GOL Linhas Aereas Inteligentes S.A. (GOL) has approached the National Civil Aviation Agency (ANAC) for permission to increase its operations at Viracopos Airport, in Campinas. The company plans to start six new daily flights from the city in Sao Paulo, including five to Santos Dumont/RJ and one to Brasília, from Sep 1.
With a bigger operating base in Campinas airport, GOL Linhas intends to attract passengers from cities such as Limeira, Jundiaí, Piracicaba, Itu and Sorocaba. The company targets to connect the southeastern region of Brazil with the rest of the country via Campinas.
In this respect, GOL Linhas contemplates operating buses from the neighboring cities of Campinas to make the city airport easily accessible. Equipped with wifi connectivity, these buses will ensure the timely and safe arrival of passengers.
We appreciate Brazil’s first low-fare airline’s efforts increase its foothold in the aviation market with enhancements in domestic as well as international operations. Over the last few months, the company has raised the number of cities served and inaugurated terminals to ensure better service and convenience of clients.
In the coming quarters, we expect GOL Linhas to perform impressively based on its route expansion measures, lucrative acquisitions and collaborations with other prominent market players such as Delta Air Lines Inc. (DAL). Further, the company’s focus to curb the effect of fuel price increases as well as maintain a low cost structure is likely to increase profitability.
However, various risk factors such as competitive threats, international business risks, increased aircraft maintenance costs and lower demand remain nagging concerns. The company’s domestic activities also face the brunt of transfer of domestic capacity to overseas routes and the freeze of The Boeing Company’s (BA) 737-300 aircraft services, following the suspension of Webjet operation.
GOL – which operates with other industry players such as Copa Holdings SA (CPA) – has a Zacks Rank #3 (Hold).
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