The SMILES co-branded credit card represents the newest channel for accumulating and using miles in Latin America's largest mileage program
SAO PAULO, June 30 /PRNewswire-FirstCall/ -- GOL Linhas Aereas Inteligentes S.A. ("Company", Bovespa: GOLL4 and NYSE: GOL), the largest low-cost and low-fare airline in Latin America, announces that on today's date its subsidiary VRG Linhas Aereas 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.
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.
For further information, please access the website: http://www.voegol.com.br/ir.
Co-Branded Cards Conference Call English Portuguese
June 30th, 2009 June 30th, 2009
3:00 p.m. (US EST) 3:45 p.m. (US EST)
4:00 p.m. (Brasilia Time) 4:45 p.m. (Brasilia Time)
Phone: +1 (973) 935-8893 Phone: +55 (11) 2188-0188
Replay: +1 (706) 645-9291 (7 days) Replay: +55 (11) 2188-0188 (7 days)
Code: 18019682 Code: GOL Participants are requested to connect ten minutes prior to the time set for the conference calls.
CONTACT:
Investor Relations
Leonardo Pereira - CFO and IRO Rodrigo Alves - Head of IR
Tel.: (55 11) 2128-4700
E-mail: Website: http://www.voegol.com.br/ir DATASOURCE: GOL Linhas Aereas Inteligentes S.A.
CONTACT: Leonardo Pereira, CFO and IRO, or Rodrigo Alves, Head of IR, both of GOL Investor Relations, +011-55-11-2128-4700, Web site: http://www.voegol.com.br/ir
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