American Airlines has completed its $200 million investment in Gol for 22.2 million preferred shares (representing 5.2% ownership stake), and now American is announcing that “American’s AAdvantage® and GOL’s SMILES loyalty programs will [together] create the largest joint frequent flyer program in the Americas with enhanced benefits for customers.”
In October I wrote that American and Gol would have a single credit card which implied at a minimum a tightly-linked frequent flyer program. Today’s news, then, shouldn’t be a surprise to View From The Wing readers.
After American Airlines lost its pending joint venture with South American mega-carrier to Delta, they’ve been working to piece together new partnerships. They quickly partnered with Brazil’s Gol, which Delta was forced to walk away from in order to do their LATAM deal.
In September American announced a $200 million stake in Gol. The two airlines promised exclusive codesharing. Already offering reciprocal mileage earn and burn, the two airlines also promised to offer reciprocal elite recognition including priority check-in, security, and boarding, as well as checked baggage allowance, lounge access and access to preferred seats. on both airlines.
At an investor presentation late in the summer, American’s Chief Revenue Officer Vasu Raja offered that two-thirds of American customers on South America routes (unique individuals, not enplanements) are based there and not in the U.S..
American has as high a rate of AAdvantage membership as U.S. passengers do, with a greater rate of co-brand credit card penetration. Raja suggests American’s partnership strategy is less about growing connectivity, reaching destinations and therefore customers they currently can’t serve, and more about more “rounding out the customer proposition” by selling more things like local flights to their current customers.
The Dallas-based carrier has also added a partnership with South American ultra low cost carrier Jetsmart with plans for AAdvantage to become its loyalty program as well.
OK…..
The real question on the mind of many readers, what does this mean for balances of Gol Smiles?
Absolutely BS. Really a waste of time. I have flown endless times to Sao Paulo on AA and then connecting on Gol and its a mess. You cannot interline checked bags and Gols website doesnt work for check in so cant get my boarding pass.
AA lost it all when they lost LATAM.
What @Frank says is not accurate. You can interline bags. It’s like in the US. You pick them up when you arrive in the first city and then have to drop them off at a counter post customs. When I checked in in the US The bag tag listed my final destination.
I also got a boarding pass from AA with Gol legs. But the seat assignment is definitely a mess!