American Airlines is taking a stake in Brazilian low-cost carrier GOL. The deal, which is reportedly worth $200 million, gives American a 5.2 percent stake in the Rio de Janeiro-based carrier.
The two airlines signed a codeshare agreement in February 2020. As part of American’s investment, GOL becomes the US carrier’s sole codeshare partner in Brazil and American will become GOL’s sole codeshare partner in the US.
In addition to the expanded codeshare arrangement, the two carriers plan to offer enhanced reciprocal loyalty program benefits for frequent fliers, as well as cooperation in other commercial areas such as purchasing and systems integration.
American offers services to 17 South American destinations, including Sao Paulo and Rio de Janeiro. GOL’s network covers 63 destinations in Brazil as well as 140 internationally through codeshare agreements.
American’s investment in GOL comes on the heels of the airline’s announcement in August that it intends to take minority stake in Chile’s JetSMART, another South American low-cost carrier. American said that deal would “offer competitive fares and expanded travel options for flyers throughout North and South America.”