Azul Linhas Aéreas Brasileiras (AD, São Paulo Viracopos) and GOL Linhas Aéreas Inteligentes’s talks about a possible merger are gaining momentum, according to a report from Bloomberg, citing people familiar with the matter.

The media outlet reported Azul is considering one scenario in which Abra Group, the owner of GOL and avianca airlines, would contribute its GOL shares to Azul in exchange for a stake in the combined carrier.

GOL Linhas Aéreas, which is currently undergoing Chapter 11 bankruptcy restructuring, recently stated that it will actively evaluate all capitalisation alternatives. Meanwhile, Azul has been working on a merger proposal, hiring Citigroup and Guggenheim Partners.

When contacted by ch-aviation, Azul Linhas Aéreas, GOL, and Abra Group all declined to comment on the matter.

Azul is also said to be optimistic about gaining regulatory approval from Brazilian as well as regional antitrust regulators which would see the birth of Brazil’s largest airline, with 329 aircraft in total. The ch-aviation fleets module shows that GOL’s fleet comprises 139 jets, including fourteen B737-700s, forty-six B737-8s, seventy-three B737-800s, and six B737-800(BCF)s. It also has 86 planes on order, including twenty-five B737-10s and sixty-one B737-8s, from Boeing. However, as part of its Chapter 11 process, it is negotiating the return of some older airframes to their lessors.

Meanwhile, Azul’s fleet comprises 166 aircraft, including forty-nine A320-200Ns, six A321-200NX(LR)s, four A330-200s, five A330-900Ns, thirty-seven ATR72-600s, two B737-400(F)s, forty-three E195s, and twenty E195-E2s. Regional subsidiary Azul Conecta (2F, Jundiaí) operates a fleet of twenty-four Cessna (single turboprop) 208B Grand Caravan turboprops. It has 55 planes on order, including four ATR72-600s and fifty-one E195-E2s, as well as several leasing contracts to add 31 Airbus airframes to its fleet, including two A320-200Ns, fifteen A321-200Ns, three A321-200NX(LR)s, two A330-200s, and nine A330-900Ns.