Premier U.S. passenger carrier,
Delta Airline Inc.
) and leading Latin American airline,
GOL Linhas Aereas Inteligentes S.A.
) have accomplished key milestones in their long-term exclusive
alliance. The carriers have attained their immediate goal of
expanding the code share agreement, providing increased benefits
to their loyal customer base and offering a seamless customer
experience at airports.
Notably, 20 months back, GOL had entered into a code share
agreement with Della Airlines, whereby the two carriers will
maximize the connecting routes in the Brazil-United States
The current code share agreement allows Delta to access 23
destinations in Brazil and will continue to expand in the future
subject to regulatory approvals. The union also allows Delta
customers to fly to other Latin American countries of Paraguay
On the other hand, GOL customers can access 5 markets that
Delta currently serves, which include flights from Brasilia, Rio
de Janeiro and Sao Paulo to Atlanta; and between Detroit and New
York JFK. GOL customers from Belo Horizonte, Curitiba, Porto
Alegre and Goiana will soon be able to fly to Detroit and New
In Apr 2013, Delta moved from Terminal 1, A Wing to Terminal 2
C Wing in Sao Paulo airport, achieving another important
objective. The co-location of Delta and GOL's terminals allows
customers better connectivity and facilitates re-checking of bags
post clearing customs regulation.
Additionally, in Feb 2013, GOL and Delta signed another
agreement to support each other's loyalty programs. Per the
agreement, the SMILES Diamond clients and Delta's top end
customers will be able to avail boarding and check-in facilities
on each other's airlines on a priority basis. Also, SMILES
Diamond clients can derive benefits of Delta Sky Clubs in
Atlanta, New York and Detroit, while Delta's premium customers
can access the VIP rooms in the airports of Sao Paulo and Rio de
These initiatives have yielded positive results for both the
carriers, particularly for Delta, whose Brazilian traffic has
increased 100% per cent as compared to last year. The airline
traffic is only expected to increase in the future as Brazil is
set to host two of the most popular sporting extravaganza the
World Cup and Olympic in 2014 and 2016, respectively.
It is expected that Brazil will become the fourth largest
aviation market in the world, thus fuelling Delta's growth in the
biggest Latin American nation. Meanwhile, GOL will benefit by
expanding its coverage in the lucrative U.S. market, providing
more international choices for customers.
GOL currently carries a Zacks Rank #2 (Buy), while Delta holds
a Zacks Rank #3 (Hold). Other stocks worth mentioning within this
U.S. Airways Group Inc.
). LCC currently carries a Zacks Rank #1 (Strong Buy) while BRS
holds a Zacks Rank #2 (Buy).
BRISTOW GROUP (BRS): Free Stock Analysis
DELTA AIR LINES (DAL): Free Stock Analysis
GOL LINHAS-ADR (GOL): Free Stock Analysis
US AIRWAYS GRP (LCC): Free Stock Analysis
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