s traffic in June, a +18.4% increase over the year-ago month. Capacity rose +19.6% to 3.42 billion (ASK)s and load factor dropped -0.6 point to 65.4% LF.
(GOT) and (VAR) parent, GOL Linhas Aereas Inteligentes said it expects to report a negative pre-tax margin of 17% to 19% for the recently completed second quarter and a negative operating margin of 21% to 23%. The company reported a -BRL35.4 million/$22.1 million loss in the second quarter of 2007 and a -BRL3.5 million deficit in the first quarter of 2008. Second-quarter capacity is estimated to have risen +23%, down from the forecast +25%, and load factor is expected to be 64% LF to 65% LF, up from the forecast 61% LF to 63% LF, but down from the year-ago period's 66% LF. Second-quarter yield is expected to be BRL19, down from the originally forecast BRL20, but up from the year-ago BRL18. Unit cost, excluding fuel, will rise +9% to +10% from both the year-ago and forecast figures to BRL9.4.
Lufthansa (DLH) Systems reached a six-year deal with (GOT) for provision of its NetLine resource management solution and Maintenance Repair & Overhaul (MRO) technology. Implementation is expected in the 2009 first quarter.
August 2008: Gol (GOT) and VRG (VAR) parent, Gol Linhas Aereas Inteligentes reported a second-quarter net loss of -BRL171.7 million/-$106.4 million, widened from a -BRL35.4 million loss in the year-ago quarter, as it consolidated (Gol) and (VAR)'s flight networks during the three-month period and contended with rising fuel costs. "Fuel prices reached record levels faster than fares could be adjusted, especially in a quarter where we were facing ramp-up of our new flight networks," the company said. President & CEO, Constantino de Oliveira said measures to lower fuel costs will be a top priority going forward including slowing capacity growth, adding winglets to its 737NGs and implementing a policy of reducing flight speed and shutting down one engine after landing. "We are taking all possible measures to lower costs and reduce fuel consumption to offset the recent increase in fuel prices," he said.
Second-quarter revenue rose +27.2% year-over-year to +BRL1.46 billion, while expenses increased +41.7% to BRL1.76 billion, producing an operating loss of -BRL299.2 million, widened from a -BRL93.4 loss last year. Fuel costs leaped +47.9% to BRL733 million, nearly three times greater than labor, the next highest expense category.
Traffic lifted +20.1% to 6.9 billion (RPK)s on a +22.8% rise in capacity to 10.68 billion (ASK)s, producing a load factor of 64.6% LF, down -1.4 point. (RASK) increased +3.5% to BRL13.72 cents, while (CASK) heightened +15.4% to BRL16.53 cents. (CASK), excluding fuel, grew +12.1% to BRL9.66 cents.
(GOT) is bleeding badly from (VAR)'s woes. It hopes completion of long-haul pulldown and its operational merger will provide some relief.
While growth going forward will be moderated slightly (year-end fleet will comprise 104 airplanes instead of the previously planned 108), it still will be aggressive, with 2008 full-year capacity rising about +20%. "The air transportation market in Brazil remains underpenetrated and increasing the number of available seats at low fares is important for the continued development of the sector and the economy," (GOT) said.
(GOT) and (VAR) parent, Gol Linhas Aereas Inteligentes submitted a request to Brazil's National Civil Aviation Agency for authorization to integrate (GOT) and (VAR) into a single airline company. "The proposed reorganization will simplify the corporate structure of (GOT)'s subsidiaries, maximizing administrative efficiencies, optimizing revenues, and reducing financial and operational costs, besides greater operational flexibility," it said. The (GOT) and (VAR) brands would be maintained, (GOT) said.
(GOT) reduced its fleet plan by two leased 737-800s in 2008 and five leased 737-800s in 2009. Full-year 2008 capacity growth will be around +20% instead of the +25% previously forecast. (GOT)'s board voted to suspend quarterly dividends for the remainder of 2008, freeing "cash to fund investments and improve credit ratios."
September 2008: Gol (GOT) and VRG (VAR) parent, Gol Linhas Aereas Inteligentes said that Brazil's National Civil Aviation Agency has approved its request to integrate (GOT) and (VAR) into a single airline company. "The reorganization aims at improving operational structure," (GOT) said. "The reorganization will allow increased efficiency in the air transport services, since it will become possible to integrate the operations of [GOT] and (VAR), exploit synergies, and broaden and improve service offerings." It added, however, that (GOT) and (VAR) will be maintained as separate brands.
Developed by Boeing (TBC) and certified two years ago in order to allow (GOT) to fly more efficiently to and from Brazil's urban airports, the 737-800 Short Field Performance airplane now will help the company target business (C) travelers more comfortable with the (VAR) name. In late August, (GOT) and (VAR) parent, Gol Linhas Aereas Inteligentes announced that (TBC) had delivered the first of three 737-800SFPs directly to (VAR). The airplanes were commissioned by (GOT) several years ago so it could operate better at the confined spaces of Rio de Janeiro Santos Dumont (SDU) and Sao Paulo Congonhas (CGH), which feature runways shorter than 5,000 ft. Certified in July 2006, the kit is standard on 737-900s, optional on other 737NGs and includes a two-position tail skid that reduces approach speeds, sealed leading-edge slats for lift, increased spoiler deflection on the ground, and blended winglets. (GOT) VP Technical, Fernando Rockert de Magalhaes said that the kit sells for $2 million, but was provided free to (GOT), which has committed to 160 airplanes. Currently, 33 737-800SFPs are flying in (GOT)'s orange-and-white livery.
The airplane burns less fuel, and accommodates larger payloads at both airports, Rockert said. "The majority of our network begins, ends or passes through Sao Paulo," he told this website. "The old 737-800s, they are not able to take off and land here at [Congonhas] unless you have the penalty on the payload. The 737-800SFP can do it almost with no restrictions, because of the new features."
Now, he revealed, the airplane will be part of (GOT)'s plan to woo business travelers on the popular (SDU) - (CGH) route. Originally pegged to handle a significant portion of the company's international traffic, (VAR) still carries a brand that many Brazilians regard as distinct from (GOT)'s no-frills service. "We identified that the business (C) community that fly, almost all of them between Santos Dumont and Sao Paulo, they appreciate very much the (VAR) name, the livery. It's still a very strong brand among the businessmen," Rockert said.
As a result, the 737-800SFP will become the "backbone" of both fleets, he said. "We understand this will be a machine that will bring us the profitability, the reliability, the on-time flights, and also give us seat-km costs very attractive [compared] to the older models." SEE ATTACHED - - "GOT-VAR-NEWS-SEP08."
October 2008: Gol (GOT) flew 1.73 billion consolidated (RPK)s passenger traffic in September, down -3.1% year-over-year. Capacity rose -4.1% to 3.03 billion (ASK)s, dropping load factor -4.2 points to 57% LF.
(GOT) and Varig (VAR) parent, Gol Linhas Aereas Inteligentes said losses on its fuel hedges and gains on currency hedges would result in a BRL48 million/$22.1 million charge against its third-quarter results, which it is scheduled to report October 27. It expects to report an operating margin of -1% to 1%.
Gol Linhas Aereas Inteligentes (GLAI) announced the formal integration of (GOT) and (once again called Varig (VAR)) into a single airline company, and from October 19 will launch a new route network in which (GOT) will focus on shorter routes, and (VAR) will operate longer-haul flights. The company said the reorganization will increase operational efficiency. "The new network complements the company's unified structure by eliminating overlapping routes and schedules between (GOT) and (VAR)," it said.
(GOT) will operate all domestic flights and short-haul flights to Asuncion, Buenos Aires, Cordoba, Rosario, Montevideo, Lima, and Santa Cruz de la Sierra. (GOT) also will operate a Rio de Janeiro - Santos Dumont - Sao Paulo Congonhas shuttle with departures every 30 minutes. (VAR) will operate medium-haul international flights to Bogota, Caracas, and Santiago de Chile.
(GOT) and Condor Airlines (CDF) reached an interline agreement allowing (CDF) passengers to purchase tickets from (CDF) destinations Recife and Salvador, to Belo Horizonte, Brasilia, Fortaleza, Maceio, Natal, Rio de Janeiro, and Sao Paulo. "The new network will . . . improve flight occupancy levels by allowing the company to increase offerings in markets, where it has consolidated operations, while also allowing for new connections between previously unlinked cities," (GLAI) said. The integrated airline company will operate 800 daily flights to 49 destinations. The integration will mean a unified ticket sale system and operating under one (IATA) (ITA) code. "The entire timetable, including (VAR)'s inventory in the Iris and Amadeus systems, will be gradually migrated to the New Skies system," (GLAI) said. "By doing this, the company will reduce costs and simplify processes."
Passengers on the medium-haul 737-800 (VAR) flights will be offered the option to purchase "comfort class" tickets that will provide access to fast-track boarding, increased legroom and enhanced InFlight Entertainment (IFE), the company said. Beginning November 16, (GOT) and (VAR)'s frequent-flier programs and airport lounges will be integrated.
November 2008: Gol (GOT) flew 1.79 billion (RPK)s traffic in October, down -17.5% year-over-year. Capacity was level at 3.14 billion (ASK)s, and load factor dropped -12 points to 56.8% LF.
Preliminary unaudited financial results for the third quarter of 2008 (3Q08) stated net revenues reached R$1.8 billion, representing growth of +37.2% compared to the same period last year. (GOT) transported 6.0 million passengers during the quarter, representing growth of +8.7% over 3Q 2007. Ancillary revenues (cargo and other) increased +55.0% over 3Q 2007 to R$178. Consolidated operating income for the quarter was +R$61.2mm, representing an operating margin of 3.4%. Consolidated net loss for the quarter was -R$294.3 million/-US$176.3 million, due to a negative exchange variation of R$261.8mm with no impact on cash and negative net hedging results of R$48.0mm. Consolidated net loss per share (EPS) was R$1.47; net loss per (ADS) was US$0.88.
Consolidated operating costs per (ASK) (CASK) increased +22.4% from 14.23 cents (R$) in 3Q 2007 to 17.42 cents (R$) in 3Q 2008. Non-fuel (CASK) increased +13.6% to 9.87 cents (R$) due to planned lower airplane utilization, extraordinary expenses related to airplane return expenses, lower stage length, and increases in salaries, wages and benefits, sales and marketing and depreciation.
In line with its fleet renewal plan, (GOT) received four 737-700NGs and eight 737-800NGs, and removed ten 737-300s and eight 767-300s from the operating fleet during the quarter, resulting in a net reduction of eight airplanes in the operating fleet. (GOT) plans to end 2008 with a consolidated fleet of 104 airplanes, mostly comprised of 737-800 and 737-700 airplanes.
Consolidated domestic (RPK)s traffic decreased -17.7% and capacity (ASK)s decreased -4.6%, versus 2Q 2008. Consolidated international (RPKs) increased +3.4% and (ASK)s decreased -16.6% versus 2Q 2008.
Consolidated (RPK)s increased +8.7% from 5,470 million in 3Q 2007 to 5,944 million in 3Q 2008 and (ASK)s increased +10.9% from 8,941 million in 3Q 2007 to 9,912 million in 3Q 2008. Consolidated average load factor decreased +1.2 percentage points versus 3Q 2007 to 60.0% LF. Consolidated break-even load factor decreased -1.9 percentage points versus 3Q 2007 to 57.9% LF.
(GOT) now offers over 790 daily flights to 59 different destinations in Brazil and South America, the most of any airline group. In its 3rd quarter 2008, (GOT) added 19 new daily flight frequencies. (GOT)'s low-cost operating structure permits flights to medium-sized cities with lower traffic volumes, allowing (GOT) to serve various destinations outside of Brazil's main economic centers.
On August 31, (GOT) ceased long-haul services with the last intercontinental flight to Paris, France. Beginning August 31, (GOT) ceased operating 767s and now operates only 737s on its short and medium-haul flights.
On October 19, (GOT) launched its new integrated route network. The new network compliments (GOT)'s unified structure by eliminating overlapping routes and schedules between (GOT) and (VAR), which improves flight occupancy levels by allowing the Company to increase offerings in markets where it has consolidated operations while also allowing new connections between previously unlinked cities.
Beginning on October 16, customers flying on (VAR) and (GOT) are able to accumulate miles through the "SMILES" frequent flyer program. Beginning November 16, miles can be exchanged for tickets to all destinations served by the Company.
On October 23 (GOT) signed an interline agreement with Germany- based Condor Airlines (CDF). Through this partnership, passengers of (CDF) can purchase tickets on (GOL) to Belo Horizonte, Brasilia, Fortaleza, Maceio, Natal, Rio de Janeiro, and Sao Paulo.
December 2008: The Brazilian Air Force is set to release a final report on the September 29, 2006, midair collision between a Gol (GOT) 737-800 and an ExcelAire Legacy 600, that led to the deaths of all 154 aboard the 737, and reportedly it will cite as primary causes the ExcelAire pilots (FC)'s negligence in inadvertently turning off the airplane's transponder and a series of mistakes by air traffic controllers (ATC)s. The report is expected to be released officially tomorrow after victims' families have been given an opportunity to review it. Brazilian media reported the findings over the weekend.
According to "Brazzil Magazine," the report will claim that the transponder was off, and did not send any information to the (ATC) for 58 minutes and will hold the two ExcelAire pilots (FC) responsible for the mistake. It will state further that the pilots (FC) were not well-versed on Brazilian flight regulations. But it also will blame (ATC), claiming that controllers gave poor instructions and faulty altitude guidance to the pilots (FC). It will state that a number of controllers failed to notice that the Legacy was not relaying information to (ATC) for nearly an hour, and also passed wrong altitude readings on the airplane to one another.
Joel Weiss, an attorney for the two American pilots (FC), told "Newsday" that the pilots (FC) should not be blamed for "a string of utterly catastrophic errors of (ATC)," adding that (ATC) "put and kept these two planes on a collision course. Any report that the pilots (FC) are at fault for that is nonsense."
ExcelAire Executive VP, David Rimmer told the "Associated Press," "The transponder issue is a distraction from . . . an (ATC) system that put two airplanes on a collision course . . . We have no proof of how the transponder was turned off and no evidence to suggest it was inadvertently turned off by the pilots (FC)."
Brazilian police in late 2006 charged the two ExcelAire Legacy pilots (FC), who were detained in Brazil for more than two months after the crash, with endangering airplane safety. The pilots (FC) have not been summoned to Brazil for a criminal trial since leaving the country in December 2006 after agreeing to return if a trial were held.
January 2009: Gol (GOT) flew 2.1 billion (RPK)s traffic in December, down -11.8% year-over-year. Capacity fell -6.9% to 3.24 billion (ASK)s and load factor slipped -3.6 points to 64.7% LF.
737-8EH (35825, PR-GGJ), delivery.
February 2009: Gol (GOT) flew 2.32 billion system (RPK)s traffic in January, down -10.2% year-over-year. Capacity dropped -10.7% to 3.37 billion (ASK)s and load factor rose +0.4 point to 68.9% LF.
American Airlines (AAL) and Gol (GOT) announced a reciprocal interline and baggage check-through agreement. (AAL) serves Rio de Janeiro Galeao (GIG), Sao Paulo Guarulhos (GRU), Belo Horizonte, Recife and Salvador from Miami (all five Brazilian cities), New York (JFK) (from (GIG) and (GRU)) and Dallas/Fort Worth (from (GRU)).
(GOT) named commercial foresting executive Leonardo Pereira as Executive VP & CFO, succeeding Richard Lark.
1 737-700 (CFM56-7B22), CIT Group (TCI) leased. 737-8EH (36566, PR-GGG), sold to (GEF) and leased from.
March 2009: Gol (GOT) flew 1.72 billion system (RPK)s traffic in February, down -18.9% year-over-year. Capacity fell -17.5% to 2.93 billion (ASK)s and load factor slipped -1 point to 58.7% LF.
(GOT) domestic and international load factors for February were 60% LF and 51% LF, respectively
(GOT) said that it will take a "disciplined" approach to capacity in 2009, reducing overall full-year capacity by -1% year-over-year comprising a -25% cut in international (ASK)s and +5% growth in the domestic market.
(GOT) and Varig (VAR) parent, Gol Linhas Aereas Inteligentes swung to a -BRL1.39 billion/-$606.7 million loss in 2008 from a +BRL272.3 million profit the prior year, but said it "continues to evaluate expansion opportunities" while approving a +BRL203.5 million capital increase. Key culprits in the deficit were a +31.5% year-over-year increase in expenses and -BRL757.5 million in foreign exchange losses. Revenue was up +29.7% to BRL6.41 billion and costs rose to BRL6.5 billion, producing an operating loss of -BRL88.6 million that represented a reversal from the +BRL2.4 million profit reported in 2007.
The board announced its approval for the sale of 6.6 million common shares and 19.5 million preferred shares at BRL7.80 each. It did not say how the company would use the new capital.
(GOT) called 2008 "a year of significant transformation . . . aimed at strengthening the foundations of the company's low-cost, low-fare business model." It said it "heavily invested in standardizing its fleet, technology and training . . . as well as the formidable challenge of integrating [(GOT) and (VAR)]." (VAR) now operates on medium-haul international flights with a fleet of 737-700s/-800s and in October, the company unveiled an integrated route network designed to eliminate overlaps and create more point-to-point service.
The carriers transported 25.7 million passengers in 2008, up +8.3%, and flew 25.31 billion (RPK)s traffic, a +11.6% increase year-over-year. Capacity rose +19.7% to 41.12 billion (ASK)s, dropping load factor -4.4 points to 61.6% LF. Yield grew +15.5% to BRL23.27 and operating (RASK) was up +8.3% to BRL15.58. Unit cost climbed +9.9% to BRL15.8, or +6.2% to BRL9.4, excluding fuel. (GOT) and (VAR) finished the year with 106 operational airplanes out of a fleet of 115. It plans to be operating 108: 40 737-700s, 16 737-800s and 52 737-800SPFs, by year end.
Its fourth-quarter net loss of -BRL687.1 million was widened from a -BRL6.5 million deficit in the final three months of 2007. It was profitable on the operating level, however, reporting a +BRL53.9 million surplus compared to a -BRL78.2 million loss last year. Exchange losses were behind the net loss.
(GOT) issued revised guidance for 2009 and said it expects to transport 28 million passengers this year, down from the originally forecast 29 million. Capacity will stay at 40.5 billion (ASK)s, with a slight increase in domestic and a corresponding decrease in international. Unit cost, excluding fuel, is expected to be BRL9.5, up from the BRL8.9 expected earlier.
April 2009: Gol (GOT) flew 1.78 billion (RPK)s traffic in March, down -16.1% from the year-ago month. Capacity fell -12.8% to 3.25 billion (ASK)s and load factor slipped -2.2 points to 54.95 LF.
Air France (AFA)/(KLM) and (GOT) signed an agreement linking their respective loyalty programs and establishing a code share arrangement under which (AFA) will add its code to (GOT) flights between Rio de Janeiro, Sao Paulo and 13 Brazilian cities by mid-year. A similar deal is being prepared between (GOT) and (KLM). The European carriers operate 21 weekly flights to Sao Paulo Guarulhos and 14 to Rio de Janeiro Galeao.
737-8EH (36147, PR-GGH), delivery.
May 2009: Gol (GOT) reported first-quarter net income of +BRL61.4 million/+$29.1 million, reversed from a net loss of -BRL20.5 million in the year-ago period, despite a -5.4% drop in revenue to BRL1.52 billion. (GOT) said its profit resulted from lower fuel costs, "cost control and yield management" and synergies from the (GOT)/Varig (VAR) "operational consolidation." Expenses lowered -9.2% to BRL1.41 billion and operating income more than doubled to +BRL105.1 million from +BRL49.2 million last year.
Traffic declined -14.9% to 5.82 billion (RPK)s on a -13.7% fall in capacity to 9.55 billion (ASK)s, producing a load factor of 61% LF, down -0.9 point. Yield rose to BRL23.82 cents as (RASK) lifted +9.5% to BRL15.89 cents and (CASK) increased +5.1% to BRL14.79 cents. (CASK) ex-fuel, jumped +25.5% to BRL10.2 cents.
(GOT) is adding flights from Rio de Janeiro's downtown airport. (GOT) recently launched non-stops to Vitoria, an Atlantic Ocean port city, and will start service to Belo Horizonte Confins and the capital, Brasilia.
737-8EH (36148, PR-GGL), delivery.
June 2009: Gol (GOT) said its yield through the first two months of the second quarter "was slightly below, but very close to" the BRL21.93 cents/10.94 USA cents posted in the year-ago period. It flew 1.91 billion system (RPK)s traffic in May, down -19.3% year-over-year, against a -8.9% cut in capacity to 3.29 billion (ASK)s. Load factor fell -7.5 points to 57.9% LF.
737-8EH's (35832, PR-GUB; 36149, PR-GGM; 37601, PR-GUA), deliveries. 737-8EH (35831, PR-GGW), leased to Transavia (TVA) until 2010-09.
July 2009: Gol (GOT) flew 2.07 billion (RPK)s traffic in June, a -7.1% decline year-over-year. Capacity fell -4.9% to 3.25 billion (ASK)s and load factor dropped -1.6 points to 63.8% LF.
American Airlines (AAL) and Gol (GOT) said they intend to enter a code share agreement "in the near future" and will initiate a frequent-flyer accord from August 1 that will allow members of (AAL)'s "AAdvantage" and (GOT)'s "Smiles" programs to cross-access benefits. Passengers from the two programs will be able to earn miles on each airline's flights and in the fall will begin to be allowed to redeem miles on each. (GOT) CEO, Constantino de Oliveira Jr added, "Not only are we offering Smiles members service across the United States, but we're also providing access to destinations in all continents through [AAL]." (GOT) no longer operates flights to North America or Europe. (AAL) operates 58 weekly flights to/from Brazil. In November 2008, it began service from its Miami hub to Belo Horizonte, Recife, and Salvador.
(GOT) named Ricardo Khauaja, VP Management & Personnel.
