Smiles S.A.
 | |
| Company type | Sociedade Anônima |
|---|---|
| B3: SMLS3 Ibovespa Component | |
| Industry | Loyalty Program Administration |
| Headquarters | , |
| Revenue |  US$ 254.3 million (2018) |
 US$ 163.4 million (2018) | |
| Owner | Gol Linhas Aéreas Inteligentes S.A. |
| Website | www |
| Footnotes / references "Overview on Smiles S.A." BOVESPA Company information website. Retrieved March 6, 2014. | |
Smiles S.A. is a Brazilian company which manages Smiles loyalty program, the former frequent-flyer program of Varig, a Brazilian carrier, now switched to GOL Linhas Aéreas Inteligentes S.A.
History[edit]
Varig launched its frequent-flyer program in 1994, as the biggest airline in Brazil and in 1997 started to use a co-branding strategy with credit card issuers.[1] As Varig's economical conditions became desperate in the early 2000s, the company has been split in two, the "new" Varig with most of the airplanes, routes, and the mileage program, and the "old" one, mainly with the debts.[2] The resulting new company was initially sold to VarigLog, its former air cargo subsidiary.[3] As GOL took over Varig's operations,[4] they decided to absorb the Smiles program, aiming its later conversion for an independent business unit.[5] After the successful IPO of Multiplus, the loyalty program from GOL's competitor, TAM Linhas Aéreas (now part of LATAM Airlines Group), GOL decided to split that business from the airline and go public, which has been carried in April 2013.[6]
In January 2024, Smiles' owner Gol announced that it would be preparing to file for Chapter 11 bankruptcy by no later than February 2024, stating that the airline has been struggling with high debt and recently hired Seabury Capital to help it in a broad capital structure review. As a result, the company's shares tumbled as much as 13%.[7] On 24 January 2024, Gol sought $950 million in financing in order to fund itself during its bankruptcy procedures.[8] On 25 January 2024, Gol declared Chapter 11 bankruptcy in New York in an effort to bounce back from high debt costs caused by the COVID-19 pandemic. During the bankruptcy procedure, Gol will continue to operate while it is currently seeking approval of a creditor-repayment plan. [9]
Benefit sharing[edit]
On July 6, 2010, Delta Air Lines announced an agreement to redeem Smiles mileage for SkyMiles benefits and vice versa. Such announcement was tied to a codeshare agreement between the airlines.[10] Smiles's mileage can also be redeemed for Air France–KLM,[11] Korean Air, Aeromexico, Tap Portugal, Aerolineas Argentinas, Copa Airlines, Etihad Airways, Alitalia, Air Canada and Qatar Airways[12] flights. However, as of early 2020, Delta and GOL have ended their partnership and the subsequent sharing of benefits between the two airlines.
References[edit]
- ^ "Smiles S.A. Investor Relations Website". Archived from the original on December 3, 2013. Retrieved December 2, 2013.
- ^ Komatsu, Alberto (July 14, 2006). "Fundação herdará dívidas da Varig" [Pension Board will inherit Varig's debts]. O Estado de S. Paulo (in Portuguese). p. B14. Retrieved December 3, 2013.
- ^ Komatsu, Alberto; Ciarelli, Mônica (July 1, 2006). "VarigLog garante milhagens e dinheiro para fundo de pensão" [VarigLog backs mileage program and money to the pension board]. O Estado de S. Paulo (in Portuguese). p. B1. Retrieved December 3, 2013.
- ^ Barbosa, Mariana (March 29, 2007). "Gol compra a Varig em negócio que pode chegar a US$ 320 milhões" [Gol buys Varig in a deal that may reach US$320 million]. O Estado de S. Paulo (in Portuguese). p. B18. Retrieved December 3, 2013.
- ^ Barbosa, Mariana (October 10, 2008). "Gol reestrutura operação e adota o Smiles, da Varig" [Gol reestructures operations and adopts Smiles from Varig]. O Estado de S. Paulo (in Portuguese). p. B14. Retrieved December 3, 2013.
- ^ "Abertura de capital do Smiles pode movimentar R$ 1,1 bi" [Smiles' IPO may swap BRL 1,1 billion]. O Estado de S. Paulo (in Portuguese). April 26, 2013. p. B13. Retrieved December 3, 2013.
- ^ "Shares in Brazil's Gol tank on report of potential US bankruptcy filing". Reuters. 15 January 2024. Retrieved 25 January 2024.
- ^ "Brazilian Airline Gol Seeks $950 Million in Financing to Fund Itself in Bankruptcy". Bloomberg. 24 January 2024. Retrieved 25 January 2024.
- ^ "Low-Cost Brazilian Airline Gol Files for Bankruptcy in US". Bloomberg. 25 January 2024. Retrieved 25 January 2024.
- ^ "Delta Air Lines and GOL Announce Shared Benefits for SkyMiles and SMILES Members". Delta Airlines News Archive. July 6, 2010. Retrieved March 6, 2014.
- ^ "Air France-KLM and GOL sign a long-term strategic partnership". Air France - KLM Press Releases website. February 19, 2014. Retrieved March 6, 2014.
- ^ "Our partners: Gol". Qatar Airways Privilege Club website. Retrieved March 6, 2014.