Air France-KLM said Wednesday it had signed a strategic partnership deal with Gol Linhas Aereas in which it will invest $100 million in the Brazilian airline.
The deal will boost the airlines' cooperation between Brazil and Europe with increased codesharing and joint sales activities, giving the French-Dutch airline a greater foothold in South America, it said in a statement.
"We are excited to join forces with Gol, a leading carrier in Brazil," said Alexandre de Juniac, CEO of Air France-KLM.
"Brazil, the host country of the upcoming World Cup and the 2016 Olympic Games, benefits from growing business and leisure traffic volumes.
"This collaboration confirms our strategy to establish deep and long-lasting partnerships in regions with relevant growth potential."
Part of Air France-KLM's investment will include $52 million in share capital.
The two airlines have had a codesharing agreement in place since 2009, giving Air France-KLM customers access to an additional 28 destinations in Brazil, beyond Rio de Janeiro and Sao Paulo.
Gol has become a major player in South America, with around 40 percent of the Brazilian domestic market. The airline has a fleet of 141 Boeing 737NG aircraft serving 51 destinations in Brazil and 10 countries across Central and South America.