INTRODUCING THE LOW COST-LOW FARE CONCEPT IN BRAZIL: GOL AIRLINES - (PPT)

摘要

This paper presents the introduction of a low-cost/low-fere (LC/LF) concept in Brazil by Gol Airlines, beginning from January 2001. We will show that some of the core LC/LF strategies of operations and management decisions put into action by North American and European carriers like Southwest and Jetblue, and Ryanair and easyjet, respectively, could not be implemented by Gol in the beginning of its operations, while several others still cannot be implemented at all. Moreover, the paper analyses the impacts and contributions that have resulted from the introduction of Gol Airlines and its "Brazilian LC/LF concept", while presenting and discussing the main issues within the crisis involving the major airlines of Brazil. The recently announced possible-future merger between the two largest Brazilian carriers, VARIG and TAM, is addressed as a major adversary to the growth of Gol's operations and its desired expansion in the Brazilian air transport market. While discussing some of the possible outcomes of this merger to the Brazilian domestic market, we will present some of the strategies already being implemented by the LC/LF carrier to counter this threat, plus another major step towards Gol's future growth: the go-ahead of the Brazilian government on the injection of capital from AIG, to buy 20% of the airline's shares in the first quarter of 2003.