MIAMI – American Airlines (AA) and Brazilian GOL (G3) have entered into a new partnership bound to create the “best network and loyalty program across the Americas”, as stated by the AA press release published today, September 15.
The letter of intent signed by the two carriers intends to reinforce the existing initial codeshare agreement, signed in 2020, turning it into an exclusive contract. The announced partnership includes an enhanced and more profitable Smiles and AAdvantage frequent flyers program partnership.
The agreement is expected to bring about increased commercial cooperation with G3, accelerated growth, and better performances for all customers.
Enhanced Codeshare Agreement
Under the new agreement, G3 will become the unique partner in codeshare for the whole of South America while AA will assume the same role in the US granting to both carriers’ customers access to over 30 destinations served by AA and 20 new city pairs served by G3 in South America.
AA is present on the South American market since 1942 and has an extensive network of 17 destinations served from AA hubs in Dallas-Fort Worth (DFW), Miami (MIA), and New York (JFK). The cities served by AA include Brazil’s Sao Paolo (GRU), and Rio de Janeiro (GIG) and the carrier has flown more than 14 million passengers over the past ten years.
AA has formerly detained a codeshare agreement with Latam Brazil (JJ) that became obsolete when Delta Air Lines (DL) invested in the carrier and JJ left the Star Alliance group of airlines to become a member of the Skyteam Group of which DL is one of the founding carriers.
Loyalty Program, Commercial Cooperation
The new agreement will also bring more rewards and ways to earn them for both carrier’s customers in terms of loyalty offers including priority check-in, security, and boarding, a larger amount of cabin baggage along with lounge access, and preferred seat choice on both airlines.
Another field of commercial cooperation covered by the agreement will cover areas as purchasing, sales tools, and systems integration within the limits of the contract and regulations. AA will gain the right to appoint one member to the GOL’s board with an extended membership on G3 committees related to the partnership.
AA will invest in 22.2mn G3 capital increase preferred shares for an amount of US$200m which constitutes a 5.23% participation in G3 capital.
Comments from CEOs
Robert Isom, AA President, welcomed the new codeshare agreement with G3 by saying, “American has long been the leading U.S. 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.
Isom added, “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.”
He was joined by G3 CEO Paulo Kakinoff that also commented, “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.
Kakinoff added, “We believe that this will bolster GOL’s presence in international markets, accelerate our long-term growth, and maximize value for our shareholders. It adds to our confidence in GOL’s growth as the economy reopens and travel demand increases.”
Article source: American Airlines and GOL Press Releases
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