Tag Archives: Gol

Shareholders of Avianca and controlling shareholder of GOL to create Abra Group

Avianca has issued this statement:

The principal shareholders of Colombia’s Avianca and the controlling shareholder of Brazil’s GOL have signed a landmark agreement to create a leading air transportation group across Latin America under a holding company structure named Abra Group Limited. Subject to customary regulatory approvals and closing conditions, the Abra Group will control Avianca and GOL and bring together their iconic brands under a single holding.

Through recent investments made by Avianca’s and Viva’s shareholders, the Group will also own a non-controlling 100% economic interest in Viva’s operations in Colombia and Peru as well as convertible debt representing a minority interest investment in Chile’s Sky Airline.

Together, Avianca and GOL will anchor a pan-Latin American network of airlines that will have the lowest unit cost in their respective markets, the leading loyalty programs across the region, and other synergistic businesses. Avianca and GOL will continue to maintain independent brands, talent, teams, and culture while benefiting from greater efficiencies and investments under common aligned ownership.

Abra will provide a platform for the operating airlines to further reduce costs, achieve greater economies of scale, continue to operate a state-of-the-art fleet of aircraft, and expand their routes, services, product offerings, and loyalty programs.

In the aggregate, the airlines under the Abra Group ownership will offer customers the largest network of complementary routes, with minimal overlap, across their markets.

Abra’s financial strength will provide long-term stability and agility to the participating airlines that will allow consistent and sustained investment in innovations and synergies.

Abra Group will be co-controlled by the principal shareholders of Avianca and the majority shareholder of GOL and be led by management with significant airline experience across the region, a long history of entrepreneurship, and a proven track record of growth and successful airline transformations.

  • Roberto Kriete, who will serve as the group’s Chairman, grew TACA in the 1980s into the leading Central American airline before merging it with Colombia’s Avianca Airlines in 2009. He also founded the leading Mexican carrier Volaris in 2006.
  • Constantino de Oliveira Junior, who will serve as the group’s CEO, pioneered Latin America’s low-cost carrier revolution when he founded GOL Airlines in 2001. Together with the acquisition of VRG in 2007 and Webjet in 2011, he led the company’s growth to a market-leading position.
  • Adrian Neuhauser, current President and CEO of Avianca, and Richard Lark, current CFO of GOL, will serve as the group’s Co-Presidents, in addition to maintaining their current roles at the airlines; further details on the Abra management team will be provided at closing.

Abra Group’s management will focus on achieving synergies to ensure the lowest cost structure in each carrier’s relevant market; expanding routes, services, product offerings, and loyalty programs; and developing innovative new products and services that will meet the evolving needs of passengers and air cargo customers in the highly competitive Latin American air transportation market and beyond.

Abra will also ensure that its operating airlines are ESG market leaders by providing enhanced governance as well as the financial strength to continue to invest in a lower carbon footprint fleet, which will significantly accelerate the airline industry’s path towards meeting carbon neutrality targets.

Roberto Kriete, Abra Group’s Chairman, said: “Our vision is to create an airline group that tackles 21st century issues and improves air travel for our customers, employees, and partners as well as the communities in which we operate. Our customers will benefit from access to even better fares, more destinations, more frequent flights and seamless connections, and the ability to earn and use points across the brands’ loyalty programs. They will also be able to enjoy enhanced travel benefits and access to superior products and services.”

Constantino de Oliveira Junior, Abra Group’s CEO, said: “This agreement places Abra’s airlines in a position to lead air travel within the region – serving a population of over one billion and GDP of nearly three trillion US dollars – providing significant opportunities for capacity and revenue growth. Our unique enterprise structure will allow each airline to drive results by maintaining their independent brands, talent, teams, and culture and will provide employees more opportunities for personal and professional growth at every stage of their careers.”

In related news, the majority shareholders of Viva and Avianca jointly announced that Viva will become part of the same holding company as Avianca Group International Limited (Avianca Group) and that Declan Ryan, founding partner of Viva, will join the board of directors of Avianca Group, bringing his decades of aviation experience.

Any transfer of control rights over Viva’s operations in Colombia and Peru by the new holding company will be subject to requesting and obtaining all necessary regulatory authorizations.

