DOT fines Brazil's GOL airline largest penalty for violating airline consumer rules

By BA Staff

The U.S. Department of Transportation (DOT) fined the Brazilian airline GOL $250,000 for violating a number of DOT’s rules protecting the rights of air travellers. This is the largest penalty assessed for violations of the rules adopted in April 2011.

The airline was ordered to cease and desist from further violations of the Department’s airline consumer rules.

U.S. Transportation Secretary Anthony Foxx said:

“We adopted these rules to ensure that passengers are treated with respect when they buy a ticket or board a plane. We will not tolerate disregard of our rules and will take enforcement action when necessary to protect travelers.”

The Department’s Aviation Enforcement Office found that GOL’s U.S. website, for a period of time after it was launched in November 2012, failed to include a variety of information and features required by DOT air travel consumer protection rules. The website did not include a contingency plan for handling lengthy tarmac delays or a link from the homepage to a list of fees for baggage and other optional services.

GOL also violated DOT’s full-fare advertising requirement by failing to include taxes and fees in fares displayed on the website in response to consumer searches. The full fare, including taxes and fees, was available only after the consumer selected a specific itinerary.

The airline also failed to post its contract of carriage in an easily accessible form on its website. A consumer had to begin the process of searching for an itinerary before being able to gain access to the contract information. This made it hard to easily compare GOL’s contract with those of other airlines, and made obtaining the contract difficult for passengers who wanted to review the information online before booking a flight by telephone or with a ticket agent.

Can we look to something similar in India? Share your thoughts via a comment.

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Boeing and GOL Airlines to collaborate on aviation biofuels in Brazil

By BA Staff

Boeing and Brazil's GOL Linhas Aereas Inteligentes S.A. will work together to speed the research, development and approval of new sources of sustainable aviation biofuel in Brazil. Their collaboration will support GOL's plans to use this lower-carbon jet fuel on more flights during upcoming major sporting events and also will benefit long-term development of a new sustainable aviation biofuel industry in Brazil.

Paulo Sergio Kakinoff, chief executive officer of GOL, and Van Rex Gallard, vice president of Sales for Africa, Latin America and the Caribbean, Boeing Commercial Airplanes, signed a memorandum of understanding for biofuel collaboration at the Latin America and Caribbean Air Transport Association (ALTA) Airline Leaders Forum 2013.

Paulo Kakinoff, chief executive officer for GOL said:

"Because of its continuous improvements in technology that result in ever-lower fuel consumption, the Boeing Next Generation 737 is the only airplane that GOL flies. Boeing's focus on fuel efficiency helps us all operate in a more sustainable fashion, and the expansion of our partnership with this new project will further advance the effort to expand biofuel use in Brazil. It also will serve as an example to the world of what is possible today and in years to come. Boeing is very pleased to work with GOL on this key project to advance the use and availability of biofuels. As Brazil's leading low-cost carrier, GOL is showing great leadership in its efforts to conduct lower-carbon flights."

GOL plans to use biojetfuel on 200 flights during the major sporting event in Brazil in 2014 and to incorporate biofuel into 20 percent of its flights during the Olympics taking place in Rio de Janeiro in 2016.

On Oct. 23, Brazil's Aviator's Day, GOL conducted Brazil's first commercial biofuel flight in a Boeing 737-800 powered in part by sustainable aviation biofuel made from waste cooking oil and blended by Petrobras, with support from the Inter-American Development Bank (IDB). Following the flight, aviation industry stakeholders including GOL and Boeing, as well as Brazilian officials and research institutions, announced a national effort called the Brazilian Biojetfuel Platform to establish a sustainable biojetfuel industry with research and development in several regions of the country. If the Platform is successful, Brazil, which has already established a biofuel industry could be the first nation to establish a sustainable aviation biofuel industry from biomass production to flight.

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Boeing, South African Airways launch sustainable aviation biofuel effort in Southern Africa

By BA Staff

Boeing and South African Airways (SAA) announced that they will work together to develop and implement a sustainable aviation biofuel supply chain in Southern Africa, a first for the continent.

