Brazilian low cost carrier GOL is closing down its Webjet subsidiary,
returning all 20 of the carrier’s Boeing 737-300s and laying off 850
employees.
Announcing the closure Friday, GOL said, “Webjet has an operational model based on a fleet that mostly consists of aging Boeing 737-300 aircraft that are advanced age, technologically out of date and consume large amounts of fuel. Given the Brazilian sector’s new cost standards, this model is no longer competitive.
The company said all flights booked with Webjet would be accommodated by GOL. The company said it expected to see a non-recurring increase in costs in the fourth quarter of 2012 related to the shutdown, but that operational efficiencies would improve in 2013 as a result of these measures. The company reported a third-quarter net loss of R$309.4 million ($149.6 million) earlier this month (ATW Daily News, Nov. 16).
Webjet’s fleet of 737-300s will be returned by the end of the first half of 2013, 16 of them in the first quarter.
“Thanks to the smaller fleet, GOL expects to reduce its domestic supply (ASK) by between 5% and 8% year-on-year in the first half of 2013, underlining its commitment to recovering its operating margins and the sustainability of the business,” the company said in a statement.
Announcing the closure Friday, GOL said, “Webjet has an operational model based on a fleet that mostly consists of aging Boeing 737-300 aircraft that are advanced age, technologically out of date and consume large amounts of fuel. Given the Brazilian sector’s new cost standards, this model is no longer competitive.
The company said all flights booked with Webjet would be accommodated by GOL. The company said it expected to see a non-recurring increase in costs in the fourth quarter of 2012 related to the shutdown, but that operational efficiencies would improve in 2013 as a result of these measures. The company reported a third-quarter net loss of R$309.4 million ($149.6 million) earlier this month (ATW Daily News, Nov. 16).
Webjet’s fleet of 737-300s will be returned by the end of the first half of 2013, 16 of them in the first quarter.
“Thanks to the smaller fleet, GOL expects to reduce its domestic supply (ASK) by between 5% and 8% year-on-year in the first half of 2013, underlining its commitment to recovering its operating margins and the sustainability of the business,” the company said in a statement.
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