American Airlines plans to purchase a minority stake in Brazil based Gol and they will strengthen their existing collaboration.
American says it will take a 5.2% stake for $200 million.
The airlines already have an existing codeshare agreement which will now become exclusive.
It also allows American and Gol loyalty members to earn points on frequent flyer programs American AAdvantage and Gol Smiles.
Gol’s main base is Brazil but flies throughout South America.
It operates more than 100 Being single aisle jets in Central and South America, as well as flying to Miami and Orlando.
"Our long-haul network marries seamlessly with Gol’s strong domestic network in Brazil. Together, we will be able to offer customers flying to, through and from Brazil, access to the largest network," said American Airlines President Robert Isom.
American flies to 17 destinations in South America.