August 2009: Gol (GOT) reported second-quarter net income of +BRL353.7 million/+$191 million, reversed from a -BRL166.5 million loss in the year-ago period, citing its revamped route structure focused on shorter-haul flying and the "successful consolidation" of (GOT) and Varig (VAR) assets at the end of 2008.
(GOT) said the strong quarter reflected its "strategic focus on generating consistent operating results . . . based on high frequencies between the main domestic airports, underpinned by punctuality and regularity, and a modern standardized fleet" composed of 737NGs.
(GOT), which last year ceased operating flights to North America and Europe, now is relying on code sharing for its long-haul reach. Its fleet comprises 110 airplanes including nine 737-300s that will be retired by year end. The fleet will number 111 by the end of 2010, all 737NGs. It said it currently is negotiating the return of six 767s, formerly operated by Varig (VAR) and now parked, to lessors. It said it will "raise the airplane's utilization rate as much as possible" in coming quarters to lower costs and maximize profitability.
Second-quarter revenue lowered -4.8% to BRL1.39 billion, while costs decreased -25.9% to BRL1.3 billion, including a -41.4% drop in fuel expense to BRL429.8 million. Operating profit was +BRL89.9 million, reversed from an operating loss of -BRL295.3 million last year. Traffic declined -16% to 5.8 billion (RPK)s on a -9.8% dip in capacity to 9.64 billion (ASK)s, producing a load factor of 60.1% LF, down -4.5 points. Yield rose +10.7% to BRL21.51 cents as (RASK) lifted +5.5% to BRL12.84 cents and (CASK) fell -17.9% to BRL13.53 cents. (CASK) excluding fuel decreased -5.6% to 9.07 cents.
Gol (GOT) received its (IATA) Operational Safety Audit (IOSA) registration. (GOT) said it would use the distinction to enhance its code share network.
(GOT) filed a registration statement with the USA Securities and Exchange Commission for a proposed global offering of preferred shares expected to gross BRL550 - BRL650 million/$299.7 - $354.1 million "depending on market conditions." (GOT) said it intends to use the proceeds "for general corporate purposes and to strengthen its balance sheet, particularly its cash and cash equivalents position."
737-8EH (35827, PR-GGN), delivery.
September 2009: Gol (GOT) announced the early October sale of at least 51.8 million shares on the Sao Paulo stock exchange - - 34.5 million preferred shares in a primary offering and 17.3 million voting shares in a secondary offering. According to press reports from Sao Paulo, the offering would raise BRL963.9 million/$530.1 million based on latest closing price and would raise (GOT)'s capital to BRL2.57 billion.
(ILFC) (ILF) announced a lease deal for one used 737-800 to Gol (GOT) for five years.
737-7EH (37595, PR-GEA) and 737-8EH (35828, PR-GGO), deliveries.
October 2009: Gol (GOT) said it raised BRL627.1 million/$356.4 million through the sale of 38 million common and preferred shares, part of a global share offering comprising 62.2 million shares that netted BRL1.07 billion. (GOT) controlling shareholder, Fundo ASAS also participated in the capital raising. (GOT) said its improved cash position now represents more than >20% of net revenue in the past 12 months.
(GOT) and AeroMexico (AMX) signed a code share agreement that will allow (AMX) to add its code on Gol (GOT) flights from Sao Paulo to six Brazilian destinations. Iberia (IBE) and (GOT) signed a code share deal under which (IBE) will add its code to (GOT) flights from Rio de Janeiro Galeao and Sao Paulo Guarulhos to 13 Brazilian destinations. (IBE) and (GOT) said they "are also evaluating the possibility" of linking their loyalty programs.
737-8EH (35829, PR-GGP), delivery.
November 2009: Gol (GOT) flew 2.49 billion (RPK)s traffic in October, up +38.9% year-over-year. Capacity climbed +9.6% to 3.46 billion (ASK)s, lifting load factor +15.1 points to 71.9% LF.
Gol (GOT) reported third-quarter net income of +BRL77.9 million/+$45.6 million, reversed from a -BRL510.7 million loss in the year ago period when foreign exchange losses and interest expenses weighed down the bottom line. (GOT) said its positive quarter reflected the "optimization of its cost structure" as it continued to benefit from "synergies" created by the merger of (GOT)'s and Varig (VAR)'s operations at the end of 2008. It also noted that it is focused "on more profitable markets," operating a nearly all-737NG fleet on short-haul flying in Brazil and within South America.
(GOT) said it will continue to build on its strategy of serving long-haul international routes via code sharing. To date, it has inked code share deals with American Airlines (AAL), Air France (AFA)/(KLM), Iberia (IBE) and AeroMexico (AMX), airlines that combined operate 18.6% of international flights to/from Brazil. "Thanks to the code share agreements, Gol (GOT) will benefit from the development of international long-haul traffic without having to compete in a market that is dominated by global players and which is likely to become even more competitive," (GOT) management said in a statement.
(GOT) noted that its cash position was enhanced by raising BRL627.1 million through the sale of 38 million common and preferred shares, part of a global offering comprising 62.2 million shares that netted BRL1.07 billion.
Third-quarter revenue decreased -16.3% to BRL1.5 billion, while expenses fell -17% to BRL1.4 billion, producing operating income of +BRL99.1 million, down -4.3% from +BRL103.6 million last year. Traffic rose +12.8% to 6.71 billion (RPK)s, while capacity increased +3% to 10.21 billion (ASK)s, producing a load factor of 65.7% LF, up +5.7 points. Yield lowered -30.2% to BRL18.92 cents as (RASK) dipped -18.8% to BRL14.65 cents and (CASK) dropped -19.5% to BRL13.68 cents. (CASK) excluding fuel decreased -5.4% to BRL8.93 cents.
(GOT) announced a management restructuring: (CFO) Leonardo Pereira now will be responsible for the Technology, Business Development & Strategic Planning departments in addition to Finance, Controls & Investor relations. The unnamed VP Marketing will head Cargo, Commercial, Corporate Communications, Marketing, Yield Management & Alliance departments, while new VP Customers, Employees & Management, Ricardo Khauaja will run the Human Resources & Management, Customer Service, Airport & Commercial Crew departments. VP Information Technology (IT) & Planning, Wilson Maciel Ramos, and VP Marketing & Services, Tarcisio Gargioni will leave the company along with Airports Head, Marco Antonio Piller, and Maintenance Head, Francisco Eustaquio Mendes.
(GOT) is installing (ACARS) linked to the Iridium satellite network. Executive VP Technical, Fernando Rockert de Magalhaes said, "It will become increasingly common for pilots (FC) and air traffic controllers to communicate through a mixture of voice and text messages, which will ensure greater safety and allow for more efficient cost management." The (ACARS) installation which is scheduled to be completed in January, will enable (GOT) airplanes to transmit data during flights, giving (GOT) "real-time access to the main airplane data." Airplane weight will be reduced by replacing printed manuals currently carried on all flights with new data storage technology.
Gol (GOT) joined the Sustainable Aviation Fuel Users Group, which now has 10 airline members.
The Oneworld (ONW) alliance is looking to increase further its footprint in Latin America, particularly in Brazil, where Gol (GOT) is among the potential membership candidates with which it is in discussions. "Brazil is an important market for us, and Gol (GOT) is obviously a significant player. (GOT) has made great strides in the past two years and, like in India and China, we keep channels open to everyone to review continually our options and their strategy," (ONW) Managing Partner, John McCulloch said. He did not confirm the talks with (GOT), but discussions are "in an early stage" and that no announcement is imminent. (GOT) recently signed extensive bilaterals with (ONW) members American Airlines (AAL) and Iberia (IBE). (LAN) Airlines is (ONW)'s other Latin American member. Brazilian flag carrier TAM (TPR) committed to the Star Alliance (SAL) last year, and SkyTeam (STM) Chairman, Leo van Wijk confirmed in June that his alliance has talked with Gol (GOT) as well.
2 737-8EHs (36150, PR-GGR; 37596, PR-GGQ), deliveries.
December 2009: Gol (GOT) flew 2.46 billion (RPK)s traffic in November, a +41.1% increase year-over-year, against a +11.9% lift in capacity to 3.07 billion (ASK)s. Load factor soared +14.8 points to 71.6% LF.
American Airlines (AAL) and Gol (GOT) announced a code share arrangement under which (AAL) will place its code across (GOT)'s domestic network of 49 airports. The launch is pending government approval. The airlines began linking their loyalty programs in August. (AAL) serves five Brazilian destinations.
(GOT) secured a $150 million credit line from Natixis Transport Finance to finance airplane pre-delivery payments through 2010.
(GOT) said all of its airplanes will be equipped with Ground Proximity System (GPS) Landing System capabilities and Vertical Situation Displays by next month. (GOT) ended the third quarter with 109 737s in operation.
737-83N (28648), returned to (GECAS) (GEF) and leased to Globus (WEG). 3 737-8EHs (35830, PR-GGT; 37597, PR-GGU; 37598, PR-GGV), deliveries.
February 2010: Gol (GOT) flew 3.07 billion (RPK)s traffic in January, up +32.1% year-over-year. Capacity climbed +16.8% to 3.94 billion (ASK)s, lifting load factor +9 points to 77.9% LF.
(GOT) launched five-times-weekly, Sao Paulo Congonhas - Bauru flights.
Rockwell Collins will provide its CMU-900 communications management unit and GLU-925 multi-mode receiver to Gol (GOT) for use on its 737NG fleet.
3 737-8EHs (35831, PR-GGW; 36596, PR-GGX; 37599, PR-GGY), deliveries.
March 2010: Gol (GOT) reported net income of +BRL890.8 million/+$504.2 million for 2009, reversed from a -BRL1.2 billion deficit in 2008, attributing its profitability to "synergies" created by the merger of Gol (GOT)'s and Varig (VAR)'s operations at the end of 2008 and its transformation into an efficient 737NG operator organized around a short-haul South American network that it believes appeals to Brazil's growing middle class.
Its international capacity lowered by -17.7% in the 2009 fourth quarter compared to the prior-year period even as overall capacity rose +12% "due to the repositioning of the network in 2009" to concentrate on short-haul flying in Brazil and within South America. It noted that fourth-quarter load factor jumped +13.9 points to 73.4% LF.
It ended the year with an operating fleet of 108 airplanes comprising 105 737NGs and just three Classics that will be retired this year. It has reoriented its long-haul international services to code share flights on partner carriers.
(GOT) said this "strategic positioning" will allow it to attract "Brazil's new middle-class . . . The [nation's] middle class increased from around 70 million people in 2003 to more than >100 million people in 2008 . . . However, only 16 million actually [fly], making it one of the highest potential growth markets in the world for the airline industry."
Revenue in 2009 decreased -5.9% to BRL6.03 billion, while costs fell -13.6% to BRL5.61 billion, including a -31.1% drop in fuel costs, producing operating income of +BRL413.3 million, reversed from an operating loss of -BRL88.65 million in 2008.
Fourth-quarter net income was +BRL397.8 million, reversed from a -BRL541.6 million loss in the prior-year period. Fourth-quarter traffic increased +15.9% to 7.77 billion (RPK)s on a +12% lift in capacity to 10.59 billion (ASK)s, producing the 73.4% LF load factor. Yield fell -29.3% to BRL0.181 as (RASK) dipped -6.7% to BRL0.152 and (CASK) lowered -10.5% to BRL0.141. (CASK) ex-fuel decreased -7.5% to BRL0.988.
Separately, (GOT) said its board of directors approved the payment of dividends to shareholders in the amount of BRL185.8 million, or BRL0.70 per share, "based on net profits for fiscal year 2009."
737-8EH (37600, PR-GGZ), delivery.
April 2010: Gol (GOT) will launch weekly, Rio de Janeiro Galeao - Sao Paulo Guarulhos - Caracas - Punta Cana service on April 3 aboard a Varig (VAR) 737-800.
Gol (GOT) and Delta Air Lines reached a code share agreement under which (DAL) will place its code on more than 45 Gol (GOT) flights from Brasilia, Rio de Janeiro, and Sao Paulo. Registered frequent flyers from both airlines will be able to earn miles in both (GOT)'s "Smiles" and (DAL)'s "SkyMiles" programs on eligible flights.
GE Aviation (GEC) said Gol Airlines (GOT) became the launch customer for its OnPoint Fuel & Carbon Services through which "GE Aviation (GEC) will work with Gol (GOT) to identify and track operational improvements that could reduce the airline's fuel spend by up to -5%."
May 2010: Gol (GOT) reported first-quarter net income of +BRL23.9 million/+$13.2 million, down -61.1% from a +BRL61.4 million profit in the year-ago period, and noted that the result was affected negatively by "exchange variation expenses" totaling BRL59 million related to an average +3.5% appreciation of the dollar versus the real, as well as tax and interest charges.
(GOT) said its continued emphasis on organizing its network around short-haul South American flights using an all-737NG fleet is reaping benefits. "(GOT) recorded its highest ever traffic figures in the first quarter, fueled by the growth in Brazilian demand, increased productivity, improved fare management and higher airplane utilization rates," it said in a statement. Airplane utilization rose +15% year-over-year to 13 block hours per airplane per day from 11.3 hours in the 2009 first quarter.
Quarterly revenue lifted +14% year-over-year to BRL1.73 billion including a +13.1% rise in passenger revenue to BRL1.57 billion and a +24% increase in ancillary revenue to BRL161.9 million. The passenger revenue boost was "thanks to increased demand due to the more favorable economic scenario and…increased frequency between Brazil's leading airports, low-cost leadership, high operating indices" and the growth of its frequent-flyer program, which it described as the largest in Latin America.
Expenses heightened +9% to BRL1.54 billion and operating income was +BRL191.4 million, widened 82.1% from BRL105.1 million last year. Traffic jumped +37.9% to 8.03 billion (RPK)s on +17% capacity growth to 11.17 billion (ASK)s, producing a load factor of 71.8% LF, up +10.8 points. Passenger yield dropped -18% to BRL0.195 as (RASK) dipped -2.5% to BRL0.155 and (CASK) decreased -6.9% to BRL0.138. (CASK) ex-fuel fell -12.6% to BRL0.088.
Gol Linhas Aereas Inteligentes (GOT) said its Varig (VAR) subsidiary will launch weekly, Sao Paulo Guarulhos - Bridgetown's Grantley Adams International airport, Barbados, service on June 26. “We will be the only Brazilian airline to offer regular flights to Barbados,” says GOL (GOT)’s Market VP, Claudia Pagnano. “Our operation will reduce the journey time of Brazilians visiting this destination by several hours. Currently, the fastest route is via the United States.”
June 2010: Gol (GOT) flew 2.19 billion (RPK)s traffic in May, up +14.5% year-over-year. Capacity rose +13.6% to 3.74 billion (ASK)s and load factor increased +0.5 point to 58.4% LF.
May produced strong results for GOL (GOT), which recorded an increase in its international load factor and another record
rise in domestic demand. The 55.3% LF international load factor resulted from a +11.5% year-on-year improvement in traffic (RPK)s and a -5% drop in capacity (ASK)s. Domestic loads, however, fell to 58.8% LF despite a +14.9% rise in demand as it operated +16.4% more capacity (ASK)s than it did in May 2009. (GOT) attributes the
rise to greater airplane utilization, which rose to 12.5 block hours per day from 11.8 block hours, and longer stage lengths. (GOT) said
yields increased to about 11.6 cents, “despite the seasonally weaker period.”
(GOT) announced that it has joined (IATA) (ITA) and that it "already enacted a number of changes in preparation of joining the association," including receiving (IATA) Operational Safety Audit (IOSA) certification. "Our membership comes at a very important moment for the industry, which is undergoing profound changes, as well as our company, as we continue to increase our international presence via code share agreements with leading carriers," President & CEO, Constantino de Oliveira said.
2 737-8EHs (37601, PR-GUA; 35832, PR-GUB), sold to AerCap (DEA) on delivery and leased back.
July 2010: Gol (GOT) operated 2.28 billion (RPK)s traffic in June, a +10% increase year-over-year. Capacity rose +13.3% to 3.69 billion (ASK)s and load factor fell -1.9 points to 61.9% LF.
August 2010: GOL (GOT) operated 2.79 billion (RPK)s traffic in July, up +12.2% from July 2009. Capacity rose +16.3% to 4.06 billion (ASK)s against a -2.6-point dip in load factor to 68.9% LF.
(GOT) reported a second quarter net loss of -BRL51.9 million/-$29.6 million, reversed from a +BRL353.7 million net profit in the year-ago period, as interest expenses, foreign exchange losses and non-recurring maintenance costs weighed on the bottom line.
Quarterly interest expenses totaled BRL81.3 million while foreign exchange losses were -BRL29.9 million "mainly due to the impact of the 1.2% appreciation of the dollar on the company's foreign currency debt," Gol (GOT) said. That was a considerable reversal from foreign exchange gains of +BRL448.4 million in the year-ago period on a 15.7% appreciation of the real against the dollar.
Second quarter revenue rose +14.1% year-over-year to BRL1.59 billion "chiefly due to Brazil's healthy economic scenario, which resulted in high consumer confidence indices, in turn encouraging demand growth," (GOT) said. Expenses lifted +17.6% to BRL1.53 billion and operating income was +BRL57.3 million, down -36.3% from a +BRL89.9 million operating profit in the 2009 second quarter.
Traffic rose +16.6% to 6.76 billion (RPK)s on a +14.7% increase capacity to 11.05 billion (ASK)s, producing a load factor of 61.1% LF, up +1 point. "The year-over-year demand rise was fueled by the introduction of…new fare categories, which provided a wider array of benefits for the business segment, and increased frequencies on the company's route network, especially for business flights, privileging yields in a seasonally weak quarter," Gol (GOT) stated.
Yield fell -3% year-over-year to BRL0.209, though the airline said that "excluding non-recurring passenger revenue of BRL42 million in 2Q09, second quarter 2010 yields grew by +0.6% year-over-year." (RASK) dipped -0.5% to BRL0.144, while (CASK) increased +2.5% to BRL0.139. CASK ex-fuel lowered -4.1% to BRL0.087.
GOL Linhas Aereas Inteligentes (GOT) on November 1 is scheduled to launch daily Boeing 737-700 service to Montes Claros, in the state of Minas Gerais, from Belo Horizonte/Confins Airport. “The Montes Claros region is far from the country’s other major centers and suffers from a lack of air transport options,” says (GOT). “In addition to shortening travel time and increasing comfort, (GOT)’s new route will offer clients from the entire region the possibility of immediate connections in Confins to Sao Paulo (Congonhas), Rio de Janeiro (Santos Dumont and Tom Jobim/Galeao), Brasília, Curitiba, Salvador, Campinas, Recife, and Vitoria.”
September 2010: American Airlines (AAL) has signed a code share agreement with GOL (GOT) to place its designator code on 10 Brazilian city-pairs. With this accord, (AAL)’s “AA” code will appear on GOL (GOT)’s services between Sao Paulo and Belem, Brasilia, Curitiba, Fortaleza, Manaus, Natal, Porto Alegre, Recife, and Salvador, as well as (GOT)’s flights between Rio de Janeiro and Porto Alegre.
Members of (AAL)’s AAdvantage frequent flyer program will be able to earn and redeem miles on all flights operated by (GOT). “This code share agreement with (GOT) makes it even more convenient for travelers to see more of Brazil, South America’s largest country,” says Peter Dolara, (AAL)'s Senior VP Mexico, the Caribbean & Latin America, in a statement. “Our customers traveling to and from Brazil
will now have an unparalleled choice of destinations and schedules.”
(AAL) currently serves five Brazil destinations from Dallas/Fort Worth International Airport (DFW), Miami International Airport and New York John F Kennedy (JFK) International Airport, and from November plans to begin service from its Miami hub to Brasilia and from (JFK) to Rio de Janeiro if granted the appropriate government approvals. (AAL) is also seeking authority from the USA Transportation Department to operate nonstop service from its (DFW) hub to Rio de Janeiro, starting Novrmber 18. If these three routes are approved, (AAL) will operate 36 weekly services to Brazil.
GOL Linhas Aéreas Inteligentes (GOT)’s cargo division has opened a new facility at Sao Paulo’s Congonhas International Airport that triples GOLLOG’s operations in the city and enables the expansion of its express operations. “Thanks to this new expanded area, we will be able to improve our sorting, maintenance and customer service processes,” says Carlos Figueiredo, head of (GOT)’s cargo unit. “The new terminal is part of (GOT)’s strategy of increasing GOLLOG’s competitiveness. We offer punctuality, innovation and the most extensive route network in the country, in addition to low costs and competitive prices.”
Cargo is a major revenue generator for GOL (GOT). In the second quarter, a +57.8% year-on-year rise in cargo sales boosted ancillary revenue +22.1%, and increased the sector’s contribution to total revenue to about 11%. (GOT) expects ancillary revenue to account for up to 20% of all sales by year-end.
October 2010: Strong domestic and international growth boosted GOL Linhas Aereas Inteligentes (GOT)’s September load factor +8.9% points to 75.3% LF on an 11% year-on-year increase in capacity. This rise in supply to 3.7 billion (ASK)s generated a solid +25.8% improvement in traffic, which grew to 2.7 billion (RPK)s in September.
(GOT)’s largest sector, its domestic market, produced loads of 22.5% in September, +8.5 points up on the 67.2% posted in the same month in 2009. This growth was achieved on a +8.7% rise in capacity to 3.2 billion (ASK)s and a +22.5% jump in traffic to 2.4 billion (RPK)s.
International demand at the same time grew +55% to 344.2 million (RPK)s on a +28.9% gain in capacity to 473.7 million (ASK)s. Long-haul loads, as a result, improved +12.2 points to 72.7% LF.
(GOT) says the gains can be attributed to an improved economic environment across South America; “dynamic” fare management; a focus on short-haul flights, with about 95% taking less than three hours; the addition of an hour to the 12-hour utilization recorded in September 2009; the revitalization of (GOT)’s "SMILES mileage" program, and a four-day holiday during the month.
