Category Archives: Gol Linhas Aereas Inteligentes

GOL to launch a network of 250 eVTOL aircraft in Brazil

GOL Linhas Aéreas Inteligentes S.A., Brazil’s largest airline, in conjunction with Grupo Comporte, an entity of its controlling shareholder, announce that they have signed a non-binding letter of intent with Avolon for the acquisition and/or lease of 250 electric vertical takeoff and landing (eVTOL) aircraft. Following aircraft certification and successful delivery of the aircraft, the Company expects to start operating a flight network in Brazil using eVTOL planes by mid-2025.

Grupo Comporte is providing the investment capital required for the project, and will engage GOL’s aviation expertise to develop the flight network using VA-X4 eVTOL aircraft. Created by the British enterprise Vertical Aerospace (“Vertical”), the VA-X4 eVTOL model is considered one of the most technologically advanced and reliable air taxis in development today.

The agreement with Avolon and Grupo Comporte is also part of GOL’s commercial strategy to invest strategically in the regional air transportation market, opening up new routes to underserved domestic markets. It follows an announcement in June 2021 that GOL acquired MAP Transportes Aéreos, Brazil’s fifth largest domestic airline, with a fleet of 70-seat ATRs that operate on routes in the Amazon region from the Manaus Airport and Brazil’s South and Southeast regions from Congonhas, the country’s largest domestic airport.

A new fleet for a new era of air travel and more connectivity.

GOL currently operates a fleet of 127 Boeing 737 aircraft and pre-pandemic transported over 37 million passengers per year. The Company plans to transition 75% of its fleet to the more efficient 737-MAX aircraft by 2030, which reduce carbon emissions by 16%. Together, the adoption of the Boeing MAX, eVTOL aircraft, and other innovations including the use of biofuels, will form key components in GOL’s strategy to reach carbon neutrality by 2050.

The VA-X4 can carry up to four passengers and one pilot, with a range of 160 km (100 miles) and a maximum speed of 320 km/h (200 mph). The eVTOL aircraft also produces 100 times less noise than a cruising helicopter, and 30 times less on takeoff and landing. Vertical used the know-how of renowned and experienced partners and suppliers in aerospace manufacturing, including Honeywell, Microsoft, Rolls-Royce and Solvay, to develop advanced flight controls, information technology, electric engines, and state-of-the-art industrial technology in its VA-X4 aircraft.

The first step of the new partnership is to carry out a feasibility study, including aircraft certification and analysis of the infrastructure needed to operate this aircraft with ANAC (National Civil Aviation Agency), DECEA (Department of Airspace Control), and other national and international aeronautical authorities. Avolon expects to complete the certification process for the VA-X4 in Brazil by 2024, with the Company beginning commercial flights with the eVTOL as part of its route network in mid-2025.


American Airlines and Gol to form an exclusive partnership

American Airlines and Gol have made this announcement:

  • Carriers have entered into an exclusive codeshare agreement that will deepen their partnership and strengthen the largest network between the U.S. and Brazil.
  • American’s AAdvantage and GOL’s SMILES loyalty programs will create the largest joint frequent flyer program in the Americas with enhanced benefits coming in 2022.
  • Increased commercial cooperation will drive sustainable growth, including more flights to more destinations for both airlines.

American Airlines has announced that it has entered into a letter of intent to further solidify its partnership with GOL, Brazil’s largest airline. Building on the two carriers’ initial codeshare offering in 2020, the expanded partnership includes an exclusive codeshare agreement, a larger and more lucrative joint SMILES and AAdvantage® loyalty program partnership. It also expects to increase commercial cooperation with GOL to accelerate growth and create a more seamless experience for all customers.

Exclusive Codeshare between the U.S. and Brazil

GOL will become American’s sole codeshare partner in Brazil and American will become GOL’s sole codeshare partner in the U.S. On their combined networks, customers can travel to more than 30 destinations served by American in the U.S. and more than 20 new destinations in South America served by GOL.

