Gol Airlines Makes Changes

Gol Airlines, the second largest Brazilian airline, has decided to swap their Chief Financial Officer and board members as the company restructures.

Gol's restructuring is taking place during an economic upheaval in the South American nation. Gol is the second largest airline behind TAM. Earlier this year TAM finalized its partnership with Chilean airlines, LAN, to create LATAM. Read more about the merger TAM Merger Best for Consumers

The Brazilian airline has decided to hand over the reigns to the chief financial officer who took the company public. The company also named two new board members as the company needs to restructure its debt as the economic crisis wrecks the country's travel industry. Gol is hoping these changes will attract bondholders' cooperation.

Gol Linhas Aereas Inteligentes SA began in 2001 and began offering international flights by the end of 2005. By 2014, the company owned 32% of the market share in the country. In 2016, the company staved off bankruptcy selling nearly half of their shares to American airline, Delta.

It was in 2003 that Gol's former and newly appointed CFO, Richard Lark, took the company public on the country's stock exchange, Bovespa. Lark held the position from 2003 to 2008. Lark's nomination to his former post was made public via a securities filing made last Thursday. Lark's seat will be filled by Andre Janszky who is the managing partner of the law firm, Milbank, Tweed, Hadley & McCloy's Sao Paulo office.

Current CFO, Edmar Prado Lopes Neto will continue with the company and "will take on new challenges within the group after the transition is completed," according to the securities filing. It was Neto who earlier this month noted that an unpopular bond swap was no enough to resolve the company's debt burden. The debt burden has resulted in four years of heavy losses and puts the company in a difficult situation as the country's economy continues downward.

Ana Luiza Constantino, who is a member of the company's controlling family, will take the board seat of Henrique Constantino. Henrique was arrested in July in the Lavo Jato corruption investigation, which has confiscated a large amount of funds and has arrested many politicians and businessmen. The investigation has also contributed to the suspension of Brazilian president, Dilma Rouseff.

Read more from Reuters Gol Substitutes Management

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