Courtesy of Boeing

The companies signed a Memorandum of Understanding for sustainable aviation biofuel supply chain development at The Corporate Council on Africa's 9th Biennial U.S.-Africa Business, attended by executives from leading U.S. and African firms and government representatives from several countries.

This collaboration between Boeing and SAA is part of the companies' broader efforts to support environmental sustainability for the airline's operations and the commercial aviation industry overall, in addition to advancing South Africa's social and economic development.

Ian Cruickshank, SAA Head of Group Environmental Affairs said: 

 "South African Airways is taking the lead in Africa on sustainable aviation fuels and, by setting a best practice example, can positively shape aviation biofuel efforts in the region. By working with Boeing's sustainable aviation biofuel team, which has a history of successful partnerships to move lower-carbon biofuels closer to commercialization, we will apply the best global technology to meet the unique conditions of Southern Africa, diversify our energy sources and create new opportunities for the people of South Africa."

Boeing has collaborated extensively with airlines, research institutions, governments and other stakeholders to develop road maps for biofuel supply chains in several countries and regions, including the United States, China, Australia and Brazil. The aerospace company's plan to work with SAA is the first such project in Africa.

Julie Felgar, managing director of Environmental Strategy and Integration, Boeing Commercial Airplanes said:

 "Sustainable aviation biofuel will play a central role in reducing commercial aviation's carbon emissions over the long term, and we see tremendous potential for these fuels in Africa. Boeing and South African Airways are committed to investigating feedstocks and pathways that comply with strict sustainability guidelines and can have a positive impact on South Africa's development."

Flight tests show that biofuel, which is derived from organic sources such as plants or algae, performs as well as or better than petroleum-based jet fuel. When produced in sustainable ways, biofuel contributes far less to global climate change than traditional fuels because carbon dioxide (CO2) is pulled out of the atmosphere by a growing plant-based feedstock.

Boeing and SAA believe that new developments in technology will enable the conversion of biomass into jet fuel in a more sustainable manner without competing with other sectors for food and water resources. The World Wildlife Fund-South Africa will monitor and ensure compliance to sustainability principles that would ensure that fuel is sustainable and would lead to genuine carbon reductions.

Aviation biofuel refined to required standards has been approved for a blend of up to 50 percent with traditional jet fuel. Globally, more than 1,500 passenger flights using biofuel have been flown since the fuel was approved.

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GOL and Delta achieve alliance milestones

Atlanta based American full service carrier Delta Air Lines and Brazilian low cost carrier (LCC) GOL Linehas Aereas Inteligentes recently detailed the benefits of their alliance 20 months after its inception. Find the details below.

22nd August, 2013

SAO PAULO, Aug. 22, 2013 /PRNewswire/ -- Twenty months after Delta Air Lines (NYSE: DAL) and GOL Linhas Aereas Inteligentes (BM&FBovespa: GOLL4 and NYSE: GOL) announced their enhanced, long-term, exclusive alliance, the companies highlight the milestones achieved.  Delta and GOL leveraged the strengths of both carriers to create additional value by establishing a seamless customer experience.

The Delta and GOL commercial team accomplished its immediate objectives: (1) expand the codeshare agreement; (2) provide additional benefits to the airlines' loyal customers; and (3) offer a consistent experience at airports.   

Codeshare Agreement

"Our strategic partnership with GOL greatly enhances Delta's network, providing access to 23 destinations in Brazil," said Ed Bastian, Delta's president and member of GOL's Board of Directors. "The codeshare will continue to expand pending regulatory approvals. Delta and GOL offer a U.S.-Brazil network unrivaled by any other U.S. flag carrier."