American has served Latin America since 1942 and offers service to 17 destinations in South America, including Sao Paulo (GRU) and Rio de Janeiro (GIG) in Brazil, from its U.S. hubs in Dallas-Fort Worth (DFW), Miami (MIA) and New York (JFK). American has flown more than 14 million customers between the U.S. and Brazil in the last 10 years – more than twice as many as any other U.S. carrier. GOL serves 63 destinations in Brazil and is the country’s largest airline.

Enhanced Joint Loyalty Offering

The largest network in the Americas will also be the most rewarding for travelers. In 2022, GOL’s SMILES and American’s AAdvantage loyalty members will gain access to their elite benefits such as priority check-in, priority security, priority boarding, a larger checked baggage allowance, lounge access and preferred seats on both airlines. The two airlines also expect to offer an enhanced joint loyalty offering to give customers more ways to earn and redeem miles.

Commercial Cooperation

The strengthened relationship will also allow for further commercial cooperation in areas such as purchasing, sales tools and systems integrations, as allowed by regulatory and contractual limitations. American will have the right to appoint one member to GOL’s board of directors, who, in addition to other duties, will be granted membership and participation on GOL’s Alliance Committee and any other board committees related to the operational partnership between GOL and American.

American will invest US$200 million in 22.2 million newly issued preferred shares of GOL in a capital increase, for a 5.2% participation in the Company’s economic interest. The completion of the agreements described in this press release, including the proposed equity investment are subject to conditions, including the negotiation, execution and delivery of definitive documentation, regulatory approvals and other customary closing conditions.

Gol orders 28 additional Boeing 737 MAX 8 aircraft as it upgrades its fleet

Gol Linhas Aéreas Inteligentes S.A. has announced the acceleration of its fleet transformation by signing agreements for 28 additional Boeing 737 MAX 8 aircraft, which is expected to reduce the Company’s unit costs by 8% in 2022.

The total of 28 Boeing 737 MAX 8 aircraft will replace 23 Boeing 737-800 NGs by the end of 2022.

The Company currently operates 12 737 MAX aircraft, having returned 18 Boeing 737 NGs in the past 18 months. As a result of the new agreements, Gol will now end 2021 with 28 737 MAX aircraft (22% of the total fleet), and by the year-end 2022 will have received delivery of 44 737 MAX aircraft (32% of the total fleet). With its current 737 MAX commitments, Gol will meet its objective of having a 75% MAX fleet by 2030.

The aircraft will be financed via 15 direct operating leases, nine sale-leasebacks (“SLBs”) and four finance leases. The Company’s plan is to own around half of its fleet via finance leases, with the remainder in operating leases to give it high flexibility to upsize or downsize capacity based on demand. Additionally, bringing in the 737 MAXs enables Gol to accelerate returns of -700 and -800 NGs aircraft on short-term leases, while it maintains substantial flexibility to manage its fleet in close alignment with fluctuations in demand for air travel during the pandemic.

The Company operates 127 Boeing 737 aircraft. The 12 MAX in the fleet currently are financed via direct operating leases. The revised fleet plan is presented in the table below:

GOL’s Fleet Plan 2020 2Q21 2021 2022 2023 2024 2025
737 NG 700 24 23 18 18 16 14 12
737 NG 800 96 94 84 74 67 68 63
737 MAX 8 7 10 28 44 51 58 65
737 MAX 10 0 0 0 0 5 7 10
TOTAL (end of period) 127 127 130 136 139 147 150

Gol to acquire regional carrier MAP Linhas Aéreos

GOL Linhas Aéreas Inteligentes S.A. has announced it has entered into an agreement to acquire MAP Transportes Aéreos Ltda. (MAP Linhas Aéreos), a Brazilian domestic airline with flight routes to regional destinations and São Paulo’s Congonhas Airport.

The acquisition reflects the Company’s on-going commitment to expanding the demand for passenger air transportation in Brazil and what its Management perceives to be an unparalleled market opportunity for rational consolidation in the Brazilian aviation market, as the country’s economy recovers from Covid-19.

Photo: Wikipedia.

