Gol nears the end of a crucial debt overhaul, but challenges in Brazil still loom large

During the past year the Brazilian airline Gol has been engaged in a comprehensive restructuring plan, creating a more stable capital structure to withstand Brazil’s tough economic downturn. The company is in the final stages of that restructuring, which has entailed reworking its aircraft order book and shrinking its fleet; advancing ticket sales with its frequent flyer supplier; and making an attempt to restructure international bonds that received a tepid reception from the market.

The comprehensive restructuring is designed to create stability for Gol as it faces the economic realities ushered in by Brazil’s recession, and to sustain its leading competitive position against its rivals in the intense Brazilian market. Although Brazil’s largest airlines Gol and TAM continue to shrink their domestic capacity, other airlines are continuing to grow capacity in Brazil’s troubled domestic market.

Gol has also undertaken network changes to improve connectivity throughout Brazil from the airports it serves in São Paulo and Rio de Janeiro. This action is to improve its positioning among corporate clients, a positioning that remains important over the long term despite continued weakness in that passenger sector.

This CAPA Premium Analysis article is 1,365 words.

To access CAPA Premium Analysis you need a CAPA Membership

Your window into the latest insights

CAPA employs an industry-leading Analyst team based in Europe, North America, Asia and Australia who offer unique perspectives and independent and accurate commentary of critical industry developments globally. CAPA Members rely on our Analysis to unlock valuable insights and actionable intelligence to keep ahead of the game.

Big picture strategic view

Our Analysts don’t just report the news - they take a big picture strategic view of aviation dynamics, issues and trends and analyse the implications of these developments for you.

Global intelligence

The CAPA Analyst team is based globally to ensure our CAPA Members have access to independent, unique perspectives covering an entire spectrum of daily, worldwide commercial aviation developments.

Customise your Alerts

CAPA Members can use CAPA Alerts to receive daily, weekly or monthly and customised updates on our Analysis.

I'm very impressed by the factual and detailed analysis CAPA is always doing.

- CEO, Airline Member
To learn more, contact us:
Phone: +61 2 9241 3200 | Email: membership@centreforaviation.com