Gol to incur R140m in costs from Webjet shutdown

Washington DC
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Brazilian carrier Gol estimates that it will incur 140 million Brazilian reals ($70.3 million) in costs from the shutdown of its subsidiary Webjet.

The non-recurring impact will be reflected in the airline's fourth quarter 2012 financial results, says the airline. Gol says most of the costs were related to personnel costs and provisions for the return and maintenance of Webjet's Boeing 737-300s.

Gol announced in November 2012 that it would shut down Webjet and lay off its 850 employees, just a month after Brazil's competition watchdog CADE authorised Gol's acquisition of Webjet. Gol first announced its intentions to acquire Webjet in July 2011.

The airline has said that all 20 of Webjet's aircraft will be returned by the end of the first half of 2013, including 16 in the first quarter.