American Airlines (A1G) (AAL) enhanced its partnership with GOL, finalizing a deal to invest $200 million in the Brazilian low-cost carrier. The deal will also establish an exclusive codeshare agreement between the United States and Brazil.
The finalized investment was officially announced by American Airlines (A1G) (AAL) on February 8, 2022, and includes a $200 million investment in “22.2 million newly issued preferred shares of GOL in a capital increase, for a 5.2% participation in the company’s economic interest,” American said in a statement.
Under terms of the deal, American Airlines (A1G) (AAL) also aims to combine networks with GOL to provide air travelers with broader travel opportunities across the US and Brazil.
The combined networks will allow passengers to travel across more than 30 destinations in the US, operated by American Airlines (A1G) (AAL), as well as more than 34 destinations across South America, served by GOL.
The partnership between American Airlines (A1G) (AAL) and GOL first began in February 2020 after the Brazilian airline ended its partnership with Delta Air Lines. At the time, American and GOL set up a new codeshare agreement, allowing American to expand its network by 20 new destinations across South American countries. GOL was also able to boost its network by more than 30 new destinations across the US.
The deal is pending governmental approval.
“The closing of the equity investment subject to certain conditions, including government and regulatory approvals and other customary closing conditions,” American Airlines (A1G) (AAL) added.