Air France-KLM to invest $100m in GOL

GOL Linhas Aéreas Inteligentes, the largest, low-cost and low-fare airline in Latin America, released that 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 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 $100m in GOL. This amount will comprise an investment in GOL’s preferred shares for $52m, 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. In addition, Air France-KLM will fund $48m for purposes of enhancing the effectiveness of the strategic commercial partnership.