GOL's New Partnership with Delta - Analyst Blog

By Zacks Equity Research,

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GOL Linhas Aéreas Inteligentes S.A. ( GOL ), a Brazil based air transportation company, entered into an agreement with Delta Air Lines Inc. ( DAL ), in order to support each other's loyalty programs.

GOL operates its frequent flier loyalty program under the name of SMILES, while Delta's loyalty program is managed under Skymiles. Per the recent agreement, the SMILES Diamond clients will be able to avail boarding and check-in facilities on Delta airlines on a priority basis. Also, SMILES Diamond clients can derive benefits of Delta Sky Clubs in Atlanta, New York and Detroit.

In return, the frequent fliers of Delta, holding Diamond, Platinum and Gold Elite membership, will be able to use the same facilities at GOL's flights as the SMILES Diamond members. Moreover, Delta's Diamond, Platinum and Gold Elite members can use the VIP rooms in airports of Sao Paulo and Rio de Janeiro.

Roughly a week back, SMILES entered into an agreement with Petrobras Distribuidora S.A., a Brazilian oil company. The agreement allows the users of SMILES as well as Petrobras gas station loyalty program to enhance their service benefits from the companies. Per the agreement, the points earned by Petrobras members can be redeemed for SMILES miles.

Around the same time, SMILES also entered into a partnership with Camisaria Colombo, a Brazilian retail chain company, allowing the store's customers to exchange their reward points for GOL's tickets as well as other benefits of the SMILES program offers.

Exiting the third quarter of 2012, SMILES had roughly 8.9 million members, providing services at more than 560 locations.

GOL currently holds a Zacks Rank #3 (Hold). Other stocks worth a look in the industry are Republic Airways Holdings Inc. ( RJET ) and SkyWest Inc. ( SKYW ); both holding a Zacks Rank #1 (Strong Buy).

DELTA AIR LINES (DAL): Free Stock Analysis Report

GOL LINHAS-ADR (GOL): Free Stock Analysis Report

REPUBLIC AIRWAY (RJET): Free Stock Analysis Report

SKYWEST INC (SKYW): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: DAL , GOL , RJET , SKYW

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