GOL Linhas Aéreas Inteligentes announced today a landmark agreement between its logistics business unit, GOLLOG, and Mercado Livre, the Brazilian subsidiary of Argentine-based e-commerce giant Mercado Libre.
“Our cargo operation begins an exciting new chapter for GOL and GOLLOG as we integrate our synergies as the lowest cost carrier in the region with the needs of Mercado Libre, the largest e-commerce platform in Latin America,” said Paulo Kakinoff, CEO of GOL.
The ten-year agreement includes a dedicated cargo fleet of six Boeing 737-800 BCFs with 24-ton capacity, reports our Brazilian media partner Aeroin.
See also: Mercado Libre looks at more aircraft and routes in South America
GOL Aerotech, the Company’s business unit specialized in maintenance, repair and overhaul of aircraft and components, is in the process of being certified to perform complete conversions of the next aircraft at its maintenance center in Confins-MG.
After the conversion, the aircraft will have the Mercado Livre color and logo.
The first three aircraft would enter the fleet in the second half of 2022. In 2023, the remaining aircraft would be added. There is also an option to add another six BCFs in 2025.
According to the company, the introduction of the six freighter aircraft would generate fleet optimization savings of approximately USD 5 million in 2022 and another USD 16 million in 2023. It will also allow further dilution of fixed costs and generate new opportunities.
GOL expects to close this year with 136 aircraft in its fleet, consisting of 44 Boeing 737-8s and 92 Boeing 737 Next Generation.
The growing E-Commerce market in Brazil
GOL’s agreement with Mercado Livre is part of the airline’s investment to meet the needs of Brazil’s growing e-commerce market, which today generates more than USD 38 billion in annual revenue and an annual spend of more than USD 2 billion on logistics services.
As such, GOLLOG plans to increase its range of services and tonnage capacity by 80% during 2023, to generate additional incremental revenues of approximately USD 21 million in 2022 and more than USD 214 million over the next five years.
Currently, the airline’s logistics division operates cargo services to 52 airports and more than 3900 destinations in Brazil.
“The fleet expansion is vital to advance Mercado Libre’s mission to democratize e-commerce services in Brazil and becomes even more important in this country of continental dimensions,” said Fernando Yunes, senior vice president of Mercado Livre in Brazil.
Yunes stated that with this partnership they will increase the number of direct flights from São Paulo to the North and Northeast regions, reducing delivery time by up to 80%.
The delivery time for Manaus will be only one day, instead of the current nine days, while for destinations in the Northeast the delivery time will be reduced from four days to one. Other capitals, such as Goiânia and Cuiabá, will receive their packages the next day.
Mercado Libre adds another partnership in Latin America
The E-Commerce company already had several partnerships with freight companies in Latin America, taking advantage of the growing market in Brazil and Mexico.
See also: Mercado Libre develops exclusive air fleet in Mexico
The company currently has six aircraft flying under its colors under the name Meli Air:
- 2 Boeing 737-400 (F) in Brazil operated by Sideral.
- 2 Boeing 737-400 (F) and 2 DC 9-30 (F) in Mexico operated by TSM Aeronaves.
It also has agreements with Azul, while LATAM was analyzing an agreement with the e-commerce company for the transportation of goods, which would allow Mercado Libre to further strengthen its cargo unit.
