Azul Linhas Aéreas Brasileiras (AD, São Paulo Viracopos) and GOL Linhas Aéreas Inteligentes (G3, São Paulo Congonhas) are reportedly in advanced merger negotiations, with plans to sign a Memorandum of Understanding (MoU) in the coming weeks, according to the Brazilian newspaper Valor Econômico.
The MoU is expected to outline key aspects of the potential business combination, including governance, capital structure, and options for structuring the deal. As part of the proposed arrangement, both companies are considering establishing a new corporation that would allow their respective brands to operate independently.
Discussions about a possible merger have been ongoing since last year. In May 2024, the two airlines signed a codeshare agreement. Later, GOL's proposed Chapter 11 reorganisation plan, filed in December 2024, left room for a potential “merger, consolidation, amalgamation, or similar strategic business combination” between its parent entity, Abra Group, and Azul S.A. It also mentioned the possibility of a joint venture.
Abra Group also owns avianca airlines and Wamos Air, while Azul S.A. owns Azul Linhas Aéreas and its subsidiary, Azul Conecta (2F, Jundiaí). A merger between Azul and GOL would result in the combined entity controlling almost 62% of Brazilian domestic market by capacity.
Both companies have declined to comment on the matter.
In related news, Azul subsidiary Azul Secured Finance LLP announced on January 8 the early participation results of its offer to exchange the company's existing 2028, 2029, and 2030 senior secured second-out notes as part of its debt restructuring process, reporting high participation rates of between 94.4% (2030) and 99.6% (2028).
