Tuesday, April 24, 2012

Delta Looking to Expand Stake in Gol?

According to reports, Delta is considering significantly increasing its interest in Brazil's second-largest carrier, Gol Linhas Aereas Inteligentes SA. See Rogerio Jelmayer, Delta Airlines in Talks to Increase Stake in Brazil's Gol - Report, Dow Jones Newswires, April 24, 2012 (available here). Delta purchased a 3% stake in Gol last December, but Gol has been struggling with increased fuel costs and competition in the Brazilian market and may be in need of additional funds. See Asher Levine, Brazil Airline Gol Profit Tumbles as Costs Jump, Reuters, March 27, 2012 (available here). When Delta first acquired its stake in December, the company expressed optimism about the growing Brazilian market and the increased traffic expected for the 2014 World Cup. Additionally, the move was seen as part of a broader strategy to expand its presence in the Latin American market. The report indicates that under the current talks Delta would increase its stake in Gol to 20%. Gol has denied the reports. See Rogerio Jelmayer, Brazil's Gol Denies Talks to Sell 20% Stake to Delta, Dow Jones Newswires, April 24, 2012 (available here).

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