American Airlines has signed a definitive investment agreement with GOL, Brazil’s largest airline, as it aims to strengthen the partnership between the two carriers. The agreement is set to create the broadest network in the Americas. The combined networks will provide customers with over 30 destinations in the U.S. served by American, besides over 34 new destinations in South America served by GOL.
As part of the investment agreement previously announced last year, American Airlines will invest $200 million in 22.2 million newly issued preferred shares of GOL in a capital increase, for a 5.2 percent participation in the company’s economic interest. The execution of the other agreements and the closing of the equity investment are subject to certain conditions, including government and regulatory approvals, and other customary closing conditions.
American Airlines has served Latin America since 1942 and flies to 17 destinations in South America, including Sao Paulo (GRU) and Rio de Janeiro (GIG) in Brazil, from its U.S. hubs in Dallas-Fort Worth (DFW), Miami (MIA) and New York (JFK). The airline has flown over 14 million customers between the U.S. and Brazil over the past decade. GOL serves 63 destinations in Brazil and is the country’s largest airline.
As far as rewards, in 2022, GOL’s “SMILES” and American’s “AAdvantage” loyalty members will enjoy access to their status benefits on both airlines, such as priority check-in, priority security, priority boarding, a larger checked baggage allowance, lounge access and preferred seats. Both carriers are also likely to offer an enhanced joint loyalty offering to give customers more ways to earn and redeem miles.
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