GOL investment signals Delta’s Latin American commitment
by Aaron Karp December 7th, 2011
Delta Air Lines (DL) president Ed Bastian was a prominent figure at last month’s Latin American and Caribbean Air Transport Assn. (ALTA) Airline Leaders Forum in Rio de Janeiro, delivering an upbeat address and hobnobbing with Latin American airline executives. He said the region is “a key” to DL’s future growth, especially with growth elusive in the US domestic market, where DL and other carriers continue to stick with the “staying disciplined” mantra on capacity even as revenue rises and profits appear healthy.
DL’s rhetoric about the Latin American market was backed up with action Wednesday when it announced that it has signed a binding agreement to invest $100 million in GOL to gain preferred shares in the Brazilian airline and a seat on the GOL board of directors. DL already has a similar arrangement with Aeromexico.
DL operates 1,000 weekly flights to 52 destinations in Latin America. Expanded codesharing and flight schedule coordination with GOL, part of the investment agreement, will give DL’s passengers greater access to the Brazilian domestic market.
“Five years ago, Delta was a US carrier that served global destinations,” Bastian told the ALTA conference. Now it is aiming to be “a global airline that serves the US.” He pointed out that 75% of air travel to/from Latin America is “concentrated” in the eastern half of the US, “making [DL main hub] Atlanta the ideal gateway.”
“The US industry and Delta specifically have gone through a remarkable period of change [characterized by consolidation and cost-cutting] which puts us in a position to compete globally,” Bastian said in Rio. “Our desire to grow in Asia and Latin America is unabated.”
http://blogs.atwonline.com/2011/12/07/gol-investment-signals-deltas-latin-american-commitment/
Delta Air Lines (DL) signed a binding agreement to invest $100 million in GOL to gain preferred shares in the Brazilian airline and a seat on the GOL board of directors.
As part of the agreement, announced Wednesday, the carriers expanded their codesharing relationship and pledged to coordinate flight schedules to better facilitate the transfer of passengers and cargo in Brazil. GOL, which has moved to an all-737NG operating fleet, will also transfer its two remaining 767s to DL.
DL CEO Richard Anderson said, "By forming a long-term commercial partnership, we will capitalize on the strengths of our two networks to provide expanded customer benefits and better serve the US-Brazil marketplace."
GOL CEO Constantino de Oliveira Jr. added, "The agreement is in line with GOL's strategy of seeking out long-term partnerships and strengthening its capital structure … Our customers will benefit from additional flight options, more flexibility and new products and services." He told analysts and reporters that the agreement with DL does not include any language regarding GOL potentially joining SkyTeam. "We are remaining independent … [with] strong bilateral agreements outside of an alliance," he said.
by Aaron Karp December 7th, 2011
Delta Air Lines (DL) president Ed Bastian was a prominent figure at last month’s Latin American and Caribbean Air Transport Assn. (ALTA) Airline Leaders Forum in Rio de Janeiro, delivering an upbeat address and hobnobbing with Latin American airline executives. He said the region is “a key” to DL’s future growth, especially with growth elusive in the US domestic market, where DL and other carriers continue to stick with the “staying disciplined” mantra on capacity even as revenue rises and profits appear healthy.
DL’s rhetoric about the Latin American market was backed up with action Wednesday when it announced that it has signed a binding agreement to invest $100 million in GOL to gain preferred shares in the Brazilian airline and a seat on the GOL board of directors. DL already has a similar arrangement with Aeromexico.
DL operates 1,000 weekly flights to 52 destinations in Latin America. Expanded codesharing and flight schedule coordination with GOL, part of the investment agreement, will give DL’s passengers greater access to the Brazilian domestic market.
“Five years ago, Delta was a US carrier that served global destinations,” Bastian told the ALTA conference. Now it is aiming to be “a global airline that serves the US.” He pointed out that 75% of air travel to/from Latin America is “concentrated” in the eastern half of the US, “making [DL main hub] Atlanta the ideal gateway.”
“The US industry and Delta specifically have gone through a remarkable period of change [characterized by consolidation and cost-cutting] which puts us in a position to compete globally,” Bastian said in Rio. “Our desire to grow in Asia and Latin America is unabated.”
http://blogs.atwonline.com/2011/12/07/gol-investment-signals-deltas-latin-american-commitment/
Delta Air Lines (DL) signed a binding agreement to invest $100 million in GOL to gain preferred shares in the Brazilian airline and a seat on the GOL board of directors.
As part of the agreement, announced Wednesday, the carriers expanded their codesharing relationship and pledged to coordinate flight schedules to better facilitate the transfer of passengers and cargo in Brazil. GOL, which has moved to an all-737NG operating fleet, will also transfer its two remaining 767s to DL.
DL CEO Richard Anderson said, "By forming a long-term commercial partnership, we will capitalize on the strengths of our two networks to provide expanded customer benefits and better serve the US-Brazil marketplace."
GOL CEO Constantino de Oliveira Jr. added, "The agreement is in line with GOL's strategy of seeking out long-term partnerships and strengthening its capital structure … Our customers will benefit from additional flight options, more flexibility and new products and services." He told analysts and reporters that the agreement with DL does not include any language regarding GOL potentially joining SkyTeam. "We are remaining independent … [with] strong bilateral agreements outside of an alliance," he said.
