Gol to get cash injection, trim routes
Gol said it will get a cash injection of up to BRR1b (US$251m) and announced cuts to its routes and aircraft fleet in an effort to trim costs amid weak demand. Take-offs and landings will be cut by 6% this year while service to 7 cities is being ended, Gol said. It will also return 5 aircraft to leasing companies and cut the schedule of planned deliveries of aircraft by end 2017 to 1 from 15. The cuts come as Brazil's airline industry is suffering from a recession and a decline in the value of Brazil's real that has driven up the cost of dollar-denominated debt, aircraft leases and jet fuel. Gol said earlier this month that domestic demand fell 8% in Q4 compared with the same period a year earlier. The cash injection will start with a BRR376m early purchase of frequent-flyer award tickets as soon as contracts are signed. <br/>
https://portal.staralliance.com/imagelibrary/news/hot-topics/2016-02-29/unaligned/gol-to-get-cash-injection-trim-routes
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Gol to get cash injection, trim routes
Gol said it will get a cash injection of up to BRR1b (US$251m) and announced cuts to its routes and aircraft fleet in an effort to trim costs amid weak demand. Take-offs and landings will be cut by 6% this year while service to 7 cities is being ended, Gol said. It will also return 5 aircraft to leasing companies and cut the schedule of planned deliveries of aircraft by end 2017 to 1 from 15. The cuts come as Brazil's airline industry is suffering from a recession and a decline in the value of Brazil's real that has driven up the cost of dollar-denominated debt, aircraft leases and jet fuel. Gol said earlier this month that domestic demand fell 8% in Q4 compared with the same period a year earlier. The cash injection will start with a BRR376m early purchase of frequent-flyer award tickets as soon as contracts are signed. <br/>
