Boston, MA 05/02/2014 (wallstreetpr) – The $1.9 billion Brazil-based air carrier Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL) has entered into an agreement that is expected to expand flight service network. The company said it signed a codeshare as well as a frequent flyer contract with TAP.
TAP is a Portuguese airliner that serves about 74 weekly flights. Its flights provide connections to Sao Paulo, Belo Horizonte, Rio de Janeiro, Recife, Natal, Salvador, Brasilia, Fortaleza Porto Alegre and Campinas. In the agreement, TAP will be able to add its flight code into GOL’s to enable expanded destination connection into Brazil. Though expanding TAP flight connections into more Brazilian destinations is the initial intention of the announced agreement, the two airliners could add more codeshare integration depending on how the current agreement pans out.
Regulatory approval
The agreement between Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL) and TAP will require the approval of the Brazilian and Portuguese governments to become effective. Still, GOL stated that the codeshare contract is pending before the national antitrust agency of Brazil.
GOL operates about 910 daily flights that connects more than 65 destinations and covers about 10 countries in Latin America, Caribbean and the U.S. The company flights two airline brands namely VARIG and GOL that feature a modern and young fleet of Boeing. The company deploys the next generation aircrafts for the purposes of efficiency, safety and economic operations for the benefit of the customers and the company.
The company mainly offers passenger air transport. Its services can be scheduled or non-scheduled. The airline and its subsidiaries also provide cargo and mail bag transportation services as well as chartered passenger services.
Stock performance
Shares of Gol Linhas Aereas Inteligentes SA (ADR) (NYSE:GOL) jumped 2.15 percent to close yesterday’s session at $6.64 per share. The day saw the shares touching a new 52-week high at $6.69 million with below average volume of shares changing hands. The stock has shown exciting momentum in recent times as flight activities in the markets it serves the start to become busy.
