SÃO PAULO, Sept. 15, 2021
/PRNewswire/ -- GOL Linhas Aéreas Inteligentes S.A. (NYSE:
GOL and B3: GOLL4), ("GOL" or "Company"), Brazil's largest airline, has agreed to expand
its commercial cooperation with American Airlines Group Inc.
(NASDAQ: AAL) ("American") through an exclusive codeshare agreement
("Agreement") for the next three years that will deepen the
relationship between the two airlines. As part of the Agreement,
GOL will receive an equity investment of US$200 million (R$1.05
billion) from American.
Through its exclusivity, the Agreement expands beyond the terms
of the existing codeshare partnership between GOL and American,
enhancing the travel opportunities for their passengers, the
customer experience and the competitive position of GOL on routes
connecting North and South
America. In place since February
2020, the existing codeshare already represented the largest
route network in the Americas, enabling the Company's customers to
travel seamlessly to more than 30 destinations in the U.S. The
partnership flights currently operate in GOL's hubs in São Paulo
(GRU) and Rio de Janeiro (GIG),
integrating 34 options of Brazilian and international routes, such
as Montevideo, in Uruguay.
The completion of the Agreement and equity investment is subject
to conditions, including the execution and delivery of definitive
documentation and other customary closing conditions.
Exclusive Codeshare
"The exclusive codeshare agreement between two of the leading
airlines in the Americas combines highly complementary route
networks to offer customers a superior travel experience, due to
the largest number of flights and destinations in North and
South America," said GOL CEO Paulo
Kakinoff. "We believe that this will bolster GOL's presence in
international markets, accelerate our long-term growth, and
maximize value for our shareholders. It adds to our confidence in
the Company's growth as the economy reopens and travel demand
increases."
GOL's network services 63 destinations in Brazil as well as 140 international through
codeshare agreements. The Company recently confirmed that
Cancun (Mexico) and Punta
Cana (Dominican Republic)
will be its first international routes to reopen since the
beginning of the Covid-19 pandemic. GOL will begin to operate
flights on those routes by mid-November
2021.
Over the last 10 years, American has flown more than 14 million
passengers between Brazil and the
U.S., representing more than twice as much traffic as the next
largest U.S. carrier. The combination of GOL's leading network in
Brazil and American's leadership
in the U.S.–Brazil market will maximize revenues through the
increased connectivity and improved route options for
Customers.
American Airlines President, Robert
Isom, stated: "American has long been the leading U.S.
carrier to South America and our
exclusive partnership with GOL solidifies that leadership position.
Our long-haul network marries seamlessly with GOL's strong domestic
network in Brazil and together, we
will be able to offer customers flying to, through and from
Brazil, access to the largest
network with the lowest fares and the Americas' biggest and best
joint travel loyalty program."
GOL's Smiles and American's AAdvantage loyalty programs will be
partners in the largest frequent flyer program in the Americas with
enhanced benefits coming in early 2022. This will include access
for loyalty members to several benefits such as priority check-in,
priority security, priority boarding, a larger checked baggage
allowance, lounge access and preferred seats on both airlines.
Customers may earn and redeem frequent flyer miles on both
airlines.
The partnership between GOL and American also enables Customers
to purchase connecting flights on both airlines using one
reservation, in addition to creating a seamless ticketing,
check-in, boarding and baggage check experience throughout an
entire journey.
Equity Investment
American will invest US$200
million 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 at a price of US$9.00 per preferred share ("PN" or "GOLL4"),
equivalent to R$47.03 per PN as of
9/14/21 BRL/USD exchange rate.
GOLL4's closing price on 9/14/21 and
average trading price during the second semester of 2019 were
R$19.28 and R$35.68, respectively.
Richard Lark, GOL's CFO added:
"The investment represents recognition by a major U.S. airline
carrier of the Company's value as the largest airline in
Brazil with the best product.
Further, the investment, when combined with the R$2.7 billion of long-term capital raised in
2Q21, brings the total long-term capital raised to over
R$3.7 billion in the last six months,
including over R$2.0 billion of new
equity capital. This additional liquidity further enhances GOL's
financial flexibility while minimizing dilution to
shareholders."
All holders of the Company's preferred shares, including in the
form of ADRs, will be able to exercise their preemptive rights to
subscribe for a portion of the newly issued shares proportionate to
their existing shareholdings.
