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Gol To Buy Webjet  
User currently offlineCNForever From Brazil, joined Apr 2011, 91 posts, RR: 0
Posted (3 years 2 months 3 weeks 5 days 6 hours ago) and read 3660 times:

According to the Brazilian Press, GOL management is now meeting the Webjet executives in a Law office to close the deal. The press release will be available until the end of the day.

20 replies: All unread, jump to last
 
User currently offlineAF086 From France, joined Jan 2007, 1060 posts, RR: 8
Reply 1, posted (3 years 2 months 3 weeks 5 days 5 hours ago) and read 3500 times:

After the stock markets close. This rumour is going on for weeks now. It will be bad for airline competition in Brazil if you ask me. Guess those GRU and SDU slots that WH holds are pretty valuable. I don't see another reason G3 should buy Webjet.


Please insert a "smart" joke here.
User currently offlineMCOGVADCA From China, joined Oct 2006, 446 posts, RR: 0
Reply 2, posted (3 years 2 months 3 weeks 5 days 5 hours ago) and read 3446 times:

Webjet was the weakest link in the Brazilian domestic market. With Avianca's push into Brazil, it looked like Webject might go by the wayside. At least, they're spared the ignominy of bankruptcy.


12 months:pvg hkg bkk doh mxp nce zrh iah lhr gva iad clt lax nrt sin mnl ceb del jai gay vns szx zuh mfm icn can
User currently offlineVC10er From United States of America, joined Feb 2007, 2912 posts, RR: 10
Reply 3, posted (3 years 2 months 3 weeks 5 days 3 hours ago) and read 3293 times:
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What type of aircraft does webjet fly? I think all I've seen are 737's, which would be good for Gol. But how new are Webjet 737's because my impression is Gol has the most brand new, shiny clean 737's I've ever seen!


The world is missing love, let's use our flights to spread it!
User currently offlinelppr95 From Portugal, joined Mar 2010, 100 posts, RR: 0
Reply 4, posted (3 years 2 months 3 weeks 5 days 3 hours ago) and read 3248 times:

Quoting VC10er (Reply 3):
What type of aircraft does webjet fly?

Webjet flies about 20 b737-300

Quoting VC10er (Reply 3):
But how new are Webjet 737's

I flew them yesterday and the wings were very dirty; however it is only 13 years old. But most of them are about 20 years old.



"Cathay 018, expect very late landing clearance, 747 departing ahead", tower said.
User currently offlinepdpsol From United States of America, joined Feb 2004, 1116 posts, RR: 5
Reply 5, posted (3 years 2 months 3 weeks 5 days 3 hours ago) and read 3232 times:

Quoting VC10er (Reply 3):
What type of aircraft does webjet fly?

They only fly the classics, the 737-300. G3 retired their final classic last year, so the acquisition of Webjet would mean a return of these to their fleet. Nonetheless, I can only imagine G3 will work very hard to replace those classics with new 737-800 that they have on order. G3 holds over 100 orders for the type.

Several important strategic moves have been made recently in the exciting Brasil market:

- AV expanding AV Brasil [O6]
- Azul expanding quickly, placing new orders for E-jets and the new ATR
- JJ and LA merging to form LATAM [assuming they receive regulatory authorization]
- JJ acquiring Pantanal [GP]
- JJ signing a letter of intent to acquire 31% of Trip [T4]
- G3 deciding to fully integrate and essentially discard Varig

Should G3 receive authorization to acquire Webjet, the transaction would mark one more move towards consolidation and integration of the commercial aviation sector in Brasil.


User currently offlinejj8080 From Brazil, joined Aug 2008, 932 posts, RR: 0
Reply 6, posted (3 years 2 months 3 weeks 5 days 2 hours ago) and read 3155 times:

The acquisition has been confirmed by brazilian press. G3 will pay BRL 310 million. The amount is subject to change after the due diligence.

