Azul and GOL Announce Codeshare Agreement

Rhea-AI Summary

Azul and GOL airlines announced a codeshare agreement to connect their flight networks in Brazil, effective from late June 2024. This partnership covers domestic routes exclusively operated by either airline and includes frequent flyer programs, allowing members to earn points in their preferred program. The agreement grants customers access to over 150 destinations, providing more travel options and convenient connections. With approximately 2,700 travel opportunities created, customers can purchase flights through both companies' sales channels. Combined, Azul and GOL operate around 1,500 daily departures, enhancing route availability significantly.

Positive

• Codeshare agreement grants access to over 150 destinations.
• Frequent flyer points can be accumulated in preferred programs (Azul Fidelidade and Smiles).
• The partnership creates over 2,700 travel opportunities with just one connection.
• Availability of flights through both Azul's and GOL's sales channels starting late June 2024.
• Approximately 1,500 daily departures combined, enhancing travel convenience.

Negative

• Customers must complete check-in and baggage check-in with the operating airline or the first segment's airline, which may cause confusion.
• Rescheduling and cancellations must be handled by the company that sold the ticket, potentially complicating the process.

Insights

Market Research Analyst

For retail investors, understanding the implications of this codeshare agreement between Azul and GOL is essential. This partnership primarily aims to enhance the travel experience by providing more travel options and better connectivity.

One significant aspect of this deal is the expansion of route networks, offering over 2,700 travel opportunities with just one connection. This could potentially lead to increased passenger traffic and higher revenue for both airlines.

The frequent flyer program integration is another notable benefit. Allowing customers to choose in which program to accumulate points can attract more travelers who are loyal to their respective programs. This strategic move can retain existing customers while appealing to new ones, leading to a broader customer base.

While this codeshare agreement is advantageous for consumers, investors should also consider the operational complexities it introduces. Coordinating schedules, managing customer service across two airlines and integrating digital channels can be challenging. The success of this partnership will depend on how smoothly these processes are implemented.

In the short term, there may be initial costs associated with the integration of systems and staff training. However, the long-term benefits, such as increased market share and customer loyalty, could outweigh these initial expenses.

Financial Analyst

From a financial perspective, this codeshare agreement can be quite impactful for both Azul and GOL. By combining their networks, the airlines can offer more comprehensive travel options without the need for significant capital expenditure on expanding their own fleets or routes. This can lead to cost savings and improved efficiency.

Additionally, by increasing their reach and convenience for customers, both airlines stand to gain more passengers, which can translate into higher revenues. Enhanced route networks can also attract business travelers who prioritize convenience, potentially increasing higher-margin ticket sales.

However, investors should monitor how these airlines manage the integration. The financial benefits will only be realized if the partnership runs smoothly without significant operational disruptions. Any issues in coordination can lead to customer dissatisfaction, impacting revenue negatively in the short term.

The frequent flyer program integration offers a competitive edge but could also result in increased liability on the balance sheets of both airlines due to unredeemed points. This needs to be managed carefully to avoid any negative financial impact.

In conclusion, while the codeshare agreement has the potential for positive financial outcomes, investors should keep an eye on the execution risks and how well the airlines handle the integration process.

Customers will have access to extensive flight connectivity with over 150 destinations and can choose in which program to accumulate points from codeshare flights

SÃO PAULO, May 23, 2024 /PRNewswire/ -- Azul and GOL airlines announce today a commercial cooperation agreement that will connect their flight networks in Brazil through a codeshare agreement. This partnership covers all domestic routes operated exclusively, meaning routes operated by one of the two companies but not the other.

The agreement also encompasses frequent flyer programs, allowing Azul Fidelidade and Smiles members to earn points in their preferred program when purchasing segments included in the codeshare agreement.

This agreement will bring enormous benefits to our customers. Both companies have a history of aviation development in Brazil, focused on customer service excellence. "With Azul's highly connected network serving most cities in Brazil and GOL's strong presence in the main Brazilian markets, our complementary offerings will provide customers with the widest range of travel options," said Abhi Shah, President of Azul.

Consumers will benefit from this commercial partnership starting at the end of June, when the offer will become available through both companies' sales channels.

Customers will gain access to hundreds of new domestic routes, along with more convenient connection opportunities. For example, one could travel from Brasília to Tabatinga with a brief layover in Manaus, or from Rio de Janeiro to Marabá with a stop in Belém.

