The parent of Brazilian carriers Gol and Varig has converted its outstanding options on 34 Boeing 737-800s and signed a new contract covering the acquisition of 40 more of the type for delivery through to 2014.

Gol Linhas Aereas Inteligentes, parent of budget operator Gol and Varig operator VRG Linhas Aereas, says the deals increase its 737-800 orders to 161 aircraft.

By exercising options on 34 Boeing 737-800s it completes its initial commitment for 121 aircraft - which includes the further 20 options it took in October last year - covering the 2006 to 2012 period.

Gol also says it has signed a new contract for the acquisition of 40 additional aircraft for delivery between 2012 to 2014. It does not specify if this contract is for firm aircraft or options.

Gol's technical VP Fernando Rockert de Magalhaes says: "This new contract will further reduce Gol's costs and enable us to continue to modernise our fleet with new aircraft."