The detailed terms and conditions of the capital increase are
expected to be approved by the Board of Directors of GOL and
disclosed in due course, including the final amount in Brazilian
reais of the capital increase, issuance price, the record date, and
the periods and procedures for the exercise of preemptive rights by
the shareholders of the Company.
The equity investment described herein is subject to certain
terms and conditions set forth in a letter of intent and a term
sheet entered into on the date hereof between GOL and American. The
right to proportionally subscribe for preferred shares according to
the preemptive rights referred to in this release has not been
registered with the U.S. Securities and Exchange Commission and
will not be offered or extended absent registration or an
applicable exemption from registration requirements.
Investor Relations
ri@voegol.com.br
www.voegol.com.br/ir
+55(11) 2128-4700
Media Relations
Becky
Nye, Montieth & Company
bnye@montiethco.com
About GOL Linhas Aéreas Inteligentes S.A.
GOL is
Brazil's largest airline, leader
in the corporate and leisure segments. Since its founding in 2001,
it has been the airline with the lowest unit cost in Latin America, which has enabled the
democratization of air transportation. The Company has a strategic
alliance with American Airlines and Air France-KLM, in addition to
making available to Customers many codeshare and interline
agreements, bringing more convenience and ease of connections to
any place served by these partnerships. With the purpose of "Being
First for Everyone", GOL offers the best travel experience to its
passengers, including: the largest inventory of seats and the most
legroom; the most complete platform with internet, movies and live
TV; and the best loyalty program, SMILES. In cargo transportation,
GOLLOG delivers parcels to various regions in Brazil and abroad. The Company has a team of
15,000 highly qualified airline professionals focused on Safety,
GOL's number one value, and operates a standardized fleet of 127
Boeing 737 aircraft. GOL's shares are traded on the NYSE (GOL) and
the B3 (GOLL4). For further information, visit
www.voegol.com.br/ir.
About American Airlines Group Inc.
American Airlines
and American Eagle offer an average of nearly 6,700 flights per day
to nearly 350 destinations in more than 50 countries. American has
hubs in Charlotte, Chicago, Dallas/Fort
Worth, Los Angeles,
Miami, New York, Philadelphia, Phoenix, and Washington, D.C. American is a founding member
of the oneworld® alliance, whose members serve more than 1,000
destinations with about 14,250 daily flights to over 150 countries.
Shares of American Airlines Group Inc. trade on NASDAQ under the
ticker symbol AAL. In 2015, its stock joined the S&P 500 index.
American's purpose is to care for people on life's journey. Shares
of American Airlines Group Inc. trade on Nasdaq under the ticker
symbol AAL and the Company's stock is included in the S&P 500.
Learn more about what's happening at American by visiting
news.aa.com and connect with American on Twitter @AmericanAir and
at Facebook.com/AmericanAirlines.
Disclaimer
The information contained in this press
release has not been subject to any independent audit or review and
contains "forward-looking" statements, estimates and projections
that relate to future events, which are, by their nature, subject
to significant risks and uncertainties. All statements other than
statements of historical fact contained in this press release
including, without limitation, those regarding GOL's future
financial position and results of operations, strategy, plans,
objectives, goals and targets, future developments in the markets
in which GOL operates or is seeking to operate, and any statements
preceded by, followed by or that include the words "believe",
"expect", "aim", "intend", "will", "may", "project", "estimate",
"anticipate", "predict", "seek", "should" or similar words or
expressions, are forward-looking statements. The future events
referred to in these forward-looking statements involve known and
unknown risks, uncertainties, contingencies and other factors, many
of which are beyond GOL's control, that may cause actual results,
performance or events to differ materially from those expressed or
implied in these statements. These forward-looking statements are
based on numerous assumptions regarding GOL's present and future
business strategies and the environment in which GOL will operate
in the future and are not a guarantee of future performance. Such
forward-looking statements speak only as at the date on which they
are made. None of GOL or any of its affiliates, officers,
directors, employees and agents undertakes any duty or obligation
to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except to
the extent required by law. None of GOL or any of its affiliates,
officers, directors, employees, professional advisors and agents
make any representation, warranty or prediction that the results
anticipated by such forward-looking statements will be achieved,
and such forward-looking statements represent, in each case, only
one of many possible scenarios and should not be viewed as the most
likely or standard scenario. Although GOL believes that the
estimates and projections in these forward-looking statements are
reasonable, they may prove materially incorrect and actual results
may materially differ. As a result, you should not rely on these
forward-looking statements.
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SOURCE GOL Linhas Aéreas Inteligentes S.A.