GOL announces it signed an exclusive long term strategic partnership for commercial cooperation with Air France-KLM, subject to the approval of the antitrust authorities (CADE).
The agreement includes expanded codesharing, enhanced joint sales activities and more benefits for customers based on our both frequent flyer programs in Brazilian and European markets. This partnership follows the successful strategic cooperation between GOL and Delta Airlines, the main partner of Air France-KLM, implemented since 2011.
As part of this 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 US$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 the Notice to Shareholder (Aviso aos Acionistas). In addition, Air France-KLM will fund $48 million for purposes of enhancing the effectiveness of the strategic commercial partnership.
“The agreement signed today with Air France-KLM, one of the largest companies in Europe, 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.” said Paulo Kakinoff, GOL’s CEO.
“We are excited to join forces with GOL, a leading carrier in Brazil. We are confident that this comprehensive partnership will create strategic, long term value for both our groups and customers, and significantly enhance Air France-KLM’s commercial position in the region. Brazil, the host country of the upcoming World Cup and the 2016 Olympic Games, benefits from growing business and leisure traffic volume. This collaboration confirms our strategy to establish deep and long- lasting partnerships in regions with relevant growth potential.” said Alexandre de Juniac, Chairman and CEO of Air France-KLM.
This exclusive strategic partnership will 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 March 31, 2014, 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 authorization from the authorities. All these flights will connect to the GOL network with over 51 domestic destinations.
Customers will be able to benefit from shorter trip times, better connections and assistance throughout their trip. They will also be able to earn and redeem miles on all flights. Companies will be able to sign joint agreements between Air France-KLM and GOL in order to optimize the management of their business trips. An enhanced coordination of sales teams will be introduced on the European and Brazilian markets.
Camiel Eurlings, President & CEO of KLM, will be member of the Alliance Committee of the Board of directors of GOL.
Air France-KLM is one of the founding members of the international airline alliance, SkyTeam. The transaction does not envisage GOL’s adherence to a Global Alliance, and it is aligned with the Company’s goal of seeking out long-term strategic partnerships and strengthening its capital structure, with a focus on creating value for its shareholders.