Brazil’s GOL has agreed with a group of Mexican investors to launch a low-cost carrier in Mexico.
Mirroring LAN’s strategy for cross-border expansion, GOL will take a minority stake, but is expected to play a major role in managing the new airline. The indications are that GOL will own 40%, although it is limited under Mexican law to 25% of the voting shares.
GOL has signed a memorandum of understanding with Inversiones y Technicas Aeroportuarias SA, or ITA, and its shareholders. ITA is a Mexican group known for investing in aviation ventures. Its shareholders include the operator of Copenhagen airport and Francisco Chico Pardo, who also owns 51% of ASUR, one of Mexico’s airport operators. Pardo will be the largest owner in the new airline, with a 60% stake. He stresses that this investment is unrelated to his holdings in ASUR.
GOL has started its own cross-border expansion with routes from Brazil to Argentina. Brazil has also designated it to fly to Bolivia, Paraguay and Uruguay, and talks are underway about routes to Chile and Peru. None of these, however, would allow GOL to operate domestic flights within any of those countries.
Mexico represents GOL’s first attempt to gain such domestic access. Constantino de Oliveira Jr, GOL chief executive, says the carrier chose Mexico because of its similarities to Brazil – large, under-served cities, long distances and traditionally high fares. It is unclear what effect GOL’s plans will have on other potential Mexican low-cost carriers. Mexicana’s Click has started, but two others are still in preparation. Vuela plans to launch early next year, followed by Interjet a year later. GOL plans to launch its Mexican unit in the second quarter of 2006.
DAVID KNIBB SEATTLE
Source: Airline Business
