GOL Cuts Costs of Ticket Distribution

Brazil’s GOL announced that beginning January 1, commissions paid to travel agents on GOL ticket sales will be cut down to 7 percent for domestic flights and as much as 6 percent for international flights.

The decision is part of the GOL’s overall cost reduction plan which is expected to slash operating costs, as measured by CASK, by 7 percent in 2007. The Company also expects annual cost savings of 95 to 105 million reals in travel agency commissions in 2007.

“Reducing our costs will allow the Company to offer even lower airfares and continue to popularize air transportation,” says GOL’s vice president of marketing and services, Tarcisio Gargioni.