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GOL focussed on profitability; does not expect to remain as Brazil's largest domestic airline

4-Apr-2011 2:58 PM

GOL CEO Constantino de Oliveira stated the company is focussed on profitability and does not expect to maintain its recently attained status as Brazil's largest domestic carrier (Reuters, 01-Apr-2011). Mr Oliveira added that GOL does not plan any mergers or acquisitions to keep pace with recent expansion by TAM. Mr Oliveira said GOL would continue to focus on lowering fares and taking other steps to appeal to Brazil's growing middle class. He forecast that Brazil's domestic passenger traffic will continue to grow at a double-digit pace. The carrier has no plans to add new Latin American destinations in 2011. 

GOL: "Leadership (in the market) is important, but we have to pay our bills every day. We're seeing a reaction by our competitor ... to rebalance the equation. We're not going to give up profitability to maintain our leadership," he added. He said the company would continue to control costs, though he did not see any major new cost-cutting moves on the near horizon," Constantino de Oliveira, CEO. Source: Reuters, 01-Apr-2011.