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.

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.

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

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,