GOL is anxiously awaiting for the Boeing 737 MAX to return to service. In fact, the airline has bet big on the MAX for its future plans. GOL announced that it had entered a new sale and leaseback agreement for 11 Boeing 737 NG aircraft. This is part of GOL’s plan to accelerate the airline’s fleet renewal in favor of the more fuel-efficient Boeing 737 MAX.
GOL’s new sale and leaseback agreement for 737 NGs
In a press release, GOL announced that it has entered a sale and leaseback agreement with Carlyle Aviation for 11 Boeing 737 NG aircraft. This will help accelerate GOL’s fleet renewal process once the 737 MAX reenters service.
GOL anticipates that this move will reduce its debt by R$500 million or about USD$115 million. In addition, in the long-run, the 737 MAX will help reduce GOL’s cost thanks to improved fuel efficiency and range.
GOL’s 737 MAX vs 737 NG
The Brazilian airline made it clear that swapping the 737 NG for 737 MAX aircraft would not significantly alter capacity. With every new 737 MAX, one of the 737 NGs will depart the fleet. This helps ensure that GOL does not expand significantly in a short time which can impact an airline’s viability.
By 2025, GOL expects 50% of its fleet to be made up of 737 MAX. Over the next five years, adding more MAX and withdrawing more NG aircraft will increase productivity by 20% while also reducing fuel burn by 15% according to GOL. GOL offered the following statement on the 737:
We believe that the Boeing 737 is the best aircraft for the Brazilian market due to its ability to achieve over 13 hours of aircraft utilization in high density markets. This supports our highly flexible capacity management model, as well as providing high liquidity and market value consistency in our fleet.
The future of GOL
GOL is riding high. With a new partnership with American Airlines that will offer GOL more opportunities than its previous partnership with Delta, GOL can focus on building up its network for connections and shoring up its presence in the Brazilian marketplace. The 737 MAX is also a way for GOL to have added fleet flexibility and launch new routes.
Aircraft sale and leaseback agreements are nothing new in the aviation world. These agreements give airlines some flexibility with fleet plans and can help improve an airline’s financial performance.
With the global 737 MAX grounding nearing closer to the end, GOL is preparing for the future. The continuing removal of the 737 NG from GOL’s fleet in favor of the MAX will ensure that GOL is able to compete financially and operationally with its competitors.
Do you like to fly GOL? What do you think of this new sale and leaseback agreement for 11 of GOL’s 737 NGs? Let us know in the comments!