GOL Linhas Aéreas announced the acquisition of several Boeing 737 MAX for R$3.27 billion. The company closed a $600 million equivalent financing with Castlelake LP, for the acquisition of new Boeing 737 MAX 8s.
“The financing of these Boeing 737 MAXs marks the beginning of a new cycle of building value in our fleet,” said Paulo Kakinoff, GOL’s CEO. “With favorable market conditions for the new MAX aircraft and our strong partnership with Boeing as one of its major customers, these aircraft further strengthen our market leadership position.” completed Paulo.
The transaction will include 10 finance leases and 2 sale and leasebacks (sale and leaseback is a transaction in which an owned asset is sold and leased back on a long-term basis, whereby the asset continues to be used but is no longer owned).
The interest rate on finance leases is approximately 6% annually, which represents a reduction compared to the operating lease costs for the aircraft in the current fleet.
The proceeds from the transaction will cover 100% of the acquisition cost of the new units and will provide additional resources to be used for the obligations and return costs of GOL’s Boeing 737 NGs.
As reported by our Brazilian partner Aeroin, the company expects to return up to 18 737 NG aircraft by 2022, and a total of 34 NGs by the end of 2025, which should help reduce unit costs.
Delivery of these 12 additional Boeing 737 MAXs begins in January 2022, in line with GOL’s plan to accelerate its fleet transformation and own half of its units on lease by 2026.
In the second half of 2021, the company signed contracts for an additional 26 MAX 8s, and currently has a total of 102 Boeing 737 MAXs to be delivered:
“The acceleration in the transformation of our fleet to the 737 MAX will position us more competitively to grow with greater flexibility in managing our capacity and allow for the expansion of routes and destinations, which will ensure great efficiency in meeting fluctuations in travel demand,” says Celso Ferrer, Vice President, and Chief Operating Officer.
“Furthermore, the addition of these new aircraft will reduce the average age of GOL’s fleet from 11 to 7 years”, concludes Ferrer.
The Boeing MAX is also a key component in the company’s goal of achieving carbon neutrality by 2050, as this unit consumes 15% less fuel, produces 16% fewer carbon emissions and 40% less noise. It also has a longer flight range than the NG model.
Richard Lark, Vice President, Finance, concluded: “We are in an advantageous position to better optimize our capital structure due to the diverse access to financing sources available from export credit agencies, capital markets, and operating leases. This latest aircraft transaction further strengthens the financial sustainability of our fleet management and enhances the value of the Company for all stakeholders through the efficiency gains we will achieve.”
