(Add MOU details in paragraphs 2, 5; background about Azul and Abra talks in paragraph 4)
SAO PAULO, Jan 8 (Reuters) - Brazilian airline Azul
is expected to sign in the next few weeks a memorandum of understandings with rival carrier Gol's parent Abra for a potential merger between Azul and Gol, newspaper Valor Economico reported on Wednesday.
The memorandum would stress the intention to merge while establishing details pertaining to governance, capital structure and different options to structure the deal, according to the report, which cited sources involved in the talks.
Gol did not immediately respond to a request for comment, while Azul declined to comment.
Azul
has been
in talks with Abra Group to "explore opportunities," amid speculation about a potential tie-up with Gol. The two carriers announced a
codeshare deal
last May.
A key variable for the potential merger is the conclusion of Gol's Chapter 11 bankruptcy proceeding, Valor added, noting this is expected in April.
(Reporting by Andre Romani; Edtiting by David Alire Garcia)
((Andre.Romani@thomsonreuters.com; 11 991314109;11 56447500;))
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