Gol Losses To End By 4th Quarter – Report
Published: July 3, 2012
Gol, Brazil’s No. 2 airline, aims to staunch losses by the fourth quarter, its new chief executive told a local newspaper, promising to show results after a wave of recent layoffs.
CEO Paulo Kakinoff, the former head of Volkswagen’s Audi operations in Brazil, told Estado de S.Paulo in the interview published on Monday that financial results would improve after the cutting of 2,000 jobs in the first half of 2012. He said 500 more job could go by December.
“We expect to revert the negative results in the final quarter (of 2012). That is, to arrive at the end of the year at least breaking even,” Kakinoff said. His comments were confirmed by a Gol press representative.
Gol posted losses in three of the past four quarters, paying the price for growing too fast as air traffic in Latin America’s largest economy slowed after years of double-digit growth.
Aggressive expansion plans met with a glut of available seats in the market and falling ticket prices last year, just as fuel prices and payrolls drove costs higher.
Kakinoff does not expect air traffic demand to fall any more than it has recently. He added that Gol and subsidiary WebJet’s combined fleet should remain around 138 planes in the “short and medium term” after dropping by 12 planes this year.
The new CEO is taking the reins from Constantino de Oliveira Jr, a member of the company’s founding and controlling family who remains Gol’s chairman.
Oliveira, who also participated in the Monday interview, was quick to dismiss speculation that the hand-off was part of a plan to ready Gol for a takeover.
“There is no thought of a sale and even less the idea that Kakinoff is overseeing a transition or anything of the sort,” said Oliveira, who will share an office with the new executive.