I previously wrote on David Neeleman, the former JetBlue CEO starting up the Brazilian carrier Azul.
When I came living in Brazil early 2004, GOL was a small startup carrier, it had not more than 20 connections within Brazil. Flying is hassle free in Brazil, especially when compared to flying within Europe or the US; not to mentio n taking connecting flights in Heathrow (terminal 5 !) or Miami. My advice: always avoid those two airports.
The small challenger of 2004 changed, today GOL has an integrated network of approximately 800 daily flights to 59 destinations in Brazil and South America, the most comprehensive route network in South America with a total fleet of 115 aircraft. Sure, also for GOL Q4 2008 was challenging, yet I don't think many aire carriers can match them in keeping their figures up. GOL's net revenue totalled 1.548.600.00 R$ in Q4 2008, which is 5,2% up from Q4 2007. The company transported 6,1 million passengers in Q4 2008.
However, with GOL buying VARIG, the Brazilian market again risked to be for 80% in hands of a duopoly (GOL and TAM); yes there are many other players like Oceanair, but those are no real threats to players like GOL and TAM.
Which is why it's good that Azul steps in the game.
Below you can find an interview with David Neeleman on the opportunity and challenge of starting an airline carrier in Brazil. He righly explains that the true market opportunity in Brazil is grabbing the 200 million people who never flew yet and are paying expensive tickets for using bus transport throughout the country. Even GOL itself is using campaigns to attract bus travelers to its planes.
We flew Azul for the first time and the service and comfort in the Embraer planes is just stunning (79cm leg space !).
I have an amazing respect for hard working people like David Neeleman opening the opportunity of emerging markets. As an example: here's the story of last Friday of how Neeleman is trying to exercise the rights to land on the much desired Santos-Dumont airport in the centre of Rio which was renovated under the wings of one Simone Mendonça.
