Gol announced (13-Mar-2012) it has made a formal request to the Brazilian Civil Aviation Agency (ANAC) to operate regular services between Brazil, Venezuela and the US. Gol will operate five times weekly São Paulo Guarulhos-Caracas-Miami service with Boeing 737 equipment if it receives approval. [more - original PR]
Gol submits request to operate regular services to the US
You may also be interested in the following articles...
Struggling Brazilian LCC Gol places its financial fate in the hands of bondholders
Brazil’s political unrest and severe economic deterioration have essentially closed off credit markets to companies based in the country. One of its largest airlines, Gol, was fighting losses as Brazil’s economy started its slow downward trajectory, beginning in 2012. By mid-2015 Gol was forced to undertake a restructuring that included equity injections, renegotiating with suppliers, and, more recently, an attempt to restructure unsecured bonds, which the company stresses is crucial for completing all the facets of its restructuring.
Aside from attempting to create a reasonable financial foundation to weather the economic crisis, Gol continues to cut its capacity and has suspended eight routes in its network. However, Gol argues that its smaller Brazilian competitors have continued to expand their capacity, which has offset the benefits of capacity reductions undertaken by Brazil’s largest airlines – TAM and Gol.
Gol has suffered on all fronts from Brazil’s economic crisis, which shows no signs of improving for at least two more years. It is tough to predict the composition of Brazil’s aviation industry at that time, but Gol, with some help from its partner Delta, is working feverishly to ensure that it retains its leadership position in the market once the recovery begins.
Copa Airlines sees positive trends for Latin American demand. A full recovery remains distant
Panama’s Copa Airlines is joining other Latin American airlines in expressing cautious optimism that some negative trends in the region are starting to stabilise, after a tough couple of years of challenging economic conditions. Copa, in particular, believes that weakened demand is beginning to improve, driven in part by some currencies within Latin America that are strengthening against the USD.
For 2H2016 Copa is continuing to post stronger close-in bookings that began to improve in 2Q2016, which is a positive sign for airlines operating in the region. Some of the upswing in bookings stems from capacity reductions by most Latin American airlines, to right-size supply with demand. That capacity discipline should continue in 2017, since all of the region’s major airline groups have worked to defer aircraft deliveries in order to maintain a proper supply-demand balance and lower capex commitments.
Similarly to other Latin American airline groups, Copa has worked to shore up its balance sheet to withstand overall economic weakness in many of its markets. Its cash balances at the end of 2Q2016 increased from the first quarter, and its leverage was the best among some of Latin America’s publicly traded airlines.