Gol (GOT) expects to finally launch services to Buenos Aires' Aeroparque airport by the end of this year. (GOT) CFO, Leonardo Pereira says (GOT) has secured the traffic rights to move some of its Buenos Aires Ezeiza services to Aeroparque but is waiting until a runway renovation and extension project at the downtown airport is completed. "We have the rights but it's a question of the renovations," Pereira tells (ATI) and Flightglobal. "Before year end, we should start to have some flights."
Aeroparque is slated to temporarily close later this month for the six-week construction project. During the project, which is expected to be completed in early December, all Aeroparque flights will operate from Ezeiza.
Argentina early this year changed its policy on Aeroparque, which previously was restricted to domestic and Uruguayan services, opening up the airport for flights to other neighbouring countries. But while Aerolineas Argentinas (ARG) quickly moved all its Brazil, Chile and Paraguay services from Ezeiza to Aeroparque in March, other carriers had trouble securing government permissions, slots and terminal space to move their Ezeiza services.
(LAN) was the second carrier to launch non-Uruguayan international services at Aeroparque, moving some of its Brazil and Chile flights from Ezieza in May. TAM (TPR) more recently moved some of its Sao Paulo - Buenos Aires flights to Ezeiza as well as its daily Porto Alegre - Buenos Aires service. But Gol (GOT) has not yet begun operating to Aeroparque.
According to Innovata, (GOT) currently operates 10 daily flights to Ezeiza, including six non-stop frequencies to Sao Paulo Guarulhos and one each to Rio de Janeiro Galeao, Porto Alegre, Florianopolis, and Santiago in Chile. Pereira says some of these flights will be moved to Aeroparque by the end of this year, while others will remain at Ezeiza, but (GOT) has not yet decided which specific flights will move. He says (GOT) does not plan to increase capacity in the Argentina market but will simply shift some capacity from Ezeiza to Aeroparque.
Gol (GOT) currently only serves Santiago on a Rio de Janeiro - Sao Paulo - Buenos Aires - Santiago routing, having earlier dropped direct services between Brazil and Chile. Pereira says (GOT) has no intentions of resuming direct services between Brazil and Chile although (LAN) and TAM (TPR), which are now preparing to merge, are currently the only two carriers in this market.
Pereira says (GOT) didn't make money when it operated direct flights between Brazil and Chile but when it started to serve Santiago from Buenos Aires "it was a completely different issue". He expects other carriers may launch services between Brazil and Chile to compete against the newly combined (LAN) - TAM (TPR) but for (GOT) the merger does not change its thinking. Pereira expects (GOT) to primarily focus on international routes of three hours or less although its fleet of 737-700/800s has the range to operate longer flights.
November 2010: GOL (GOT) reported third-quarter net income of +BRL110 million/+$63.7 million, up +41.2% from a +BRL77.9 million profit in the year-ago period, owing to “the upturn in demand in the domestic and international markets and (GOT)’s continuous focus on reducing its operating costs,” (GOT) said. (GOT) also said it signed an agreement to acquire up to 30 737-800NGs valued at approximately $2.7 billion with deliveries beginning in 2014. The order brings (GOT)'s total 737 commitments to 104 firm and 40 option airplanes.
Revenue rose +19.5% to BRL1.8 billion, while expenses lifted +14.6% to BRL1.6 billion, producing an operating profit of +BRL187.2 million, up +88.9% from an operating profit of +BRL99.1 in the prior-year quarter. (GOT) said its increase in revenue was driven by “higher demand, in turn fueled by dynamic fare management, which made flying more affordable for Brazil’s emerging middle class.”
“(GOT) continues with its consistent growth trajectory, based on its efforts to provide an increasingly strong operation underpinned by its low-cost, low-fare philosophy, focusing on the domestic market,” (GOT) said in a statement.
Traffic rose +23.3% to 8.27 billion (RPK)s for the third-quarter on a +13.5% increase in capacity to 11.6 billion (ASK)s, producing a load factor of 71.3% LF, up +5.6 points. Yield increased +2.4% to BRL19.38 cents and (RASK) grew by +5.3% to BRL15.43 cents. (CASK) climbed +0.8% to BRL13.8 cents. (CASK) ex-fuel was BRL8.79 cents, down -1.5%.
December 2010: GOL Airlines (GOT) on December 4 launched three flights into Aeroparque Jorge Newbery Airport in Buenos Aires,
Argentina. Two of the services were nonstops from Sao Paulo International Airport/Guarulhos, while the third will originate in Tancredo Neves International Airport in Confins, Minas Gerais.
The USA Department of Transportation (DOT) announced that the USA and Brazil have agreed to enter into a phased-in "open skies" aviation agreement, which will “significantly liberalize” USA - Brazil air services for airlines of both countries over a transition period. The agreement will take full effect in October 2015.
According to the (DOT), the agreement "immediately removes restrictions on pricing and on the routes between each country served by the USA and Brazilian airlines." It also provides immediately for full code share rights and additional charter flexibility. "Between October 2011 and October 2014, USA carriers will be allowed to operate significant increases in scheduled combination, all-cargo and charter flights, including additional services to the currently restricted and highly congested Sao Paulo and Rio de Janeiro airports," the (DOT) said.
USA Transportation Secretary, Ray LaHood said the agreement means that travelers, shippers, airlines and economies of both the USA and Brazil "will benefit from competitive pricing and more convenient service." Brazil will become the 101st USA "open skies" partner.
Brazilian media are abuzz with reports that Constantino de Oliveira, patriarch of the family that founded GOL Lineas Aereas Inteligentes (GOT) in 2001, has been arrested for the attempted murder of a son-in-law in 2008. Details are still emerging, but the man known as Nene Constantino allegedly ordered the assassination of Eduardo de Queiroz after he testified in a murder trial that also involves the elder de Oliveira. The attempt failed. De Oliveira, co-founder of the airline currently headed by his son, so far has not commented on the arrest; he denies the charges from the initial murder trial.
GOL Linhas Aereas Inteligentes (GOT) has extended its domestic reach through a commercial agreement with Brazilian regional operator Passaredo Linhas Aereas (PDO). This new arrangement adds
103 flights to 20 destinations to (GOT)’s sales network. Included in the deal are services to Barreiras and Vitoria da Conquista in Bahia; Marilia, Ribeirao Preto and Sao Jose de Rio Preto in Sao Paulo state; and Ji-Parana, Rondonia.
Passaredo (PDO) also brings eight new direct flights to GOL (GOT)’s
Latin network, including Porto Alegre in Rio Grande do Sul to Goiania, Goias; and Uberlandia in Minas Gerais to Rio de Janeiro.
(PDO) currently operates 10 50-seat Embraer ERJ-145s and five 30-seat Embraer EMB-120 Brasilias and has plans to add eight more ERJ-145s by
“This is a strategic agreement for (GOT) because (PDO) is a well-known regional airline which will add important destinations to our route network, improving our penetration and offering our passengers new direct flight options,” says (GOT)’s Marketing VP, Claudia Pagnano in a release. Pagnano notes that while (GOT) will now sell the regional’s flights up to the day before the departure, passengers will not accumulate frequent flyer miles.
January 2011: Better airplane utilization, a continued fleet upgrade program and new domestic partnerships added +10% to GOL Linhas Aéreas Inteligentes (GOT)’s December capacity, but the growth in supply easily outpaced the month’s traffic increase, thus the causing (GOT)’s
load factor to fall -3.8% points year over year to 72.5% LF. In the Brazilian domestic market, capacity jumped +11.1% to 3.6 billion (ASKs), but passenger traffic rose only +4.7% to 2.7 billion (RPKs) producing a load factor decline of -4.5 points to 72.7% LF.
International loads, meanwhile, grew +1.3 points to 71.6% LF as supply rose +1.2% to 429.5 million (ASK)s and traffic +3.1% to 307.6 million (RPK)s. Systemwide, (GOT)’s capacity increased to 4.1 billion
(ASK)s, while traffic grew +4.5% to 3 billion (RPK)s.
Concentrating on short haul flights, 90% of (GOT) flights are less than two hours.
Brazilian aviation authorities report a more than >20% year-on-year increase in air travel, with start-up carriers recording the biggest growth rates. Domestic travel increased +23.5% and international activity +20.4%, the civil aviation authority says. Load factors on domestic flights came in at 68.8% LF, up from 65.8% LF, with loads on international rates climbing to 76.4% LF from 69.2% LF.
TAM (TPR) remains the market-dominating carrier, with 42.8% of domestic operations, followed by GOL (GOT) at 39.5%. Each carrier posted year-on-year growth of about +16%. Low cost carrier (LCC) Azul, now the third-largest carrier with 6.1% market share, experienced growth of more than >100%. Rival WebJet (WEB)’s growth rate was +64%, representing 5.9% market share.
Qatar Airways (QTA) reached a code share agreement with GOL Linhas Aereas Inteligentes (GOT) under which (QTA) will add its code to (GOT)'s Sao Paulo Guarulhos flights to 47 Brazilian destinations. (QTA) operates a daily 777-200LR Doha - Sao Paulo service. The airlines have filed a joint application with Brazil’s National Civil Aviation Agency and Brazilian Antitrust Agency.
Delta Air Lines (DAL) announced it will begin code sharing with GOL (GOT), immediately adding 15 new destinations to its South American network. (DAL) said it is now selling service on 56 (GOT) flights from Sao Paulo, Rio de Janeiro, and Brasilia to 15 Brazilian destinations: Belem, Belo Horizonte, Cuiaba, Curitiba, Florianopolis, Fortaleza, Goiania, Iguassu Falls, Joao Pessoa, Navegantes, Porto Alegre, Recife, Salvador, Teresina, and Vitoria. "The number of code share markets is expected to increase to more than >30 by summer, pending government approvals," said (DAL) in a statement.
(GOT) will fly to a market if its population (within a 200,000 radius of the airport) is above 1 million.
February 2011: GOL (GOT) operated 3.15 billion (RPK)s traffic in January, up +5.9% year-over-year, on a +5.6% increase in capacity to 4.16 billion (ASK)s. Load factor grew +0.2 points to 75.6% LF.
(GOT)'s 2010 net income of +BRL214.2 million/+$128.6 million was down -76% from a 2009 profit of +BRL890.8 million, a dip attributable in part to higher fuel costs, interest expenses and tax payments.
Revenue for the full year grew +15.8% compared to 2009 to BRL6.98 billion, while expenses heightened +11.9% to BRL6.28 billion, including a +26.2% jump in fuel costs to BRL2.29 billion. Operating profit was +BRL697.8 million, up +68.8% over operating income of BRL413.3 million in 2009. Net income was dragged down by tax payments of BRL172.3 million, that contrasted with BRL134.7 million in tax benefits in 2009. Additionally, interest expenses heightened +17.5% year-over-year to BRL338.6 million.
CEO, Constantino de Oliveira pointed out that (GOT), which last year transitioned to operating an all 737NG fleet comprising 110 airplanes, hit its 10th anniversary in January with 160 million passengers carried over its life. "The operating and financial results achieved in 2010 have already put (GOT) among the most profitable airlines in the world, and management is fully confident that this will continue in 2011," he said in a statement. "Operating improvements in the coming years will be based on [GOT]'s low-cost and low-fare model as it strives to build an increasingly solid operation focused on the Brazilian market backed by consistent growth." (GOT) plans to grow its fleet to 115 737-700/800s by the end of 2011 and to 131 737-700/800s by 2015.
Full-year 2010 system traffic increased +19.2% to 30.6 billion (RPK)s on a +12.9% rise in capacity to 45.6 billion (ASK)s, producing a load factor of 67.1% LF, up +3.5 points.
Fourth-quarter net income was +BRL132.2 million, down -66.8% from a +BRL397.8 million profit in the 2009 December period, on a +15.6% lift in revenue to BRL1.87 billion. Fourth-quarter yield heightened +12.9% year-over-year to BRL0.204, as (RASK) grew +4.6% to BRL0.16 and (CASK) lowered -2.9% to BRL0.137. (CASK) ex-fuel decreased -11.5% to BRL0.088.
GOL (GOT) and Varig (VAR) is currently interviewing First Officer flight crew (FC) on a weekly basis. They interview USA pilots (FC) but they must have a Brazilian green card and a commercial Brazilian pilot (FC)'s license. This year, (GOT) introduced Central America routes and charters to Orlando.
March 2011: (AWAS) (AWW) said it agreed to a sale/leaseback deal with Brazil's GOL (GOT) covering five 737-800s (GOT) ordered directly from Boeing (TBC) for May 2011 - February 2013 delivery. (AWW) said it also agreed to an early return of two leased 767-300ERs "that do not meet (GOT)’s immediate fleet needs." (AWW) added that it "has already secured new long-term homes for these airplanes."
April 2011: GOL (GOT) reached a 39.8% domestic market share in February, slightly surpassing previous Brazilian market leader TAM (TPR) for the first time since (GOT) launched in January 2001. (TPR) posted a 39.6% market share in February.
(GOT) CEO, Constantino de Oliveira said, "Although market share is not our first priority, this achievement shows that we are on the right track and that our business model is the best suited to the reality of Brazil. We were the first airline to popularize air travel in the country at large scale and we remain committed to offering competitive rates in order to stimulate demand."
(GOT) actually lost market share compared to February 2010's 41.7% share. But TAM (TPR) also faced a decrease from a 42.6% market share last February owing in part to the rise of Azul (AZL), the third largest Brazilian carrier by traffic (RPK)s, which increased its market share from 5% in February 2010 to 8% in February 2011.
Brazil's domestic market grew 9% in (RPK)s year-over-year in February, while average load factor decreased -0.8 point to 74.6% LF. In the international market, (TPR) kept leadership among Brazilian carriers with an 85.9% market share, followed by (GOT) with 12.9% and Avianca (AVI) with 1.2%, according to the Brazilian Civil Aviation Agency ANAC.
May 2011: GOL (GOT) reported a first-quarter net profit of +BRL31.9 million/+$19.8 million, up +33.5% over net income of +BRL23.9 million in the year-ago period, saying it continues to tap into a growing market of "emerging middle class" air travelers in Brazil.
(GOT) is focusing its growth on the domestic market, where it is in a tight battle against rival (TAM) (TPR) with a share near 40%. CEO, Constantino de Oliveira said that (GOT) is targeting "segments of the population that have never flown before or who have flown infrequently. The company has been doing everything possible to facilitate access to tickets," including locating sales offices in heavy pedestrian traffic areas of Brazilian cities and pushing online distribution.
(GOT)'s first-quarter revenue lifted +6.3% to BRL1.84 billion, while expenses climbed +14.4% to BRL1.76 billion, producing an operating profit of +BRL78.5 million, down -59% from operating income of +BRL191 million in the year-ago period (Net result was heavily affected by a +BRL65.1 million exchange valuation gain in the 2011 first quarter compared to a -BRL59 million exchange valuation loss in the year-ago period.)
First-quarter traffic rose +9.7% year-over-year to 8.59 billion (RPK)s on a +6.4% lift in capacity to 11.88 billion (ASK)s, producing a load factor of 72.3% LF, up +2.1 points. Yield lowered -0.9% to BRL0.198. (GOT) said in a statement that the yield dip was "chiefly due to (GOT)'s strategy of focusing on (PRASK) growth" as well as its policy of maximizing load factors through fare stimulation to attract members of the emerging middle class and the fact that Carnival fell in March this year, "extending the leisure travel season and driving demand for [low fare] flights from the south to the northeast of Brazil."
First-quarter (PRASK) increased +2.1% to BRL0.1435, while (CASK) grew +4% to BRL0.1434. (CASK) ex-fuel decreased -1.6% to BRL0.087.
De Oliveira said (GOT), while continuing to grow, will be "very cautious in how we add capacity." He noted that (GOT), which operates a fleet of 111 737NGs with four more of the type slated to join the fleet this year, is adding capacity at a slower rate than the overall Brazilian airline industry, which he estimated upped capacity (ASM)s +14% to +15% year-over-year in the first quarter.
Adding capacity is particularly challenging since fare increases have not been possible, he explained: "Usually, once you have a spike in oil prices, the natural thing to do is raise fares. But even with a 38% market share, we are seeing there are a lot of competitors willing to burn cash to achieve market share. We will keep our focus on profitability but I cannot assume that competitors will change the way in which they view the market."
Lufthansa Systems (LHS) said GOL (GOT) will implement its myIDTravel solution to manage its staff travel.
737-8EH (25850, PR-GUO), delivery.
August 2011: GOL (GOT) posted a second-quarter net loss of -BRL358.7 million/-$221.6 million, widened from a -BRL51.9 million net deficit in the year-ago quarter.
Second-quarter revenue fell -1.5% year-over-year to BRL1.57 billion, while expenses rose +19.8% to BRL1.84 billion, owing mainly to a +27.8% jump in fuel costs to BRL730.9 million. Traffic increased +13.4% to 7.6 billion (RPK)s on a +2.9% lift in capacity to 11.4 billion (ASK)s, producing a load factor of 66.5% LF, up +6.2 points.
(GOT) also announced it received board approval to repurchase up to 9.49 million preferred shares. The purchase will represent 10% of (GOT)'s total preferred shares in the market.
The company is not bullish on the remainder of the year, pointing to a reduction in fares led by "an excessive increase in Brazilian market supply." It said it has begun implementing an additional cost reduction plan focused on ex-fuel costs.
Boeing (TBC) has delivered the 100th 737-800NG outfitted with the Boeing Sky Interior to GOL Airlines (GOT) (the world’s third largest low-cost carrier (LCC) 737 airline). The 737-8EWHL NG (34279, PRGIF) was also delivered with the certified performance improvement engines, marking the first airline in Latin America to receive the improved engines. (TBC) delivered a 737-800 powered by (CFM56-7BE) engines to (GOT), making (GOT) the first airline in Latin America to receive the engine type. This airplane has 10 year anniversary markings "GOL 10 ANOS" titles on fuselage - - SEE ATTACHED PHOTO - - "GOT-2011-09 - 10 YRS."
October 2011: Gol (GOT) and Aerolineas Argentinas (ARG) signed
a code share and frequent flier agreement. Though largely domestic oriented, (GOT) began serving Argentina in 2005 and now flies to Buenos Aires Ezeiza, Buenos Aires Newberry, Cordoba and Rosario. (ARG)
flies to Sao Paolo, Rio de Janeiro and Porto Alegre in Brazil.
GOL (GOT) gained partial regulatory approval for its acquisition of a previous competitor, Webjet (WEB). The purchase price is estimated at $37 million. (GOT) announced its intention of acquisition July 8 and the stock purchase agreement was made public on August 1. The National Aviation Agency (ANAC) has approved the deal, but antitrust regulator (CADE) still needs to sign off.
737-7EH (37609, PR-GED) delivery and 737-8EH (35845, PR-GUL), (AWW) leased.
November 2011: GOL (GOT) incurred a third-quarter net loss of -BRL516.5 million/-$293.2 million, reversed from a +BRL110 million net profit earned in the year-ago period, but emphasized the deficit is mostly related to non-cash charges. (GOT) did, however, see a big year-over-year rise in expenses and swung to an operating loss as well.
It said the net loss "was mainly due to the appreciation of the [USA] dollar," which increased +18.8% in relation to the BRL from the end of the 2011 second quarter to the end of the third quarter September 30. (GOT) said the "depreciation of the Brazilian currency generated a net expense from the foreign exchange variation of approximately BRL$476.4 million, as most of the company's financial liabilities [72% as of September 30] are represented in dollars."
Third-quarter revenue grew +3.1% year-over-year to BRL1.84 billion, while expenses jumped +19.8% to $1.92 billion (including a +28.5% leap in fuel costs), producing an operating loss of -BRL75 million, reversed from a +BRL187.2 million operating profit last year.
Third-quarter traffic increased +10.4% to 8.91 billion (RPK)s on a +5.7% lift in capacity to 12.47 billion (ASK)s, producing a load factor of 71.4% LF, up +3.1 points year-over-year but below GOL (GOT)'s estimated break-even load factor of 74.4% LF. Yield declined -7.6% to BRL0.183.
(GOT) ended the third quarter with an operating fleet of 118 737-700/800 airplanes.
Gol (GOT) will begin transferring airplanes to WebJet (WEB), which it is in the process of acquiring, from next month onwards in the first step of a fleet renewal plan for WebJet (WEB).
(WEB) currently operates 24 737-300s, which (GOT) has said it would phase out gradually. Next month, (GOT) will transfer a 737-800 to (WEB), (GOT)'s CEO, Constantino de Oliveira said.
This will be followed by more airplane transfers in 2012 to replace half of WebJet (WEB)'s current fleet, he added. Oliveira foresees that (WEB)'s entire fleet would be renewed in 2013 to 2014.
"We don't need to rush to renew the fleet," he said, pointing out that (WEB)'s 737-300s are "reliable" and still meeting operating requirements.
(GOT) first announced its intention to acquire (WEB) in July, but the acquisition is still subject to the approval of Brazil's anti-trust authority (CADE).
Until then, the two airlines must operate independently. However, the transfer of airplanes from (GOT) to WebJet (WEB) is allowed and does not contravene any regulations, Oliveira said.
It is not known when (GOT)'s purchase of WebJet (WEB) will be cleared by (CADE), but Oliveira is hopeful that the approval will come in the first half of 2012, adding that it is unlikely to happen by the end of 2011.
In the meantime, (GOT)'s management has not made a decision on whether it will retain WebJet (WEB)'s branding when it closes on the acquisition, said Oliveira.
Even with the planned purchase of (WEB), (GOT) does not plan to grow its capacity significantly in 2012, citing a +4% maximum capacity growth in its recent earnings call.
Oliveira said (GOT) would try to keep capacity growth as flat as possible to improve revenues, pointing out that higher costs from fuel and inflation would put pressure on yields.
Despite plans to expand with the WebJet (WEB) acquisition, Oliveira does not plan to seek membership to any global airline alliance anytime soon. This is despite talk that Brazil's TAM (TPR) might exit the Star Alliance (SAL) due to its merger with Oneworld (ONW) Alliance carrier (LAN), creating a need for a Brazilian member in the Star (SAL) Alliance.
