Air France - KLM To Invest $100 Mln In Brazil's GOL - Quick Facts

(RTTNews) - Franco-Dutch airline Air France - KLM (AFLYY.PK, AFRAF.PK) announced that it has signed an exclusive long term strategic partnership with Brazilian low-cost low-fare airline Gol Linhas Aereas Inteligentes (GOL) for commercial cooperation between Brazil and Europe.

Under the agreement, Air France-KLM will invest $100 million in GOL, including a subscription of GOL shares for $52 million, representing 1.5% equity stake. The transaction shall be subject to applicable antitrust approval.

Air France-KLM said the deal includes expanded codesharing, enhanced joint sales activities, more benefits for its customers based on both frequent flyer programs in Brazilian and European markets. Cooperation in the field of aircraft maintenance is also included in the partnership.

According to the firm, the latest partnership follows the successful strategic cooperation between GOL and Delta Airlines, the main partner of Air France-KLM, implemented since 2011.

Alexandre de Juniac, Chairman and CEO of Air France-KLM, said, "Brazil, the host country of the upcoming World Cup and the 2016 Olympic Games, benefits from growing business and leisure traffic volumes. This collaboration confirms our strategy to establish deep and long-lasting partnerships in regions with relevant growth potential."

Camiel Eurlings, President & CEO of KLM, will be member of the Alliance Committee of the Board of directors of GOL.