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GOL scores in Brazil
01 December 2004
Having started only three years ago, Brazil's first low-cost carrier has become one of the most profitable airlines in the world. Alexandra Cain uncovers Gol's secret.
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If you pick 100 Brazilians at random, it is likely that only three of them will have flown before, and if you are flying on a Gol 737, it is likely that more than ten of your fellow passengers are flying for the first time. When you consider that the majority of Brazil's 180 million population sees air travel as beyond their budget, starting a low-cost airline seems like a straightforward idea.
Well, it has worked for Gol. Since its launch in 2001 it has been profitable. Basing itself on successful low-cost models such as Southwest and Ryanair, Gol's strategy has been to have a low-cost business model with some of the lowest costs in the market.
It has also been helped by the poor state of its competitors. TAM and Varig have had well-publicized problems and Vasp's management admits that it is uncertain about the future.
"The consensus in Brazil is that...
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