"It is not in our plan to join any alliance, we plan to keep Gol (GOT) independent," said Oliveira.
December 2011: Delta Air Lines (DAL) signed a binding agreement to invest $100 million in GOL (GOT) to gain preferred shares in the Brazilian airline and a seat on the GOL board of directors.
As part of the agreement, the carriers expanded their code sharing relationship and pledged to coordinate flight schedules to better facilitate the transfer of passengers and cargo in Brazil. GOL (GOT), which has moved to an all-737NG operating fleet, will also transfer its two remaining 767s (from its Varig (VAR) operation) to (DAL).
(DAL) CEO, Richard Anderson said, "By forming a long-term commercial partnership, we will capitalize on the strengths of our two networks to provide expanded customer benefits and better serve the USA - Brazil marketplace."
(GOT) CEO, Constantino de Oliveira Jr added, "The agreement is in line with (GOT)'s strategy of seeking out long-term partnerships and strengthening its capital structure. Our customers will benefit from additional flight options, more flexibility and new products and services." He told analysts and reporters that the agreement with (DAL) does not include any language regarding (GOT) potentially joining the SkyTeam (STM) Alliance. "We are remaining independent [with] strong bilateral agreements outside of an alliance," he said.
February 2012: 737-8EH (37610, PR-GUN), delivery.
March 2012: GOL Linhas Aéreas Inteligentes (GOT) reported a 2011 fourth-quarter net income of +BRL$54.3 million/+$29.9 million, down -40% from +BRL$132 million in the year-ago period.
Net revenue rose +19.5% to BRL$2.2 billion, but expenses increased +41% to BRL$2.27 billion, producing an operating loss of -BRL$33.9 million versus -BRL$261.9 million a year ago.
For the full year, (GOT) posted an adjusted loss of -BRL710 million/-$390.3 million in 2011, compared with a profit of +BRL214.2 million in 2010. The airline said the loss was due to the impact of the real's depreciation against the dollar, rising fuel costs, and non-recurring expenses such as the return of airplanes and contract termination fees.
Fourth-quarter traffic rose +0.7% to 8.1 billion (RPK)s on a +6.0% increase in capacity to 12.6 billion (ASK)s, producing a load factor of 64.3% LF down -3.4% points. Yield rose +1.8% up to R$21.4 cents, while (RASK) went down -0.2% to R$15.65 cents. (CASK) went up +17.8% to R$15.89 cents. (CASK) ex-fuel went up +10.4% to R$9.47 cents.
Highlights of the quarter included the conclusion of 100% acquisition of Webjet in October 2011 and a long-term strategic partnership with Delta Air Lines (DAL) in December 2011.
(GOT) has submitted a route right request to the National Civil Aviation Agency (ANAC) to operate a 5X-weekly, São Paulo - Miami, Florida service, its first USA route.
(GOT), the largest low-cost carrier (LCC) in Latin America, has a fleet of 123 737-700 and 737-800 airplanes to 63 domestic and 13 international destinations. (GOT) will operate the Miami service via Caracas. The service will become its largest long-haul route.
(GOT), which is ranked No 2 in the domestic market, had a 36% market share in 2011.
(GOT) estimates a 2012 growth of up to +4% capacity (ASK)s. A spokesperson said that further details will be disclosed after it receives (ANAC) approval and the 2011 results are presented to the Securities & Exchange Commission of Brazil later this month.
April 2012: GOL Linhas Aéreas Inteligentes (GOT) has denied it is considering selling up to 20% of its shares to minority shareholder Delta Air Lines (DAL) that currently owns about 3% in (GOT).
(GOT) said its maintenance center at Tancredo Neves International in Belo Horizonte has been approved by the National Civil Aviation Agency (ANAC). The center can now provide maintenance services (comprising conventional and electrostatic painting, weighing and calibration) for 737-300s, 737-700s and the 737-800 fleet, opening up an opportunity for third-party services.
(GOT)’s Technical VP, Adalberto Bogsan, said the approval represents “a major advance for (GOT)” and underlines “the maturity of the work developed at the maintenance center.” The authorization comes in the wake of a project launched some four years ago “to internalize maintenance processes,” which now means a new revenue source for the airline group, said Bogsan.
The airplane maintenance center went through a BRL$65 million/$35.4 million upgrade in 2010, which increased capacity to 120 airplanes per year and enabled it to undertake heavy fuselage and preventive maintenance, airplane painting and internal airplane configuration changes.
GOL (GOT) has received an $84.8 million loan guarantee from the USA Export-Import Bank (Ex-Im) to support the export of its engine maintenance services to Delta (DAL) TechOps in Atlanta. Under a five-year contract signed in December 2010, (GOT) (CFM56-7B) engines will be shipped from Sao Paulo to Atlanta for heavy maintenance, covering up to 253 scheduled and unscheduled engine removals. The loan will fund the first two years of the contract.
GOL (GOT) (CEO), Constantino de Oliveira Jr said the maintenance agreement is “essential to supporting our existing fleet, which has grown along with our airline operations in recent years.”
The USA Senate last month voted against reauthorization of Ex-Im, which has been at the center of some recent airplane financing controversies.
May 2012: GOL (GOT) reported a first-quarter net loss of -BRL$41.4 million/-$21.4 million, reversed from a +BRL$69.4 million net profit in the year-ago period. Cost pressure from oil prices and unfavorable exchange rates were suggested as contributing factors.
Consolidated revenue rose +14.3% to BRL$2.16 billion, while expenses increased +22.6% to BRL$2.15 billion, producing a consolidated operating income of +BRL$7.3 million, down from +BRL$135.3 million in the prior-year quarter.
Yield rose +2.5% to BRL0.203 as (RASK)s lowered -1.9% to BRL0.155 and (CASK)s increased +6.6% to BRL0.154. (CASK), ex-fuel, was BRL0.086 cents, down -3.9%.
First-quarter traffic increased +10.3% to 9.5 billion (RPK)s against a +15.1% increase in capacity to 14 billion (ASK)s.
(GOT) has announced a plan to cut up to 80 out of approximately 900 daily flights and to cut its staff by 1,200 to approximately 19,300 over the course of the next 12 months by not replacing employees leaving.
(GOT)’s fleet comprised 151 airplanes at the close of the quarter compared to 125 in the year-ago quarter.
Consolidated numbers include wholly owned subsidiary Webjet (WEB). (CEO), Constantino Oliveira Junior said that “at the beginning of March, (GOL) and (WEB) announced a reduction of around -100 flights in order to keep domestic supply in 2012 flat in relation to the previous year, compatible with the new domestic demand scenario.” He said, however, that the new target for the year “is to reduce domestic supply by -2%.”
June 2012: (GOL) (GOT) will discontinue regular flights to Santiago Chile from October 3 because of low profitability.
(GOT) has named Audi Brazil President, Paulo Sergio Kakinoff as its new (CEO), effective July 2.
Long-standing (CEO), Constantino de Oliveira Jr, who has headed (GOT) since July 2000, will be elected Chairman on July 6 as part of the management revamp.
De Oliveira insisted he is not retiring: “It is important to say that I will not leave the company and I will continue as the main shareholder. I will work on institutional side and take care of the key performance indicators of the company.”
De Oliveira said the 19-year Volkswagen Group veteran is “one of the most prestigious business men in the Brazilian economy” and rejected the suggestion that (GOT) is filling too many senior positions with non-airline industry executives, noting that Kakinoff has been a (GOT) Director since 2010.
“We will do this very smoothly,” said De Oliveira. “For the next 90 days, I will be present at (GOT) on a daily basis and I will share my experience with the management. Kakinoff has a lot of knowledge and he knows the challenges of (GOT) very well.”
(GOT)’s strategy will remain unchanged, but De Oliveira said Kakinoff will make the company more dynamic and agile, so it can hit its targets sooner. “Today is a time to rationalize. We are not thinking of any big movements.”
(GOL) (GOT) said it will lay off an estimated -2,500 employees through the end of the year, stepping up cost-cutting efforts. In addition, new vacancies will be frozen and employees departing through attrition, will not be replaced.
Reasons given by (GOT) include “the new reality of the market” and the need to maintain “the sustainability of operations.”
The staff downsizing follows the recent announcement naming Paulo Sergio Kakinoff as (GOT)’s new (CEO), effective July 2, and a first-quarter loss of -BRL$41.4 million/-$21.4 million). Cost pressure from oil prices and unfavorable exchange rates were suggested as contributing factors.
(GOT) has also reduced domestic frequencies and cut domestic and international routes as part of its ongoing readjustment.
Brazilian domestic traffic measured by (RPK)s grew +5.7% year-over-year in May, against a +5% growth in (ASK)s, according the National Civil Aviation Agency (ANCA). Industry load factor grew +0.7% point to 67.6% LF.
The (RPK)s and (ASK)s for May reached levels not seen since 2000, (ANCA) said.
Azul (AZL) achieved the highest individual load factor at 78% LF, closely followed by Avianca (AVI) with 75.9% LF. (AVI)’s (RPK)s grew +83%, followed by TRIP (TIB) at 66%. Market leader, (TAM) (TPR) faced a -7.9% decrease in (RPK)s, while second-ranked (GOL) (GOT) posted a +0.85% growth, each keeping a 38.7% and a 33.8% market share, respectively. (AVI) also led the way in market share growth, up +73.2%, to a +5.1% market share, followed by TRIP (TIB) with a +53% increase to 4.7% market share.
The accumulated January - May results show the industry grew +6.5% in domestic (RPK)s in the period, while (ASK)s increased +9.3%. The two major carriers, (TAM) (TPR) and (GOL) (GOT), faced 8.2% and 8.7% market share decrease, respectively, in the five first months of this year.
(TAM) (TPR) and (GOL) (GOT), the only Brazilian carriers that operate international scheduled flights, in May posted 91.7% and 8.3% market share in this sector, respectively, the first achieving a +2.5% increase in (RPK)s and the second decreasing -9.6%. (TAM) (TPR) achieved 82.9% LF load factor, against (GOL) (GOT)’s 56.3% LF. Industry load factor was 79.8% LF, up +0.7% point, the best May result for Brazilian carriers operating in the international market, since the year 2000.
Brazilian airlines as a whole faced a -2.7% decrease in international (RPK)s in May, against a -3.4% decrease in (ASK)s.
July 2012: GOL (GOT) is restructuring its international route network through September. Beginning August 15, (GOT) will double the daily non-stop, Porto Alegre - Buenos Aires (EZE) schedule. (GOT) is also launching daily, Campinas - (EZE) service, with one stopover in Curitiba.
In other markets, Assunción is getting a daily nonstop service out of São Paulo (GRU), while La Paz will be serviced by a non-stop flight out of (GRU) from September. The Campo Grande - Santa Cruz de la Sierra city pair service will become daily. Montevideo will launch daily nonstop service out of (GRU) from August 15, replacing the current flight with one stopover in Porto Alegre.
August 2012: (GOL) (GOT) reported a second-quarter net loss of -BRL$715.1 million/-$353 million, widened from a -BRL$358.7 million loss in the year-ago period.
(GOT) said the results were due to “unfavorable macroeconomic scenario,” including “high fuel costs, depreciation of the Brazilian real against the USA dollar, which has a direct impact on 55% of the company’s operating expenses.”
Net revenue rose +16.9% to BRL$1.8 billion, while expenses increased +19% to BRL$2.1 billion, producing a consolidated operating (EBIT) loss of -BRL$354.6 million, up nearly +31% from a -BRL$270.8 million operating loss in the prior-year quarter.
Traffic rose +15.3% to 8.7 billion (RPK)s on a +10% increase in capacity to 12.5 billion (ASK)s, producing a load factor of 69.5% LF, up +3.2% points. Yield rose +0.8% to BRL18.43 cents as (RASK) increased +5.7% to BRL12.81 cents and (CASK) grew +8.2% to BRL17.48 cents. (CASK) ex-fuel was BRL10.12 cents, up +4%.
(GOL) management said that in response to the difficult scenario, the airline “resized its route network, cutting around 130 loss-making flights, and streamlined its operational structure, workforce and fixed costs.”
(GOT) has revised its 2012 guidance, saying this year’s (EBIT) will be negative, despite expecting the second half to produce better results than the first half.
(GOT) took on its bigger rival (TAM) (TPR) on 15 August by expanding into two neighboring countries’ capitals. From (GOT)’s main hub at São Paulo Guarulhos (GRU), GOL (GOT) now flies daily to Paraguay’s capital Asunción (ASU) as well as Uruguay’s capital Montevideo (MVD). Both routes are operated with 737-800 airplanes and face competition from twice-daily operations on (TAM) (TPR); in the case of the Asunción route operated by (TPR)’s Paraguayan subsidiary. The route to Uruguay’s capital was previously also operated by the country’s national carrier Pluna (PLU), which ceased operations last month. (GOT) previously served Asunción from Curitiba (CWB) in southern Brazil, continuing onward to the capital of Argentina, Buenos Aires (EZE). The new non-stop route to Paraguay’s capital from São Paulo results in this route being dropped. Instead, a new daily non-stop connection between Curitiba (CWB) and Buenos Aires also launched on 15 August with 737-800s.
737-8HX (38876, PR-GUP), (CGP) leased.
October 2012: Gol Linhas Aéreas Inteligentes (GOT) applied for traffic rights with the Brazilian Civil Aviation Authority (ANAC) to be allowed to launch daily services from Rio de Janeiro Galeão Antônio Carlos Jobim International (GIG) via Santo Domingo Las Américas (SDQ) to Miami International (MIA) and from São Paulo Internacional Guarulhos (GRU) via Santo Domingo to Orlando International (MCO). It would use 737-800s on these new routes and allow passengers to connect between the two flights in Santo Domingo. (GOT) had previously planned to resume operations to Miami via Caracas Simón Bolívar International (CCS) earlier this year, but has been unable to receive the necessary government approvals.
Later, the National Civil Aviation Agency (ANAC) granted Brazil’s (GOL) (GOT) route rights for 2X-daily flights between Brazil and the USA with a stopover in Santo Domingo (SDQ). One flight will depart São Paulo and the second one will depart Rio de Janeiro to (SDQ), where it will continue to Orlando and Miami, Florida. The flights will be operated by 737s.
(GOT) expects to start operations by year end and will announce further details as soon as authorization is granted.
(GOT) has so far operated non-scheduled flights only into Miami and Orlando, mainly seasonal special services offered to its “Smiles” frequent flyer program passengers.
(GOL) inaugurated services on the route from Rio de Janeiro (GIG) to Córdoba (COR), Argentina’s second-largest city, on 28 October. Daily flights on the 2,300 km route will make a stopover in São Paulo (GRU), and are aimed at boosting Córdoba-bound tourism flows. All services are operated using (GOT)’s 737-800s.
(GOL) Linhas Aereas Inteligentes (GOT) placed a $6 billion order for 60 Boeing 737 MAX airplanes.
Boeing (TBC) said the Brazilian carrier’s order is the largest order from a single airline in South America’s aviation history. (GOT) will become the South American launch customer for the 737 MAX.
"The decision to order the Boeing 737 MAX is in line with our commitment to maintain a modern and safe fleet that will allow us to sustain our competitive advantage in the long term," said Paulo Kakinoff, (CEO) of (GOT). "The new airplanes will have one of the best cost-benefit ratios in the market due to its unique operational economy, so it is fully compatible with our low-cost model."
(GE) Capital Aviation Services (GECAS) (GEF) and (GOL) (GOT) have signed a sale and leaseback agreement for four new 737-800 airplanes. Delivery of the first airplane is scheduled for December.
(GOL) (GOT) operates a fleet of 128 airplanes to more than >63 destinations in 12 countries.
November 2012: (GOL) (GOT) has reported a third-quarter net loss of -R$309.4 million/-$149.6 million, improved from a -R$516.5 million net loss in the year-ago period. (GOT) cited a +20% fuel increase, a new exchange rate level, an increase in airport fees and a slow pace of economy growth in Brazil as the main causes for the loss.
Consolidated numbers include wholly owned subsidiary Webjet.
Revenues grew +7.8% to R$1.9 billion, while (RASK)s increased +3.4% to R$15.3 cents. Operating revenue and expenses went up +14%, while (CASK)s increased +9.4% to R$16.8 cents.
(ASK)s declined -7.3% and (RPK)s decreased -4.5%, while passenger load factor increased +2.2 points to 73.8% LF. On the domestic side, (ASK)s went down -8.4% and (RPK)s decreased -5.7%. On the international side, (ASK)s grew +7% and (RPK)s grew +8.8%. Domestic load factor increased +2 points to 74.3% LF and international load factor increased +1.1 point to 68.4% LF.
During the period, (GOT) introduced international services out of its São Paulo-Guarulhos hub to Montevideo, Asunción and Santa Cruz de la Sierra and ordered 60 737 MAX airplanes. It is taking a number of measures to counterbalance its current market situation — including the adjustment of capacity to improve load factor, the centralization of operations on profitable routes and the review of its workforce.
Late in the month, GOL (GOT) announced it is closing down its Webjet (WEB) subsidiary, returning all 20 of (WEB)’s 737-300s and laying off 850 employees. (GOT) said, “Webjet (WEB) has an operational model based on a fleet that mostly consists of aging 737-300 airplanes that are of advanced age, technologically out of date and consume large amounts of fuel. Given the Brazilian sector’s new cost standards, this model is no longer competitive.
The company said all flights booked with (WEB) would be accommodated by (GOT). (GOT) said it expected to see a non-recurring increase in costs in the fourth quarter of 2012 related to the shutdown, but that operational efficiencies would improve in 2013 as a result of these measures. (GOT) reported a third-quarter net loss of -R$309.4 million/-$149.6 million earlier this month.
(WEB)’s fleet of 737-300s will return be returned by the end of the first half of 2013, 16 of them in the first quarter.
“Thanks to the smaller fleet, (GOT) expects to reduce its domestic supply (ASK) by between -5% and -8% year-on-year in the first half of 2013, underlining its commitment to recovering its operating margins and the sustainability of the business,” (GOT) said.
BOC Aviation (SIL), a Bank of China subsidiary, has signed an agreement with Brazil’s GOL (GOT)to purchase and lease back eight new 737-800s. The 737-800s are scheduled to be delivered starting early next year with the eighth 737-800 arriving in the 2014 third quarter. (GOT) last month inked a similar sale and leaseback agreement on four 737-800s with (GE) Capital Aviation Services (GEF).
December 2012: Gol (GOT) is testing out an unusual variation of the long-haul low-cost model by launching a one-stop operation between Brazil and the USA. But the experiment will likely be short-lived as Latin America’s largest (LCC) will face intense competition in the Brazil - USA market and is not offering connections on either end.
On 15-December-2012, Gol (GOT) re-entered the USA market with new daily 737-800 services to Miami and Orlando. Both new scheduled flights operate from Santo Domingo in the Dominican Republic, which serves as a fuel stop and transit point for the operation. One of the flights originates at Sao Paul Guarulhos and the other flight originates at Rio de Janeiro Galeao. The flights are timed to reach Santo Domingo at the about same time, allowing for passengers from either Brazilian city to travel to either USA destination.
See video on Copacabana Beach, Rio - -
January 2013: Domestic (RPK) traffic growth in Brazil slowed to +6.8% in 2012, after growth of +15.9% in 2011 and +23.5% in 2010, and will likely remain in the single digits in 2013, as the country’s two major carriers continue to reduce capacity in response to challenging market conditions. But Brazil’s two other main domestic players, the new Azul (AZL)-TRIP (TIB) group and Avianca Brazil (ONE), will continue to expand and take market share away from the leading (TAM) (TPR) and Gol (GOT) groups.
(AZL)/(TIB) and (ONE) have each seen market share gains of between +2% and +3% over the last year. Their gains have come at the expense of Gol (GOT), which has been cutting capacity and struggling financially after acquiring smaller low-cost carrier (LCC), Webjet (WEB). (GOT) saw its share of the domestic market slip by about -4% in 2012, while (TAM) (TPR) has been able to keep its share relatively stable despite reducing capacity by lifting its load factors.
The São Paulo government has launched a bid for the construction of a much-anticipated rail link between downtown São Paulo and São Paulo-Guarulhos Airport. The rail link is estimated to open by the end of 2014. São Paulo-Guarulhos Airport reported 30 million boarding passengers in 2011.
The rail link will extend the São Paulo existing railway system 11 km/6.1 miles. Local observers said residents are unhappy the rail line will not provide exclusive services for airport passengers, as it mainly will serve residents of the metropolitan area of São Paulo. It will board an estimated 120,000 passengers daily between intermediate train stations.
Another concern is that, contrary to the original project, the airport train station will not be built adjacent to terminals 1 and 2, allowing passengers to walk in into the terminals, but will be 2 km away by terminal 4.
Airport manager, Invepar said it will provide dedicated, free exclusive rail service between the train station and terminals 1 and 2. Construction of the rail link will start in the first half of 2013.
February 2013: Sim-Industries, a Lockheed Martin company, has opened its first South American flight training facility in Brazil. The Sim-Industries Brasil, São Paulo Training Center provides academic and simulator instruction for pilots (FC) flying commercial passenger and cargo jets.
Pilots (FC) from GOL Linhas Aéreas Inteligentes (GOT) represent the inaugural class of airmen (FC) to train at the center. On February 11, GOL (GOT) pilots (FC) will begin academic training on the Boeing 737 and will progress to two dedicated simulators. The simulators are qualified at the highest classification, level D, which allows ground-based training to replace some of the live flight hours required for pilot (FC) certification.
Sim-Industries selected São Paulo as the location for its first South American training center to best support commercial airlines in the region. Just 10 km from the Congonhas Airport regional hub, Sim-Industries’ three-story facility has capacity to train 335 pilots (FC) in 16 classrooms and six simulators. Training services are tailored for each airline and include initial and refresher pilot (FC) training.
