Azul (AZUL) and Abra, the majority investor of Gol and Avianca, have signed a non-binding Memorandum of Understanding, or MoU, with the intent

Azul and Abra, the majority investors of airlines Gol and Avianca, on Wednesday said they signed a non-binding Memorandum of Understanding to combine their businesses in Brazil.

Brazilian carrier Azul SA and the principal shareholder for rival Gol Linhas Aereas Inteligentes SA reached an agreement to work toward a merger, potentially creating one of the largest airlines in Latin America.