Until the receipt of necessary authorizations, control and administration of Viva in Colombia and Peru will be independent of Avianca; Viva will continue to compete with the other airlines within the Avianca Group. Until the authorizations are obtained, customers, suppliers, employees, and relationships for the companies will remain the same; with separate internal and external operations, as well as independent sales channels and customer service teams.

Avianca aircraft photo gallery:

Gol introduces a new look, logo and livery

Gol 737-800 (15)(Flt)(Gol)(LRW)

Gol Linhas Aereas Inteligentes (Sao Paulo) today unveiled in a ceremony this new look on Boeing 737-8EH PR-GXZ (msn 40739). The new look also features this new logo.

Gol 2015 logo (LRW)

Gol to start Sao Paulo-Santiago flights on July 3, reports a $65.1 million operating profit in the first quarter

Gol Linhas Aéreas Inteligentes S.A. (Gol Transportes Aereos) (Sao Paulo) will start a new international twice-daily route on July 3, 2014 between São Paulo (Guarulhos) and Santiago.

The flights will be operated by Boeing 737-800 aircraft in the GOL+ configuration, ensuring more space between seats. The flight will have on-board service with the option of hot meals, sandwiches, and hot and cold drinks.

On the financial side, the company announced its results for the first quarter of 2014 (all figures in Brazilian Real):

Operating income (EBIT) totaled R$144 million ($65.1 million US) in 1Q14, 43% increase versus 1Q13, with an operating margin of 5.8%. In the last 12 months (LTM), GOL achieved an EBIT of R$309 million and a margin of 3.3%.

Net revenues reached R$2.5 billion, 20% or R$411 million, up year over year and the Company’s highest ever first-quarter figure. LTM net revenue stood at R$9.4 billion.

Total load factor of 76.1% on the 1Q14 represented an 8.9 percentage point improvement over 1Q13 and also a first-quarter record, while yield maintained its upward trajectory, increasing by 4% in the period. These factors helped push RASK and PRASK by 18% to R$19.90 cents and R$18.23 cents, respectively.

Given the average 18% devaluation of the Real against the Dollar and fuel prices reaching record levels for a quarter, R$2.62/liter, total CASK moved up 17% over 1Q13, while CASK ex-fuel increased by 22%. LTM total CASK increased 3%.

EBITDAR totaled R$493 million, 34% more than in 1Q13. LTM EBITDAR of R$1,652 million, a Company record, reducing leverage (adjusted gross debt/LTM EBITDAR) from 27.9x, in 1Q13, to 6.5x in 1Q14.

GOL closed the first quarter with a total cash position of R$2.8 billion, equivalent to 30% of LTM net revenue. The Company remains committed to maintaining ample liquidity, which is essential at times of high volatility in the economic scenario.

Given the devaluation of the Venezuelan Bolivar against the Dollar, the Company recognized an exchange variation adjustment of R$75.9 million in its 1Q14 financial result. As a result, the realizable value of its cash in Venezuela was R$274.6 million on March 31, 2014.

Smiles S.A. reported first-quarter net income of R$78.3 million in 1Q14, 162% up on 1Q13, with a net margin of 41.6%, driven by the 61% period increase in net revenue to R$188 million.

Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Boeing 737-8EH PR-GXH (msn 39621) advertising the GOL+ seating configuration arrives at São Paulo (Guarulhos).

Gol: AG Slide Show

 

Boeing and Gol to work on a sustainable biofuel in Brazil

Boeing (Chicago) and Gol Linhas Aereas Inteligentes S.A. (Gol Transportes Aereos) (Sao Paulo) will work together to speed the research, development and approval of new sources of sustainable aviation biofuel in Brazil. Their collaboration will support Gol’s plans to use this lower-carbon jet fuel on more flights during upcoming major sporting events and also will benefit long-term development of a new sustainable aviation biofuel industry in Brazil.

Paulo Sergio Kakinoff, chief executive officer of Gol, and Van Rex Gallard, vice president of Sales for Africa, Latin America and the Caribbean, Boeing Commercial Airplanes, signed a memorandum of understanding for biofuel collaboration at the Latin America and Caribbean Air Transport Association (ALTA) Airline Leaders Forum 2013.

