American Airlines buys shares in South American second airline Gol

Kyle Arnold
Dallas Morning News

American Airlines will purchase a minority stake in Brazil’s Gol Linhas, the second largest airline in South America, with the aim of strengthening ties with the strongest international regions.

American Airlines announced Wednesday morning that it plans to spend $ 200 million on 5.2% interest on São Paulo-based Gol Linhas.

American and Gol have signed codeshare agreements since February 2020, allowing both parties to sell tickets on each other’s routes and allowing customers to seamlessly transfer flights between the two entities.

The partnership will take place less than two months after American Airlines announces plans to buy a minority stake in another South American ultra-low-cost airline, JetSmart, from Chile. JetSmart has Indigo Partners, the majority owner of the same private equity as its US competitor Frontier Airlines.

American Airlines also has a small ownership of China Southern Airlines.

With this new deal, American and Gol customers will be able to earn points on the two airline frequent flyer programs, American’s AAdvantage and Gol’s Smiles program. American and Gol have also agreed to become mutually exclusive codeshare partners in their respective countries.

“Our long-haul network works seamlessly with GOL’s strong domestic network in Brazil,” American Airlines President Robert Isom said in a statement. “Together, we will be able to provide customers to and from Brazil with access to the largest network at the lowest fares and access to the largest and best joint travel loyalty program in the Americas.”

Gol operates 122 Boeing 737 jets, primarily to more than 60 destinations in Latin America. But most of its destinations are in Brazil. We also fly to Miami, Florida and Orlando, Florida, USA.

Americans are already flying to 17 destinations in South America. This new deal, combined with the JetSmart partnership, should help Americans connect to dozens of smaller destinations in the region.

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