Brazil’s Gol to receive $200 million from American Airlines as codeshare agreement upgraded By Reuters

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© Reuters. FILE PHOTO: A Boeing 737-800 airplane of Gol Linhas Aereas lands at Congonhas airport in Sao Paulo, Brazil November 5, 2018. REUTERS/Paulo Whitaker/File Photo

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SAO PAULO (Reuters) – Brazilian airline Gol announced an exclusive codeshare agreement with American Airlines (NASDAQ:) valid for three years, adding it will receive a $200 million equity investment as part of the deal, according to a securities filing on Wednesday.

Gol said the new agreement builds on a previous codeshare arrangement between the two companies, and will increase options for Gol travellers on South and North American routes.

American Airlines’ investment in Gol is expected to happen via sale of 22.2 million recently issued preferred shares by the Brazilian airline, taking the U.S. firm’s stake in Gol to 5.2%.

“We believe it will further strengthen Gol’s presence on international markets, accelerate our long-term growth and maximize value for our shareholders”, Gol Chief Executive Officer Paulo Kakinoff said.

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