Talks Fly Off Course: Gol and Azul's Business Combination Grounded

Gol's controlling shareholder, Abra Group, has called off discussions with Azul regarding a potential business merger. Talks had stalled due to Azul's focus on its Chapter 11 proceedings, according to a letter cited in Gol's securities filing.

In a significant development in the aviation sector, Gol announced on Thursday that its main shareholder, Abra Group, has officially ended negotiations with Azul about a merger.

The decision was communicated to Azul in a letter detailing that the discussions had been inactive for months due to Azul's preoccupation with its Chapter 11 bankruptcy process.

This move halts any progress towards consolidation between the two Brazilian airlines, affecting future strategies in the domestic aviation market.

(With inputs from agencies.)