Michael Linenberg : Yeah.
Richard Lark : Well, balance sheet and all that stress should probably know, hopefully gradually come out, going growing concern emphasis concerns will go away and the market will price in this initiative and ultimately what should be a, more proper price for the equity. How long it’s going to take, your guess is as good as mine. That’s a couple weeks or a couple months, but we will see.
Michael Linenberg : And we’ve seen some movement in asset prices. So that’s a good thing. Just my last thing and Richard or Celso. We now have Abra and, we have the foundation for the holding company. We have a better sense of the structure What about the potential upside, when we think about, in the past Rich, you’ve talked about the IAG holding company structure and there’s a lot of goodness in that type of structure. And when you think about, cross-utilization and joint procurement and synergies. And, I think about, if FIDA, I get preferential treatment on say, Iberia or Air Lingus and access to the club’s. When, when do we start rolling out that? Because I feel like that that’s, that’s an exciting part of the story and it would be sort of the first of its kind in Latin America.
Richard Lark : Yeah. No, we, yes, there are a lot of synergies across the group’s structure, starting with Bianca. Bianca will be rolled up under the platform company by the end of April, but a lot of the ground work on that has been laid where possible. We already have all of the approvals we need to start working together and do that. Yes, I know a lot of people will potentially use IIG As an example, we have a lot of differences in how we’re doing it, here in the South America market and what we’ve created effectively is a platform company that has its own reason for being – there’s going to be doing a lot of work to, generate a variety of different types of synergies from the members of the platform in terms of its focus on even being an even lower cost, higher efficiency group, which is obviously the main tenant.
Because, we believe that low-cost always wins and all the members of the Abra platform have that in their business models. As you know, Avianca did its transformation of its business model during its restructuring process. And it was in the process of finalizing its full transformation to an LCC. And then also delivering, above-market revenue growth, which is going to be through, better utilization of the of the massive networks that we all have. They can work together. It ultimately is also going to benefit, customers with, new city pairs and new ways to, get benefits from the loyalty programs. The combination of loyalty programs is one of the largest in the world and when you, when you go into the overall fleet size, we will have significant scale across the board to do things.
But obviously that’s something we’ll spend more time as we have developed on that. And obviously, the point today is to help people understand GOL’s fourth quarter results. And where we are in that and GOL is in the short term
Michael Linenberg : Great. Well, thanks. Thanks for the time.
Richard Lark : Thanks, Mike.
Operator: Our next question comes from Stephen Trent from Citi. Please go ahead with your question.
Stephen Trent: Thank you very much, operator and good morning, guys. Appreciate the time. Just two quick things for me if I may? I know that the Brazilian government is studying the idea of potentially making some adjustments in fuel taxation. And if we cross that bridge, would you anticipate revisiting your fuel hedging strategy? Or do you think that’s something that’s going to stay in place regardless of what happens? Thank you.
Richard Lark : Well, thanks for the question, Stephen. As I said I have Mario here with us on the call today. I think I’ll hand it over to Mario to respond.
Mario Liao: Sorry, Steve. Can you just repeat your last point on the question? Sorry.
Stephen Trent: Yeah, no, no worries Mario. So, presuming that the Brazilian government does move forward with some kind of adjustment on fuel taxation, would that possibly lead GOL to its long-term fuel hedging strategy?
Mario Liao: Yeah. So, we, first of all, what have you seen in terms over the last trend in terms of the movements on the jet fuel has been very correlated to the market. What’s been happening so far so we have been trying to avoid just to spend a lot of cash. And of course, we’re reserving right now the desk cash to other priorities, but we have been so far active on the market to do some hedges, especially for the next months when we build some good protection. Also, using some instruments that is related to the main supplier the Petrobras, there is a commercial hedge, using some fixed pricing for GOL. At this point in time, we still do that government can provide on that. So we, the most effective tool that were using is our natural hedge has been our capacity management using our instruments. So there’s nothing concrete in terms of the discussions with the government right now the change in that side right now.
Richard Lark : Stephen, not, no, we’re not, I mean, GOL is not, I mean, GOL’s hedging strategies for fuel FX is the same. I mean, we basically try to have something between 25% and 50% percent, 12 months out, and then beyond 12 months kind of months 12, 24, we will gradually build to the when we get, into 12 months out where roughly 25% hedged. We’ve obviously been strapped on cash and so we’ve had to be creative with instruments that we’ve been using to wrap around that. But now that the government is doing alters our – the way we’re doing heads as we continue to kind of, we’ve always generated a lot of value by getting ahead of the curve and doing it that way as opposed to reacting. So, hope that answers your question.
Stephen Trent: Yeah. No. Very helpful guys. Thanks Rich. Appreciate that. And just one more very quick one for me. I recall before the pandemic that GOL used to seasonally sublease some of its planes, overseas, Transavia or names like that during Brazil’s low season and, now that the world is kind of edged out of the pandemic. Do you anticipate maybe more potential operations, like that going forward?
Celso Ferrer: Hi, Steve. This is Celso and
Stephen Trent: Hey, Celso.
Celso Ferrer: So that’s a good question and it was kind of a part of our business model pre-pandemic. As I said to Mike, we have been managing capacity and Brazil became very highly seasonality market. I mean to compare the traffic like that we had in December and even in January now to the low season we should be managing the fleet in that way. As a Synergy of Abra one thing that we may do in the future is the sublease, but until then, we of course we have the same partners KLM and Transavia, I mean, they are really close to us and we are I mean, studying to continue this type of operation as soon as possible, if it’s not December, probably next one.
