American Airlines has reached a definitive investment agreement with Brazil-based airline GOL, picking a stake in the latter as a result.

This alliance will focus on establishing the ‘broadest and most rewarding network’ in North and South America.

The joint networks will offer access to passengers with over 30 terminuses in the US and more than 34 new destinations in South America.

Last September, American Airlines and GOL signed a letter of intent for strengthening their partnership.

Under this agreement, American will make an investment of $200m in 22.2 million newly issued preferred shares of GOL for a 5.2% interest.

The closing of the equity investment, along with the implementation of the other agreements, awaits regulatory approval.

This year, GOL’s SMILES and American’s AAdvantage loyalty members will be able to receive status benefits on both carriers, including priority check-in, priority security, priority boarding, a larger checked luggage allowance, lounge access and preferred seats.

Customers are also expected to get a better joint loyalty offering from both companies.

American serves 17 destinations in South America while GOL provides services to 63 destinations in Brazil.

Last month, American Airlines and Aer Lingus signed a codeshare pact with an aim to improve connectivity between the US and Europe for passengers.