We began operations on March 12, 2004 in the form of a corporation, duly incorporated under the laws of Brazil. Our Company‘s term of duration shall be indeterminate and we specialize in the provision of regular nationwide air transportation and non-regular international air transportation of passengers, cargo and mail bags, in accordance with the concessions granted by the competent authorities. Our major assets consist of: (i) shares issued by VRG, our subsidiary, (ii) three offshore financial subsidiaries, (iv) cash, (v) cash equivalents and (vi) short-term financial investments. We own all the shares issued by VRG, except for those held by VRG’s Board members for eligibility purposes. Our headquarters are located at Praça Comandante Linneu Gomes, S/N, Portaria 3, Jardim Aeroporto, CEP: 04626-020, São Paulo, SP, Brazil, and our general phone number is +55 11 2128 4000. The phone number of our investor relations department is +55 11 2128 4700. Our website is www.voegol.com.br, where investor information can be found. All the information on our website is not contained in our annual report, and should not be considered an integral part thereof.
According to the IATA (International Air Transport Association), we are one of the largest low-cost low-fare airlines in the world in terms of passengers carried in 2012, and the largest company in Latin America in this category to offer scheduled flights with routes linking all major cities in Brazil and the latter to the major cities in South America and selected destinations in the Caribbean. With a new standardized fleet of 131 Next Generation Boeing 737 aircrafts, we have the largest domestic airline network in the Brazilian air transport market.
Since the beginning of operations in 2001, our simple, affordable and reliable services and our focus on markets that were poorly served or without a low-fare alternative have ensured strong brand visibility and rapid market share growth. We were the first company to successfully introduce practices and technologies from the low-cost transport segment into Latin America. We have a diversified revenue base, with clients ranging from business passengers to tourists traveling throughout Brazil, South America and the Caribbean. Our strategy is to increase market share by attracting new passengers, as well as diversifying our revenue through our well-established route network, a modern aircraft fleet, targeted marketing and our Smiles loyalty program (one of the largest loyalty programs in Latin America, with more than 9.2 million members and 213 business partners), a variety of attractive secondary business such as our air cargo service (Gollog), and a variety of payment mechanisms designed to facilitate the purchase of our tickets by low-income customers. Revenue from passenger transport accounted for 92% of total net revenue of R$2.1 million in the 1Q13 and ancillary revenue (cargo and other) for 8%.
In March 2013, we offered around 970 daily flights to 65 domestic and 10 international destinations in South America, Caribbean and the United States.