Summary
- GOL Linhas Aéreas has filed for Chapter 11 bankruptcy to lift capital and restructure its organization while continuing operations.
- Passengers with future bookings can expect flights to operate as usual, and dependable customers can still redeem their points for future bookings.
- The airline’s operating performance stays strong, with growth in net operating revenue and frequent flyer redemptions, and staff will proceed to receive salaries and advantages through the bankruptcy process.
Brazilian low-cost carrier GOL Linhas Aéreas Inteligentes S.A. has officially announced it voluntarily filed with america Court for Chapter 11 Bankruptcy protection. It is a common move for airlines that use the legal process to lift capital, restructure their organization, and strengthen long-term business operations while continuing to operate without significant disruption. The carrier expects financing from Ad Hoc Group to the worth of $950 million and hopes to access this in the following week; nonetheless, it is going to be subject to court approval.
Travelers with future bookings are reminded that their flights are expected to operate as usual.
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Passenger and cargo flights will proceed to operate, and customers with points through the airline’s Smiles Loyalty program can still redeem points for future bookings. The airline is committed to providing secure and reliable air travel across its network while undergoing this restructuring process.
Photo: Kevin Porter | Shutterstock
Vouchers can still be redeemed.
When you’re holding onto one in every of the airline’s vouchers and frequent flyer points, it might probably still be remedied across the carrier network. If booked on GOL codeshare or interline flights, these are usually not expected to be interrupted. The airline Cheif Executive Officer made this statement concerning the airline’s situation:
“GOL has undertaken significant efforts to supply the perfect travel experience for our customers, while improving our profitability and financial position. We’ve made outstanding progress thus far and consider that this process will allow us to totally address the challenges attributable to the pandemic while we maintain our high standard of service to our customers. This process will enable GOL to further expand our position as a number one Latin American airline while maintaining our purpose of ‘Being the First for All.’”
Photo: Ariadne Barroso | Shutterstock.
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The airline CEO went onto note:
“We’re confident the steps we’re taking will allow us to supply the bottom cost fares with exceptional travel experiences to our customers across an increasing variety of routes. Our Employees will keep handling their day by day activities taking care of GOL Safety and quality of its flights. We’re pleased to be moving forward with commitments for brand spanking new capital that may help advance our long-term strategies, including improving affordability, the travel experience and Customer alternative.”
Strong operating performance
Despite the airline’s move into Chapter 11, the operating performance of GOL stays robust; within the third quarter of 2023, the low-cost carrier delivered a few of the perfect operating ends in Latin America. The corporate’s net operating revenue reached BR $4.7 billion ($9.5 million), counting for a 16.4% growth in comparison with the identical time in 2022.
Frequent flyer redemptions and cargo operations revenue also grew 65.1%, alongside strong occupancy rates onboard, which reached 82.7%, an improvement of 4.8% in comparison with Q3 in 2022.
Photo: Lukas Souza | Easy Flying.
Staff on the airline have been reminded that through the Chapter 11 process, all salaries and advantages will probably be paid to staff as usual, continuing to honor its commitments to all preferred suppliers and partners.