GOL Airlines SWOT: network expansion and cost containment are key in the new competitive era

Brazilian airline GOL holds a special position in Latin American aviation, having ushered in the low cost model in South America during the early 2000s. Since that time it has faced competition from start-ups that have included Azul and a reinvigorated TAM, after its merger with LAN to create the LATAM Airlines Group.

After a recession swept over Brazil in late 2014, GOL was forced to undertake a financial restructuring in 2015 as credit for Brazilian companies dried up. GOL worked to create a more stable capital structure to withstand the downturn so that it could maintain its leading position in GOL's domestic market.

GOL has also evolved its product over the past few years to capture more lucrative corporate customers; it holds a leading share among Brazilian corporate travellers, which puts the airline in a favourable position as the country's economy starts a slow recovery. But GOL also faces formidable challenges, including a heavy reliance on Brazil's domestic market, where competition remains fierce. It also faces rising fuel costs in 2018, which ups the stakes in keeping its non-fuel costs at bay as a means to sustaining low fares.