Brazil’s Gol to receive $200m from American Airlines as codeshare agreement upgraded

Brazilian airline Gol announced an exclusive codeshare agreement with American Airlines valid for three years, adding it will receive a $200m 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 travelers on South and North American routes. American Airlines’ investment in Gol is expected to happen via the sale of 22.2m recently issued preferred shares by the Brazilian airline, taking the US 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 CEO Paulo Kakinoff said. Analysts at J.P. Morgan said in a market report that they welcome the additional liquidity provided by American Airlines’ investment in Gol, as it should further enhance the Brazilian company’s financial flexibility, even though they remain cautious with the airline industry in Latin America.<br/>