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Brazilian low fare start-up prepares for January launch

Mario Fonseca/RIO DE JANEIRO

A new Brazilian low cost domestic airline, Gol Transportes Aéreos (GTA), is preparing to launch services from São Paulo.

A subsidiary of the Grupo Áurea, a conglomerate that also controls one of Brazil's largest interstate bus companies, GTA received its operating license in August to perform domestic flights. Airline sources expect flights to begin in January.

GTA intends to operate low fare flights between Sïo Paulo and 14 destinations within Brazil, including Rio de Janeiro, Porto Alegre, Brasília, Fortaleza, Natal and Recife. Leases have been signed for two Boeing 737-700s, the first of which will be delivered by early December. According to the airline's marketing director, Tarcísio Gargioni, the airline is negotiating for four additional 737-700s for delivery during the first quarter. The aim is to have ten 737-700s in service by the end of next year.

Headed by Constatino Oliveira Júnior, GTA will offer low fare services directed at Brazilian business travellers on flights between the country's main state capitals. It plans to quickly develop its route network during its first year.