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

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.

Tags:

Ads

You May Also Like

White Chief’s Gone

A hero and a legend for Brazilians and the Indians he protected for decades, ...

Brazil to Earmark US$ 23 Billion for Science and Technology

Brazil's President, Luiz Inácio Lula da Silva, is expected to launch in November the ...

According to the Music

Since the beginning of the twentieth century Brazilian popular music has reflected the social ...

Brazil Has High Hopes for Mercosur-Arab Accord

The creation of a free trade agreement between the Mercosur, customs union of the ...

Brazil Earmarks US$ 4 Bi to Deal with 7.2 Bi Houses Deficit

This year, Brazil’s federal government will invest US$ 4 billion (11 billion reais) in housing ...

85% of Brazilians Want Their Senate Chief Ousted from Congress

An opinion poll carried out by Ipsos for Brazil's daily newspaper O Estado de ...

Brazil’s Agribusiness GDP Falls 6% in Three Years

In the last three years the Gross Domestic Product (GDP) of Brazil’s agribusiness sector ...

Organic Global Community Gathers in Brazil for BioFach Latin America

Organic products from 12 countries will be presented by 300 exhibitors during the BioFach ...

Brazil Analysts Now Expect Country to Grow no More than 2.72% This Year

In Brazil, for the fourth time in a row, institutions and analysts in the ...

Brazil Bans Chevron from Drilling in the Country While Spill Is Investigated

The ANP (National Petroleum Agency), Brazil’s oil regulator announced it is suspending the drilling ...