Currently GOL has the ability to offer its customers access to the 5 markets Delta serves between the U.S. and Brazil which are: Brasilia - Atlanta, Rio de Janeiro - Atlanta; and between Sao Paulo and Atlanta, Detroit and New York JFK.  Additionally, GOL's customers from the following local markets currently have access to Atlanta and will soon have access to Detroit and JFK: 

• Belo Horizonte
• Curitiba
• Goiana
• Porto Alegre

The Delta-GOL codeshare agreement provides Delta customers access beyond Brazil as well, including connections to Asuncion, Paraguay and Montevideo, Uruguay.

"We are achieving our goals and this is just the beginning," said Paulo S. Kakinoff, GOL's Chief Executive Officer. "The alliance has driven significant growth in traffic, with 28 percent of all Delta customers that travel to Brazil continuing on their journey with GOL. This represents an increase of nearly 100 percent more traffic year-over-year."

As of July, GOL started to offer Delta flights on GOL's website, voegol.com, Voe GOL stores, GOL's call center and travel agents. The alliance benefits commercial customers with joint contract agreement to serve corporate customers allowing them to have a single contract for service on both carriers.

Furthermore, the airlines have initiated a joint marketing campaign to promote GOL's ability to sell Delta on their channels.  As part of the joint branding efforts, customers traveling with GOL will now see the Delta logo and the phrase "in partnership with Delta" illustrated close to the boarding door of the GOL airplanes.  All GOL planes will soon carry the Delta brand.

Brazil is expected to become the fourth-largest aviation market in the world by 2014, with more than 100 million passengers.  The FIFA World Cup in 2014 and the Summer Olympics in 2016 will spotlight Brazil across the world. 

Airport Co-location and Customer Experience

One of the additional milestones of the alliance is the co-location of the airlines.  In April, Delta moved from Terminal 1, A Wing to Terminal 2 C Wing of the Sao Paulo-Guarulhos International Airport. For GOL and Delta customers co-location increases ease of connectivity and facilitates the process of re-checking bags after clearing customs since gol counters are located immediately after leaving the secured customs area.

"We want to offer our customers a premium check-in area, improved signage to enhance customer experience and an enhanced VIP lounge," Kakinoff said.  "GOL has a significant presence in Brazil's main airports and together with Delta we will continue to provide customers a seamless experience."

Customer Benefits

The alliance set in motion a plan to increase shared benefits to Delta's and GOL's most loyal customers. Along with the ability to accrue and redeem flight awards, Delta customers now enjoy complimentary access to GOL's VIP Lounges in São Paulo and Rio de Janeiro-Galeão International airports.  Likewise, Delta Sky Clubs in Atlanta, New York-JFK and Detroit are available to SMILES Diamond members at no charge. 

GOL's SMILES Diamond elite members have now access to priority check-in and boarding on Delta's flights through Delta's Sky Priority. Delta's Diamond, Platinum and Gold Medallion members have access to the same benefits. Delta's Sky Priority is a series of distinctively branded priority airport services designed for high value customers, allowing them to move quickly through the airport.

"This is a period of rapid growth and transformation for Delta and GOL. Brazil is the leading engine for economic growth in Latin America and an increasingly popular travel destination from the U.S.," said Bastian. "These joint achievements represent furthering Delta's goal to become the best U.S. airline in Latin America and the Caribbean.  Our alliance is based on shared values, leveraging strengths and learning to benefit from each other to better serve our customers."

As part a $3 billion investment in enhanced global products, services and airport facilities, Delta offers fully flat-bed seating with direct aisle access in the BusinessElite cabin on its routes from Sao Paulo to Atlanta and JFK, as well as from Rio de Janeiro to Atlanta. These flights also offer Delta's popular Economy Comfort seating in the forward section of the economy cabin. Economy Comfort offers additional legroom and 50 percent more recline compared to standard economy seats. All cabins offer in-seat audio and video on demand with a broad range of in-flight entertainment options. Delta also will introduce in-flight Wi-Fi service on international flights beginning in 2014.

