GOL Reviews Quarterly Dividend Policy for 2008
SAO PAULO, Brazil, Aug. 7 /EMWNews/ -- GOL Linhas Aereas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4), announces that the Company's Board of Directors ("the Board") voted yesterday to suspend quarterly dividends for the remainder of 2008. GOL has paid R$664.7 million in dividends to its shareholders since 2004. Given the current environment for the airline industry, the Board believes suspending dividends is in the Company and shareholders' best interests, as it will allow GOL to employ cash to fund investments and improve credit ratios. Suspending dividends is one of many strategies the Company is employing to offset higher fuel prices and provide management with the necessary flexibility to continue making investments, including GOL's fleet renewal program, recent adjustments to the fleet plan, integration of GTA and VRG operations and the implementation of a new ticket sales system. These initiatives are expected to contribute to revenues and optimize costs. "The Company is taking the necessary steps to set the stage for the next phase of growth, in line with our strategy of profitable expansion through our low-cost structure," said Constantino de Oliveira Junior, GOL's president and CEO. The 2008 dividend policy forecasted fixed quarterly dividend payments of R$0.18 per share for both common and preferred shares. The Company is committed to distributing a minimum dividend of 25 percent of the year's net profit, and, if necessary, will issue a supplemental dividend payment at year- end to meet the minimum dividend as required by Brazilian Corporate Law.
About GOL Linhas Aereas Inteligentes S.A. GOL Linhas Aereas Inteligentes S.A. (NYSE: GOL and Bovespa: GOLL4) is the parent company of Brazilian airlines GOL Transportes Aereos S.A. and VRG Linhas Aereas S.A. GTA offers over 640 daily flights to 57 destinations connecting the most important cities in Brazil as well as the main destinations in South America. VRG offers over 120 daily flights to 14 destinations in Brazil.
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