05/24/2024 – 11:56
Shares in the airlines Azul and Gol soared this Friday morning, the 24th, after the companies announced a codeshare agreement that will encompass more than 150 destinations operated by them. The partnership includes exclusive domestic routes, that is, operated by one of the two companies and not the other.
At around 11:10 am, Azul’s shares jumped 8.8%, to 10.72 reais, the best performance of the Ibovespa, which rose 0.35%. Gol’s shares, which are not part of the index, advanced 13.5%, to 1.43 reais.
+ Azul and GOL sign partnership agreement for flights in Brazil
Analysts at Itaú BBA highlighted that the news is positive for Azul because, among other reasons, it reinforces the positive competitive environment in Brazilian airspace, as well as being able to unlock additional revenue for Azul given the greater connectivity created by the codeshare.
“Note that this agreement does not depend on antitrust approval”, stated Gabriel Rezende and team in a report sent to clients, further assessing that the news could increase investors’ perception about the possibility of a merger between the airlines.
“Given that Azul flies alone on more than 80% of its routes, the combination of their businesses could unlock substantial revenue synergies in addition to cost savings for the combined company,” they added.
According to the statement from the two companies released on the evening of Thursday, 23rd, codeshare route offers will be available for sale from the end of June on both companies’ channels. The routes that are operated by both companies are not part of the agreement.
Azul and Gol — which filed for judicial recovery in the United States — stated that they have around 1,500 daily takeoffs. “The agreement will create more than 2,700 travel opportunities with just one connection,” stated the companies.
The alliance will allow the two companies to jointly sell tickets on their own and/or partner flights, expanding the connectivity of their airline networks. The agreement will also allow the accumulation of points or miles from shared flights in the Smiles and Azul Fidelidade programs, depending on the customer’s preference.
Together, GOL and Azul hold around 60% of the Brazilian market and around 1,500 daily takeoffs.
How codeshare will work
Points: The points and miles relating to codeshare segments purchased on the other airline’s digital channels – for example, a Gol flight purchased on the Azul website – can be accumulated on Azul Fidelidade or Smiles, and this choice is up to the customer. This applies to both connecting flights and individual flights.
Check in: Check-in must always be done via digital channels or in person at counters at the airports of the airline operating the flight or the first leg in the case of connecting flights, regardless of the company that sold the ticket. In the case of connecting flights, the Customer will receive all boarding passes for their trip at check-in.
Baggage: Baggage check-in follows the same rules as check-in. It must be carried out with the airline operating the flight or the first leg, and will be delivered to the final destination, regardless of connection with the other company.
Changes: Rebookings and cancellations of reservations must be handled with the company that sold the ticket.
More rules: Additional facilities and optional items, such as special seats and checked baggage, in addition to loyalty program and cargo transportation benefits, remain under the rules pre-determined by each company and must be observed by customers.
The statement released on Thursday night, the 23rd, does not mention a potential merger between the two companies.
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