Brazil - Brazzil Mag - Brazil's Gol Hopeful Final Merger with Varig Will Bring Back Blue Skies
Advertisement
  Wednesday, 02 December 2009 
Main Menu
Home
News
Back Issues
Advertising
Contact Us
Brazil Forum
Magazine
Brazzil Classic
Yellow Pages
Classifieds
Images
BrazzilMag Newsfeed
Custom Search
Amazon Body Care
-------------
Brazil /Organic personal skin care wholesale / Brazil
--------------
Who's Online
We have 139 guests online
Latest News
Statistics
Members: 494
News: 11493
Web Links: 0
User Menu
Your Details
Submit News
Check-In My Items
My Comments
Login Form





Lost Password?
No account yet? Register
Most Read
Related Items
Contribution
Have you got news?

Do you have news, comment or story on Brazil you want to share with Brazzil? Just send it our way to brazzil@brazzil.com.

 
The Latest from Brazzil Magazine
Home
Brazil's Gol Hopeful Final Merger with Varig Will Bring Back Blue Skies PDF Print E-mail
Written by Newsroom   
Friday, 27 June 2008

Two Gol planes surround Varig vessels Cade (Conselho Administrativo de Defesa Econômica - Administrative Council for Economic Defense), Brazil's antimonopoly agency, has finally approved the takeover of the once Brazilian flag carrier Varig by the low fare airline GOL, an operation which took place last year.

"The operation does not present anti competition effects," said the official release from the Cade office.

With the incorporation of Varig, Gol will now dominate 45% of the Brazilian air domestic market compared to the 49% of TAM, its main rival, according to the latest May data.

Varig, which for decades was Brazil's main airline in 2006 definitively went bankrupt and asked for protection from creditors after Brazilian President Luiz Inácio Lula da Silva's administration refused to grant the highly indebted company a support loan

In July 2006 the few assets of Varig were auctioned and acquired by the US fund Matlin Patterson which paid US$ 24 million. In March 2007, Gol purchased the fund's rights for US$ 320 million.

However taking over Varig has not been without problems for the once very profitable Gol low cost carrier.

"The only reason Gol is losing money is because the holding company reports include Varig which is the big money loser. Gol itself is still profitable," pointed out Robert Booth, chairman of US based consultancy AvGroup.

Gol Linhas Aereas Inteligentes SA posted a first quarter loss of 3.5 million Brazilian reais (US$ 2 million) after revenues of 1.6 billion reais (US$ 1 billion),reported President and CEO Constantino de Oliveira Júnior.

But in spite of the losses, Oliveira Junior said that Gol "remains committed to transparency and equality among all shareholders and the public".

The Cade approved the completion of the Varig acquisition by GOL Linhas Aéreas Inteligentes S.A. with no restrictions, allowing the Company to consolidate its passenger and cargo transportation.

"We are very happy to have received Cade approval, which will allow us to consolidate our investments and improve synergies between the airlines' operations," Oliveira Junior. 

"The addition of Varig will increase our network capacity and allow us to offer more convenient flight schedules, launch new routes and add service to new destinations, which will have a positive effect on the dynamics of the Brazilian aviation industry as a whole.  Most importantly, the acquisition will benefit our customers, who will now have access to more options in the market."

The acquisition of Varig, which was announced on March 28, 2007, and approved by the National Civil Aviation Agency (ANAC) on April 3, 2007, had already received favorable rulings from the Ministry of Justice's Secretary of Economical Law (SDE), the Ministry of Finance's Secretary of Economical Monitoring (SEAE) and Cade's Public Attorney.

Mercopress/Bzz

Hits: 3482
Comments (2)Add Comment
""The operation does not present anti competition effects," WRONG !
written by ch.c., June 27, 2008
It is your Government who decides what air fares can be practiced.
Therefore Brazilian airlines are NOT working in a competitive environment.
report abuse
vote down
vote up
Votes: +0
Trip and Azul
written by Colin Brayton, June 28, 2008
It is odd to see the Newsroom writing about the competitive climate in Brazilian aviation without mentioning either TRIP Airlines or AZUL (from Jet Blue founder Neelman.) They count, too, don't they?

It's like writing the story of the Three Little Pigs and leaving out the houses of wood and brick.

