GOL to make corporate reorganization of carriers

Airline holding company GOL Linhas Aereas Inteligentes S.A. said Thursday that regulators approved a corporate reorganization of two Brazilian airline subsidiaries with a plan to merge them into a single company.

GOL said Brazil's national civil aviation agency approved the reorganization involving GOL Transportes Aereos S.A., or GTA, and VRG Linhas Aereas S.A.

The company said that the GOL and Varig brands will be maintained and the reorganization won't affect rights of shareholders.

The parent said the reorganization would improve operational structure of the airlines, "exploit synergies" _ usually meaning reducing costs _ and improve service offerings.

GOL has a fleet of about 78 Boeing 737 aircraft, and VRG has about 34 planes, including 737s and 767s. The airlines operate throughout South America.

GOL's U.S.-traded shares, which have ranged between $6.95 and $28.16 in the past year, were up 35 cents, or 5 percent, at $7.35 in afternoon trading.