Brazilian Airlines Azul and GOL Announce Codeshare Partnership Amid Merger Speculations
Brazilian airlines Azul and GOL Linhas Aéreas have entered into a strategic codeshare agreement, integrating their domestic networks. This move comes amidst swirling rumors of a potential merger, highlighting a significant step in their collaborative efforts.
This codeshare arrangement will encompass all domestic routes within Brazil that are uniquely operated by either Azul or GOL, significantly expanding the connectivity options for passengers. According to Routes’ analysis, this partnership covers almost 380 nonstop domestic sectors.
Additionally, the deal extends to the frequent flyer programs of both airlines. Members of Azul Fidelidade and Smiles will soon have the ability to earn points or miles on codeshare flights, enhancing customer benefits across both loyalty platforms.
Azul’s President, Abhi Shah, emphasized the considerable advantages this partnership offers to travelers, creating over 2,700 new travel possibilities with just one connecting flight. “With Azul’s extensive network covering most Brazilian cities, and GOL’s robust presence in major markets, our combined offerings will deliver the most comprehensive travel options available in the country,” Shah stated.
GOL’s CEO, Celso Ferrer, also expressed enthusiasm about expanding the benefits of GOL’s existing international partnerships to their domestic operations. He highlighted GOL’s rich portfolio of over 60 international agreements, eager to replicate these advantages within Brazil.
The timing of the codeshare agreement aligns with ongoing discussions about a potential merger between Azul and GOL, following GOL’s entry into Chapter 11 bankruptcy protection. Reports suggest that Abra Group, which owns both Colombian flagship carrier Avianca and GOL, might facilitate a merger by transferring its GOL shares to Azul in exchange for a stake in the unified entity.
Azul’s CEO, John Rodgerson, acknowledged the potential for consolidation during a recent earnings call, noting, “We’re closely monitoring the process, and while we are proponents of consolidation, all we can divulge at this moment is our attentive observation of the developments.”
In the broader context, the formation of Abra Group in May 2022 by the principal shareholders of Avianca and GOL, and the subsequent financial maneuvers, including GOL’s Chapter 11 filing in January 2024, illustrate the challenging yet dynamic nature of the airline industry in Brazil. This restructuring comes as part of a broader trend, with Brazil’s major airlines undergoing significant financial reorganizations post-pandemic.
Azul and GOL remain pivotal players in Brazil’s domestic aviation sector, with Azul offering approximately 696,000 weekly seats across 5,800 flights, and GOL providing around 629,000 seats on 3,500 flights. The newly formed codeshare partnership not only strengthens each airline’s domestic footprint but also sets a potential foundation for a more integrated and robust future cooperation.