(Bloomberg) – Brazilian AirLine Gol Linhas Aéreas Intelates SA is Ramping Up International Examination as Part of a Strategy to Boost Growth and Reduce Dependence Chief Executive Officer Celco Ferrer said in an interview.
The Company Wants a Quarter of its business to come from outside the country to offset risks like currency flutations and fuel cost pressures, which LED GOL and MOST OF MAST of Its Major Peers to the person’s money From creditors in past few years. Azul sa, which was looking to merge with gol, filed just last week.
“If today i’m not finding enough passengers here in brazil, I’ll pick them up in bunos aires,” The Ceo said. The move will also allow it to tap “broader demand pools” as high interest rates and inflation limit consumer Spending in Latin America’s Larget Economy, he added.
The company currently gets about 20% of its total capacity from 16 international routes, Most of which are in Latin America. Gol is expected to begin flying to CARACAS, Venezuela in August, According to Ferrr.
Gol Filed For Chapter 11 in January 2024, Capping Its Ill-FATED EFFORTS to Bounce Back from the Covid-19 Pandemic after Completing Some 10 Liability MANAGENT EXERCINE EXERCINE EXERCINE.
The airline exited the process this week with a leverage of 5.4 times a measure of earnings. That’s higher than the 4.7 times in net leverage it reported in the first quarter of 2024. Ferrr acnowledgeed the number is still elevated, and said Gol has a “Clear Plan” to Lower for 50% by 2027.
Gol’s plans include improvement operations and earnings, and not taking on more debt, he added. The ceo also said the company has a “robust” liquidity position of Around $ 900 Million Upon EXIT, and that it was able to extend to extended its debt maturrities in the process.
The Carrier’s Shares Have Gained Around 17% Since May 20, After Gol Announced It Expend to Exit Chapter 11 in June.
Fallout from the Pandemic, Persistent Inflation and High Interest Rates Tol a Toll on Latin American Airlines. Major Regional Carriers Latam Airlines Group, Avianca Holdings Sa and Grupo aeromexico sab filed for bankruptcy in the us in 2020.
Brazilian carriers were Hit Particularly Hard by a Mismatch in Revenues in Local Currencies and Dollar-Denominated Costs Like Fuel, Leases and Foreign Debt. They also didn’t receive any aid from the government.
President Luiz Inacio Lula Da Silva Pushed for a Rescue Plan for Struggling Airlines in 2024. Companies. Government Officials have said they still expect the money to come through in the next three months.
“Today we’ve restructured our debt so we don’t depend on the government,” Ferrer said, adding
If the money is Ultimately made available, Gol would be open to swapping out more expensive debt for lower-cost Financing from Brazil’s National Development Bank, KNOWN AS BNDES, HE. After the chapter 11 process, Gol is eligible to access government finance agan.
“What Sets Brazil Apart, What puts brazilian airlines at a disadvantage, is the cost of capital,” ferrr said, adding that gol is working closely with the government and other workers through the trade. Make this a “Structural ageda.”
“This needs to be a national policy – Fair, Transparent, and Not Favoring One Airline over another,” he added.
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