Webjet operates a fleet of 24 B737-300, and holds around 5% of Brazilian domestic market. As mentioned by AF086, the airline also holds valuable GRU and SDU slots.

The combined market share of both airlines will be around 40%, still below JJ's 44%. Info based in May/11 numbers.

http://colunistas.ig.com.br/guilherm...ompra-da-webjet-por-r-310-milhoes/



100 146 319/20/21 332 722 732/3/4/5/G/W/8/H/9 742/3/4 752/3 762/3 772/W BE2 BET E75 CNJ CR2 D10 F27 F50 ER4 LRJ M11 M80
User currently offlinejj8080 From Brazil, joined Aug 2008, 932 posts, RR: 0
Reply 7, posted (3 years 2 months 3 weeks 5 days 1 hour ago) and read 3068 times:

Quoting jj8080 (Reply 6):
G3 will pay BRL 310 million

Apparently, the net value (deducing debts) will be BRL 96 million.

Here is a more informative link (sorry, only in portuguese):http://www1.folha.uol.com.br/mercado/940890-gol-compra-webjet-por-r-96-milhoes.shtml



100 146 319/20/21 332 722 732/3/4/5/G/W/8/H/9 742/3/4 752/3 762/3 772/W BE2 BET E75 CNJ CR2 D10 F27 F50 ER4 LRJ M11 M80
User currently offlineincitatus From Brazil, joined Feb 2005, 4021 posts, RR: 13
Reply 8, posted (3 years 2 months 3 weeks 4 days 21 hours ago) and read 2848 times:

This is disappointing news. With the demise of Varig, GOL adapted its original mission of serving the lower end of the market into extracting large premiums in some markets. Webjet was filling it.

In the long run it seems clear that Brazil will move towards three airline brands integrated with the three large global alliances.



Stop pop up ads
User currently offlineEddieDude From Mexico, joined Nov 2003, 7587 posts, RR: 43
Reply 9, posted (3 years 2 months 3 weeks 4 days 20 hours ago) and read 2755 times:

Quoting pdpsol (Reply 5):
JJ and LA merging to form LATAM [assuming they receive regulatory authorization]

Btw, a spokesperson of the Chilean competition authorities has indicated that a resolution should be notified to JJ and LA in August. The markets are expecting the resolution to be favorable.

Quoting jj8080 (Reply 6):
G3 will pay BRL 310 million. The amount is subject to change after the due diligence.

Reuters is reporting 96 million Reais.

Quoting incitatus (Reply 8):
In the long run it seems clear that Brazil will move towards three airline brands integrated with the three large global alliances.

Hmmm, well, that is assuming Avianca Brasil will eventually become a Star member, that LA-JJ will choose oneworld, and that the new Gol (Gol+Varig+Webjet) will be invited to join SkyTeam (and accept)... wouldn't Gol first have to offer premium seats in some of its routes (and I don't mean 5 inches of extra legroom using the same seats).



Next flights: MEX-GRU (AM 77E), GRU-GIG (JJ A320), SDU-CGH (G3 73H), GRU-MEX (JJ A332).
User currently offlineLipeGIG From Brazil, joined May 2005, 11440 posts, RR: 58
Reply 10, posted (3 years 2 months 3 weeks 4 days 20 hours ago) and read 2746 times:
AIRLINERS.NET CREW
FORUM MODERATOR

Interesting. G3 puts their hands on a valuable asset that will increase their operations into GIG, offers the ability to introduce crew bases in other cities (they have a large one in Rio de Janeiro, and secondary ones in Brasilia, Belo Horizonte, Salvador, Porto Alegre and Sao Paulo), will provide sustainable gains with synergies, and the potential for use more planes.
For less than US$ 60 million in cash and US$ 130 million in debt, very cheap.