Gol plans to use sustainable biojetfuel on 200 flights during the major sporting event in Brazil in 2014 and to incorporate biofuel into 20 percent of its flights during the major sporting event taking place in Rio de Janeiro in 2016. Boeing will work with Gol to identify and select the most promising feedstocks and refining technologies and then will play a leading role in the approval process for new fuel pathways to ensure the fuel meets safety and performance standards.

The agreement between Boeing and Gol is a significant new step in efforts to advance an aviation biofuel industry in Brazil. On October 23, Brazil’s Aviator’s Day, Gol conducted Brazil’s first commercial biofuel flight in a Boeing 737-800 powered in part by sustainable aviation biofuel made from waste cooking oil and blended by Petrobras, with support from the Inter-American Development Bank (IDB). Following the flight, aviation industry stakeholders including Gol and Boeing, as well as Brazilian officials and research institutions, announced a national effort called the Brazilian Biojetfuel Platform to establish a sustainable biojetfuel industry with research and development in several regions of the country. If the Platform is successful, Brazil, which has already established a biofuel industry could be the first nation to establish a sustainable aviation biofuel industry from biomass production to flight.

Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Gol’s Boeing 737-809 PR-GIT (msn 28403) in the striking Smiles special livery departs from Sao Paulo (Guarulhos).

Gol: AG Slide Show

Gol reduces its losses in the second quarter to almost $191 million

Gol Linhas Aereas Inteligentes S.A. (Gol Transportes Aereos) (Sao Paulo) issued the following financial information for the second quarter where it reduced its loss to $190.7 million.

  • recorded an operating loss (EBIT) of R$35 million in 2Q13 resulting in a negative margin of 1.8%, an improvement of R$320 million and 18 percentage points over 2Q12. In the first half, GOL recorded a positive operating margin of 1.7%, in line with the margin projected for 2013, of between 1% and 3%.
  • PRASK (passenger revenue per available seat-kilometer) totaled R$14.14 cents in 2Q13, 10.5% up on 2Q12. This performance fueled the 7.5% year-over-year upturn in RASK (operating revenue per available seat-kilometer), which came to R$15.72 cents in 2Q13. The continuous monthly increase in PRASK since April 2012 reflects the Company’s efforts in optimizing its offer and maximizing the profitability of its routes.
  • CASK (operating cost per available seat-kilometer) totaled R$16.01 cents in the second quarter, 8.4% down on the same period last year. Fuel costs per ASK fell by 8.8%, primarily due to the 3.4% decline in the per-liter fuel price and the use of a more fuel-efficient fleet. CASK ex-fuel fell by 8% in the same period, chiefly impacted by the reduction in personnel costs.
  • SMILES’ IPO during the quarter meant that the Company ended 2Q13 with its biggest ever quarterly cash position (cash, cash equivalents, financial investments and short and long-term restricted cash), totaling R$2.8 billion, equivalent to 34% of net revenue of the last 12 months (LTM).

Read the analysis by the Wall Street Journal: CLICK HERE

Copyright Photo: Rodrigo Cozzato/AirlinersGallery.com. Boeing 737-8EH WL PR-GUM (msn 35846) in the new CBF – Transportadora Oficial de Selecao Brasileira livery taxies past the camera in Sao Paulo (Guarulhos).

Gol Transportes Aereos: AG Slide Show

Gol explores the option of flying to Africa

Gol Transportes Aereos (Sao Paulo) is exploring the possibility of adding a new route to Lagos, Nigeria. The airline issued this short statement:

“Gol is studying the possibility of opening a new route between Brazil and Nigeria, in Africa. The new flight would be operated by Gol’s standard fleet of Boeing 737 NG.”

Gol Female Pilots (gol)(LR)

Copyright Photo Above: Gol. Not to be overlooked, on March 8, 2013 in order to celebrate International Women’s Day, Gol completed a domestic flight totally with a female crew. Fernanda Prieto, commander (left); Deise Cristiane (right), copilot (above); Andrea Duderstadt, head of cabin and flight attendants Onalice Gama, Suellen Lisandra and Patricia Ferreira (below) represented women in Brazilian aviation.

