GOL Linhas Aéreas Inteligentes (G3, Sao Paulo Congonhas) says it has been able to reach an agreement with lessor GECAS and equity partner Delta Air Lines (DL, Atlanta Hartsfield Jackson) with respect to the commercial lease of twelve aircraft.

Under the terms of the mentioned agreement, Delta will assume certain rights and obligations in relation to Gol and to GECAS. The move is part of the struggling Brazilian carrier's fleet rationalization plan which includes redelivery of certain aircraft.

GOL, through its VRG Linhas Aéreas (Rio de Janeiro International) unit, entered into a lease agreement with GECAS in 2000, for the lease of four aircraft. Within the scope of the GECAS agreement, Delta may acquire these four aircraft from GECAS, replacing it as lessor in the newly reached Lease Agreement, as a result of this acquisition. Delta has until early December 2016 to confirm whether it will acquire these four aircraft and lease another four aircraft subject to the Deferred Lease.

Once Delta has given its confirmation, Delta will replace GECAS as lessor under the Lease Agreement, and VRG will simultaneously early terminate the Lease Agreement and redeliver the four aircraft upon payment by VRG to Delta of USD27 million. This amount refers to financial adjustments related to the redelivery of the aircraft, as provided for in the Lease Agreement. Delta has agreed to waive the payment by VRG of additional amounts that would be due under the Lease Agreement, including rentals to maturity and aircraft reconfiguration costs.

In addition, subject to the condition precedent that Delta shall have given its confirmation, VRG will early terminate the commercial lease of four other new aircraft, received in the last two years. The difference between the amounts due for early termination of said commercial lease and the lease mentioned in the previous paragraph is due to the time of use of the relevant aircraft, so that the older they are, the higher the cost will be for maintenance of each aircraft after the redelivery to GECAS.

Finally and subject to Delta giving its consent, VRG will early terminate the commercial lease of yet another four aircraft with GECAS. Because these aircraft are to be withdrawn from operation over the next six months, prior to the expiration of their respective agreements, rent for these aircraft will be reduced in relation to the current lease payments. Delta will sublease from VRG the two engines of each of these four aircraft during this six month term paying as rental fees the same amounts as will be paid by VRG as rent to GECAS.

After the expiration of the six-month agreement, Delta will be entitled to lease the four aircraft directly from GECAS for a period to be agreed upon between the parties, and VRG will be discharged from its obligations arising out of the commercial lease of such aircraft (Deferred Lease).