Founded in 2011, MAP is the fifth-largest Brazilian domestic airline, with a fleet of seven 70-seat ATR 72s that operate on routes in the Amazon region from the Manaus Airport and Brazil’s South and Southeast regions from Congonhas, the country’s largest domestic airport. The realization of this Transaction will reinforce GOL’s leading positioning in two of of its main bases, with growth of approximately 10% at CGH via the addition of 26 daily flights. Thus, the Company will be able to serve new destinations connecting South America’s largest city to historically underserved domestic markets, as the restrictions resulting from the pandemic are reduced or eliminated.

GOL sees three core benefits of the Transaction:

  1. Expansion of New Routes. The Company intends to offer new destinations and routes, complementary to its current network at Congonhas Airport, that will provide a wider range of flight options for passengers and greater convenience for Clients.

    “We believe the GOL network is the most attractive option in Brazil for both business and leisure Clients in terms of the cost, service and availability of flights,” said Edu Bernardes, Vice-president of Sales and Marketing.

  2. Offering Higher Seat Density to Historically Underserved Markets. In addition to expanding to new routes, the Company will provide a substantially higher number of seats per flight than currently available by MAP to these markets. The ATRs will be substituted for larger and more efficient aircraft, giving continuity to GOL’s regional strategy, that today operates on 23 Boeing 737-700s – a model that can be substituted with even more efficient aircraft in the future.

    “By servicing these routes with more modern and larger aircraft, the Company will increase the number of flights and seats from one of the main markets in the country,” said Celso Ferrer, Vice-president of Operations.

  3. Enhancing Cost-Efficient Operations. With unit costs among the lowest in the world, GOL will offer greater efficiency in Congonhas with these new operations. These lower costs enable the Company to offer more competitive ticket prices than any competitor in Brazil to markets typically serviced by competitors with smaller and less efficient aircraft, providing benefits of scale from GOL’s operations.

    “The Transaction is another example that the Company is ready to resume its sustainable growth and investment in Brazilian air transportation, supported by substantially lower operating costs than the competition,” added Richard Lark, CFO.

Transaction Terms and Conditions. MAP will be acquired for R$28 million in cash and stock, to be paid upon satisfaction of all closing conditions, comprised of 100,000 GOLL4 shares at R$28 per share and R$25 million in cash to be paid in twenty-four monthly installments. At closing, the Company will assume up to R$100 million of MAP’s financial obligations. The Transaction closing is subject to certain conditions precedent, including approvals and confirmations by Brazil’s National Civil Aviation Agency (ANAC) and by Brazil’s Administrative Council for Economic Defense (CADE).

Gol celebrates 20 years in the air

Gol Linhas Aéreas has made this announcement:

Twenty years ago, on January 15, 2001, GOL Linhas Aéreas’ inaugural Flight 1741 on a Boeing 737-700 aircraft took off from Brasília and landed in Congonhas, São Paulo. The flight crew included Captain Grabler and Flight Attendant Giselle, who are also celebrating their 20 years at the Company, together with another 127 employees.

This group is representative of our Team of Eagles, which is composed of thousands of people who dedicate themselves unconditionally to GOL every day, strengthening the bases of our contribution to transforming the history or air travel and Brazilian society itself journey that has made GOL the leader in the Brazilian airline industry.

Millions of Brazilians took their first ever flight with GOL, and that democratization of air travel is the best possible outcome. Through our constant efforts, the countless lessons learned throughout our journey, and the choice to always take courageous and disruptive action on several fronts – ranging from the organizational culture to the products and services offered – GOL has irreversibly widened access to quality air travel in Brazil. GOL’s aim is to Be First for Everyone. However, GOL would not be celebrating these achievements today if innovation had not been imprinted in the Company’s DNA from the beginning.


GOL becomes the first airline to resume commercial flights with the Boeing 737 MAX

GOL, Brazil’s largest domestic airline, has announced that it will resume flying the Boeing 737 MAX on commercial routes in its domestic network, starting December 9, 2020. The first flights will be on routes to and from the Company’s hub in São Paulo. By the end of December, all seven Boeing 737 MAX aircraft in GOL’s current fleet should be cleared to return fully to operation and will be gradually reincorporated into the Company’s flight schedules in alignment with its operational needs. 