“Brazil’s talented pilots (FC) are focused on passenger and aircrew (FC) safety, and that priority serves as the foundation for our training center in São Paulo,” said Paul Livingston, Chief Operating Officer (COO) for Sim-Industries. “With an immersive learning environment that allows pilots (FC) to move between the classroom and hands-on practice, they are prepared for every contingency.”
The São Paulo center is the second fully-owned training facility established by Sim-Industries. The company also operates in Seoul, Korea.
Sim-Industries develops and manufactures full-motion and fixed-based civil aviation flight simulators for airline customers and independent pilot (FC) training centers worldwide. A market leader in commercial simulators for Boeing 737 and Airbus 320, Sim-Industries recently extended its product line with Airbus A330 and Boeing 767, 777 and 787 simulators. Sim-Industries is based in Sassenheim, the Netherlands.
See video on Rio Fashion - -
March 2013: Brazil’s second largest carrier Gol (GOT) was unable to turn its fortunes positive in 2012 and actually widened its loss for the year. Despite its attempts to combat the cooling Brazilian domestic market through marked capacity cuts and turning some of its attention to international services, (GOT) recorded a -BRL447 million /-$222 million loss for 4th Quarter 2012 and a -BRL1.5 billion/-$745 million negative result for the full year.
(GOT) believes the changes it has made with respect to its domestic supply and various cost-containment schemes should produce a positive operating result for 1st quarter 2013. But the carrier made similar pronouncements during 2012 as it recorded four quarters of unprofitability, so the pressure is mounting on management to put some grit behind a pledged turnaround.
Unlike its major rival (TAM) (TPR), which is now part of the powerful (LATAM) Airlines Group, Gol (GOT) does not have the benefit of large network to help it diversify from areas of weakness to more robust regions. Both (GOT) and (TPR) during 2012 had to combat softening demand that resulted from Brazil’s slowing economy. During 2012, Gross Domestic Product (GDP) growth in Brazil was revised down to 2% from 4%, and during 2013, (GOT) is projecting growth of +2.5% to a maximum of +3%. This compares to a (GDP) growth of approximately +7.5% growth in Brazil during 2010.
GOL (GOT) has reported a 2012 full-year net loss of -BRL1.58 billion ($787 million), widened -58.4% from a -BRL1 billion net loss in 2011. Fourth-quarter net loss was -BRL$447.1 million, reversed from a net profit of +BRL54.3 million in the year-ago period.
Full-year net revenue was BRL8.1 billion, up +7.5% from BRL7.5 billion, producing an operating loss of -BRL905.6 million, widened from a -BRL244.5 million loss year-over-year. Fourth-quarter net revenue was BRL2.1 billion, down -5.1%, while operating loss was -BRL357.6 million, deepened from a -BRL33.9 million loss year-over-year.
(GOL) said its 2012 financial results “reflect the challenging scenario of the national aviation industry over the last two years due to the +18% annual increase in fuel prices, the -17% depreciation of the real against the dollar, the more than >+30% increase in airport fees and exceptionally modest (GDP) growth.”
For the full year, (ASK)s decreased -14.1% and (RPK)s went down -8.3%, resulting in a load factor of 69.7% LF, up +4.4 points. (RASK)s grew +10.5% to 17.1 BRL cents, while (CASK)s increased +27.2% to 20 BRL cents.
Systemwide, net operating revenues increased +7.5%, but operating costs and expenses grew +15.7%.
Last year, (GOT) reduced its workforce -15%, reduced capacity by -5.4% against an initial estimate of -2% and turned its frequent flyer program, "Smiles," into an independent company, which is awaiting approval from the antitrust agency (CVM) to proceed with an (IPO).
In November 2012, GOL (GOT) announced it was closing down its Webjet (WEB) subsidiary, returning all 20 of (WEB)’s 737-300s and laying off -850 employees. The company will also reduce domestic capacity -7% this year and downsize its fleet from 147 to 137 airplanes, comprising 136 737-700s and 737-800s, and one 767.
May 2013: (GOL) (GOT) posted a first-quarter net loss of -BRL75.3 million/-$37.2 million, worsened from a net loss of -BRL41.4 million in the year-ago quarter.
GOL (GOT) has expanded its code share on Delta Air Line (DAL) flights between Brasília and Atlanta, Georgia, which is considered a key milestone in the partnership. The move should be completed by August.
The next steps will include all of (DAL)’s flights between Brazil and the USA, and “key connecting markets” operated by the carrier. These comprise all flights to Atlanta, New York (JFK) and Detroit, Michigan. On (GOT)’s side, connecting flights to Atlanta from Goiânia, Belo Horizonte, Curitiba, and Porto Alegre to Brasília will be included in the second stage of implementation. Passengers will be able to mutually accumulate and redeem mileage at the respective Smiles and SkyMiles frequent flyer programs.
The expanded partnership is part of (DAL)’s strategy, which includes a long-term exclusive $100 million alliance with (GOT) (a 2011 investment), a $65 million long-term exclusive alliance with Aeroméxico (AMX), and a code share agreement with Aerolíneas Argentinas (ARL).
June 2013: 2 737-4B6Fs (26526, PR-IOX; 26529, PR-IOY), ex-(N526TP & N529TP) deliveries.
July 2013: For the last 18 months, GOL (GOT)'s share of the Brazilian domestic market measured in (RPK) traffic has been holding steady at around 35%. This does not include WebJet (WEB) which (GOL) acquired in August 2011, but which ceased its own operations on November 23, 2012, as part of (GOL)’s plans to reduce domestic capacity. Domestic demand in Brazil has been stable, at best, in the first half of 2013, and (GOL) has cut capacity (ASK)s, by -18% in January, -19% in February, -10% in March, -7% in April, -6% in May, and -4% in June.
Conversely, (GOL)’s international capacity (ASKs) rose by +34% in January, +30% in February, +38% in March, +31% in April, +39% in May, and +32% in June. Network wide, in the first half of 2013, (GOL)’s (ASK)s are down -1.3%, (RPK)s are down -1.8%, resulting in a load factor drop of 0.4% points to 70.5% LF. However, of more significance to (GOT), is a double-digit increase in Passenger Revenue per Available Seat Kilometer (PRASK), which is helping (GOT) to recover from a financially disappointing 2012, and could see (GOT) return to profitability in 2013.
(GOL) (GOT)’s consistent growth has been hugely impressive. Since launching flights in January 2001, (GOT) has transported more than >250 million passengers, and last year carried more than >39 million passengers at a load factor of just over 70% LF. The acquisition of the “new” Varig (VAG) in 2007, boosted demand that year, but also resulted in the average load factor falling.
As part of (GOT)’s plan to return to profitability, a number of domestic (and international) routes have been withdrawn in the last 12 months. Analysis indicates that 11 domestic and seven international routes are no longer part of (GOT)’s route portfolio, compared with the same time last year. As a result of these network changes, Panama City and Santiago de Chile are no longer served at all by GOL (GOT).
International Routes Stopped (August 2012 - October 2012):
Porto Alegre (POA) - Santiago de Chile (SCL), 7x weekly, 1,894 km;
Asuncion (ASU) - Buenos Aires (EZE), 7x wkly, 1,067 km;
Curitiba (CWB) - Asuncion (ASU), 7x wkly, 840 km;
Campo Grande (CGR) - Santa Cruz (VVI), 7x wkly, 943 km;
Sao Paulo (GRU) - Panama City (PTY), 7x wkly, 5,076 km;
Buenos Aires (EZE) - Santiago de Chile (SCL), 7x wkly, 1,141 km;
Porto Alegre (POA) - Cordoba (COR), 5x wkly, 1,257 km;
Domestic routes stopped (February 2013):
Brasilia (BSB) - Florianapolis (FLN), 3x wkly, 1,308 km;
Rio de Janeiro (SDU) - Navegantes (NVT), 7x wkly, 708 km;
Rio de Janeiro (SDU) - Goiana (GYN), 6x wkly, 940 km;
Rio de Janeiro (GIG) - Goiana (GYN), 7X wkly, 925 km;
Curitiba (CWB) - Campo Grande (CGR), 7x wkly, 795 km;
Salvador (SSA) - Joao Pessoa (JPA), 7x wkly, 739 km;
Rio de Janeiro (SDU) - Curitiba (CWB), 22x wkly, 676 km;
Curitiba (CWB) - Caxias do Sul (CXJ), 7x wkly, 449 km;
Fortaleza (FOR) - Juazeiro do Norte (JDO), 7x wkly, 388 km;
Sao Luiz (SLZ) - Teresina (THE), 7x wkly, 317 km;
Natal (NAT) - Recife (REC), 7x wkly, 248 km.
Looking at the combined schedules of (GOL) (GOT) and WebJet (WEB) for July 2012 and July 2013, reveals that the airline is planning to offer around -8% fewer flights, and around -6% less capacity. The difference between these two figures can be explained by (GOL)’s removal of (WEB)’s smaller 737-300s from service at the end of last year. In terms of (ASK)s, the difference was down to just over >-3%, thanks to the increase in average sector length.
(GOL)’s presence at Sao Paulo Guarulhos (GRU) has grown by over >+9% in the last year, which makes it similar in movements to archrival (TAM) (TPR) at Brazil’s busiest airport, though around -8% smaller in terms of weekly seats. Of (GOL)’s 12 busiest airports this summer, just three have seen an increase in the number of flights. Apart from Guarulhos, GOL has also increased its activity at Recife and Florianopolis, though in both cases, by less than <3%. SEE ATTACHED - - "GOT-2013-07 - ASK CUTS TOP 12 AIRPORTS."
A key development in (GOL)’s network strategy has been the creation of a ‘scissor’ hub at Santo Domingo Airport in the Dominican Republic. Using 737-800s, there are daily flights from Sao Paulo and Rio de Janeiro to Santo Domingo, which then fly on to Miami and Orlando. Whereas the USA sectors are around 1,500 km, the flights from Brazil to Santo Domingo are well over >5,000 km, resulting in payload restrictions on these sectors. However, (GOL) recently confirmed that the routes are performing well and that at least one further USA destination may be added soon.
The other main development in terms of new routes has been the expansion at Sao Paulo Guarulhos (GRU). The following routes have been identified by anna.aero as having launched in the last 12 months.
Sao Paulo (GRU) - Montevideo (MVD), August 2012, 7x wkly, 1,568 km;
Curitiba (CWB) - Buenos Aires (EZE), Aug 2012, 7x wkly, 1,368 km;
Sao Paulo (GRU) - Santa Cruz (VVI), Sep 2012, 7x wkly, 1,851 km;
Sao Paulo (GRU) - Asuncion (ASU), Sep 2012, 1x wkly, 1,138 km;
Sao Paulo (GRU) - Cordoba (COR), Oct 2012, 7x wkly, 1,955 km;
Sao Paulo (GRU) - Rio de Janeiro (SDU), Oct 2012, 19x wkly, 344 km;
Rio de Janeiro (GIG) - Santo Domingo (SDQ), Dec, 7x wkly, 5,391 km;
Sao Paulo (GRU) - Santo Domingo (SDQ), Dec 2012, 7x wkly, 5,272 km;
Santo Domingo (SDQ) - Orlando (MCO), Dec 2012, 7x wkly, 1,625 km;
Santo Domingo (SDQ) - Miami (MIA), Dec 2012, 7x wkly, 1,365 km;
Rio de Janeiro (GIG) - Cuiaba (CGB), Feb 2013, 7x wkly, 1,568 km;
Salvador (SSA) - Vitoria (VIX), Feb 2013, 7x wkly, 840 km;
Sao Paulo (GRU) - Uberlandia (UDI), Feb 2013, 13x wkly, 534 km;
Campo Grande (CGR) - Maringa (MGF), Feb 2013, 7x wkly, 430 km.
The Sao Paulo (GRU) to Rio de Janeiro (SDU) route was operated with typically three flights per day until February 23, when frequency was increased to between eight and 10 flights per day. Other routes, such as Brasilia – Natal, Sao Paulo (GRU) – Joao Pessoa, and Rio de Janeiro (GIG) – Campo Grande, resumed in late February 2013 after having previously operated until April or May 2012.
GOL (GOT) and Alitalia (ALI) have requested approval by their governments to begin code sharing on connections between Brazil and Europe for both companies. Initally, the agreement will allow Alitalia (ALI), which has more than 14 flights per week from Rome to São Paulo and Rio de Janeiro, to include its codes on (GOL) flights, permitting connections with various other Brazilian destinations.
August 2013: (GOL) posted a second-quarter net loss of -BRL433 million/-$193.6 million), narrowed from a net loss of -BRL715.1 million in the year-ago period.
According to FAPA.aero, (GOL) (GOT) is reportedly reducing flight crew (FC) staffing.
September 2013: (GE) Aviation (GEC) and stakeholders are collaborating on Airspace Efficiency for 10 Brazil Airports. "Green Skies" of Brazil uses (GEC)’s flight data analytics to measure and quantify airline opportunities and benefits. (GOL) (GOT) will be the first airline to launch the program.
(GEC) Flight Analytics platform used detailed airspace, airport and airline operational models to evaluate the efficiency of historical flight operations, identify areas for improvement, and quantify the potential efficiency gains. As a result, (GE)’s Navigation & Fuel Management experts quantified the value of deploying Required Navigation Performance (RNP) procedures to airlines in Brazil. (DECEA) will be deploying the public-use (RNP) procedures and multiple city pair procedures at 10 key airports in southeast Brazil. This effort ensures an efficient, cost-saving network within the first year.
The 10 airports selected for the program will be: Guarulhos, Congonhas, Viracopos, Galeão, Curitiba, Brasília, Confins, Vitoria and Pampulha; initial paths at Santos Dumont were deployed in 2012. At Brasilia International airport alone, (GOL) (GOT) could potentially save an average of 22 track miles, 7.5 minutes, 77 gallons of fuel and 1,628 lbs of CO2 per approach compared to the conventional paths, totaling more than >$24 million in operational savings over five years.
“Once the (RNP) paths are deployed, (GEC)’s Flight Analytics platform will analyze actual flight and operational data to support optimization, validate the cost savings and identify additional areas for improvements,” said Giovanni Spitale, General Manager of (GEC)’s Flight Efficiency Services. “This may include optimizing the paths for additional fuel and track mile savings, vertical profile reduction, capacity gains, runway throughput or environmental improvements.”
(GOL) (GOT)’s team spearheaded the program from an airline-perspective, sharing flight and operations data with (GEC) for analysis, supporting calculations of cost savings through their Continuous Improvement program and identifying airspace bottlenecks.
With Brazil air travel expected to grow +6.5% annually over the next 10 years, and commitments to host the World Soccer Cup in 2014 and the Olympic Games in 2016, Brazil’s major aviation stakeholders recognize that airspace efficiency must be improved as quickly as possible. Through the use of (RNP) and data analytics, increased air traffic demands can be accommodated while simultaneously reducing operating costs and environmental footprint.
(GEC) has a suite of service offerings that increase an airplane’s overall operational efficiency and is harnessing the power of the Industrial Internet and using software and analytics to make its machines smarter and more efficient. (GEC) is using data analytics to identify ways to reduce operating costs, increase airplane utilisation and improve the business of flight.
A Brazilian court has ordered (GOL) (GOT) to rehire 850 former Webjet (WEB) employees, who were laid off when (GOT) closed down the subsidiary in November 2012. (GOT) must also pay $420,000 to this group of workers as a moral compensation measure, since the court understood (WEB) could not have stirred the massive layoffs. In Brazil, “the Constitution protects the social value of work in Brazil," the court said.
(GOL) (GOT) acquired Webjet (WEB) in October 2012 for R$70 million/$29.6 million.
October 2013: GOL (GOT) commenced operations on four new domestic routes from Sao Paulo Viracopos (VCP) on October 27. All four services face competition from at least one carrier and are operated using (GOT)’s 100+ strong mixed fleet of 737-700s and 737-800s. Commenting on the new development was Eduardo Bernardes, (GOT)’s (CEO): “With the expansion project at Campinas airport, we identified an opportunity for the company to grow in the region, absorbing the demand from cities such as Limeira, Jundiai, Piracicaba, Itu, and Sorocaba, among others:”
Sao Paulo Viracopos (VCP) to Belo Horizonte (CNF) 6x weekly vs Azul Airlines (AZL) 70x weekly; to Brazilia (BSB) 8x weekly vs (AZL) 38x weekly & TAM Airlines (TPR) 13x weekly; to Curitiba (CWB) 7x weekly vs (AZL) 69x weekly; and to Rio de Janeiro (GIG) 13x weekly vs (AZL) 47x weekly & (TPR) 14x weekly.
(GE) Aviation (GEC) has several new customers for its flight efficiency services business, which supports airlines in fuel management, flight data analytics, navigation and fleet synchronization.
(EVA) Airways and Garuda Indonesia (GIA) will use (GEC)’s fuel-management services. (GEC) is designing custom solutions for (EVA), and (GIA) will use consulting, analytics and business intelligence to improve flight operations.
(GEC) also has a collaborative program, "Green Skies of Brazil," which aims to improve airspace efficiency at 10 Brazil airports. Brazilian low-cost carrier (LCC) (GOL) will be the first airline to launch the program this year, and may save up to 77 gallons of fuel per approach and $24 million over five years.
November 2013: (GOL) (GOT) posted a third-quarter net loss of -BRL197 million/-$87.3 million, narrowed from a net loss of -BRL309.4 million in the year-ago quarter, and an improvement on (GOT)’s net loss of -BRL433 million in this year’s second quarter.
Boeing (TBC) and GOL Airlines (GOT) are collaborating to research and develop new sources of aviation biofuel in Brazil, as (TBC) looks to assist (GOL) in using lower-carbon jet fuel on more flights. (GOL) signed an agreement with Boeing (TBC) for the biofuel collaboration at the Latin America & Caribbean Air Transport Association (ALTA) Airline Leaders Forum 2013.
"Boeing's focus on fuel efficiency helps us all operate in a more sustainable fashion, and the expansion of our partnership with this new project will further advance the effort to expand biofuel use in Brazil," said Paulo Sergio Kakinoff, (CEO) of (GOL). The Brazilian airline plans to use sustainable biofuel on 200 flights during the World Soccer Cup in Brazil next year.
Where are all the Latin American low cost carriers (LCC)s? Aside from Brazil, Mexico, and Colombia, there are no (LCC)s in Latin America, and this is a region with an emerging middle class, rising trade and commerce, and a growing appetite for travel. Beyond these three countries, the traffic data shows that legacy airlines are capturing nearly all of this growth.
At latest count, Latin America only has six. They are the pioneer in the region Gol (GOT) and its fellow Brazilian carrier, Azul (AZL); Mexican carriers Volaris (VLS), Interjet (AAE), and VivaAerobus (VVS), plus Medellin-based VivaColombia (VVC). A few others have come and gone (Aires (AIR) (to (LATAM) and Webjet (WEB) to (GOL); AeroContinente Chile (CCL) and Sol, which briefly became AeroHonduras (HND), folded. The only other (LCC)s serving Latin America fly down and back from the USA or Canada.
One reason is aeropolitics. Two of the three next largest Latin American markets that lack (LCC)s (Argentina and Venezuela (as well as smaller Bolivia)) are effectively closed to new entrants due to policies that favor their government-owned carriers. Those state carriers could launch (LCC)s of their own, but they have little incentive to do it.
The second answer relates to the so-called “unbalanced competition.” The next largest Latin markets that lack home-based (LCC)s after Argentina and Venezuela, are Peru, Chile, and Ecuador. (LATAM) and/or Avianca (AVI) dominate all three of these markets.
Latin (LCC)s have been slower, for example, to launch cross-border flights. Due to Brazil’s size, (Gol) (GOT) has concentrated on its domestic market. After it bought Varig (VAR) in 2007, (Gol) used Varig (VAR) to fly a limited international network. But Varig was a full-service product and (Gol) dropped it after only a year. Since then, (Gol)’s cross-border growth has been cautious. Last year it launched flights to Miami and Orlando, its first outside of Latin America.
Cross-border networks are one thing, but joint ventures (JV)s are another. Here, again, Latin (LCC)s trail. Latin legacy airlines such as (LAN) pioneered the concept of cross-border joint ventures (JV)s.
Gol (GOT) just took its first small step in this direction, launching Gol Dominicana with Dominican Republic partners this month. It uses Santo Domingo as its hub. Clearly, cross-border joint ventures (JV)s between Latin (LCC)s still have a long ways to go.
For now, the news is more about new (LCC)s. Three independent start-ups have announced plans to launch low-cost flights from their bases in San Salvador and Costa Rica. All hope to fly by early next year. Whether they will, remains to be seen, but it shows that they realize the potential for growth in Latin America’s low-cost sector.
December 2013: Gol Linhas Aéreas Inteligentes ((IATA) Code: G3, based at São Paulo Congonhas) (GOT) has postponed plans to launch Gol Dominicana (Santo Domingo Las Américas) until 2014 pending the issuance of an Air Operators Certificate (AOC) from the Dominican Civil Aviation Authority (Instituto Dominicano de Aviación Civil - (IDAC)). According to airline representative, Santiago Mejia, Gol (GOT) had all the requisite logistics in place for a late-2013 launch but this has now been delayed while the start-up's paperwork is put in order. "We are interested in starting flying early next year; in fact, we had all the logistics in place for a year-end launch, but it was not possible," he told "Caribbean News." Once operational, Gol Dominicana plans to establish Santo Domingo Las Américas as a regional Caribbean hub with direct flights to Mexico, Colombia, the eastern USA and Brazil.
(GOL) (GOT) currently has 137 airplanes, and serves 10 countries, 65 destinations, 268 routes and 979 daily flights.
January 2014: Brazil’s National Civil Aviation Agency (ANAC) has approved +1,973 extra flights between June 6 and July 20 to cover the expected huge increase in demand during the (FIFA) World Cup in Brazil.
The flights will be operated by Brazil’s four major airlines ((TAM) (TPR), (GOL) (GOT), Azul (AZL) and Avianca (AVI)) and include operations into 25 airports in the 12 cities staging matches or up to 200 km from the stadiums. Most are domestic flights.
