Brazil’s Gol Airline Merges Varig and Gol, But Keeps Both Brands

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Gol and Varig planes side by side Brazilian airline Gol Linhas Aéreas, which controls Gol and Varig announced this Wednesday, July 30, that it submitted to Brazil's National Civil Aviation Agency (ANAC) a request for authorization for a corporate restructuring of its subsidiaries to combine them into a single company.

The acquisition in March 2007 of the once flagship airline Varig by Gol was approved by Cade, the Brazilian Antitrust Agency on June 25.

The proposed reorganization, says Gol in a press release "aims to improve Gol's operational structure, will provide more efficient air transportation services through the integration of GTA (Gol Transportes Aéreos) and Varig's operations as the company explores synergies, broadens and improves service offerings."

"It will simplify the corporate structure of Gol's subsidiaries, maximizing administrative efficiencies, optimizing revenues and reducing financial and operational costs, besides greater operational flexibility."

Gol vows that all current rights and obligations of both companies will be respected and the brands Gol and Varig should be maintained separately.

The final reorganization is dependent upon ANAC's approval, under the terms of Article 186 of the Brazilian Aeronautics Code and other conditions. Gol says it will continue to release information regarding ANAC's decision and while it starts to implement the proposed changes.

Gol offers over 640 daily flights to 56 destinations connecting the most important cities in Brazil as well as the main destinations in South America. Varig offers over 120 daily flights to 14 destinations in Brazil.

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