"GOL and Azul have always been dedicated to expanding the Brazilian aviation market. This codeshare agreement will provide customers with even more travel options across our country. GOL already has over 60 commercial agreements with various global airline partners, and we are eager to extend these benefits within Brazil," said Celso Ferrer, CEO of GOL.

Azul and GOL operate approximately 1,500 daily departures. This agreement will create over 2,700 travel opportunities with just one connection.

Benefits for Azul and GOL Customers:

Customers can search for domestic segments exclusive to one airline and purchase through Azul's and GOL's sales channels. Routes operated by both GOL and Azul are not included in the codeshare.

Points and miles from codeshare or non-overlapping segments purchased through the other airline's digital channels, such as a GOL flight bought on Azul's website, can be accumulated in either the Azul Fidelidade and Smiles programs, at the customer's discretion. This applies to both connecting flights and individual segments.

Check-in must always be completed through the digital channels or airport counters of the airline operating the flight, or in the case of connecting flights, the first segment, regardless of which company sold the ticket. For connecting flights, customers will receive all boarding passes at check-in.

Baggage check-in follows the same rule as passenger check-in. It must be done with the airline operating the flight or the first segment, and the luggage will be delivered to the final destination regardless of any connections with the other airline.

Rescheduling and cancellations of bookings should be handled by the company that sold the ticket.

Additional services and optional items, such as special seats or checked baggage, as well as loyalty program benefits and cargo transport, remain subject to the rules set by each company and must be observed by customers.

About Azul 
Azul S.A. (B3: AZUL4, NYSE: AZUL), the largest airline in Brazil by number of departures and cities served, offers 1,000 daily flights to more than 160 destinations. With an operational fleet of over 180 aircraft and more than 16,000 crew members, the company has a network of 300 direct routes. In 2023, Azul was named the world's second most punctual airline by Cirium, a leading aviation data analysis company. In 2020, Azul was awarded the title of the world's best airline by TripAdvisor, marking the first time a Brazilian airline has achieved first place in the Traveller's Choice Awards. For more information, visit www.voeazul.com.br/imprensa.

Press Relations
Azul Brazilian Airlines
(11) 98196-1035
imprensa@voeazul.com.br 

*Follow us on Instagram: @imprensaazul

GOL LINHAS AÉREAS 
GOL is Brazil's leading airline and part of the Abra Group. Since its inception in 2001, it has been the lowest-cost airline in Latin America, enabling the democratization of air travel. The company maintains alliances with American Airlines and Air France-KLM and offers customers a variety of codeshare and interline agreements, enhancing convenience and ease of connections to any destination served by these partnerships. Committed to "Being First for Everyone," GOL provides the best travel experience for its passengers, including the most seats and legroom, a comprehensive platform with internet, movies, and live TV, and the premier loyalty program, Smiles. GOLLOG, the cargo transport division, facilitates parcel delivery across Brazil and internationally. The company employs a team of 13.7 thousand people.

GOL Linhas Aéreas
InPress Porter Novelli
gol@inpresspni.com.br
+55 (11) 3323-1570 / 3323-1586

View original content:https://www.prnewswire.com/news-releases/azul-and-gol-announce-codeshare-agreement-302154913.html

SOURCE GOL Linhas Aéreas Inteligentes S.A.

FAQ

What is the effective date of the Azul and GOL codeshare agreement?

The codeshare agreement between Azul and GOL will be effective from late June 2024.

How many destinations will customers have access to under the new codeshare agreement?

Customers will have access to over 150 destinations under the new codeshare agreement.

Can frequent flyer points be accumulated in either Azul Fidelidade or Smiles programs?

Yes, frequent flyer points can be accumulated in either Azul Fidelidade or Smiles programs, at the customer's discretion.

Are all routes operated by both GOL and Azul included in the codeshare agreement?

No, only domestic routes operated exclusively by one of the two companies are included in the codeshare agreement.

How many daily departures do Azul and GOL operate combined?

Azul and GOL operate approximately 1,500 daily departures combined.

Where can customers purchase flights under the Azul and GOL codeshare agreement?

Customers can purchase flights through both Azul's and GOL's sales channels starting late June 2024.

What should customers do about check-in and baggage check-in under the codeshare agreement?

Customers must complete check-in and baggage check-in with the airline operating the flight or the first segment's airline.

Who handles rescheduling and cancellations of bookings under the codeshare agreement?

Rescheduling and cancellations should be handled by the company that sold the ticket.