Gol Linhas Aereas Inteligentes to acquire rival Webjet Linhas Aereas Economicas
The Wall Street Journal Friday reported that Gol Linhas Aereas Inteligentes, Brazil's second-biggest airline, confirmed Friday it will acquire rival low-cost carrier Webjet Linhas Aereas Economicas for 96 million Brazilian reais ($61.53 million.)
The accord reached with Webjet's controllers is subject to technical and legal analysis of Webjet's activities and assets as well as approval by antitrust authorities, Gol said in a statement.
According to civil aviation agency Anac, Gol currently operates about 38% of Brazil's domestic flights and 12% of international flights. Webjet, meanwhile, has about 5.4% of domestic flights and a negligible share of international routes, reported the Journal.
According to the Wall Street Journal, analysts Friday reiterated they expect the proposed deal to get the green light from competition authorities as together the two companies will still control about 40% of the Brazilian market, which is less than Gol's main competitor in Brazil, Tam SA (TAMM4.BR), which has a 42% market share.
Webjet was created in 2005 and taken over in 2007 by GJP Participacoes, a holding company headed by Guilherme Paulus. Paulus is the founder of tourism agency CVC, which is expected to raise $1 billion in an IPO later this year after being taken over by private equity group Carlyle in 2010, indicated the Journal report.
In just nine years GOL has increased its fleet from 6 to 108 aircraft, establishing itself as one of the fastest growing low-cost, low-fare airlines in the world. The company currently offers the most extensive and convenient routes in South America: there are about 860 daily flights to 61 destinations in ten countries.
Combined with over 30 operational partnerships with foreign companies, GOL's route network is among the best serving customers traveling to, from and within Brazil.
A large portion of the company's clients are flying for the first time: since GOL's fares are often competitive with bus fare, every year more Brazilians and South Americans gain access to flying - statistically the fastest, most convenient an safest mode of travel.
With a constant focus on reducing costs, the company's strategy is based on profitable growth through a low-cost and high quality structure for providing service to clients. Through this business model, GOL revolutionized the Brazilian airline industry and became a benchmark in the international market.
In accordance with its corporate objectives, GOL once again revolutionized Brazilian aviation when it acquired VRG Linhas Aéreas, operating the VARIG brand, on March 28, 2007.
10th July 2011
http://investinbrazil.biz/news/gol-...re-rival-webjet-linhas-aereas-economicas-64b2
