GOL Announces Partnership with Bradesco and Banco do Brasil

GOL Linhas Aéreas Inteligentes S.A. (Company, Bovespa: GOLL4 and the largest low-cost and low-fare airline in Latin America, announces that on today's date its subsidiary VRG Linhas Aéreas S.A. formalized a partnership with Bradesco and Banco do Brasil (Financial Institutions) through an Operating Agreement (Operating Agreement) for the issue and administration of co-branded credit cards.

 

Through this partnership, the Financial Institutions may issue to their clients credit cards with the SMILES brand, facilitating growth and expansion in the loyalty program. Today, the SMILES loyalty program has more than 6.2 million clients, making it the largest in Latin America, with up to 100,000 new registrations each month.

Under the Operating Agreement, GOL will initially receive approximately R$252.0 million for the acquisition of miles from the SMILES program and the Financial Institutions' rights to access and use the registration database and a share of the revenue from the credit cards issued. Approximately 60% of this total will be paid by July 31, 2009, 22% by January 31, 2010, and 18% will be paid in monthly installments during the first five years.

Under the Operating Agreement, SMILES program members opting for the co-branded credit card may, besides accumulating miles by using the credit card for purchases, benefit from the program's exclusive advantages, which include special promotions, bonuses and discounts on annual fees, etc.

According to GOL CEO Constantino de Oliveira Junior, "More than a loyalty program, SMILES represents a strategic asset for GOL. Co-branded credit cards introduce a series of benefits that lead to greater customer satisfaction, which is something we consistently pursue".

"This partnership with two of the country's most important financial institutions represents another important step in the development and recognition of the SMILES program, which is recovering its leadership position," said Constantino.
 
Through new partnerships and the sale of mileage packages to financial institutions and retail chains, the economic potential of SMILES, an asset arising from the VRG acquisition, will be better explored, bringing novelties and benefits for clients. The Brazilian loyalty program market is estimated at R$1.2 billion per year, and GOL's objective is to see SMILES contributing to its growth while increasing its market share.


(c) Centre for Asia Pacific Aviation. Date posted: 01-Jul-09

 

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