About GOL Linhas Aereas Inteligentes SA

GOL Linhas Aereas Inteligentes S.A. (BM&FBovespa: GOLL4 and NYSE: GOL), the largest low-cost and low-fare airline in Latin America, offers around 970 daily flights to 65 destinations in 10 countries in South America, Caribbean and the United States under the GOL and VARIG brands, using a young, modern fleet of Boeing 737-700 and 737-800 Next Generation aircraft, the safest, most efficient and most economical of their type. The SMILES loyalty program allows members to accumulate miles and redeem tickets to more than 560 locations around the world via flights with foreign partner airlines. The Company also operates Gollog, a logistics service which retrieves and delivers cargo and packages to and from more than 3,500 cities in Brazil and eight abroad. With its portfolio of innovative products and services, GOL Linhas Aereas Inteligentes offers the best cost-benefit ratio in the market.

About Delta Air Lines

Delta is working to become the best U.S. airline in Latin America and the Caribbean and was just recognized with the Best Airline to North America award by Premio Destaque Companhia de Viagem,  by Grupo Companhia.  As part of that goal Delta has established a long-term exclusive alliance with GOL Línhas Aereas Inteligentes investing more than US $100 million in GOL. Likewise, Delta has invested more than US $65 million in Aeromexico as part of a long-term exclusive commercial alliance and entered a code sharing agreement with Aerolineas Argentinas solidifying its footprint in Latin America. Executive Travel magazine recognized Delta with the Gold Leading Edge Award for the Best Flight Experience to Mexico. Delta provides service to 28 countries and 44 destinations in the region offering more than 1,200 weekly flights between Latin America/Caribbean and the U.S. Spanish speaking Delta customers can receive real-time, on-the-go travel assistance in Spanish and Portuguese through its Twitter channels @DeltaAssist_ES and @DeltaAjuda 9 a.m. to 7 p.m. EST. Brazilian customers can also access Delta´s dedicated Brazil Facebook page visiting http://www.facebook.com/DeltaAirLinesBrasil.

Delta Air Lines serves more than 160 million customers each year. Delta was named by Fortune magazine as the most admired airline worldwide in its 2013 World's Most Admired Companies airline industry list, topping the list for the second time in three years. With an industry-leading global network, Delta and the Delta Connection carriers offer service to 327 destinations in 63 countries on six continents. Headquartered in Atlanta, Delta employs nearly 80,000 employees worldwide and operates a mainline fleet of more than 700 aircraft. The airline is a founding member of the SkyTeam global alliance and participates in the industry's leading trans-Atlantic joint venture with Air France-KLM and Alitalia. Including its worldwide alliance partners, Delta offers customers more than 15,000 daily flights, with hubs in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City and Tokyo-Narita. Delta is investing more than $3 billion in airport facilities and global products, services and technology to enhance the customer experience in the air and on the ground. Additional information is available on delta.com, Twitter @Delta, Google.com/+Delta and Facebook.com/delta.

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American Airlines adds new Latin American routes, moves closer to LATAM

by Vinay Bhaskara

Yesterday, Dallas Fort Worth based American Airlines announced an expansion of its Latin American network, saying that it would launch services between its largest hub at Dallas-Fort Worth International Airport and Bogota, Colombia, as well as a likely triangular routing between its largest Latin American gateway at Miami and the Brazilian cities of Porto Alegre and Curitiba. Both services are projected to begin in "late 2013."

The move marks American's latest round of long haul expansion in Dallas after it announced service from Dallas - Fort Worth to Lima, Peru and Seoul, South Korea earlier this year and recently took delivery of its first Boeing 777-300ER. Following its entrance into Ch.11 bankruptcy protection in late 2011, American had temporarily slowed down international growth. But that pattern appears to have shifted, and both of these additions make a lot of sense.

Dallas-Bogota allows American to connect with Oneworld partner LAN Colombia (via the newly signed code share agreement) and serve a growing local market, while the burgeoning economic and cultural ties between Miami and Brazil with robust leisure and business traffic alike will make the second route a winner (Porto Alegre is the one of the largest Brazilian cities without service to Miami).

