American Airlines has confirmed its plans to strengthen its partnership with Gol, Brazil’s largest airline.

The extended partnership includes a larger and more profitable loyalty programme arrangement, which builds on the two carriers’ first codeshare agreement signed last year.

It also plans to expand its commercial partnership with Gol in order to boost growth and provide a more seamless experience for all customers.

In exchange for a 5.2 percent stake in Gol, American would invest $200 million in 22.2 million newly issued preferred shares.

American Airlines’ president, Robert Isom, said, “American has long been the leading United States carrier to South America and our stronger partnership with Gol solidifies that leadership position.”

“Our long-haul network marries seamlessly with Gol’s strong domestic network in Brazil.

“Together, we will be able to offer customers flying to, through and from Brazil, access to the largest network with the lowest fares and the Americas’ biggest and best joint travel loyalty program.”

In Brazil, Gol will become American’s single codeshare partner, and in the United States, American will become Gol’s sole codeshare partner.

Customers can fly to more than 30 destinations in the United States served by American and more than 20 additional destinations in South America served by Gol using their combined networks.

“This codeshare agreement between two of the leading airlines in the Americas combines our highly complementary route networks to offer customers a seamless travel experience with the largest number of flights and destinations in North and South America,” stated Paulo Kakinoff, the CEO of Gol.

“We believe that this will bolster Gol’s presence in international markets, accelerate our long-term growth, and maximize value for our shareholders.”

As permitted by regulatory and contractual limits, the stronger relationship will also allow for more commercial cooperation in areas such as purchasing, sales tools, and system integrations.

American will be able to appoint one member to the Gol board of directors.

– India’s new age travel digital media


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