Posted on: 20 February 2014 by Mark Howells
GOL Linhas Aéreas Inteligentes has announced the signing of a long-term strategic partnership for commercial co-operation with Air France-KLM, which includes expanded codesharing, enhanced joint sales activities and more benefits for customers based on each company’s frequent flyer programmes in Brazilian and European markets.
This partnership follows the successful strategic co-operation between GOL and Delta Airlines, a major partner of Air France-KLM in the Skyteam alliance, which began in 2011.
As part of this new agreement, Air France-KLM will invest $100 million in GOL. This amount will comprise an investment in GOL’s preferred shares for $52 million, at an issuance price equivalent to $12.23 per share. The total amount and the terms and conditions of the share issuance is subject to the approval of the GOL’s Board of Directors, and will be more fully described in a Notice to Shareholders. In addition, Air France-KLM will fund $48 million for purposes of enhancing the effectiveness of the strategic commercial partnership.
“The agreement with Air France-KLM confirms GOL’s strategy of seeking strong partnerships, and expanding the supply of services and destinations to customers of both companies. Europe is one of the most popular destinations for Brazilians, and this alliance will bring unique benefits and opportunities,” explained Paulo Kakinoff, GOL’s CEO.
This partnership is designed to provide greater coordination between the networks to increase the number of connecting opportunities between Europe and Brazil. The codesharing between Air France-KLM and GOL flights will be extended to flights operated by Air France and KLM between Europe and Brazil as well as flights operated by GOL in Brazil. Air France will operate, as of 31 March, a new route to Brasilia with three weekly flights. Air France intends to operate a regular service between Paris-Charles de Gaulle and São Paulo by Airbus A380 as soon as the airport receives the authorisation from the authorities. All these flights will connect to the GOL network with over 51 domestic destinations.