Gol Slumps on Government Intervention Concern: Sao Paulo Mover
Gol Linhas Aereas Inteligentes SA (GOLL4) fell the most in four months after Veja magazine reported that Brazil may try to force airlines to cap some fare prices. Shares pared losses after the government denied the report.
Shares slumped 3.2 percent to 14.52 reais at 4:54 p.m. in Sao Paulo after earlier tumbling as much as 7.8 percent in the steepest intraday decline since Oct. 2.
Brazil is considering changes at Congonhas airport including a cap on fares for flights there, Veja reported earlier without saying where it got the information. Brazil’s civil aviation regulator Anac said through it’s press office it’s unaware of any plan to limit airline ticket prices, easing concern that the government would intervene in the sector.
The regulator can’t intervene in ticket prices because Brazil has had a free rate policy since 2001, Anac said. It said in the statement that it will publish a plan to revise rules for distribution of the slots available for takeoffs and landings in airports tomorrow, with the goal of removing those that aren’t well used by airlines.
Gol has operated the most flights connecting Congonhas with Brazil’s busiest airports since 2008, according to a statement on the airline’s website. A press official at Gol declined to comment.
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