RNP-AR-Approach Boosts GOL - Analyst Blog

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Recently, GOL Linhas Aéreas Inteligentes ( GOL ) has been declared to be the first Brazilian airline to use RNP-AR-Approach (Required Navigation Performance). This environment friendly approach, designed by DECEA (Airspace Control Department) is well known to reduce noise and flight times, thereby saving fuel and diminishing the atmospheric emission of polluting gases.

The above recognition and authorization has been awarded to the company by Brazil's civil aviation Authority (ANAC), for utilizing the RNP-AR-Approach procedure, at Santos Dumont Airport in Rio de Janeiro.

Also, with the beginning of this project in May 2011, GOL hired GE Aviation PBN Services with a target to obtain ANAC authorization to use RNP-AR-Approach procedures. GOL's operation is expected to be fully implemented by July 2012. Subsequently, the company has already started training its crew for the same.

The company received authorization for the RNP-AR-Approach procedure in association with DECEA, GE and ANAC. During the event, Adalberto Bogsan, GOL's Technical Vice-President remarked that with this novel approach, pilots will be able to maintain precise and constant approach trajectory with a better view of the runway, which will ensure safe and comfortable landing.

Recently, GOL reported net loss of R$41.4 million (US$23.4 million) in the first quarter of 2012.The loss was due to rising operating costs, especially fuel, landing fees at Brazilian airports as well as currency depreciation and income taxes.

GOL Linhas, one of the most profitable low-cost airlines in the world, gives tough competition to other industry players, such as Copa Holdings SA ( CPA ), LAN Airlines S.A ( LFL ) and TAM S.A ( TAM ).

We currently maintain a long-term Neutral recommendation on the stock. Also, GOL has a Zacks #3 Rank, which translates into a short-term (1-3 months) Hold rating.


 
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: ANAC , CPA , GOL , LFL , TAM

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