A planned merger between Brazilian airlines Gol and Azul would strengthen the sector and prevent either company from failing, Brazil's ports and airports minister told Reuters, giving the potential move a key government nod.

The boss of Brazilian airline Azul has argued that its planned merger with rival Gol to create the country’s largest carrier will strengthen Brazil’s aviation industry and expand the number of routes on offer.

Gol and Azul propose to maintain separate brands while coordinating their finances, networks and product offerings.

Brazil airlines Azul and GOL are set for merger talks which could create the dominant player in aviation in the country. They signed a MoU after getting tentative approval from Brazilian President Lula da Silva. The plan is to combine the businesses of Azul and GOL parent Abra. It would give the new business a 60% share of the aviation market.

Air France-KLM, American Airlines, IAG International Airlines Group, Lufthansa Group, and United Airlines are interested in investing in GOL Linhas Aéreas Inteligentes (G3, São Paulo Congonhas) as part of the Brazilian airline’s Chapter 11 proceedings and are in talks with the carrier, the Brazilian newspaper Valor Econômico reported.

The merger of Brazilian airlines Gol and Azul, planned by the Brazilian government, has received widespread support, making it a watershed moment for the country’s beleaguered aviation industry. Silvio Costa Filho,