Delta Airlines In Talks To Increase Stake In Brazil’s Gol – WSJ/DJ Newswires

Posted: April 24, 2012 in Airlines, Latin America, USA
Tags: , , , , ,

SAO PAULO (Dow Jones)–Delta Air Lines Inc. is in talks with Brazilian airline Gol Linhas Aereas Inteligentes SA in order to increase its stake in the Brazilian company to 20%, the local newspaper Folha de S. Paulo reported in its Tuesday edition.

 Gol is looking to raise funds from Delta in order to face increasing cost pressures

Gol is looking to raise funds from Delta in order to face increasing cost pressures: Image courtesy of breakingtravelnews.com

In December, Delta acquired a 3% stake of Gol for $100 million.

Gol’s representatives weren’t immediately available for comment.

According to the newspaper, which didn’t unveil where it got the information, Gol is looking to raise funds from Delta in order to face increasing cost pressures.

Earlier this year, Gol said it has cut around 80 daily flights out of a total of 900, by reducing the frequency of its flights and not by cutting the number of destinations, as it slashed back expansion plans for this year.

The company also, earlier this year, laid off 131 staff as part of its drive to return to profitability.

In 2011, GOL reported a loss of 669 million Brazilian reais ($355 million), reversing from a profit of BRL214 million in 2010.

Read the original story at Wall Street Journal….


By Rogerio Jelmayer,
Dow Jones Newswires;
t: +55 11 3544 7071;
e: rogerio.jelmayer@dowjones.com


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