City pairs to get the greatest number of extra flights are São Paulo - Brasília (288), Campinas/Viracopos - Rio de Janeiro/Santos Dumont (284), São Paulo - Fortaleza (205) and São Paulo - Recife (59). The Rio de Janeiro - Buenos Aires international city pair will get 262 extra flights.
(ANAC) Director President, Marcelo Guaranys told local media it is up to airlines to activate the approved extra flights. A spokesperson for the Brazilian Association of Airlines said the carriers must gradually reorganize their respective route networks and adjust the new flights accordingly, beginning in the next few weeks, and open some of the flights for sale.
Guaranys said the (ANAC) is closely monitoring the airlines to avoid abusive increases in air fares, as there have already been reports of increases in domestic fares of up to +10 times, in some cases. In response to media criticism, Azul (AZL) announced earlier this month it is limiting fares during the period to a maximum of R$999/$422 per one-way ticket, including connecting flights. (CEO), David Neeleman told local media this represents a R$20 million cost for the airline, which expects to face a -20% decrease in business traffic from June 12 to July 13. A few days later, Avianca (AVI) followed suit. (TAM)/(TPR) and (GOL)/(GOT) have not announced any specific measures so far.
February 2014: Route Network Update for Gol Linhas Aéreas Inteligentes (GOT):
Gol Linhas Aéreas Inteligentes ((IATA) Code: G3, based at São Paulo Congonhas) network changes:
Aracaju - Brasilia route has been suspended until April 2, 2014 (with stop in Salvador).
Brasilia - Vitória route has been suspended until March 2, 2014.
Vitória - Brasilia route has been suspended until March 2, 2014.
2 737-8EHs (39633, PR-GXQ; 39634, PR-GXR), leased.
March 2014: (GOL) (GOT) posted a full-year 2013 net loss of -BRL724.6 million/-$306.4 million, cutting by more than half (52.1%) the -BRL1.51 billion loss the airline posted in 2012.
(GOL)’s 2013 revenue rose +10.5% to BRL8.95 billion, as expenses fell -3.5% to BRL8.69 billion, producing an operating profit for the year of +BRL266 million, rebounding from the -BRL905.6 million operating loss the airline reported in 2012.
Full-year yield grew +19% to BRL 23.42 cents as (RASK) grew +15.5% year-over-year to BRL 18.04 cents and (CASK) increased +0.7% to BRL 17.51 cents. (GOL) (GOT)’s (CASK) excluding fuel also grew +0.7% year-over-year to BRL 10.23 cents. (GOL)’s fuel expenses for 2013 were BRL3.6 billion, down -3.5% from 2012; 1.5 billion fuel liters were consumed by the company in 2013, down -8.7% from 2012.
(GOL)’s 2013 passenger traffic fell -4.7% to 34.7 billion (RPK)s on a -4.3% decrease in capacity to 49.6 billion (ASK)s, generating a load factor of 69.9% LF for the year, down -0.3 point from 2012. Total passengers in 2013 came to 36.3 million, down -7.3% from 2012.
For (GOL)’s 2013 fourth-quarter, (GOL) posted a net loss of -BRL19.3 million, a +BRL428 million improvement on the -BRL447 million loss (GOL) posted in 2012’s December quarter. Fourth-quarter revenue gained +28.7% year-over-year BRL2.73 billion; expenses grew +3.6% year-over-year to BRL2.57 billion, leaving an operating profit of +BRL162.9 million, reversing the -BRL357.6 million operating loss (GOT) reported in the 2012 fourth-quarter.
May 2014: Brazilian low-cost carrier (LCC) (GOL) (GOT) posted a first-quarter net loss of -BRL96.1 million/-$43.4 million, widened from a net loss of -BRL75.3 million in the year-ago quarter.
First-quarter operating revenue was up +19.7% to BRL2.5 billion, while expenses increased +18.5% to BRL2.35 billion, producing an operating income of +BRL144.4 million, up +42.8% year-over-year.
(GOL) said the operating results were “fueled by a new level of load factor, which reached a record 76% LF, which together with the continuing increase in yield, resulted in (GOL)’s highest ever net revenue for the first-quarter.”
First-quarter system wide traffic was up +15% to 9.5 billion (RPK)s on a +1.6% rise in capacity to 12.5 billion (ASK)s, producing a load factor of 76.1% LF, up +8.9 points.
(GOL) closed the quarter with an operational fleet of 141 Boeing 737-700 and 737-800NG airplanes. (GOL) noted that another six of these airplanes were in the process of being returned to their lessors. The total first-quarter fleet was 155 airplanes, comprising 147 Boeing 737NG family, seven 737-300 Classics and one 767-300/200.
In line with its 2014 guidance, (GOL) said it is maintaining its strategy of gradually increasing its international market presence and its foreign-currency denominated revenue. It announced a series of initiatives, including the re-start of flights between Santiago and São Paulo (Guarulhos Airport), scheduled to begin in July, as well as new flights between Brazil and the USA from Campinas (Viracopos Airport) to Miami via Santo Domingo, in the Dominican Republic, where passengers will be able to connect to Orlando, Florida.
Brazil’s antitrust regulator has given the green light for AirFrance (AFA) - (KLM) to invest $100 million in its newly extended partnership with Brazilian low-cost carrier (LCC) (GOL) (GOT).
(GOL) (GOT) said it has received “unconditional approval” for its tie-up with (AFA) - (KLM) from the Conselho Administrativo de Defesa Economica (CADE).
(AFA) - (KLM) and (GOL) unveiled their plans to form an “exclusive long term strategic partnership” on February 19, including an extension of their existing code share, as well as sales force and maintenance coordination.
Under the agreement, (AFA) - (KLM) will invest $52 million to acquire a 1.5% stake in (GOL). It will also plough a further $48 million into the partnership. The move forms part of (AFA) - (KLM)’s strategy to increase its interests in South America.
July 2014: GOL (GOT), the second largest Brazilian operator, expanded its presence at Sao Paulo Viracopos (VCP) with the addition of three routes, all of which are operated by (GOL)’s 177-seat 737-800s. On July 18th, (GOL) launched 42 weekly operations on the 407 km sector to Rio de Janeiro Santos (SDU). Next day, on July 19th, (GOL) inaugurated thrice-weekly flights to Santo Domingo (SDQ) in the Dominican Republic. In addition, this route will continue to Miami, Florida (MIA) with thrice-weekly operations, starting July 19 as well. (GOL) will face competition only on the route to Rio de Janeiro Santos from Azul Airlines (AZL)’s 94 weekly flights.
August 2014: GOL reported a second-quarter net loss of BRL145 million ($65.8 million), narrowed from a net loss of BRL193.6 million in the 2013 June quarter.
Second-quarter operating revenue improved 24.4% year-over-year to BRL2.38 billion as expenses increased 20.1% to BRL2.34 billion. GOL’s resulting operating income for the quarter came to BRL37.8 million, a reversal from the company’s BRL35.1 million operating loss in the year-ago quarter.
The results reflected GOL’s first positive second-quarter operating income since 2010, as well as a record level for second-quarter revenue. The carrier’s domestic load factor reached 76% during the quarter, its highest-ever level for the April-June quarter.
GOL’s second-quarter systemwide traffic was up 5.9% year-over-year to 8.7 billion RPKs on a 4.6% drop in capacity to 11.6 billion ASKs, producing a load factor of 75.2%, up 7.5 points year-over-year. The Brazilian LCC transported 9.2 million passengers in the second quarter, up 6.1% year-over-year. Yield grew 16.9% year-over-year to 24.40 BRL cents. CASK, excluding fuel, increased 32.8% to 12.35 BRL cents.
August 2014: (GOL) (GOT) reported a second-quarter net loss of -BRL145 million/-$65.8 million, narrowed from a net loss of -BRL193.6 million in the 2013 June quarter.
Second-quarter operating revenue improved +24.4% year-over-year to BRL2.38 billion, as expenses increased +20.1% to BRL2.34 billion. (GOL)’s resulting operating income for the quarter came to BRL37.8 million, a reversal from the company’s -BRL35.1 million operating loss in the year-ago quarter.
The results reflected (GOL)’s first positive second-quarter operating income since 2010, as well as a record level for second-quarter revenue. (GOL)’s domestic load factor reached 76% LF during the quarter, its highest-ever level for the April - June quarter.
(GOL)’s second-quarter system wide traffic was up +5.9% year-over-year to 8.7 billion (RPK)s on a -4.6% drop in capacity to 11.6 billion (ASK)s, producing a load factor of 75.2% LF, up +7.5 points year-over-year. (GOL) transported 9.2 million passengers in the second quarter, up +6.1% year-over-year. Yield grew +16.9% year-over-year to 24.40 BRL cents. (CASK), excluding fuel, increased +32.8% to 12.35 BRL cents.
As of June 30, (GOL)’s operational fleet consisted of 36 Boeing 737-700NGs and 110 737-800NG airplanes (eight of the 737-800NGs are sub-leased to European airlines and five are in the process of being returned to the lessors), 11 less airplanes than a year-ago. (GOL) also maintains four non-operational airplanes: three 737-300 Classics and one 737-300/200.
At quarter’s end, (GOL) reportedly had 130 firm orders in place with Boeing, mainly for 737-800s, but also including 60 737 MAX airplanes placed in October 2012.
During the 2014 World Cup tournament, the carrier “operated 28,000 commercial flights, transported 3.4 million passengers and achieved record load factor levels [averaging] 81.2%,” GOL CEO Paulo Sergio Kakinoff said. “It represented months of preparation and planning to provide … an average of 908 [flights] per day, with 486 extra flights.” The company reported 96% of those flights were on-time.
As of June 30, GOL’s operational fleet consisted of 36 Boeing 737-700NGs and 110 737-800NG aircraft (eight of the 737-800NGs are sub-leased to European airlines and five are in the process of being returned to the lessors), 11 less aircraft than a year-ago. The carrier also maintains four non-operational aircraft: three 737-300 Classics and one 737-300/200.
At quarter’s end, GOL reportedly had 130 firm orders in place with Boeing, mainly for 737-800s, but also including 60 737 MAX aircraft placed in October 2012.
During the 2014 World Cup tournament, the carrier “operated 28,000 commercial flights, transported 3.4 million passengers and achieved record load factor levels [averaging] 81.2%,” GOL CEO Paulo Sergio Kakinoff said. “It represented months of preparation and planning to provide … an average of 908 [flights] per day, with 486 extra flights.” The company reported 96% of those flights were on-time.
September 2014: Gol Airlines (GOT) plans to complete the addition of extra legroom Gol+ seats to its Boeing 737 fleet by the end of the year. About 90% of (GOT)’s fleet is configured and the rest will be done by the end of the year, says Paulo Sergio Kakinoff, (CEO) of Gol.
The retrofit includes 22 extra legroom seats with 34 inches of seat pitch up from 30 inches and +50% more recline than standard (Y) economy on its 737-800s. The addition standardizes the configuration of the airplane at 177 seats, compared to 178 and 183 seats previously.
Retrofitted 737-700s have 138 seats, which is down from 144 previously.
Gol+ is very popular and often sells out, said Kakinoff. (GOT) charges passengers to move up to the seats, though they are available for free to top tier frequent fliers.
The extra legroom seats are helping (GOT) boost revenues. Passenger revenue per available kilometre (PRASK) increased +29.8% to 18.35 Brazilian real cents in the second quarter.
(GOT) anticipates a +10% increase in revenue per available seat kilometer (RASK) for the full year of 2014.
(GOT) introduced Gol+ on five airplanes operating the Rio de Janeiro Santos Dumont - Sao Paulo Congonhas shuttle flights in November 2013.
(GOT) operates 33 737-700s and 96 737-800s.
See video on Helicopter Ride Over Rio - -
October 2014: Gol Linhas Aéreas Inteligentes ((IATA) Code: G3, based at São Paulo Congonhas) (GOT) is planning to switch its technical stop on flights to the USA from Santo Domingo Las Américas to Punta Cana with effect from March 1, 2015. The routes affected include Rio de Janeiro International and Campinas Viracopos to Miami International, as well as São Paulo Guarulhos to Orlando International.
The technical stop is necessary owing to the 737-800's operational restrictions.
The change is subject to approval from the Brazilian civil aviation authority (Agência Nacional de Aviação Civil - (ANAC)).
SEE VIDEO OF RIO DE JANEIRO - -
November 2014: News Item A-1: São Paulo-based, low-cost-carrier (LCC), (GOL) (GOT) reported third-quarter net losses of -BRL245.1 million/-$100.5 million, widened from a net loss of -BRL197 million in the September 2013 quarter.
(GOT)’s third-quarter operating revenue improved +10.4% year-over-year to BRL2.46 billion, as expenses increased +5.3% to BRL2.31 billion. (GOT)’s resulting operating income for the quarter came to BRL152 million, more than tripling (GOL)’s BRL37 million reported operating profit for the third quarter of 2013. (GOL)’s operating margin for the quarter was 6.2%, up +4.5 points from the 2013 third-quarter.
Net exchange and monetary variations inflicted a BRL 270.5 million hit on (GOL)’s tallied expenses during the quarter, a loss widened considerably from (GOL)’s BRL 24.8 million currency variation loss in 3rd Quarter 2013 (a vivid example of the 10% appreciation of the USA dollar against the Brazilian real.
(GOL)’s systemwide traffic during the third-quarter was up +9.2% year-over-year to 9.5 billion (RPK)s on a -2% drop in capacity to 12.2 billion (ASK)s, producing a load factor of 77.5% LF, up +7.9 points year-over-year. (GOT)’s domestic load factor was 78.3% LF during the quarter, up +8.1 points from 3rd Quarter 2013; (GOT)’s international load factor for the quarter was 72.5% LF, up +8.3 points.
(GOL) moved 9.98 million passengers in the third-quarter, up +10.5% year-over-year. Yield fell -1.9% year-over-year to 23.15 BRL cents. (CASK), excluding fuel, increased +9.8% to 11.29 BRL cents.
(GOT) cited “Brazil’s challenging economic activity scenario, which reduced demand from business travelers” for the yield decline during the July - September quarter.
As of September 30, (GOL)’s operational fleet consisted of 35 Boeing 737-700NGs and 107 737-800NG airplanes (five of the 737-800NGs are sub-leased to European airlines and four are in the process of being returned to the lessors) two less airplanes than a year-ago. (GOL) also maintains four non-operational airplanes: three 737-300 Classics and one 767.
(GOL) did not book any new airplane orders during the quarter, having 130 firm orders already in place with Boeing (TBC) for fleet renewal until 2026. Year-to-date, (GOT) has taken delivery of nine 737-800s, most recently on June 10.
News Item A-2: Gol Linhas Aéreas Inteligentes (GOT) (CEO), Paulo Kakinoff has hailed a recent change in Brazilian legislation amending the limit on foreign shareholdings in local airlines from 20% to 49%. Kakinoff labelled the change in position "welcome" and a "surprise."
The move will allow Gol (GOT), as well as other local operators, to attract much needed foreign capital critical in their fleet and route expansion strategies. (GOT) already counts Delta Air Lines (DAL) and Air France (AFA) - (KLM) Royal Dutch Airlines among its shareholders with 6.1% and 1.5% stakes, respectively.
In contrast to (GOT), Azul Linhas Aéreas Brasileiras (AZL), Brazil's most prolific domestic operator, has shrugged off the amendment with (CEO) & Founder, David Neeleman stating that as his airline is healthy, it has no need for foreign investment for the moment. However, were it in need of additional funding, Neeleman said, it would pursue an Initial Public Offering (IPO) as its most preferred option.
(GOL) currently operates 139 airplanes and serves 11 countries, 70 destinations, on 300 routes and 973 daily flights.
January 2015: Boeing (TBC) and (GOL) Linhas Aereas Inteligentes (GOT) announced an agreement to implement the Boeing Fuel Dashboard solution across (GOL)’s Next-Generation 737 fleet at the Maintenance Repair & Overhaul (MRO) Latin America conference.
The Boeing analytics software solution will provide (GOL) operations teams with greater visibility on current fuel-use trends across the fleet and insights into opportunities for operational improvements and cost savings in fuel consumption. “(GOL) is pleased to be able to serve our passengers with our all-Boeing 737 fleet (one of the youngest, largest and most efficient fleets in Latin America),” said Captain Sergio Quito, Technical VP & (COO), (GOL). “We look forward to implementing Boeing Fuel Dashboard and working with Boeing’s team of operations experts to gain the maximum value from this solution. This program supports our broader strategy of improving overall operational efficiency across our fleet as we continue to grow.”
The Boeing Fuel Dashboard is part of Boeing’s fuel-efficiency solutions suite. The application provides airplane operators with a comprehensive total fleet view of operational fuel consumption. Airlines, business aviation operators, and military organizations can use Fuel Dashboard’s intelligent decision aids to gain insight into current fuel usage through all phases of flight. This visibility enables better decision-making to reduce fuel consumption, costs, and emissions.
“Our airline customers frequently tell us that fuel remains one of their largest cost pressure areas, even when fuel prices are on a downward trend,” said Rick Anderson, VP Sales, Boeing Commercial Aviation Services (BCAS). “We have received feedback from current airline customers using Fuel Dashboard indicating an average of approximately -4% annual savings in fuel costs. Leveraging the advanced capabilities of the Boeing Fuel Dashboard, our teams will help (GOL) to achieve significant fuel cost reductions and improve fleet operations efficiency.”
The Boeing Fuel Dashboard is part of an integrated suite of aviation services marketed as the "Boeing Edge." These services include parts, training, engineering, maintenance and software solutions, that increase the efficiency and profitability of airlines and leasing companies. Other Boeing Edge solutions, including Boeing Maintenance Performance Toolbox, and Airplane Health Management are also in place to support the (GOL) fleet.
With an all-Boeing fleet of more than >130 Next-Generation 737-700 and 737-800 airplanes, (GOL) has grown to become one of the world’s largest 737 operators. With plans for continuing fleet growth, the airline has signed an order for 60 737 MAX airplanes to support its strategy for expansion, maintaining one of the youngest fleets in Latin America. (GOL) has also been recognized for its progressive approach in sustainable fuels, and was the first commercial operator in Brazil to use biofuels.
February 2015: (GOL) Linhas Aereas Inteligentes (GOT)’s preliminary air traffic figures for January 2015 saw a +12% increase in demand in the Latin American region over the same period last year. This tipped the domestic load factor for the airline to 84% LF, with domestic capacity increasing more than >4% year-on-year.
Furthermore, (GOT) posted record numbers of passengers transported in a month by an airline in Brazil, with more than >4 million passengers transported in the domestic and international market and volume up +9% when compared to January 2014. (GOT) also set the record for the most passengers carried in a single day on January 5, with approximately 157,000 passengers taking to the air on 1,039 flights following the end of the holiday season.
News Item A-2: (GOL) expanded its international network with the addition of Tobago (TAB) in the Republic of Trinidad & Tobago from its Sao Paulo Guarulhos (GRU) base via its existing Bridgetown (BGI) service on January 31st. The 4,538 km sector will be served weekly (Saturdays), utilizing (GOT)’s 177-seat 737-800s. No other operator flies this airport pair. As part of the Guarulhos - Tobago sector, (GOT) also introduced weekly services (Saturdays) from Bridgetown (BGI) to Tobago (TAB), a route not operated by any other airline. (GOL)’s Commercial Director for International Flights Oscar Tejada said Tobago has become the 16th international destination (GOT) flies to. “The flight from Sao Paulo to Barbados will take five hours 40 minutes and then there will be a 50 minute lay over, while passengers disembark and others come onto the plane. Then the flying time to Tobago will be 50 minutes. We want this flight to work, and we feel there are real opportunities for Brazilians to visit Tobago, now that there are direct flights” Tejada said.
March 2015: São Paulo-based low-cost carrier (LCC) (GOL) (GOT) reported a full-year net loss of -BRL1.12 billion/-$415.8 million in 2014, widened from (GOT)’s -BRL724.6 million net loss recorded in 2013.
(GOT)’s 2014 revenue grew +12.4% year-over-year (YOY) to BRL10.07 billion and expenses increased +10% YOY to BRL9.56 billion; (GOT)’s operating profit for the year was +BRL504.9 million, up +89.8% from 2013. “The annual net loss can be mainly explained by the devaluation of the real against the dollar, and by the decision of unwinding our oil hedge positions aiming to limit losses from sharper decreases in oil commodity prices,” (GOT) (CEO), Paulo Sergio Kakinoff said. “(GOT) continued its recovery in 2014, despite the challenging economic scenario, especially after the World Cup period.”
(GOT)’s yield in 2014 was up +1.4% (YOY) to BRL 23.75 cents as (RASK) increased +12.7% (YOY) to BRL 20.33 cents and (CASK) increased +10.3% (YOY) to BRL 19.31 cents. (GOT)’s (CASK) excluding fuel, rose +12.8% (YOY) to BRL 11.55 cents. (GOT)’s fuel expenses came to BRL3.84 billion in 2014, up +6.4% (YOY); 1.54 billion liters in fuel were consumed by (GOT)’s operating fleet during 2014, up +1.7% (YOY).
As of December 31, 2014, (GOT)’s operational fleet consisted of 35 Boeing 737-700NGs and 106 737-800NGs, though two of the 737s were in the process of being returned to their lessors. During 4th Quarter 2014, (GOt) returned a 737 NG and (GOT)’s sole remaining 767-300/767-200 to their respective lessors. (GOT) also maintains three non-operational 737-300 Classic airplanes.
(GOT)’s 2014 passenger traffic grew +9.8% (YOY) to 38.09 billion (RPK)s on a -0.3% decrease in capacity to 49.5 billion (ASK)s, resulting in a load factor of 76.9% LF for the year, up +7 points (YOY). (GOT)’s total passenger count for 2014 was 39.7 million, up +9.5% (YOY).
In the 2014 fourth-quarter, (GOT) recorded a -BRL631 million net loss, widened from the -BRL19.3 million in net losses (GOT) posted in the 2013 December quarter. (GOT)’s fourth-quarter revenue was BRL2.73 billion, a +0.1% gain (YOY); expenses were down -0.3% (YOY), to BRL2.56 billion, resulting in an operating profit for the quarter of +BRL170.7 million, up +4.8% (YOY).
