Pushes Ahead With Modernization Efforts

Things are tough all over... not just for US airlines. GOL Linhas Aereas Inteligentes S.A., the parent company of Brazilian airlines GOL Transportes Aereos S.A. and VRG Linhas Aereas S.A., announced this week the company has revised its fleet plan, accelerating fleet renewal and modernization strategies while cutting back on capacity to reflect slumping market conditions.

"The Company reviewed and adjusted its fleet plan to better adapt to recent fuel price increases and higher competition in the air transportation industry, while also accelerating its fleet renewal program (announced in December 2007) and improving its low-cost structure," the airline said. "In addition to operational changes to reduce fuel consumption, such as reducing cruise flight speed and shutting down one engine after landing, the Company is reducing its capacity growth."

To that end, GOL has reduced its fleet plan by two leased 737-800s in 2008. For 2009, the airline will cut another five leased 737-800s. Even with those cuts, however, the airline's fleet modernization plan "guarantees that GOL's fleet will maintain its status as one of the youngest and most modern in the world," GOL notes.

By the end of 2008, it is expected that the fleet will be comprised entirely of Boeing 737 NGs, reducing the average age of the fleet to 5.6 years. GOL forecasts that by 2013, 65 percent of the fleet will be comprised of 737-800s, reducing the average age to 5.5 years.

FMI: www.voegol.com.br/ir