As of March 31, 2006, Gol is owned by Aeropar Participacoes S.A. (72%), Comporte Participacoes S.A. (2%) and public investors (26%). Both Aeropar Participacoes and Comporte Participacoes are controlled by Brazil’s Aurea group, a family owned group that has more than five decades of successful operating experience in Brazil’s bus transportation industry.

The proposed IFC investment includes a $50 million corporate loan to the Company for the financing of spare parts and working capital.

50.0 million (USD)

Product Line	IFC Investment (million USD)
Risk Management
Guarantee
Loan	50.0
Equity

* These investment figures are indicative

Gol is headquartered in Sao Paulo, Brazil. It currently offers over 470 daily flights to 49 major business and travel destinations in Brazil, Argentina, Bolivia, Paraguay and Uruguay.

Affordable and efficient airline services are vital in Brazil, given the size of the country and its inadequate rail transportation infrastructure. However, historically high domestic fares in Brazil have reserved the aviation market for a small segment of the Brazilian population. Gol’s entry into the market has lowered the costs of air travel in Brazil to both business and leisure travelers, and has thus made air transportation accessible to the general population. Gol is now extending the benefits of low cost travel to other regional destinations including Argentina, Bolivia, Uruguay and Paraguay. Gol’s low-cost model will also contribute to making the industry more competitive and more efficient.

IFC’s key role in this investment is to finance spare parts to a private sector owned, low-cost, low-fare airline when domestic and international banks are reluctant to finance spare parts even for a strong airline such Gol. This will help provide affordable, safe and efficient air passenger transportation in Brazil.

This is a Category B project according to IFC’s Procedure for Environmental and Social Review of Projects because a limited number of specific environmental and social impacts may result which can be avoided or mitigated by adhering to generally recognized performance standards, guidelines or design criteria. The review of this project consisted of appraising technical and environmental/social information submitted by the project sponsor. The following potential environment, social, labor, and health and safety impacts of the projects were analyzed:

- Flight operations safety and security;
- Labor relations;
- Maintenance-related hazardous materials, effluents, and waste management;
- Dangerous cargo handling;
- Aircraft noise and emissions control;
- Employee health and safety, including workplace exposure to chemicals;
- Environmental management systems; and
- Social responsibility and cultural sponsorship.

GOL operates in accordance with industry standards and has presented plans to continue to address these impacts to ensure that the proposed project will operate in a manner so as its activities comply with applicable host country laws and regulations and IFC’s environment and social requirements.