“Our first priority is always the Safety of our Customers,” says Celso Ferrer, VP of Operations at GOL and a commercial pilot who regularly flies Boeing planes and is already trained to fly the 737 MAX. “Over the past 20 months, we have watched the most comprehensive safety review in the history of commercial aviation unfold, bringing together regulatory agencies and airlines from around the world to monitor and contribute to the upgrades in aircraft systems and pilot training. Consequently, following the new certification of the Boeing 737 MAX by the FAA (Federal Aviation Administration, United States) and ANAC (National Agency Civil Aviation Administration, Brazil), we are fully confident in the MAX’s return to service,” Added Celso. 

Before reintegrating the MAX-8 into its fleet, GOL conducted training for 140 of its pilots in conjunction with Boeing, meeting all the technical and operational requirements outlined in the plan approved by FAA and ANAC. The trainings took place in the United States using a MAX simulator. The Company also completed a rigorous series of technical flights, which exceeded the requirements set out by aviation regulatory agencies. 

These Safety actions reinforced the meticulous work of removing the MAX-8 aircraft from storage by the aviation engineers at GOL Aerotech, the Company’s business unit specialized in maintenance, repairs, aircraft servicing and components, based in Confins near the city of Belo Horizonte in southeast Brazil and where the aircraft were located for the past 20 months. The work performed by the Company professionals at every stage is a testament to GOL’s culture of excellence in Safety.

The Company’s experience and resources for maintaining Boeing aircraft also contributed to the ability to quickly and safely return the MAX to its network. GOL Aerotech is qualified to perform maintenance on Boeing 737 Next Generation, 737 Classic, 737 MAX and Boeing 767 family aircraft. With over 760 employees, including engineers and technicians, the business unit is able to service 80 aircraft per year on average and provide over 600,000 hours of maintenance. It is certified by national and international regulators such as ANAC, the FAA (Federal Aviation Administration, United States) and the EASA (European Union Aviation Safety Agency).

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Gol announces monthly investor update: Capacity, Cash Consumption and Liquidity

Gol Linhas Aéreas Inteligentes S.A. provides its Investor Update for the month of October of 2020. All information is presented in Brazilian Reais (R$). The information below is preliminary and unaudited.

Since the last monthly update on October 9, 2020, GOL increased its capacity to an average of 363 flights per day, a 34% increase from an average of 270 daily flights in September. On peak days, the Company operated 500 daily flights in October to service the 34% month-over-month uptick in demand for air travel. GOL’s consolidated gross sales for the month were R$827 million and the average load factor was 78%, in line with previous months.

“After the big bump in sales during Brazil’s winter season, we sustained that growth with a steady increase in October,” said Paulo Kakinoff, CEO. “We expect sales to grow again this month ahead of a busy Summer season and anticipate that we will end the year operating all destinations served pre-pandemic. However, any addition of capacity to our network must meet clear criteria of profitability to guarantee the sustainable resumption of operations.”

The Company ended October 2020 with a total fleet of 128 B737s. With 87 aircraft operating in its network, the planned re-opening of three bases and an increase in flights between São Paulo and Rio de Janeiro, daily flight operations increased 34% over September 2020 and were equivalent to 52% of the same period last year. During the month, GOL ramped up to a peak of 500 daily flights, increasing frequencies in its hubs in São Paulo, Rio de Janeiro, Fortaleza, Salvador and Brasília. The current network represents even higher levels of connectivity compared to the beginning of the year, with more destinations and faster connections. As a result, GOL is well-positioned in both major and regional markets.

The Company’s cash flow equilibrium has been a driving force of GOL’s efforts during the pandemic. Despite the structural and financial inefficiencies created by having its two operating subsidiaries as separate companies, GOL Management believes the key competitive advantages built over the years ensure GOL’s financial strength. The Company’s cost-efficient structure, support from stakeholders and partners, flexible fleet and network model, and the ongoing and significant return of Customer travel in the domestic market, firmly places GOL in a leadership role in the Brazilian airline industry.

“With no significant debt maturities until 2024, we can use our capacity discipline to expand profitability as operations continue to resume,” added Kakinoff.

Delivering Cash Equilibrium as Planned

October 2020 observed a 38% growth in the search for GOL airline tickets, compared to the average search numbers in 3Q20. On specific dates this metric was higher than the same day in 2019, an important sign of returning consumer confidence. Because of this greater interest, the Company recorded a 25% increase in sales across all channels when compared to the average sales reported in 3Q20. With the addition of flights during the month, the revenue from passengers transported increased 21% over September, with better yield efficiency than competitors through GOL’s rational capacity management.

During the month, GOL had a net cash consumption (“burn”) of R$1 million/day, excluding include amortizations of bank debt and interest paid on bonds, which is an improvement in the net cash consumption of R$3 million/day that GOL had forecast for this period.

For the remainder of 2020 (November-December), assuming expected revenues and same items described above, the Company maintains a conservative estimate for a net cash consumption (“burn”) of approximately R$3 million/day. Prior to payment of lease and financial expenses, net cash generation (“earn”) is estimated at approximately R$1 million/day.

Preserving the Company’s Balance Sheet Liquidity

The Company ended the month with approximately R$2.2 billion in total liquidity. Including the financeable amounts of deposits and unencumbered assets, GOL’s potential liquidity sources total approximately R$6 billion. The average maturity of the Company’s long-term debt, excluding aircraft leases and perpetual notes, is nearly three years.

“We have addressed all the relevant financial obligations provided for in our cash flow, and we have a solid partnership with the main providers of working capital. The financial management since the beginning of this pandemic reflects GOL’s commitment to its investors. Our focus continues to be on having a sound capital structure and strengthening the balance sheet through the recovery period,” stated Richard Lark, CFO.

Increasing GOL’s Flight Capacity to Meet Demand

Through the end of October 2020, GOL reduced its fleet by 11 Boeing 737 leased aircraft and plans to return other three aircraft by year-end. Aircraft returns were part of the last year’s fleet plan and did not require contractual alterations, as the Company’s plan had already incorporated the flexibility to adjust to the volatility of the air travel business.

GOL has also retained even more asset flexibility, as its existing contracts allow it to reduce its fleet by up to another 30 aircraft in 2021-2022 if needed, which can be further reduced if demand trends lower. Additionally, the Company reduced its 2020-2022 Boeing 737 MAX deliveries by 34 aircraft.

These cancellations represent a definitive reduction in capital expenditures for aircraft acquisition advances (PDPs) and address the Company’s capacity planning for the coming years, with plans to fully finance all aircraft expenditures and engine overhauls remaining in 2020.

The Company’s fleet operating model will continue to provide significant competitive advantages. GOL does not have widebody aircraft or aircraft financed in capital markets structures, EETCs or finance leases. Its fleet consists of 100% operating leases and narrow-body aircraft that can operate in all domestic, regional and international markets.

GOL’s aircraft contracts are adjusted to the expected recovery of demand through the remainder of 2020 and in 2021 and also will provide an effective reduction in the Company’s unit operating costs. Additionally, GOL has reduced its fixed costs by converting a portion of its monthly lease payments to variable power-by-the-hour.

Maintaining a Conservative Cash Forecast

Matching capacity to demand has always been a competitive advantage in the Company’s fleet management. October 2020 showed continued demand recovery over September 2020 and provided better visibility into the last quarter of the year. GOL maintains significant flexibility to respond to the prevailing demand trends.

In November, GOL increased its capacity to approximately 372 flights per day, and 450 daily flights on peak days, placing the Company’s operations at around 50% of the flight schedule in November 2019. During this current month, GOL will be operating 94 aircraft in its network.

Commented Kakinoff: “Our single-type fleet operating model and dominant position in Brazil’s high-density traffic hubs enables us to quickly add routes to meet demand, while maintaining discipline on capacity and profitability.”

For 4Q20, GOL expects to maintain personnel costs reduced at up to 40% of pre-pandemic levels.

On these conservative assumptions, and with the increase in operational volumes and sales, GOL has improved its operating cash flow equilibrium. The Company estimates that it has sufficient liquidity to finance its working capital, expenses and debt service during this growth phase. Based on GOL’s current liquidity levels and having converted a significant portion of fixed payroll and fleet costs into variable costs, the Company will maintain its market unit cost leadership.