Additionally, they launched two new code shares in the region; the aforementioned LAN Colombia deal and another agreement with Brazilian carrier TAM. "American's new partnerships with TAM and LAN Colombia further strengthen our longstanding relationship with LATAM Airlines Group, Latin America's largest and most premier airline group," said Virasb Vahidi, American's Chief Commercial Officer.

After LAN and TAM merged late last year to create Latin America's largest airline, it was rumored that the merged carrier would gravitate towards the Oneworld alliance (TAM was previously a member of Star Alliance), and the new code share agreement only firms that suspicion. The deal will expand American's already massive Brazilian footprint and give Oneworld customers more seamless connections throughout the Americas.

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India and Brazil sign new bi-lateral air services agreement

BASIC and BRIC economic group partners India and Brazil signed a new bi-lateral air services agreement (ASA) recently superseding an earlier 2006 agreement, with an intent to drive greater trade, economic investments and tourism between the two nations.

The new agreement allows for any number of designated airlines (which was previously limited to one per country), to operate up to 21 services per week in each direction with any aircraft not exceeding the capacity of a Boeing 747 (Code E) aircraft.

The designated airlines of each side are entitled to operate any point in each other’s territory, via any intermediate point and beyond to any point.

It remains to be seen how this agreement will spur flights between the two countries since no airline from either country operates flights.

There is open sky agreement in existence for all cargo operations between the two sides.

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Qatar Airways announces Brazil code share with GOL Linhas Aereas Inteligentes

Qatar Airways has announced its intention to enter into a code share agreement with one of Brazil's largest airlines, GOL Linhas Aereas Inteligentes with an aim to offer passengers of its Doha Sao Paulo flights connectivity to 47 destinations within the South American nation at a future date, yet to be determined.

Both airlines have filed a joint application with Brazil’s National Civil Aviation Agency and Brazilian Antitrust Agency, seeking approval for the agreement. A date for the code share implementation has yet to be determined.

Code share cities within the agreement are: Aracaju, Bauru, Belém, Brasília, Boa Vista, Cuiabá, Campo Grande, Chapecó, Belo Horizonte (Confins), Campinas, Campina Grande, Curitiba, Caxias do Sul, Cruzeiro do Sul, Fernando de Noronha, Florianópolis, Fortaleza and Rio de Janeiro (both Galeão and Santos Dumont airports).

Other Brazilian cities included are Goiânia, Foz do Iguaçu, Imperatriz, Ilhéus, Juazeiro do Norte, Joinville, João Pessoa, Londrina, Marabá, Manaus, Macapá, Maceió, Maringá, Natal, Navegantes, Palmas, Petrolina, Porto Alegre, Porto Seguro, Porto Velho, Presidente Prudente, Rio Branco, Recife, São Luís, Salvador, Santarém, Teresina, Uberlândia and Vitória.

Both airlines are also working on concluding an agreement linking their respective frequent flyer programmes – Qatar Airways’ Privilege Club and GOL’s SMILES scheme, allowing any member to earn and redeem miles on all flights operated by both carriers.

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Embraer launches KC-390 military jet transport and tanker program

Embraer (Empresa Brasileira de Aeronáutica S.A.) has signed a contract with the Brazilian Air Force (FAB) for the KC-390 military transport aircraft program.

Frederico Fleury Curado, President and CEO of Embraer said

“We are convinced that the development of the KC-390 will result in an effective cargo and tanker aircraft for the FAB and shall also become another successful export platform for both Embraer and Brazil.”

Image courtesy Embraer

The new jet which is expected to enter service in 2015 will have a cargo bay equipped with an aft ramp, to transport a wide variety of cargo, including armoured vehicles, and will be outfitted with the most modern cargo handling systems. The new jet will also serve in a variety of roles including airborne tanking or Medical Evacuation (MEDEVAC) missions.

The KC-390 will include fly-by-wire technology for lowering pilot workload and resultant fatigue and will have capability to operate on short and rustic runways.

A big hat tip to Addison Schonland at the Innovation Analysis Group.

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