Airlines GOL to acquire MAP Transportes Aéreos

Brazil´s largest domestic airline GOL has announced that it entered into an agreement with regional airline MAP Transportes Aéreos over an acquisition. This deal is another step forward for GOL, as the airline seeks to grow its market share in the country.

MAP has been operating scheduled passenger flights on routes to and from Sao Paulo Congonhas. Demand for domestic flights within Brazil has been rising over the past years and especially as the COVID-19 situation is slowly relaxing this latest deal could be a good financial option for GOL.

Paulo Kakinoff, CEO at GOL commented: "Over the past year, we have consistently emphasized that GOL is well-positioned for growth in the post-pandemic cycle, due to prudent financial management and proven efficient operating model, that differentiates us in the market […] This add-on acquisition is a significant step in our strategy of expanding network and capacity, as we look to revitalize air travel demand among leisure and business passengers. Thus, the Company is investing even more in the regional air transportation market with an emphasis on Brazil's Amazon region, supporting local economic growth and strengthening our operations at Congonhas Airport.

MAP was founded back in 2011 and has since then become the fifth-largest airline in Brazil. Currently, the fleet consists of seven ATR turboprop aircraft that can accommodate up to 70 passengers. Especially routes in the Amazon region and Brazil´s South and Southeast regions are being served from Congonhas.

GOL stated that this transaction would reinforce the airline´s position in two of its main bases. The carrier expects a growth of approximately 10% at Congonhas as 26 new daily flights are being added. Historically, Brazil´s South has been underserved and this deal will strengthen the market.

MAP will be acquired for a converted fee of around 2 million USD (28 million R$) in cash and stock. 100000 shares of GOLL4 will be bought at R$28 per share. The rest will be payed in cash in twenty-four monthly instalments. In total, the deal could rise to up to R$100 million (7,2 Million USD).

GOL seeks to maintain its single-fleet operations to fly these routes in the most efficient and flexible way possible. The ATR aircraft will be substituted by larger and more efficient aircraft, like the Boeing 737 GOL currently flies with.

“By servicing these routes with more modern and larger aircraft, the Company will increase the number of flights and seats from one of the main markets in the country,” concluded Celso Ferrer, Vice-president of Operations.