Are you guys really paying attention?
report abuse
vote down
vote up
Votes: +0

Write comment
quote
bold
italicize
underline
strike
url
image
quote
quote
smile
wink
laugh
grin
angry
sad
shocked
cool
tongue
kiss
cry
smaller | bigger

security code
Write the displayed characters


busy




Reddit!Del.icio.us!Facebook!Slashdot!Netscape!Technorati!StumbleUpon!Newsvine!Furl!Yahoo!Ma.gnolia!Add this social bookmarking functionality to your website! title=
 
< Prev   Next >
Brazzil Magazine on Twitter


Visit Brazzil Social with Video, Music and Chat


Home
Brazzil Magazine - Since 1989 trying to understand Brazil
  • Brazil Engaged in Another Olympics: Reshaping Its Image Before Games Open


    Economist's cover on BrazilBrazil received a huge boost in its international image with its selection as the host of the 2016 Olympics, but it was really just the cherry on top of the overall recognition of the country's ascension to the ranks of one of the world's most important countries. Now, as it finally takes its place on the world scene, there has been a great deal of concern about what kind of image Brazil hopes to project, now that the world is really paying attention.

  • Iranian Leader's Visit to Brazil Takes the Gloss off Lula's International Image


    Ahmadinejad meets LulaThe only good thing to say about the visit to Brazil of Iran's president, Mahmoud Ahmadinejad, on Monday November 23, is that it was mercifully short and lasted less than 24 hours. Ahmadinejad had his picture taken being hugged by president Luiz Inácio Lula da Silva who gave him a warm welcome and said Iran had every right to develop nuclear energy for peaceful purposes.

  • Poor Women from Northeast Brazil Learn Joy of Meeting and Helping Each Other


    Joined hands The small, coastal town of Condé is located just a twenty minute's drive from João Pessoa, the capital of Paraíba. The Northeast of Brazil has historically been a place of encounter and mixing between peoples. For millenia groups of indigenous people fished, farmed, migrated and sometimes fought along this large, fertile area.

  • Ahmadinejad's Visit: Iran, Honduras and Brazil's Hypocrisy in Dealing With Them


    Ahmadinejad and Lula The Brazilian diplo-MÁ-cia (bad diplomacy) carries on its accelerated course towards the non-acknowledgment of human rights, although sometimes it takes pleasure in saying that it does precisely the opposite. The visit of Iran's president, Mahmoud Ahmadinejad, is another example of a diplomatic omission that verges on hypocrisy.

  • Lula Is About to Fulfill His Wish of Getting His Good Friend Chavez in Mercosur


    Lula and Chavez On July 4, 2006, representatives of Argentina, Brazil, Paraguay and Uruguay met in Caracas to sign the protocol for the entrance of Venezuela into the Southern Common Market (Mercosur). After two and a half years, the protocol was approved by the legislative bodies of Argentina and Uruguay, and as of now it may be only days away from being ratified by the continent's economic megalith, Brazil.

  • Denying Education is the Other AIDS. And Brazil Is Guilty of Inflicting It


    Children from a Diadema band Some sectors of the fight against AIDS have suggested that Thabo Mbeki, the former president of South Africa, committed genocide through his absence from the fight against the illness in his country throughout his two terms.

  • Child Labor Went Down in Brazil, But 5 Million Underage Workers Are Still Way Too Many


    Child labor in Brazil One hundred and eleven years after Brazil abolished slavery, the number of workers deprived of their freedom is still huge. They raise cattle, produce charcoal, sugar cane or timber. Some of them, most undocumented Bolivians, work in basements of small apparel factories in São Paulo and other metropolis.

  • Some Humility Would Do Lula Good. On Human Rights Brazil Has Long Way to Go


    A prison in Rio de Janeiro, Brazil On November 7, 2009 a few friends and I had an opportunity to take a look inside a Brazilian jail outside the city of Rio de Janeiro. We were able to take some amateur footage of our experience on video (see link below). It's no surprise, of course, that the typical Brazilian jail lacks some of the functionality of those in North America or Europe, but our experience that day was quite shocking.

  • Brazil's Amazon Rainforest Policy Is a One-Way Road to Disaster


    Trasamazonian road in BrazilDepletion of the Amazon Rainforest is not a new concern facing environmentalists, biologists, ecologists, and a growing number of the Amazonian indigenous peoples. For decades they have feared for the fate of the world's most biologically diverse and species-rich hothouse.

  • Geisy, Brazil's Miniskirt Student, Should Try US College Next Year


    Geisy Arruda from BrazilGeisy Arruda made history this week in Brazil, but for all the wrong reasons. What began as a poorly planned fashion statement has become a worldwide tale. Geisy decided to wear a pink mini-dress to her private college in São Paulo state, and after that, all hell broke loose.