Brazilian airlines Gol, to start flights between Brazil and the United States

Goal prepares its entry in the market of scheduled flights between Brazil and the United States. This month, the National Civil Aviation Agency of Brazil (ANAC) has granted the company the right to operate 14 weekly flights in the stretch. The plan to return to long-haul routes, abandoned soon after the acquisition of Varig, in 2007, contradicts the speech repeated like a mantra until recently by the company.

In recent years Gol has reaffirmed that their priorities are domestic and international medium-haul, restricted to flights to South America and the Caribbean. Soon after acquiring Varig, the company came to operate flights to destinations such as Frankfurt, Paris, London and Mexico City, but decided to extinguish the routes. With oldfashioned aircrafts that consumed too much fuel, Gol ultimately failed in this enterprise. The lack of a strategy of differential pricing and services was also identified as an obstacle to the success of the company in this segment. In 2009, the airline also operated some charter flights to Orlando, United States.

If they really start these operations, Gol will enter a segment of higher profitability in the airline industry. “Usually, the margins are higher on longer routes. You can dilute its fixed costs on flights of longer duration, “explains Professor Marcio Migon, MBA in Logistics at the Getulio Vargas (FGV).

GOL confirmed on Wednesday, 29 of february, the interest in returning to work in this market, but gave no details of their plan. “GOL informs that as a competitive company it is always evaluating opportunities that add to business results and benefits to customers,” said in a statement. One of the questions is whether the company will use the Varig brand. Another open question concerns the type of plane that would be used on routes to the United States. Today, the Gol aircrafts do not have capacity to fly nonstop to the US from Brazil.

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Joe Cloud
Dutch, American, Brazilian... lived there for 5 years and owns property in Brazil. Out of the country for a few years now and would like to go back, however current circumstances tell me it's not the right time.