Airlines Fight It Out for Supremacy on Domestic Brazil Flights
The war for dominance for domestic Brazil flights just got bigger. Webjet which runs on low cost domestic Brazil flights are facing an attempt at a takeover by Gol which is trying to boost its capabilities against its rival TAM.
The attempt by Gol is to strengthen its capabilities for the domestic Brazil flights at major airports of Sao Paulo and Rio de Janeiro. The company has put forward a $197 million bid to takeover Webjet's operations.
Gol stands to increase its frequency share by 20 to 97 which will be just behind TAM who are at 104. This gain will be used to bolster its presence on the domestic Brazil flights market at the airports at Sao Paulo, Belo Horizente, Porto Alegre and Rio de Janeiro. Webjet was responsible for reducing the share of Gol and TAM on the domestic Brazil flights circuit. Gol lost almost 3.5% of its market share from 41% to 37.5% in the early half of this year itself.