Gol Intelligent Airlines Inc was formed on March 12, 2004 as a sociedade por ações, a stock corporation, duly incorporated under the laws of Brazil for an unlimited term. The Company is a low-cost carriers in the world, according to the International Air Transport Association, or IATA, in terms of passengers transported in 2013, and the largest low-cost carrier in Latin America. It provides frequent service on routes connecting all of Brazil's major cities and from Brazil to major cities in South America and selected tourist destinations in the Caribbean and the United States. The Company is engaged in controlling its wholly-owned subsidiary (i) VRG Linhas Aéreas S.A. ("VRG"), and through its subsidiaries or affiliates, essentially exploring: (a) regular and non-regular air transportation services of passengers, cargo and mailbags, domestically or internationally, according to the concessions granted by the competent authorities; (b) complementary activities of air transport service provided in its bylaws; and (ii) Smiles S.A., which mainly operates: (a) the development and management of its own or third party's customer loyalty program, and (b) sale of redemption rights of awards related to the loyalty program. The Company has two reportable segments: Flight transportation: The Company's operations are derived from its subsidiary VRG and consist in to provide air transportation services within South America and the Caribbean, and the major assets earning revenue are its aircraft. Other revenues primarily arises from cargo, , installment sales, excess baggage charges and cancellation fares, all directly attributable to air transportation services; and Smiles loyalty program: The operations in this segment are represented by miles' sales transactions to air and non-airline partners. The Company faces competition on domestic routes in Brazil from existing scheduled airlines, charter airlines and potential new entrants in its market. In addition to competition among scheduled airline companies and charter operators, the Brazilian airline industry faces competition from ground transportation alternatives, such as interstate buses. It also faces competition from international airlines as they introduce and expand flights between Brazil, other South American and U.S. and Caribbean destinations.