“The macroeconomic scenario became even more challenging at the beginning of 2015,” Kakinoff said. “As part of our plan for this year, we will be concentrating on the domestic market and will continue to evaluate international opportunities.”
July 2015: News Item A-1: (GOL) (GOT) launched six new routes between the July 2 to 4. Of the new city pairs, only services between Rio de Janeiro Galeao (GIG) and Santiago (SCL) face direct competition. This is in the form of (TAM) Airlines (TPR), which operates a 2x-daily operation on the 2,934 km sector.
Routes are as follows:
Rio de Janeiro Galeao (GIG) to Rosario (ROS), 737-800, 2x-;
Porto Alegre (POA) to Santiago (SCL), 787-800, 3x-,
Belo Horizonte (CNF) to (SCL), 737-800 1x-,
Brasilia (BSB) to (SCL), 737-800 2x-,
(GIG) to (SCL), 737-800 2x-, vs (TAM) Airlines (TPR) 14x-,
Sao Paulo Guarulhos (GRU) to Mendoza (MDZ, 737-800, 2x-.
News Item A-2: Delta Air Lines (DAL) will expand its alliance with Brazil's (Gol) Linhas Aereas Intelligentes (GOT) under a US$446 million stock and loan agreement, (GOT) said on July 10.
Under the accord, (GOT)'s controlling shareholder, Brazilian investment fund (FIP) Volluto, will buy up to US$90 million and (DAL) up to US$56 million of new (GOT) preferred stock. (DAL) will also guarantee 3rd-party loans to (GOT) of up to US$300 million, the statement said.
(GOT) plans to borrow the money this year, depending on market conditions, Edmar Lopes Neto, the company's Chief Financial Officer, told investors. The loan will have a counter-guarantee of shares in "Smiles," (GOT)'s frequent-flyer plan, (GOT) said.
"It's always important to bolster the company's liquidity," Lopes Neto said. "It's not a short-term question, because if we look at our debt profile, there is no growing cash need in the short term, and by short-term, I mean 12 months."
According to the most recent number released by (GOT), the Brazilian airline has a cash position of 2.4 billion reais/US$1.1 billion.
Since 2012, (GOT) has sold stakes to (DAL) and Air France (AFA) - (KLM) as it raised funds to add foreign routes and invest in a turnaround strategy after years of heavy losses.
(GOT) preferred shares have fallen -20% in the last 2 weeks and are down >-50% this year.
(DAL) now owns 2.9% of Gol (GOT)'s non-voting preferred shares and (AFA) - (KLM) owns 1.5%, according to the (GOL) (GOT) Web site. Volluto owns 100% of (GOT) common, voting shares and 61.2% of its preferred stock.
The terms of the share offering will be announced on July 14, (GOT) said. Of the up to US$146 million new shares to be sold, Volluto will buy 61% and (DAL) the rest.
(GOT)'s problems have been exacerbated by a decline in the value of Brazil's currency the real BRL=. A weaker real has driven up the cost of airplane leases and other foreign debt.
In the 1st quarter, (GOT) recorded a loss of -627.7 million reais/-US$199 million. The result was seven times larger than a year earlier and the company's 13th-straight negative quarter.
(DAL) and (GOT) also agreed to extend the terms of their strategic and commercial operating agreements.
A continuing report was released on July 13 stating (DAL) will deepen its ties to (GOL) (GOT), agreeing to invest up to $56 million in preferred shares newly issued by (GOT).
(DAL), which spent $100 million in 2011 to gain a stake in (GOT) and a seat on the carrier’s board of directors, has also agreed to guarantee a $300 million term loan (GOT) plans to enter into with 3rd party lenders, (GOT) said, adding, “In connection with these transactions, (GOT) and (DAL) will extend their commercial cooperation arrangements.” The 2 airlines code share and, according to (GOT), are planning to expand cooperation in aircraft maintenance.
Fundo de Investimento em Participações Volluto, (GOT)’s controlling shareholder, will invest up to $90 million in the newly issued preferred shares.
São Paulo-based, (GOT) incurred a 2014 net loss of >-$400 million.
News Item A-3: "(GOL) Reveals New Look for "New Phase"" By Ben Mutzabaugh, USA TODAY, July 24, 2015.
"GOL" has rolled out a new look for its planes
See attached "GOL-2015-07 - 737 New Look."
((GOL) (GOT) unveiled the new livery in Brazil, showing off the new design on 1 of (GOT)'s Boeing 737s. "We are the same (GOL) (with a low-cost (DNA)) but now featuring more services, superior products and industry vanguard," (GOL) President Paul Kakinoff said in a statement issued by partner Delta Airlines (DAL). "Stronger and more modern, this new visual identity represents everything we have achieved so far and a new phase of our history."
The new livery was developed by Almap-BBDO, the 1st exterior livery change to (GOL) in 14 years. It involves a modified color scheme which retains the oversized orange "GOL" title on the fuselage - albeit bolder and with an additional "O" in grey, forming a 2-loop shape that sumbolizes the essence of (GOL)'s motto: uniting people, stories, and destinations.
(GOL)'s "new phase" includes closer ties with USA carrier (DAL), which invested US$100 million for a 3% stake in its Brazilian partner in 2011. (DAL) has since said it wants to up its stake in (GOL) to 10%, part of a deal that would expand the alliance between the carriers.
That deal won antitrust approval July 23 from Brazilian regulators, "Reuters" reported.
Aviation analysis firm Centre for Aviation (CAPA) took a closer look at the expanding ties between (DAL) and (GOL), writing: "Part of (DAL)'s original pursuit of (GOL) was to close the competitive gap with American (AAL) and United (UAL), which have a broader presence in Latin America."
(GOL) is not in 1 of the world's 3 big frequent-flier alliances and has previously stated it would prefer to remain independent in that area. But (CAPA) notes that (GOL)'s ties with (DAL) (which helped to found the SkyTeam (STM) Alliance) "raises some questions about the longevity of (GOL)'s alliance independence."
Of USA carriers, (AAL) has the largest presence in South America followed by (UAL). In Brazil, (AAL)'s position has been strengthened by the merger of Chilean carrier (LAN) and Brazilian carrier (TAM) (TPR), which resulted in (TAM) shifting to the Oneworld (ONW) Alliance frequent-flier group that includes (AAL). And (UAL) announced last month it was forming a strategic partnership with upstart Brazilian carrier, Azul (AZL), which was launched by JetBlue (JBL) Founder, David Neeleman.
August 2015: News Item A-1: (GOL) (GOT) reported a 2nd-quarter net loss of -BRL354.9 million/-$112.4 million. The result more than doubles its net loss of -BRL145 million in the 2014 June quarter.
(GOT)’s 2nd-quarter revenue fell -10.5% year-over-year (YOY) to BRL2.13 billion as operating expenses increased +1.6% (YOY) to BRL2.38 billion; the company registered an operating loss for the quarter of -BRL251.1 million; by comparison, (GOL) (GOT) had an operating profit of +BRL 37.8 million in (2Q) 2014.
“The financial results for the second quarter reflect the challenging economic environment,” (GOL) (CEO) Paulo Sergio Kakinoff said, indicating the debilitating effects of the ongoing devaluation of the Brazilian real against the USA dollar, as well as Brazil’s 9.56% inflation rate.
“The negative operating result of BRL251.1 million and the net loss of -BRL354.9 million ended the continuing evolution we saw in the last nine quarters,” Kakinoff said.
As a result, the company will reduce its domestic capacity for the second half of 2015 by -2% to -4% (YOY). “We will monitor the developments over the coming months and, if necessary, we will revisit these figures,” Kakinoff said.
On July 10, (GOL) announced an initiative to shore up its financial capital by issuing new preferred shares to its controlling shareholder Fundo de Investimento em Participações Volluto, Delta Air Lines (DAL) and other shareholders. The transactions, expected to be completed in the 3rd quarter, will bring in $146 million. Additionally, Delta (DAL), which is on (GOL)’s board of directors, has agreed to guarantee a loan to (GOL) of up to $300 million.
“We will relentlessly continue doing the best we can for our customers, our investors and our partners, getting prepared for the resumption of economic growth in Brazil” Kakinoff said.
(GOL)’s 2nd-quarter yield fell -17% (YOY) to BRL 20.26 cents as its (RASK) dropped -12.4% (YOY) to BRL 17.95 cents. (CASK) stayed consistent (down -0.5% (YOY)) at BRL 20.06 cents. (GOL)’s (CASK) excluding fuel rose +6.4% (YOY) to BRL 13.14 cents. (GOL)’s 2nd-quarter fuel expenses were BRL821.6 million, down -9.5% (YOY). (GOL) paid BRL 47 cents per liter of fuel during the quarter, down -38.8% (YOY).
(GOL)’s 2nd-quarter passenger traffic grew +4.3% (YOY) to 9.11 billion (RPK)s on a +2.2% increase in capacity to 11.87 billion (ASK)s, resulting in a load factor of 76.8% LF for the quarter, up +1.6 points (YOY). (GOL) (GOT)’s total passenger count for the quarter was 9.39 million, up +1.7% (YOY).
As of June 30, (GOL)’s operational fleet consisted of 36 Boeing 737-700NGs and 106 737-800NG airplanes. (GOL) has 134 airplanes in service. Of the remaining 8 airplanes, 7 are subleased to European airlines and 1 is in the process of being returned to its lessor.
At quarter’s end, (GOL) had firm orders for 127 airplanes in place with Boeing for fleet renewal by 2026 including 60 737 MAX airplanes and 67 737-800s.
News Item A-2: In the 1st 6 months of the year, (GOL) (GOT) increased its passenger numbers by +2.5% to 17.6 million, increasing its lead over arch rival (TAM) Airlines (TPR), which carried -2 million fewer passengers during the same period.
Seat capacity (ASKs) in the Brazilian domestic market has increased by just <3% in the 1st half of 2015, but traffic demand (RPKs) has grown by just under <+4% resulting in the country’s overall network load factor climbing from 79.2% LF to 79.9% LF. Domestic (RPK)s have now risen for 21 straight months, despite difficulties in the Brazilian economy, though since February, growth has been <5% each month. As measured by passenger numbers, (GOL) has carried 17.6 million passengers (+2.5%) in the first six months of the year, ahead of (TAM) Airlines (TPR) with 15.6 million (+0.4%). Azul Airlines (AZU) has seen a +2.4% increase in demand to 10 million passengers, while Avianca Brasil (ONE)’s guests have surged by +15.9% to 3.8 million.
In terms of domestic Revenue Passenger Kilometres (RPK)s, there is still little to choose between (TAM) and (GOL). (GOL) was ahead in January and May, while (TAM) was in front in February, March and June, and April being a tie.
(TAM) (TPR) stretched its lead as the biggest Brazilian international airline:
(TAM) (TPR) is the biggest airline operating international flights to and from Brazil, with >2x as many seats as its nearest rival (GOL) (GOT). Apart from Emirates (EAD) (ranked 11th) (TAM) (TPR) is also the fastest-growing in terms of percentage increase among the top 12 carriers. In fact 6 of the top 12 airlines are reporting a decline in seat capacity compared to the same period in 2014. The top 12 airlines comprise 2 from Brazil, 3 from the USA, 3 from Europe, 3 from other parts of the Americas, and Emirates (EAD) from the Middle East. Across all carriers, seat capacity to and from Brazil is up just >3% this September.
See chart - "GOL-2015-09 - Top 12 INTNL Airlines Brazil.jpg."
News Item A-3: GOL (GOT) launched services between Belem (BEL) and Paramaribo (PBM) in Suriname on August 25. The 1,062 km sector will be operated 2x-weekly on Tuesdays and Saturdays, and will be flown using (GOT)’s 737-800s. The route will face direct completion from Surinam Airways (SUR), which operates a weekly (Monday) service on the airport pair using its 737-300s. (GOL) now serves 12 destinations non-stop from Belem. The other 11 are all in Brazil making this new route the airline’s first international service from Belem.
November 2015: 5 737-8EH (35835, PR-GUC; 35836, PR-GUD; 35837, PR-GUE; 35838, PR-GUF; 37601, PR-GUA), returned from Transavia (TAV) and SunExpress Deutschland.
December 2015: (GOL) (GOT) plans to finish outfitting its first airplanes with Wi-Fi in the 1st half of 2016. (GOT) will then equip the rest of its fleet with Gogo’s technology in <3 years, airline spokeswoman, Ludmilla Marchionni said. Most USA carriers have already equipped their fleets with Wi-Fi, but connectivity is not common in South and Central America. (GOL) is Gogo’s 1st customer in the region, and the 1st to sign up for technology that streams live television channels to passengers’ portable devices.
(GOL) (CEO), Paulo Sergio Kakinoff described the wireless offering as “gate-to-gate.” “When boarding the plane, the client will have access to all the services and will be able to use the Internet during all the phases of the flight until arrival at the destination,” Kakinoff said. The television service will be free, he said. (GOT) will offer a consistent experience on all of its routes.
In addition to Wi-Fi and live television, (GOT) will offer pay-per-view movies and television shows, music, and a flight map. It will take the airline about 30 months to install the system on 140 airplanes he said.
(GOL) (got) operates 139 airplanes, including 105 Boeing 737-800s and 34 737-700s. It will also receive 4 new aircraft from 2016 - 2017.
February 2016: News Item A-1: "Venezuela Currency Turmoil Sees (GOL) Flights Suspended", by Airline Business, February 17, 2016.
* Sao Paulo low cost carrier (LCC) latest to lose patience and pull Caracas flights amid repatriation row.
Brazilian carrier (Gol) (GOT) has suspended all service to Venezuela, citing issues repatriating currency from the country.
Calling the cessation of service "temporary," (Gol) said it will not consider resuming flights until "the issue of repatriation of company resources in the country is resolved."
(GOL) reduced frequency on its Caracas - Sao Paulo route to 1x-weekly in late 2015, with executives saying in November that they were "studying the feasibility" of maintaining the flights.
The Venezuela currency situation impacted most foreign airlines. Air Canada (ACN) ended service to Venzuela in 2014, whilst American Airlines (AAL), Delta Air Lines (DAL) and United Airlines (UAL) all significantly reduced their schedules that year. Faced with no improvement to the situation in the forseeable future, both (AAL) and (DAL) wrote off their remaining cash in Venezuelan bolivars, totaling $592 million and $75 million, respectively, in the 4th quarter of 2015.
News Item A-2: (GOL) (GOT) commenced services between Sao Paulo Congonhas (CGH) and Chapeco (XAP) on February 22. The 718 km airport pair will be flown by (GOL) daily each weekday, with no services on Saturdays or Sundays. (GOL) will use its 737-700 fleet on the sector with no incumbent carriers operating services between the 2 airports. (GOL) now offers 2 connections from Chapeco, with Congonhas operations joining (GOL)’s existing daily services to Florianopolis.
March 2016: (GOL) (GOT) reported a net loss of -BRL4.29 billion/-$1.1 billion in 2015, more than doubling its -BRL1.12 billion net loss in 2014.
(GOT)’s 2015 revenue was down -2.5% year-over-year (YOY) to BRL10.38 billion as operating expenses increased +4.2% (YOY) to BRL9.96 billion; the company posted a -BRL183.8 million operating loss for the year, falling from a +BRL 504.9 million operating profit in 2014.
(GOT) posted a -BRL1.13 billion net loss for the 2015 4th-quarter, widened from its -BRL631 million net loss in (4Q) 2014. 4th-quarter revenue was BRL2.82 billion, down -2.4% (YOY) and operating expenses were BRL2.75 billion, up +7.3% (YOY), resulting in an operating loss of -BRL95.3 million, down from an operating profit of +BRL170.7 million in (4Q) 2014.
“The results reflect the Brazilian economic scenario since the end of 2014, which impacted the national aviation industry,” (GOL) (CEO) Paulo Kakinoff said. “2015 was marked by a drop in the Brazilian Gross Domestic Profit (GDP) of -3.8%, the most significant in the last 25 years. Indeed, it will be the 1st time that we will have 2 years in a row with negative results in (GDP). In the period we also saw inflation peaking, recording 10.7% and the devaluation of the Brazilian real compared to the dollar by 42%, which impacts >50% of our costs and expenses and approximately 85% of company debt,” Kakinoff said.
“The currency last year varied from BRL2.66 to the peak of BRL 4.24, which accounts for variation of approximately 60% within a single year,” Kakinoff said. “This volatility poses additional challenges [which] remain.”
(GOL) (GOT)’s yield in 2015 dropped -5.9% (YOY) to BRL 22.35 cents as (RASK) fell -3.3% (YOY) to BRL 19.66 cents and (CASK) increased +3.7% (YOY) to BRL 20.02 cents. (GOL)’s (CASK) excluding fuel, rose +15.9% (YOY) to BRL 13.38 cents. (GOL)’s fuel expenses in 2015 fell -14.1% (YOY) to BRL3.3 billion; (GOL)’s operating fleet (144 airplanes as of December 31, 2015 comprising 107 Boeing 737-800NGs and 37 737-700NGs) consumed 1.55 billion liters in fuel in 2015, up +0.8% (YOY).
(GOL)’s passenger traffic in 2015 was up +0.9% (YOY) to 38.41 billion (RPK)s on a +0.5% rise in capacity to 49.74 billion (ASK)s, resulting in a load factor of 77.2% LF for the year, up +0.3 point (YOY). (GOL)’s total passenger count in 2015 was 38.9 million, down -2.2% (YOY).
“In the fourth quarter of 2015, capacity of air companies in Brazil had been dropped by -4% [YOY], the first quarter with systemic reduction in the supply of the industry since the mid-90s,” Kakinoff said.
Referring to supply reductions as a “movement led by us,” Kakinoff announced that in 2016 (GOL) will cut its capacity by -5% to 8%, reducing the total number of seats and domestic departures by -15% to 18%.
“[It] is an imperative response to the scenario of strong economic retraction we are in,” Kakinoff said.
May 2016: (GOL) (GOT) reported +BRL757.1 million/+$208.4 million first-quarter 2016 net profit, reversing its (1Q) 2015 -BRL672.7 million net loss.
However, in its quarterly results release (GOL) noted an appreciation of the Brazilian real against the USA dollar of BRL$653.5 million. Excluding the exchange rate variations and a non-recurring event (BRL212.6 million in profit for the return of sub-leased aircraft and on sale-leaseback transactions), (GOL) reported a (1Q) 2016 net loss, before income taxes, of -BRL42.7 million.
“[Our results] reflect the adoption of measures to enhance the company’s liquidity position and bring its capital structure in line with Brazil’s macroeconomic environment, which has been negatively impacted by political instability and consequent economic volatility,” (GOL) (CEO) Paulo Kakinoff said, adding the company has initiated measures “to overcome the recessionary environment.”
Initiatives outlined by Kakinoff included, among others, the reduction of its 2016 - 2017 aircraft delivery schedule from 15 deliveries to one aircraft delivery. (GOL) has 122 Boeing 737s still on order and to be built as of March 31. (GOL) has taken delivery of 2 737-800s so far this year, in January and February. The company received 6 737-800s in 2015.
(GOL) has also taken eight destinations off its route network, expecting a -15% to -18% decrease in number of takeoffs year-over-year (YOY).
Kakinoff also indicated the company is in negotiations to reduce its leased fleet by 20 airplanes. As of March 31, (GOL) said it had 104 airplanes under operating leases and 39 under finance leases, 35 of which have a purchase option for when their leasing contracts expire.
“The completion of the ongoing restructuring plan will ensure that (GOL) emerges from the current political and economic crisis in the best competitive position,” Kakinoff said. “I feel confident that the company will emerge strengthened.”
(GOL)’s first-quarter revenue was BRL2.88 billion, up +8.8% (YOY). Operating expenses fell -3.3% (YOY) to BRL2.27 billion. (GOL)’s operating result before the return of leased airplanes was BRL437.2 million, more than doubling its (1Q) 2015 operating income (adjusted, the operating result was BRL224.6 million).
(GOL)’s (1Q) 2016 yield increased +17.3% (YOY) to BRL 25.68 cents as (RASK) grew +15.1% (YOY) to BRL 22.13 cents and (CASK) increased +2.8% (YOY) to BRL 18.53 cents. (GOL)’s (CASK), excluding fuel, rose +3% (YOY) to BRL 12.36 cents. (GOL)’s fuel expenses in (1Q) 2016 fell -3.8% (YOY) to BRL756.9 million; (GOL)’s operating fleet (143 aircraft as of March 31 comprising 107 Boeing 737-800NGs and 36 737-700NGs) consumed 373 million liters in fuel in (1Q) 2016, down -7.2% (YOY).
(GOL)’s passenger traffic in (1Q) 2016 fell -6.6% (YOY) to 9.5 billion (RPK)s, as capacity decreased -5.9% (YOY) to 12.26 billion (ASK)s, resulting in a total passenger load factor of 77.5% LF for the quarter, down -0.6 point (YOY). (GOL)’s total first-quarter passenger count was 9 million, down -10.7% (YOY).
Kakinoff also indicated that (GOL) is planning for the upcoming 2016 Summer Olympic Games, to be held in Rio de Janeiro August 5 - 21, and the Summer Para-olympic Games taking place September 7 - 18.
“Our route network for the event will include extra flights and timetable changes to meet the demand concentrated in Rio de Janeiro,” Kakinoff said. “[Additionally], we have invested in evolving technology platforms to improve passenger experience [with] self-service kiosks featuring, in addition to Portuguese, menus and operations in English, Spanish, and French.”
October 2016: News Item A-1: São Paulo-based low-cost carrier (LCC) (GOL) (GOT) and Dubai-based Emirates Airline (EAD) have announced a new code share and frequent flyer program partnership.
The code share partnership has been filed to (ANAC)-Brazilian Federal Aviation Agency. The first flights are expected be approved very soon and the partnership is expected to become effective by the end of October/early November.
