Gol sees 'promising environment' in Brazil despite recent TAM disaster

By Aaron Hochman-Zimmerman

New York, Aug 9 - Gol Intelligent Airlines Inc. is optimistic about future prospects in its home market despite the recent TAM Airlines SA crash in Sao Paulo which killed 199 people and sparked popular protests over air safety measures.

Gol president and chief executive officer Constantino de Oliveira Junior conceded that Brazil's airline industry has suffered the "negative impact of the news of [July 17]," he said of the disaster.

However, "we strongly believe in Brazil's promising environment," he said during the airline's earnings conference call.

Up to 10% of Gol's passengers are first-time fliers, de Oliveira Junior said, noting that there is a largely unpenetrated market for air travel in South America.

In June Gol finalized agreements with Delta Airlines Inc. and Continental Airlines Inc. which will allow passengers to book tickets for their connecting flights through the major American carriers, de Oliveira Junior said.

"We also have room to improve," said de Oliveira Junior.

Currently Gol maintains a fleet of 88 aircraft, but expects to end the next quarter with 97 and 143 aircraft by 2012.

Gol posted second quarter revenue of 1.2 billion reais but a net loss of 35 million reais.

The company recently acquired fellow airline VRG Airlines SA and holds 1.8 billion reais in liquidity and short-term investments, which is 203 million reais fewer than in the first quarter.

"We do plan to maintain our current cash balances," said Richard Lark, Gol's executive vice president and chief financial officer.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.