The Boeing 737 MAX is nearing approval to begin operating, and its return to service will increase our cost savings, as the MAX-8s consume 15% less fuel than the 737-800 NG aircraft. Resuming high aircraft utilization and expanding its network predominantly concentrated in Brazil will enable GOL to continue to operate with the lowest and most variable cost structure among its peers. In the best-case scenario, the Company estimates that the MAX will return to operation in its fleet by the end of 2020.

This competitive advantage is further evidenced by the actions of GOL’s stakeholders who have supported the Company during this global crisis. GOL Management fully honored its commitments with the global capital markets and the Company is the only airline in Latin America to have returned capital to investors in 2020. GOL expects these actions will continue to define the Company, and it counts on the continued support and trust of GOL’s stakeholders and partners investing in the recovery of the Brazilian market.

Building Trust with the Resumption of Travel

During the months of January to October, the Company obtained the top rating on the portal, leading in the Solution Index, the Satisfaction Index and the Average Response Time.

Kakinoff commented: “Through our values of Service and Safety, our Customers are increasingly confident in flying. We are working on every front, including ticket sales, customer service, boarding, the in-flight experience and disembarkation services, to ensure that our travelers are comfortable with the entire flight experience. We believe Customers will want to fly with the airline they trust most on Service and Safety, both during and after the pandemic”.

In response to the pandemic, GOL reinforced all of its procedures to ensure the Health and Safety of its Customers and Employees, with increased attention to the cleaning of aircraft, including the use of a hospital-grade disinfectant for the service galleries and all areas of intense use in the cabin and the cockpit.

GOL’s aircraft have HEPA air filters, which eliminates 99.9% of particles such as bacteria, viruses and other impurities on board, allowing the circulation of purer air. In addition, each set of 3 to 7 seats rows has its own air circulation system, making minimal air circulation among passengers.

GOL also equipped its Employees with gloves and masks, in addition to making alcohol-based gel available to the crew and Customers on the aircraft. The use of masks on board, mandatory as of May 10, was well-accepted by Customers compared to the response in other countries.

Communication has been a priority in GOL’s operations. Airport Employees and Crew members are fully prepared advising Customers on social distancing measures and on-board health and safety practices. In addition, the Company has observed exemplary behavior of travelers in relation to their concern for their own safety and that of everyone around them.

As a result of these actions taken by the Company, its Employees and its Customers, on average, active GOL Employees have tested positively for COVID-19 only once in every 1,701 flights, an astonishingly low rate, of which the Company is proud.

Key Metrics – October 2020 (preliminary and unaudited)



∆ September/2020

Total liquidity


Unencumbered assets

R$2.2 billion

R$2.3 billion

R$1.3 billion



Net Operating Cash Consumption¹


∆ September/2020

Cash outflows

Cash inflows

Net cash consumption (“burn”)

R$(25) MM/day

 R$24 MM/day 

R$(1) MM/day






∆ September/2020

Total (average)

Grounded aircraft (average)

Operating aircraft (average)

Flights per day (average)

Network destinations




363 (52% of 2019)

63 (23% of 2019)






Operating Results


∆ September/2020

Seats (000)

ASK (million)

Load factor

Consolidated gross sales (R$MM)

Consolidated gross revenue (R$MM)








-2.0 p.p.



1- Excluding debt service.

Gol aircraft photo gallery:

Gol cancels 34 Boeing 737 MAX orders

Gol Linhas Aéreas Inteligentes S.A. has announced it reached an agreement with the Boeing Company (“Boeing”) regarding the 737 MAX, which includes cash compensation and changes to future orders and associated payment schedules.

“Gol remains fully committed to the 737 MAX as the core of its fleet and this agreement further enhances our successful long-term partnership with Boeing,” said Paulo Kakinoff, Gol’s CEO.

Since its founding nearly twenty years ago, Gol has operated a single fleet of Boeing aircraft. The Company is one of Boeing’s largest customers for the 737 family globally and to date has received and operated over 250 Boeing 737 aircraft. Through this valuable partnership with Boeing, Gol has delivered the Brazilian market one of the most successful low-cost carriers in the world.

