Blood in the water: Airlines hunt for GOL’s assets

As anticipated, GOL filed for Chapter 11 bankruptcy protection under US law and started a hard and long process to find some light at the end of the tunnel. As markets never sleep, some companies are searching to obtain the company’s valuable assets cheaply. Ryanair’s Pilot Recruitment Director, Angelo Currao, held a recruitment drive in Rio de Janeiro in late January. We have been closely following the recent news that GOL may file for Judicial Recovery in the USA, and we are aware of the financial difficulties that GOL has been experiencing. In light of this, Ryanair will be hosting a pilot recruitment information session this Friday to discuss possible opportunities for technical crew in continental Europe and the UK, including the possibility of visa sponsorship," he said. The requirements vary according to the pilot experience. Still, most GOL pilots could apply: so far, there is no information about how many crew applied to the European LCC, but fleet compatibility, relatively seamless transition, and job stability are big incentives for them to jump ship. LATAM also wanted to participate in the fire sale. Still, with a big caveat: According to GOL's lawyers, LATAM has contacted lessors owning GOL's aircraft to ask for conditions to operate the planes. While LATAM currently operates wide-body Boeing aircraft (767, 777, and 787), the potential addition of 737s poses operational challenges as its narrowbody fleet has been standardized into the Airbus A320 ceo/neo family. Even though the 737 is no stranger to the history as LAN Colombia (now LATAM Colombia) operated nine Boeing 737-700s for domestic flights when it purchased AIRES for its Colombian AOC, the decision to go for GOL’s Boeing fleet is peculiar. The need for crew training or incorporation, if LATAM decides to hire GOL crews - spare parts procurement, develop a model-specific operations manual, and obtain approval from regulatory authorities such as ANAC, the practical implementation of the Boeing 737 in LATAM's fleet, remains uncertain. Perhaps the strategy is to move these aircraft for rapid availability in case GOL recovers and gears up its activity, as the company still flies its routes and even decided to deepen its commitments: just today, it signed a codeshare agreement extension with Aerolíneas Argentinas for both networks to be even more integrated and linked to Avianca, GOL’s Abra group partner. Nevertheless, GOL still retains its most valuable asset: airport slots. The company’s position in Sao Paulo and Rio de Janeiro, as well as other major Brazilian cities, allows the operator to hold an important part of the flight offering. Grabbing some of these slots, LATAM and Azul could solidify their market share and put GOL in an even worse place. As GOL fights for survival, sharks circle and smell blood.

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