GOL Expands Cooperation With American Airlines, Includes $200 Million Investment

By Michael Dabaie

Brazilian airline GOL Linhas Aereas Inteligentes SA said it has agreed to expand its commercial cooperation with American Airlines Group Inc. through an exclusive codeshare agreement for the next three years.

As part of the agreement, GOL will receive an equity investment of $200 million from American, GOL said.

GOL American depositary receipts were up 6% to $7.78 in premarket trade.

The agreement expands beyond the terms of the existing codeshare partnership between GOL and American, in place since February 2020, GOL said.

GOL's Smiles and American's AAdvantage loyalty programs will be partners with enhanced benefits starting in early 2022, GOL said. This will include access for loyalty members to priority check-in, priority security, priority boarding, a larger checked baggage allowance, lounge access and preferred seats on both airlines. Customers may earn and redeem frequent flyer miles on both airlines, GOL said.

The partnership between GOL and American also enables customers to purchase connecting flights on both airlines using one reservation, in addition to seamless ticketing, check-in, boarding and baggage check throughout an entire trip, GOL said.

American will invest $200 million in 22.2 million newly issued preferred shares of GOL, for a 5.2% participation in the company's economic interest at $9.00 per preferred share, GOL said.

Write to Michael Dabaie at [e-mail]

(END) Dow Jones Newswires

September 15, 2021 08:21 ET (12:21 GMT)

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