American Airlines today enhanced its partnership with GOL, making a $200 million investment agreement with Brazil's largest airline.
American receives 22.2 million newly issued preferred shares of GOL stock in a capital increase, increasing its stake in the company to 5.2 percent, American said in a press release.
The deal is pending government and regulatory approval.
The combined networks will now provide customers with more than 30 destinations in the U.S. served by American, and more than 34 new destinations in South America served by GOL.
American has served Latin America since 1942 and offers service to 17 destinations in South America, including Sao Paulo and Rio de Janeiro in Brazil from its U.S. hubs in Dallas-Fort Worth, Miami and New York-JFK.
American boasted that it has flown 14 million customers from the U.S. to Brazil just in the last 10 years alone, more than twice as many passengers as any other U.S. carrier.
GOL serves 63 destinations in Brazil.
In addition, customers of both airlines' loyalty programs can share benefits. The two airlines also expect to offer an enhanced joint loyalty offering to give customers more ways to earn and redeem miles.
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