New York + Rio de Janeiro = One of the best combinations !
User currently offlinedelta2ual From United States of America, joined Dec 2007, 620 posts, RR: 1
Reply 11, posted (3 years 2 months 3 weeks 4 days 11 hours ago) and read 2503 times:

At first, I thought the thread title said "GOL To Buy WESTJET"! LOL


From the world's largest airline-to the world's largest airline. Delta2ual
User currently offlinePlymSpotter From Spain, joined Jun 2004, 11656 posts, RR: 60
Reply 12, posted (3 years 2 months 3 weeks 4 days 10 hours ago) and read 2190 times:

Quoting EddieDude (Reply 9):
the new Gol (Gol+Varig+Webjet) will be invited to join SkyTeam (and accept)... wouldn't Gol first have to offer premium seats in some of its routes (and I don't mean 5 inches of extra legroom using the same seats).

Using Air Europa's domestic Spanish flights as an example, I don't think it would be a problem.


Dan  



...love is just a camouflage for what resembles rage again...
User currently offlinepdpsol From United States of America, joined Feb 2004, 1116 posts, RR: 5
Reply 13, posted (3 years 2 months 3 weeks 4 days 9 hours ago) and read 2096 times:

Quoting EddieDude (Reply 9):
assuming Avianca Brasil will eventually become a Star member

AV Brasil [O6] is owned by Synergy Group, controlled by the Efromovich brothers. Synergy is a major shareholder in AviancaTACA SA, which, of course, owns, TA, AV, T0, etc. etc. and is publicly-traded on Bogota exchange.

The latest statements from Efromovich claim their plan is for AviancaTACA SA to [eventually] acquire O6 from Synergy, most likely in exchange for additional equity in AviancaTACA for Synergy. Efromovich has alluded such a transaction would not violate Brasil's foreign ownership laws since the primary shareholders would, in fact, be "Brazilian". Not only are the Efromovich brothers Brazilian nationals, they are Colombian. In addition, AviancaTACA SA owns an option to acquire O6 and, in theory, could exercise that option.

Most importantly, they claim O6 will join Star Alliance, meaning AV Brasil will become an increasingly important part of the group. As everyone knows O6 is expanding quickly in Brasil.

SkyTeam is desperate for a strong partner in South America and AR just. does. not. cut. it...

G3 is their best horse in the race and a combined operation with Webjet makes them very attractive indeed. G3 and its shareholders are thrilled! They have restored their domestic market share for BRL 96 million in cash for the equity, and BRL 310 firm value.

http://www.bloomberg.com/news/2011-0...ebjet-to-recover-market-share.html


User currently offlineULMFlyer From Brazil, joined Sep 2006, 475 posts, RR: 1
Reply 14, posted (3 years 2 months 3 weeks 4 days 8 hours ago) and read 1925 times:

Quoting EddieDude (Reply 9):
Reuters is reporting 96 million Reais.

This is peanuts these days, considering a condo on the beach in Rio that sold for R$6M a few years back fetched $30M last week.



Let's go Pens!
User currently offlineLPSHobby From Brazil, joined May 2007, 191 posts, RR: 0
Reply 15, posted (3 years 2 months 3 weeks 4 days 7 hours ago) and read 1706 times:
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Quoting incitatus (Reply 8):
This is disappointing news. With the demise of Varig, GOL adapted its original mission of serving the lower end of the market into extracting large premiums in some markets. Webjet was filling it.

In the long run it seems clear that Brazil will move towards three airline brands integrated with the three large global alliances.

only 3? I can see 4, TAM, Gol, Azul and Avianca.
And fully agree about Webjet, this airline was the really true low fare airline in Brazil.


User currently offlineEddieDude From Mexico, joined Nov 2003, 7587 posts, RR: 43
Reply 16, posted (3 years 2 months 3 weeks 4 days 7 hours ago) and read 1584 times:

Quoting pdpsol (Reply 13):
AviancaTACA SA owns an option to acquire O6 and, in theory, could exercise that option.

Most importantly, they claim O6 will join Star Alliance, meaning AV Brasil will become an increasingly important part of the group.

