Businessweek

Gol Linhas Aéreas Inteligentes S.A. provides regular and non-regular air transportation services of passengers, cargo, and mailbags, domestically or internationally. The company also provides complementary activities of air transport service provided in its bylaws. As of March 31, 2013, the company offered approximately 970 daily flights to 65 destinations connecting primary cities in Brazil, as well as major destinations in Argentina, Bolivia, Paraguay, Uruguay, Venezuela, the U.S., and the Caribbean region. Services Passenger Transportation The company recognizes that it must offer services to its corporate and leisure customers. It pays particular attention to the details that help to make for a pleasant, complication-free flying experience, including ticketless travel; convenient online sales, check-in, seat assignment and flight change and cancellation services; high frequency of flights between Brazil’s primary airports; low cancellation and high on time performance rates of its flights; online flight status service; Web-enabled cell phone ticket sales and check-in; self check-in at kiosks at designated airports; designated female lavatories; in-flight service; modern aircraft interiors; quick turnaround times at airport gates; free or discounted shuttle services between airports and drop-off zones on certain routes; buy on board services on certain flights; mobile check-in and boarding pass (100% paperless boarding); iPhone application for check-in, electronic boarding pass and Smiles account management; and in-flight entertainment (Gol in the air) provided through passengers’ personal communications devices. Ancillary Revenues and Gollog Cargo Transportation The company makes use of extra capacity in the stronghold of its aircraft by carrying cargo, through its cargo transport service – Gollog. Gollog’s success is the result of the service that the company offers to the market, the Electronic Air Waybill that could be completed online. The Gollog system provides online access to air waybills and allows customers to track their shipment from any computer with Internet access. The company’s 65 destinations throughout Brazil, South America, the United States, and the Caribbean provide access to multiple locations in each region. With its capacity of approximately 970 daily flights, operated by 125 Boeing 737-700/800 aircraft, in addition to a fleet of 147 vehicles, the company could guarantee delivery. The company’s express delivery products – Gollog VOO CERTO, Gollog EXPRESS, Gollog DEZ HORAS, and Gollog DOC – are developed to meet the improving demand for door-to-door deliveries, defined deadlines, and additional optional services. Aircraft Fleet In 2012, the company had an operational fleet of 125 aircraft and a total fleet of 147. As of December 31, 2012, of its total 147 aircraft, 96 were under operating leases, 45 were under finance leases, and 6 were owned by the company. Its operating leases had an average remaining term of 65 months and original total terms of approximately 144 months from the date of delivery of the relevant aircraft. Its finance leases had an average remaining term of 96 months and the company had purchase options for 39 of its aircraft under finance leases. Non-operating Fleet As of December 31, 2012, the company had a non-operating fleet consisted of 19 B737-300 aircraft, resulting from the acquisition of Webjet Linhas Aéreas S.A., and 3 B767-300, all of which were grounded at the time. Sales and Distribution The company’s customers could purchase tickets directly from the company through various channels, such as its Website, including its Booking Web Services, its call center, at airport ticket counters, and global distribution system. Its customers could purchase tickets indirectly through travel agents, who are a travel service resource in Brazil and South America, Europe, North America, and other regions. For the year ended December 31, 2012, travel agents provide the company with approximately 30.000 distribution outlets throughout these regions. Partnerships and Alliances The company has a strategic maintenance, repair and operations partnership agreement with Delta TechOps, the maintenance division of Delta Air Lines Inc., which would provide overhaul service for approximately 50% of its CFM 56-7 engines, maintenance for parts and components on its fleet of Boeing 737NG aircraft, and also consulting services related to maintenance workflow planning, materials and facility optimization and tooling support. Strategy The company’s strategy is to increase its market share by attracting new passengers and business travelers, as well as to diversify its revenue portfolio through its consolidated flight network, a modern aircraft fleet, targeted marketing, and its loyalty program Smiles (a loyalty program in Latin America with approximately 9.0 million members and 150 partners, as of December 31, 2012); various attractive ancillary businesses (cargo and other), such as its air cargo services (Gollog); and various payment mechanisms designed to make the purchase of its tickets easier for customers in lower income classes. The company’s strategies are to capitalize on its strong market position in Brazil and Latin America; improve operating efficiency; expand its customer base; strengthen its Smiles program; expand its airline partnerships; and further innovate, establish, and increase its ancillary revenue businesses. Competition The company’s major competitor in Brazil is LATAM Airlines Group. History Gol Linhas Aereas Inteligentes S.A. was founded in 2001.