Gol Linhas Aéreas Inteligentes S.A., Brazil’s no-frills airline, announced yesterday that it has signed an exclusive memorandum of understanding setting forth the Company’s intent to establish a low-cost carrier (LCC) in Mexico.
Inversiones y Tecnicas Aeroportuarias, S.A. de CV, Fernando Chico Pardo and CPH are the Mexican partners of Gol. Inversiones y Tecnicas Aeroportuarias is known for investing in aviation-related ventures.
Gol and its Mexican partners have initiated plans to create a Mexican LCC based on the model Gol currently operates in Brazil.
Gol launched its innovative low-cost, low-fare service in Brazil in January 2001, and is now the country’s second largest domestic airline, transporting over one million passengers per month.
The Mexican domestic civil aviation market transports almost 30 million passengers per year, and is the second largest in Latin America after Brazil.
The Mexican domestic air travel market has many similarities to the Brazilian market, including large, under-served cities, extensive geographic distances and traditionally high fares.
“Through our Mexican partnership, we plan to introduce the benefits of low-cost, low-fare air travel to Mexico, and collaborate in the development of the local airline sector.
“We believe that the Gol concept and business model can be successfully established in the Mexican market and produce benefits for all segments of the population,” said Constantino de Oliveira Junior, Gol’s CEO.
Over the coming months, Gol and its Mexican partners will work to complete a shareholders agreement and begin applying for the necessary licenses to own, manage and operate an LCC in Mexico, as set forth in Mexican Aviation Law and other applicable regulations. Plans are to commence flights in the Mexican market in the second quarter of 2006.
Gol Linhas Aéreas Inteligentes, a “low-cost, low-fare” airline, is one of the most profitable and fastest growing airlines in the industry worldwide.
Gol operates a simplified fleet with a single class of service. It also has one of the youngest and most modern fleets in the industry that results in low maintenance, fuel and training costs, with high aircraft utilization and efficiency ratios.
In addition, safe and reliable services, which stimulate Gol’s brand recognition and customer satisfaction, allow Gol to have the best value proposition in the market.
Gol currently offers over 350 daily flights to 42 major business and travel destinations in Brazil and Argentina, with substantial expansion opportunities.
In 2005, Gol plans to grow by increasing frequencies in existing markets and adding service to additional markets in both Brazil and other high-traffic South American travel destinations.
Gol Linhas Aéreas Inteligentes S.A. – www.voegol.com.br