In the first quarter of 2019, the unexpected grounding of the 737 MAX by regulatory agencies worldwide, including the FAA, the EASA and the ANAC, resulted in seven (7) of Gol’s operational 737 MAX aircraft being grounded, and the non-delivery of 25 737 MAX aircraft scheduled for 2019. This grounding adversely impacted GOL’s operations, growth and fleet renewal plan.

After carefully considering these impacts, the Company and Boeing reached an agreement that provides Gol with compensation and flexibility to implement its dynamic fleet requirements to match supply with demand. While the details of the agreement are confidential, it includes cash compensation and the termination of 34 orders, reducing the Company’s remaining firm orders for 737 MAX aircraft from 129 to 95 and increasing flexibility to meet Gol’s future fleet needs.

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Gol reduces network, maintains service to all Brazilian capital cities

Gol Linhas Aéreas Inteligentes S.A., Brazil’s largest domestic airline, announces a further readjustment of its domestic flight network, effective for the period from March 28 (Saturday) through to May 3 (Sunday), in response to the lower demand during coronavirus pandemic.

As Brazilians take responsible steps to socially distance and avoid travel, Gol will maintain an essential network of 50 daily flights between the São Paulo International airport in Guarulhos (GRU) and the other 26 capital cities of Brazil.

All of Gol’s regular regional and international operations will be suspended. This brings the total reduction in Gol’s total flight capacity to approximately 92% in domestic markets and 100% in international markets until early May.

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Gol sells and leases back 11 Boeing 737 NGs

"The Canary" special livery

Gol Linhas Aéreas Inteligentes S.A., Brazil’s largest domestic airline, announced today the execution of sale and leaseback agreements of 11 Boeing 737 Next Generation (NG) aircraft with Carlyle Aviation. This will further accelerate GOL’s fleet renewal and balance sheet deleveraging. GOL intends to replace these NGs with Boeing 737 MAX-8 aircraft over the next few years.

Value creation

Since 2005, when Gol closed its first order for 80 Boeing 737s, the Company has realized over R$1.5 billion of gains on its aircraft portfolio. The 2005 order was comprised of 40 aircraft financed with a U.S. Ex-Im Bank guarantee, and 40 aircraft financed via sale and leaseback transactions. All of Gol’s aircraft have been sold to unrelated parties, with gains, and all cash proceeds have been used to pay for aircraft re-deliveries and reduce secured and unsecured debt.

As Gol transitions its fleet to approximately 50% Boeing MAX aircraft by 2025, it expects to create over R$4.0 billion of value for all Gol shareholders, comprised of over R$2.0 billion of equity value in aircraft assets and over R$2.0 billion of increased income from greater revenue productivity and lower fuel burn.

Balance sheet deleveraging

The sale of these 11 aircraft will reduce GOL’s net debt by approximately R$500 million, comprised of a R$130 millionreduction in finance lease debt and a R$370 million increase in cash liquidity.

Subsequently, the Company plans to use a portion of these proceeds to call the outstanding amount of its 8.875% Senior Notes due in 2022.  The asset management income and reduction in interest expense will contribute over R$420 million to the Company’s 2020 earnings and improve GOL’s credit ratios by reducing the net debt/EBITDA ratio by 0.2x and increasing the EBITDA/net interest expense ratio by 0.5x.

Capacity management

The accelerated fleet renewal will not alter Gol’s planned capacity, as these aircraft will be returned simultaneously with the receipt of 737 MAX-8 aircraft under its order with Boeing.

Gol is committed to upgauging its fleet to further drive operating efficiency. By 2025, approximately 50% of the fleet will be comprised of 737 MAXs. Over the next five years, the transition to the MAX is expected to increase productivity by over 20% and reduce fuel consumption by approximately 15%.

Top Copyright Photo: Gol Transportes Aereos Boeing 737-8EH WL PR-GUK (msn 35852) (#VoaCanarinho) MIA (Brian McDonough). Image: 949042.

Gol aircraft slide show: