Gol Stock Rises as it Seeks European Codeshare Partner
A Brazilian airline Gol aircraft prepares to land at Congonhas airport in Sao Paulo July 11, 2011. Nacho Doce / Reuters
Gol is flirting with both Star Alliance and SkyTeam here. Which one will fight hardest for the Brazilian?
Gol Linhas Aereas Inteligentes SA, Brazil’s second-biggest carrier, rose to a two-week high after saying it’s in talks with European airlines including Air France-KLM and Deutsche Lufthansa AG for codesharing accords.
The Sao-Paulo based company expects to sign two to three agreements to share booking codes with European partners in the next year, Treasury Director Eduardo Masson Martins told reporters at an event in Rio de Janeiro today.
“We have already expressed an interest in improving our relations with Europe,” Martins said. “At the end, it’s an empty seat that will be filled.”
Talks with Air France and Lufthansa are the “strongest,” according to Martins. Gol also continues to negotiate with Rome- based Alitalia SpA and other European airlines, he said. Under codesharing agreement, airlines can sell tickets on each other’s flights to expand the number of cities that can be served.
Gol added 0.9 percent to 10.90 reais at 1:59 p.m. in Sao Paulo, poised for the highest closing level since Oct. 4. Brazil’s benchmark Ibovespa equity gauge gained 0.1 percent.
“Partnerships with these European giants would be very good for the company,” Sandro Fernandes, an analyst at brokerage firm Geraldo Correa in Belo Horizonte, Brazil, said in a telephone interview. “With the flight sharing, they can act where their partners have operations, expanding their range.”
TAM Linhas Aereas SA, the Brazilian unit of Latam Airlines Group SA, is Brazil’s largest air carrier by market share.
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