Brazil´s GOL to Commence Mexico Budget Carrier

GOL has executed definitive agreements for a joint venture to create a low-cost airline headquartered in Mexico.

The joint venture is formalized by means of the incorporation of a Mexican-controlled holding company named Controladora Prosea S.A. de C.V., in which GOL will hold 25 percent of the voting capital stock and approximately 47.6 percent of the total capital stock, the remaining capital being subscribed by Mexican investors.

The holding company will own the capital stock of a newly-created airline operating company, which has already filed a concession request with the Mexican authorities.

The procedures regarding the necessary concessions and administrative permits should be concluded in the near future, with the beginning of the new company´s operations expected in mid-2006.

The new company will, at first, operate in the Mexican domestic market, adopting the successful "low-cost, low-fare" business model of GOL in South America.

GOL will render consulting services, in areas such as schedule planning, flight operations control, safety procedures, aircraft maintenance, revenue management and accounting, cargo administration and IT solutions.