The carriers said the new code share partnership “will give customers the simplicity of purchasing connecting flights on both airlines using one reservation, and a seamless ticketing, check-in, boarding and baggage check experience during the entire journey.”
Passengers booking flights from multiple destinations in Brazil with (GOL), including Porte Alegre, Salvador, Belo Horizonte, Curitiba, and Brasilia, will be able to connect in São Paulo or Rio and fly with Emirates (EAD) to many destinations worldwide.
(EAD) Senior VP Commercial Operations Hubert Frach said the new code share “will bring enhanced connectivity and a fully integrated loyalty program within Brazil initially, and at a later stage, throughout South America and the Caribbean.” He added: “(GOL)'s extensive route network in Latin America combined with the choice and convenience of offering customers approximately 800 flights per day, perfectly complements our 14 weekly flights to and from Brazil that connect to our global network.”
News Item A-2: "(GOL) Makes South America’s First Broadband-connected Commercial Flight" by (ATW) Mark Nensel email@example.com, October 5, 2016.
An October 4 (GOL) (GOT) passenger flight between São Paulo Congonhas Airport and Brazil’s national capital Brasilia was the 1st South American commercial airline flight to have on board internet connectivity, according to (GOL) (CEO) Paulo Kakinoff in a statement delivered in flight and transmitted live on (GOL)’s Facebook page.
“Passengers on board used this new facility, browsing freely,” (GOL) said. Equipped with a 2Ku satellite communication technology antenna installed by Chicago-based broadband connectivity provider Gogo, the Boeing 737-800 airplane will be operated throughout (GOL) (GOT)’s entire domestic and international route network.
A 2nd airplane with on board connectivity will begin operations on October 6. (GOT)’s entire fleet will be equipped by October 2018.
“In this 1st phase, it will be possible to access all social media, e-mail, several websites and WhatsApp,” Kakinoff said. “As of October 20, the platform will be expanded to include entertainment and streaming media. We will also offer live TV soon.” (GOT) said it will offer internet connectivity as a free service for 6 months.
News Item A-3: Miami Air International (MIB) agreed to lease ex-(GOL) (GOT) 737-800 (36434) from the Aviation Capital Group (CGP).
November 2016: (GOL) Airlines (GOT) has revised its 2016 financial guidance following (GOT)’s 3rd-quarter results. (GOT)’s total seat guidance for the year was revised downward -1% point to -17%; (GOT)’s total volume of departures for the full year was also revised downward by -1 point, to -17%.
(GOT)’s total capacity guidance was unchanged from (2Q) 2016 and remains at -8% for the full year. (GOT)’s operating margin (EBIT) guidance for the year also remains unchanged at 6%.
(GOL) (GOT) said it is allowing for possible further adjustments to its full year guidance “given the volatility of the Brazilian economic scenario.”
December 2016: (GOL) (GOT) is estimating its 2017 operating margin (EBIT) will be in the 5% to 7% range, (GOT) said December 22. (GOL)’s preliminary financial guidance for the coming year is on par with its 6% (EBIT) guidance for 2016. (GOL)’s total seat guidance for 2017 shows a decrease of -3% to -5%; capacity will drop modestly, between 0% and -2%. (GOL) expects to operate an average fleet of 115 airplanes. By the end of 2016, (GOL) will have 122 airplanes in its operational fleet.
According to (GOL)’s operational fleet plan, the number will be reduced to 117 by the end of 2017. (GOL)’s total fleet as of November 10 comprised 102 Boeing 737-800NGs and 33 737-700NGs.
(GOL) said its total volume of departures for 2017 will decrease between -3% and -5%. (GOL) is expecting an average load factor of between 77% LF and 79% LF. As of November 30, (GOL)’s year-to-date load factor for 2016 is 77.4% LF. So far this year, (GOL) has reduced capacity -7% year-over-year; passenger traffic has declined -6.7% from 2015.
(GOL) said the company has worked to match fleet growth with Brazilian Gross Domestic Product (GDP) growth, matching (GOL)’s supply of seats with demand. (GOL) said its 2017 estimates may be adjusted, given the volatility of the Brazilian economy.
May 2017: Low cost carrier (LCC) (GOL) (GOT) reported a +BRL232.7 million/+$74.4 million net profit for the 1st quarter of 2017, down -69.3% from +BRL 242.1 million in (1Q) 2016.
(GOL) continued to rationalize operations during the Brazilian summer to meet reduced passenger traffic, which was down -739,000 passengers compared to (1Q) 2016. (GOL) reduced the number of seats available for sale by -13% during the quarter.
(GOL)’s operating revenues declined -2.5% year-over-year (YOY) to BRL2.6 billion, attributable, (GOL) said, to its reduction in capacity and concurrent optimization of aircraft utilization. (GOL)’s 1st quarter operating expenses increased +5.3% to BRL2.4 billion. (GOL) posted an operating profit of +BRL253.2 million, down -42.1% from +BRL437.2 million in (1Q) 2016, representing an (EBIT) margin of 9.6%.
“[While] passengers transported in (1Q) 2017 decreased -8.3% over (1Q) 2016, (GOL)’s load factor increased +2% points to 79.6% LF [and] aircraft utilization was at 10.5 flight hours per day, [a] +16.7% increase over (1Q) 2016,” (GOL) said. Overall traffic was up +0.7% to 9.6 billion (RPK)s as capacity decreased -2% to 12 billion (ASK)s.
“Our absolute market cost leadership is key to our value proposition and allowed us to provide [competitive] fares and service in the market, even during a challenging industry environment,” (GOL) (CFO) Richard Lark said.
The company’s 1st-quarter net yield fell -6.5% to BRL 24.02 cents as (RASK) was down -0.5% to BRL 22.01 cents and (CASK) increased +7.4% to BRL 19.91 cents. (GOL)’s (CASK) ex-fuel rose +11.6% to BRL 13.79 cents. (GOL)’s fuel expenses during the quarter were down -2.8% to BRL735.8 million.
As of March 31, out of a total of 124 Boeing 737 NG airplanes (96 737-800s and 28 737-700s), (GOL) was operating 116 airplanes. 4 of the remaining airplanes will be returned to lessors, while the other 4 have been sub-leased to another airline. The average age of (GOL)’s fleet was 8.4 years at the end of the quarter. (GOL) said it has 120 firm airplane acquisition orders with Boeing (TBC) for fleet renewal by 2027; the next (GOL) 737 is expected to be delivered in July 2018.
Looking ahead, (GOL) adjusted its full-year 2017 operating margin (EBIT) guidance to be in the 6% to 8% range. (GOL)’s total seat guidance for 2017 continues to show a decrease of -3% to -5% with capacity down between 0% and -2%. By the end of 2017, (GOL) will have 115 airplanes in its operational fleet. Total volume of departures for 2017 will decrease between -3% and -5%. The average load factor for the year is expected to be between 77% LF and 79% LF. (GOL)’s non-fuel (CASK) is expected to be +/- BRL14 cents for the year.
August 2017: Low cost carrier (LCC) (GOL) Airlines (GOT) reported a 2017 2nd quarter net loss of -BRL474.6 million/-$144.2 million, reversed from a net profit of +BRL252.5 million in (2Q) 2016. (GOT) attributed the loss to foreign exchange and monetary variations in Brazil’s troubled economy, which fluctuated by over >BRL1 billion between (2Q) 2017 and (2Q) 2016.
(GOT)’s total BRL425.3 million in (2Q) 2017 financial expenses contrasted markedly with (GOT)’s financial income of BRL543 million a year ago. (GOT)’s operating revenues increased +7% year-over-year (YOY) to BRL2.2 billion, which (GOT) attributed to rationalization of capacity, yield management and optimization of airplane utilization.
Operating expenses decreased -2.3% to BRL2.2 billion, attributable to reduction in services to passengers, aircraft rents and maintenance, materials and repairs. (GOT) posted an operating profit of +BRL25.4million, reversing its -BRL171.4 million operating loss in the year-ago quarter, representing an (EBIT) margin of 1.1%.
(GOT)’s 1st-quarter net yield increased +4.8% to BRL 23.19 cents as (RASK) grew +10.2% to BRL 21.38 cents and (CASK) increased +0.7% to BRL 12.14 cents. (GOT)’s (CASK) ex-fuel fell -2.5% to BRL 15.11 cents. (GOT)’s fuel expenses during the quarter increased +6.4% (YOY) to BRL629.7 million.
(GOT)’s total passenger traffic was up just +0.5% during the quarter to 8.1 billion (RPK)s as (GOT) decreased capacity -3% (YOY) to 10.4 billion (ASK)s, producing a load factor of 77.9% LF, up +2.7 points from a year ago. (GOT) increased its airplane utilization by +4.8% (YOY) to 11.3 block hours/day. “We remain committed to respond to the macroeconomic environment with strong discipline in seat supply, growth in load factor, continuous improvement in customer experience and cost reduction to generate better operating results,” (GOT) (CEO) Paulo Kakinoff said.
(GOT) pointed to the introduction of 5 new Boeing 737 MAX 8 airplanes in the 2nd half of 2018, the 1st of 21 scheduled for delivery by 2020. By the end of 2020, in addition to the incoming 21 737 MAX 8s, (GOT) will have reduced its 737-800 fleet by 5 airplanes (compared to year-end 2017) to 86 total; as well as reducing its 737-700 fleet by -7 airplanes to 21 total, for a total fleet of 128 airplanes compared to 115 projected for year-end 2017.
Click below for photos:
GOT-737 MAX - 2012-10
GOT-737-700 - A
GOT-737-700 - E
GOT-737-800 - 2014-10
GOT-737-800 - 2016-10.jpg
GOT-737-8EH - New Livery 2015-07.jpg
3 737-322 (CFM56-3) (1534-23952, /88 PR-GLO; 1550-23955, /88 PR-GLI, 2005-06; 1564-23956, /88 PR-GLJ, 2005-06; 1634-24247, /88 PR-GLQ; 1636-24248, /88 PR-GLD, 2004-11; 1638-24249, /88 PR-GLE 2005-01; 1724-24379, /89 PR-GLN, 2006-03; 1728-24452, /89 PR-GLB, 2004-10; 1730-24453, /89 PR-GLC, 2004-09; 1752-24455, /89 PR-GLG, 2005-06; 1754-24532, /89 PR-GLH; 1891-24666, /90 PR-GLF; 1905-24668, /90 PR-GLK, 2005-11; 1909-24670, /90 PR-GLM, 2005-12; 2066-24916), EX-(UAL). 24455; 24666; 24668; 24670; TO (COO) FOR MAINT, 2005-10. AUTOMATIC LSD. 24247L 24248; 24249; TO BRA TRANSPORTES AEREOS (BRW) 2009-01, 24452; TO (WEB). 3 NON-OPERATIONAL BUT STILL MAINTAINED 144Y.
0 737-330 (CFM56-3B1) (1285-23527, /86 PR-GLA), EX-(DLH), GOAL LSD. 144Y.
2 737-4B6F (26526, PR-IOX; 26529, PR-IOY), EX-(N526TP & N529TP) 2013-06. FREIGHTER.
2 737-7EH (CFM56-7B) (3026-37595, /09 PR-GEA; 3678-37608, /11 PR-GEC; 3799-37609, /10 PR-GED, 2011-10). WITH WINGLETS. 144Y.
2 737-7K9 (CFM56-7B) (19-28088, /98 PR-GOX; 25-28089, /98 PR-GOY), EX-(TRX), (BAV) LSD 2005-09. 144Y.
2 737-7L9 (CFM56-7B22) (10-28004, /98 PR-GOL; 11-28005, /98 PR-GOA), EX-(MRS), (GEF) LSD 2000-12, 28004; RTND. 144Y.
2 737-7L9 (CFM56-7B22) (1092-28012, /02 PR-GIJ; 1203-28011, /02 PR-GII), 2006-03. 144Y.
0 737-7Q8 (CFM56-7B22) (183-28219, /99 PR-GOU), EX-(LAZ), (ILF) LSD 2003-01, RTND 2010-03. 144Y.
1 737-7Q8 (CFM56-7B22) (369-28224, PR-GIK; 713-30635, PR-GIL), (ILF) LSD 2005-12. 30635; RTND. 144Y.
1 737-700 (CFM56-7B22), (TCI) LSD 2009-02. 144Y.
2 737-73S (CFM56-7B22) (98-29076, /98 PR-GIF; 104-29077, /98 PR-GIG), BF (STR) 2006-02. 144Y.
2 737-73V (CFM56-7B22) (890-30242, PR-GIN, 2006-11; 913-30238, PR-GIM), 144Y,
3 737-74V (CFM56-7B22) (944-30239, /02 PR-VBH; 1064-30246, /02 PR-VBI; 1066-30247, /02 PR-VBW), 2009-02. 144Y.
0 737-75B (CFM56-7B22) (13-28099, /98 PR-GOB; 17-28101, /98 PR-GOC; 66-28105, /98 PR-GOD; 68-28106, /98 PR-GOE) EX-(GER), (TBC) LSD 2001-01, 28106 RTND 2004-04. 28101; & 28099; RTND. 144Y.
2 737-76N (CFM56-7B22) (135-28580, /98 PR-GOV; 170-28584, /98 PR-GOW), EX-(VAR), (GEF) LSD, 28584; PAINTED (2007-07) IN "SIMPSONS" MOVIE FILMSTRIP COLORS. 144Y.
2 737-76N (CFM56-7B22) (463-28613, /99 PR-GOM; 436-30051, /99 PR-GON), EX-(MID), (GEF) 85 MTH LSD 2002-02, 144Y.
0 737-76N (CFM56-7B22) (347-29904, /98 PR-GID, 2005-05; 372-29905, /98 PR-GIE, 2005-10), EX-(ALO), (GEF) LSD 2005-05. 29904; & 29905; RTND, LST (GEI) 2012-11. WINGLETS. 12F, 112Y.
1 737-76N (CFM56-7B22) (1068-30135, /02 PR-GOO; 1215-33417, /02 PR-GOQ; 1231-33380, /02 PR-GOR), 30135; 33417; RTND. (GEF) LSD, 144Y.
1 737-76N (CFM56-7B22) (954-32440, /01 PR-GOH; 32541; 983-32574, /01 PR-GOI), (GEF) LSD, 32440; & 32541; RTND. 144Y.
1 737-76N (CFM56-7B22) (1503-32743, /04 PR-GIH), EX-(ALO), (GEF) LSD 2005-12. WINGLETS. 12F, 112Y.
0 737-76Q (CFM56-3B22) (713-30635, /00 PR-GIG, 2005-12), EX-(VAR), (ILF) LSD. 30635; RTND. 110Y.
2 737-76Q (CFM56-7B22) (843-30273, /01 PR-GOF "AUREA;" 900-30275, /01 PR-GOG), (BOU) LSD 2001-05, 30277 RTND. 144Y.
101/40 ORDERS 737-800 (CFM56-7B26), 177Y:
3 737-8BK (CFM56-7B26) (1194-30621, /02 PR-GOP "VICTORIA;" 1248-30625, /02 PR-GOT; 1918-33027, /06 PR-GIE), (TCI) LSD, 177Y.
2 737-8CX (CFM56-7B26) (1041-32359, /01 PR-GOJ; 1084-32360, /02 PR-GOK), (GAX) LSD, 177Y.
79 +15 ORDERS 737-8EH (CFM56-7B26) (2311-34267, /07 PR-GTN; 2407-34268, /07 PR-GTT; 2412-34269, /07 PR-GTU; 2420-34270, /07 PR-GTV; 2445-34271, /07 PR-VBK; 2449-34272, /07 PR-VBL; 2464-34273, /07 PR-GTY; 2468-34274, /07 PR-GTZ; 2588-34275, PR-GGD, 2008-04; 2028-34277, /06 PR-GTC; 2052-34278, /06 PR-GTE; 2061-34279, /06 PR-GTF - - SEE ATTACHED PHOTO - - "GOT-2011-09 - 10 YRS;" 2100-34280, /06 PR-GTI; 2116-34281, /06 PR-GTK; 1843-34474, /06 PR-GTA; 2020-34475, /06 PR-GTB; 2039-34653, PR-GTD, W/O DESTROYED 2006-09; 2075-34654, /06 PR-GTG; 2091-34655, /06 PR-GTH; 2110-34656, /06 PR-GTJ; 2215-34962, /07 PR-GTL; 2240-34963, /07 PR-GTM; 2332-34964, /07 PR-GTO; 2341-34965, /07 PR-GTP; 2367-34966, /07 PR-GTR; 2476-35063, /07 PR-GGA; 2498-35064, /08 PR-GGB; 2561-35065, /08 PR-GGK; 2786-35825 /09 PR-GGJ; 2991-35827, /09 PR-GGN; 3025-35828, /09 PR-GGO; 3076-35829, /09 PR-GGP; 3115-35830, /09 PR-GGT; 3165-35831, /10 PR-GGW; 3309-35832, /10 PR-GUB; 35835, PR-GUC; 35836, PR-GUD; 35837, PR-GUE; 35838, PR-GUF; 35845, /011 PR-GUL; 35850, /12 PR-GUO; 35852, PR-GUK; 2358-36146, /07 PR-GTQ; 2864-36147, /09 PR-GGH; 2890-36148, /09 PR-GGL; 2920-36149, /09 PR-GGM; 3106-36150, /09 PR-GGR; 3180-36596, /10 PR-GGX; 3103-37596, /09 PR-GGQ; 3133-37597, /09 PR-GGU; 3136-37598, /09 PR-GGV; 3191-37599, /10 PR-GGY; 3205-37600, /10 PR-GGZ; 3301-37601, /10 PR-GUA; 3912-37610, /12 PR-GUN; 39633, /14 PR-GXQ; 39634, /14 PR-GXR; 5472-40739, /15 PR-GXZ - SEE PHOTO (NEW LIVERY)), 35831; WET-LST (TAV) 2010-06 - 2010-09; 35831; RF (TAV) 2010-09. 35831; 37297; RF (TAV) 2012-10. WINGLETS. 184Y.
1 737-8EH (CFM56-7B26) (2809-36566, /09 PR-GGG), ST & (GEF) LSD 2009-02. 187Y.
1 737-8HX (CFM56-7B26) (38876, /12 PR-GUP), (CGP) LSD 2012-08. WINGLETS. 183Y.
1 737-8Q8 (CFM56-7B26) (50-28213, /98 PR-GIR). 184Y.
4 ORDERS 737-800 (2013-02) (CFM56-7B), (GEF) LSD.
8 ORDERS (2013-02) 737-800 (CFM56-7B), (SIL) LSD.
1 737-809 (CFM56-7B26) (117-28403, /98 PR-GIT), IN SPECIAL RED & WHITE "SMILES" COLORS 2012-07. 8PY, 172Y.
1 737-809 (CFM56-7B26) (768-30636, /01 PR-GIX), (ILF) 5 YR LSD 2009-09. EX-(N330LF). 8PY, 170Y.
0 737-83N (CFM56-7B27) (888-28648, /01 PR-GOZ; 948-28653, /01 PR-GIA; 933-32348, /01 PR-GIB; 875-32576, /01 PR-GIC), EX-(AAT), (GEF) LSD 2005-03. 28648; RTND & LST (WEG) 2009-12. 32576; RTND 2010-02. WINGLETS. 177Y.
60 ORDERS 737 MAX:
0 767-27GER (CF6-80C2B4) (475-27048, /93 PR-VAC), EX-(N48SN) 2010-05. 36C, 149Y.
0 767-383ER (PW4060) (309-24846, /90 PR-BAO), (AWW) LSD FOR (VAR) OPS, TO BE TRANSFERRED TO (DAL). 66C, 122Y.
Click below for photos:
GOT-1-CONSTANTINO DE OLIVEIRA JR-2006-02
GOT-1-CONSTANTINO DE OLIVEIRA JR-2009-12
GOT-2-Paulo Kakinoff - 2016-10.jpg
CONSTANTINO DE OLIVEIRA JR, CHAIRMAN (2012-07), PRESIDENT & CHIEF EXECUTIVE OFFICER (CEO).
PAULO SERGIO KAKINOFF, CHIEF EXECUTIVE OFFICER (CEO), EX-AUDI BRAZIL PRESIDENT (2012-07).
RICHARD LARK, CHIEF FINANCIAL OFFICER (CFO).
LEONARDO PEREIRA, CHIEF FINANCIAL OFFICER (CFO), & EXECUTIVE VP FINANCIAL (2009-02), + TECHNOLOGY, BUSINESS DEVELOPMENT, & STRATEGIC PLANNING, + FINANCE CONTROLS & INVESTOR RELATIONS (2009-11).
FERNANDO ROCKERT DE MAGALHAES, EXECUTIVE VP TECHNICAL (2007-10).
CAPTAIN SERGIO QUITO, TECHNICAL VP & CHIEF OPERATING OFFICER (COO).
WILSON MACIEL RAMOS, VP INFORMATION TECHNOLOGY (IT), & ADMINISTRATION, LEFT (GOT) (2009-11).
ADALBERTO BOGSAN, TECHNICAL VP.
CMTE DAVID BARIONI NETO, VP TECHNICAL, (firstname.lastname@example.org).
TARCISIO GARGIONI, VP MARKETING & SERVICES.
RICARDO KHAUAJA, VP HUMAN RESOURCES (HR) & MANAGEMENT, CUSTOMER SERVICE, AIRPORT & COMMERCIAL CREW (2009-11).
CLAUDIA PAGNANO, MARKETING VP.
EUSTAQUIO MENDES, MAINTENANCE GENERAL MANAGER, (email@example.com).
MAURICIO EMBOABA MOREIRA, PLANNING & STATISTICS DIRECTOR.
MS ANNA BETTENCOURT, FINANCE DIRECTOR & INVESTOR RELATIONS OFFICER.
OSCAR TEJADA, COMMERCIAL DIRECTOR FOR INTERNATIONAL FLIGHTS.
FABIO PEREIRA, CONTROLLER.
WILLIAM CATTAN, PRINCIPAL ACCOUNTING OFFICER, PLUS ACCOUNTING & TAX DIRECTOR.