Brazilian airline GOL will add A330-900neos as part of a strategic shift in their business model. Operating under a “budget airline” hybrid model, GOL now enters the crowded field of long-haul operators. The airline plans to add 9 A330s that the airline will deploy on routes to the United States and Europe. This marks a departure from their current fleet/business model and points to greater ambitions to fill the void left by Azul.
New Fleet Type
The A330-900neo is a brand new fleet type for the airline. GOL has, since its founding, operated short-haul, narrowbody aircraft. Currently, the airline has an all-Boeing fleet consisting of 737-800s and 737-MAX8s. Bringing online a widebody aircraft like the A330neo opens up new possibilities for passenger experience. GOL currently offers economy class and some extra legroom seats that, depending on the flight length, are marketed as a premium economy product. Although not luxurious by any standard, and looking more like a Euro-biz product, it has fit the Brazilian/South America market well.
Abra, American and Other Partners
GOL, as part of exiting their Chapter 11 bankruptcy case, changed their shareholder mix. American, prior to bankruptcy, owned about 5% of GOL, with a variety of other shareholders, including Abra and Air France/KLM, owning significant stakes. Post-restructuring, Abra Group has a controlling interest in GOL.
Abra Group, which also owns Avianca, has experience with long-haul flying and using economy plus type seats as business class. Whether GOL keeps its “budget” identity and only offers a premium economy product or a true business class product remains to be seen. The airline intends to offer more than 290 seats with a “business class cabin”. Will that “business class cabin” look more like a long-haul premium economy product or a lie flat seat remains to be seen.
The A330neos will likely fly to partner hubs, such as Miami, New York and Paris, as well as Lisbon and Porto (should they obtain slots). GOL has a strategic partnership with American Airlines in the US, offering reciprocal mileage, elite status, and lounge access. Similarly, GOL has a strong partnership with Air France/KLM, offering codeshares and loyalty program reciprocity.
Conrado’s Thoughts
GOL adding A330neos is a major strategic shift for the airline. They now join a very crowded South American long-haul market. I believe the airline is in a better strategic position than, say, Azul, given GOL’s stronger partnerships with American and AF/KLM. If they are able to obtain Lisbon slots, they are likely to be successful. Longer-term, I wonder if this is part of a move to join and airline alliance or a joint venture. Avianca is a minor member of Star Alliance, Air France/KLM are “anchor players” in SkyTeam, and American is the largest airline in Oneworld. Time will tell if they join an alliance, but I do wish them all the success in the difficult market that is budget airline + long haul flights.
