BRAZILIAN AIRLINE GOL SHARES ITS MODEL FOR SUCCESS
Probably
the most startling statement at the Network Latin America conference was
made by Mauricio Moreira, of Brazilian airline GOL. Challenging his
audience during the panel discussion on Monday December 6, Mr. Moreira
boasted about with his company’s operational target to turn-around
aircraft from touch-down to departure in less than 20 minutes; he was
adamant that operational efficiency is key to sustainability.
Sparked by the reaction which hinted at disbelief among many in the
crowd, Horizon asked Mr. Moreira how “he” does it. “We are a learning
organization and we always try to improve,” he said. According to him,
what worked for GOL, was using the right equipment and learning
everything there was to learn about it.
GOL is the largest operator of the Next Generation Boeing 737 in Latin
America. The airline operates both the 700 and 800 versions of the
aircraft on routes across Brazil. “Boeing has been in business since
1916; they have tremendous know-how on how to operate their aircraft and
they have great after-sale service. We have a pretty modern fleet and we
just took the ultimate advantage of that, so we continuously make sure
that our people get the right training,” Mr. Moreira said.
The result, he insisted, was aircraft turn-around time - from “block to
block”- of less than 20 minutes. He agreed though that up to 90 percent
of GOL’s flights are domestic and that there are some cases in which the
20 minute turn-around time just isn’t possible. “But we try. Aircraft on
the ground do not make money, so you have to turn them around as quick
as possible to get them back in the air,” he said.
GOL Transportes Aereos was launched in January 2001 as the first
low-fare airline in Brazil and today is the fastest growing airline in
South America. Mr. Moreira said the airline’s ability to offer fares
that were 30% below the average, spurred domestic traffic in Brazil. He
said it also helped that the country’s currency stayed strong and the
economy actually saw up to US$ 30 million growth despite the recession.
“It stimulated the demand for travel. We are doing well as a company,”
he said.
As he advocated inventiveness, creativity and efficiency, the Brazilian
airline executive said GOL’s model could work for other airlines as
well. “Our model can be translated and is applicable in other
situations. Very few things in life aren’t,” he said. The model, he
said, includes incentives for airline employees, which increases
motivation. “All our employees have earning-related profit share. From
the Vice President to the flight attendant. For them it is clear that we
make more money if we are more competitive than the other company. It’s
a matter of efficiency and creativity. If you always continue to do the
same thing, you will always get the same result.”
Mr. Moreira met with PJIAE officials to discuss the possibility of his
airline adding flights to St. Maarten. PJIAE President drs. Holiday was
hopeful about the meeting.
Probably
the most startling statement at the Network Latin America conference was
made by Mauricio Moreira, of Brazilian airline GOL. Challenging his
audience during the panel discussion on Monday December 6, Mr. Moreira
boasted about with his company’s operational target to turn-around
aircraft from touch-down to departure in less than 20 minutes; he was
adamant that operational efficiency is key to sustainability.