Thanks for that information pdpsol. It makes a lot of sense.

Quoting pdpsol (Reply 13):
AR just. does. not. cut. it

I am in complete agreement.



Next flights: MEX-GRU (AM 77E), GRU-GIG (JJ A320), SDU-CGH (G3 73H), GRU-MEX (JJ A332).
User currently onlinekiwiandrew From New Zealand, joined Jun 2005, 8572 posts, RR: 13
Reply 17, posted (3 years 2 months 3 weeks 4 days 3 hours ago) and read 1383 times:
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Quoting pdpsol (Reply 13):
AV Brasil [O6] is owned by Synergy Group, controlled by the Efromovich brothers. Synergy is a major shareholder in AviancaTACA SA, which, of course, owns, TA, AV, T0, etc. etc. and is publicly-traded on Bogota exchange.

True, but last I saw O6 had a market share of less than 3% of the Brazilian market, given congestion at major airports it is going to be very hard for them to grow that share significantly. Having them will be better than nothing, but it will not make up for losing JJ if the LAN takeover of JJ goes ahead, as seems almost certain.

[Edited 2011-07-09 12:57:23]


Moderation in all things ... including moderation ;-)
User currently onlinekiwiandrew From New Zealand, joined Jun 2005, 8572 posts, RR: 13
Reply 18, posted (3 years 2 months 3 weeks 4 days 3 hours ago) and read 1355 times:
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Quoting jj8080 (Reply 6):
Webjet operates a fleet of 24 B737-300, and holds around 5% of Brazilian domestic market. As mentioned by AF086, the airline also holds valuable GRU and SDU slots.

The combined market share of both airlines will be around 40%, still below JJ's 44%.

I thought GOL already had a bigger share of the domestic market than JJ even before this transaction. Is the 44% share you have mentioned for JJ for domestic or domestic and international combined?



Moderation in all things ... including moderation ;-)
User currently offlinepdpsol From United States of America, joined Feb 2004, 1116 posts, RR: 5
Reply 19, posted (3 years 2 months 3 weeks 4 days 3 hours ago) and read 1328 times:

Quoting kiwiandrew (Reply 18):
I thought GOL already had a bigger share of the domestic market than JJ even before this transaction. Is the 44% share you have mentioned for JJ for domestic or domestic and international combined?

The 44% is for JJ domestic, May 2011:

Newer data for May 2011 shows an interesting story. According to G3's investor relations press release, domestic RPK totaled 2.239 billion for the month. Load factor was 63.2% for the month.

On the other hand, according to JJ's investor relations press release, their domestic RPK totaled 2.812 billion, or 44.4%, for the month. Load factor was 67.6% for the month.

Looks like G3 will catch up to JJ domestic once they acquire Webjet. Note yesterday's announcement only signaled the execution of a memorandum of understanding [MOU], not the execution of a definitive purchase agreement.

G3 will still need to i) negotiate and execute the definitive purchase agreement; ii) receive regulatory and other legal authorization for the agreement; iii) close the transaction; and, most difficult of all; iv) actually integrate the operations of Webjet, including the operating certificate, personnel, information systems, etc., etc., etc...

By the time G3 is finished to actually focus on its business again, JJ, Azul, AV Brasil [O6] and TRIP may have grown even further.


User currently offlineSCL767 From Chile, joined Feb 2006, 8824 posts, RR: 5
Reply 20, posted (3 years 2 months 3 weeks 3 days 23 hours ago) and read 1242 times:
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Quoting pdpsol (Reply 19):
Looks like G3 will catch up to JJ domestic once they acquire Webjet.

For May, GOL and Webjet combined domestic market-share was 40.55%. For May, TAM domestic market-share was 44.43%. In 2009, TAM acquired the smaller domestic carrier Pantanal. TAM is currently in the process of negotiating the rights to purchase a stake in the domestic carrier TRIP. For May, TRIP domestic market-share was 3.05%.


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