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Gol Spreads Its Brazilian Wings Through South America

Brazilian low cost airline Gol is beginning flights to Bolivia next Monday November 7 and to Montevideo, Uruguay and Asuncion, Paraguay before the end of 2005, announced company officials in São Paulo.

Gol, which flies under the "low cost, low rates" system said the hub for the air link with Santa Cruz, Bolivia, will be Campo Grande, Mato Grosso do Sul state, and from there to the rest of Brazil.

A spokesperson for the company also revealed that last May Gol was authorized to begin regular commercial flights to Montevideo and Asunción, the capitals of Mercosur smaller country members.

"We expect to be flying to these new international destinations before the year is over".

The Uruguay and Paraguay operations are a further step in the South American continent expansion policy of Gol airlines which already includes 41 air links between Brazil and Argentina.

Uruguay with 3.4 million population and a US$ 14 billion GDP is the third country in the region with most air traffic with Brazil totaling 252.000 passengers in 2003 equivalent to 10,6% of all passenger traffic between Brazil and the rest of South America. Paraguay with a 5.8 million population and 145.000 passengers traffic with Brazil in 2003 ranks fifth.

Gol finances are also encouraging with profits reaching US$ 62 million in the third quarter, 42,6% over the same period in 2004 and 88,3% higher than the second quarter. Net revenue in the third quarter was US$ 310 million, a 37% expansion over the third quarter of 2004.

With the incorporation of four additional Boeing 737, totaling a fleet of 39, the supply of seats increased 56,4% in the third quarter. The company has plans to acquire another three aircrafts by the end of the year.

"We’ve made flying popular, we’ve extended the "Gol effect" to Brazil and South America by expanding our business, with technological innovation, operational efficiency, quality service and a disciplined control of costs and rates", said the company’s CEO Constantino de Oliveira Junior.

This article appeared originally in Mercopress – www.mercopress.com.

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