Gol buys MAP, Brazil’s 5th largest airline, for US$5.5 million

RIO DE JANEIRO, BRAZIL – Gol (GOLL4) has bought MAP Linhas Aéreas, considered the 5th largest airline in Brazil, in a R$28 (US$5.5) million deal, according to a notice sent to the market on Tuesday, June 8.

According to the disclosure, the payment will be made in 100,000 shares at R$28 per unit and R$25 million in cash to be paid in 24 monthly installments. Gol will also undertake up to R$100 million of MAP’s financial commitments.

Founded in 2011, the acquired airline owns a fleet of seven 70-seat ATR aircraft operating in Amazon region routes out of Manaus Airport and in the South and Southeast regions out of Congonhas 9CGH) in São Paulo, the country’s largest domestic airport.

According to the company, the purchase will bolster Gol’s leadership position in two of its main bases, with growth in Congonhas of approximately 10%, through the addition of 26 daily flights.

“Thus, the company will be able to serve new destinations, connecting South America’s largest city with historically underserved domestic markets as restrictions resulting from the pandemic are reduced or lifted,” it said.

Another advantage is increasing supply to little-explored markets, Gol says.

“The company is investing even more in regional air transport market with a focus on the Amazon region, supporting local economic development and strengthening our operations at Congonhas Airport,” said CEO Paulo Kakinoff.

The company intends to introduce larger and more efficient aircraft on MAP routes, pursuing Gol’s regional strategy, which currently operates 23 Boeing 737-700s – a model that may be replaced by another more efficient type of aircraft in the future, he said.

“Through the operation of larger and more modern aircraft on these routes, the company will increase its flight and seat supply in one of the country’s main markets,” said Celso Ferrer, Vice-President of Operations.

For Kakinoff, the purchase of MAP is an important step in the company’s network and capacity expansion strategy.

“Over the past year we have consistently emphasized that GOL was well positioned for growth in the post-pandemic cycle as a result of prudent financial management and our efficient operating model, which differentiate us in the market,” he said.

The operation is conditional on the approval of competition agency CADE (Council for Economic Defense and Administration) and the National Civil Aviation Agency (ANAC).