Top Copyright Photo: Marcelo F. DeBiasi/AirlinersGallery.com. Boeing 737-85F WL PR-GIO (msn 30477) arrives at Sao Paulo (Guarulhos).

Gol: AG Slide Show

Video (in Portuguese:

Gol to double its flights at Viracopos-Campinas International Airport

Gol Transportes Aereos (Sao Paulo) has filed a formal request with the National Civil Aviation Agency (ANAC) to expand its operations at Viracopos Airport, in Campinas, Brazil. The company expects the six new daily flights (five to Santos Dumont and one to Brasília) will start on September 1, 2013.

Viracopos–Campinas International Airport (VCP/SBKP) is an international airport serving the Campinas, Brazil area northwest of Sao Paulo.

Viracopos-Campinas is also the home of Azul Linhas Aereas Brasileiras.

Copyright Photo: Marcelo F. De Biasi/AirlinersGallery.com. Gol Transportes Aereos Boeing 737-8EH WL PR-GTF (msn 34279) in the special GOL 10 ANOS livery arrives at Sao Paulo (Congonhas).

Gol: AG Slide Show

Map: Yahoo Travel: Viracopos-Campinas International Airport is located in Campinas in the northwest section of the Sao Paulo metropolitan area.

Sao Paulo Airports (Yahoo Travel)

Gol expands its code-share relationship with Delta

Gol Linhas Aéreas Inteligentes S.A. (Gol Transportes Aéreos) (Sao Paulo) has announced a key milestone in its partnership with Delta Air Lines (Atlanta): the implementation of Gol code-share on Delta’s flights from Brasilia to Atlanta.  

The companies together offer approximately 380 destinations in more than 62 countries. 

“The code-share implementation which has now started and will be done in six phases from May to August,” said Paulo Miranda, Alliances and Strategy manager for Delta Air Lines.  “Besides the route from Brasilia to Atlanta, soon we will be integrating all flights operated by Delta between Brazil and the United States to Atlanta and flights to the John F. Kennedy International Airport (JFK) and to Detroit and as part of the codeshare agreement”, he emphasizes.

The route from Brasilia to Atlanta is already available to be acquired at Gol channels and the first flight will take place on May 20. The second phase will include flights from Goiania, Belo Horizonte, Curitiba and Porto Alegre all via Brasilia to Atlanta. This action allows baggage to be labeled and dispatched to final destination.

Copyright Photo: Tony Storck. Boeing 737-8EH WL PR-GUI (msn 35844) arrives in Miami.

Gol: AG Slide Show

Delta Air Lines: AG Slide Show

Gol reduces its third quarter net loss to $152.7 million

Gol Linhas Aereas Intelligentes (Gol Transportes Aereos) (Sao Paulo) reduced its third quarter net loss to $152.7 million.

Read the full report from Zacks: CLICK HERE

Copyright Photo: Marcelo F. De Biasi. Boeing 737-8EH PR-GTF (msn 34279) in the special 10 Anos (10 Years) color schemes taxies at Sao Paulo (Guarulhos).

Gol: 

Gol files a new request to operate regular scheduled flights to the United States

Gol Linhas Aéreas Inteligentes S.A. (Gol Transportes Aereos) (Sao Paulo) has announced that it has submitted to the Brazilian Civil Aviation Agency (ANAC) a formal request to operate regular flights in routes connecting Brazil to the United States, with one stop in Santo Domingo. These flights will be operated by Next Generation Boeing 737 aircraft.

They are expected to begin at the end of the year. If approved, the plan will consist of two daily flights between Brazil and the United States with a stop in Santo Domingo. One flight will depart from São Paulo (Guarulhos International Airport) and the other from Rio de Janeiro (Galeão International Airport). The flights will arrive in Santo Domingo (Las Americas Airport), where passengers will be transferred to flights to their final destinations, Orlando and Miami.

Gol is awaiting all the necessary authorizations before disclosing any details about the new operation, including information about fares, services and products.

Copyright Photo: Bernardo Andrade. Boeing 737-8EH PR-GTY (msn 34273) prepares to taxi to the runway at Santos Dumont Airport in Rio de Janeiro.

Gol Transportes Aereos: