The controlling shareholder of Gol Linhas Aereas Inteligentes SA has started talks with Azul SA. 

Holding company Abra Group Ltd seeks to “explore opportunities”, Gol said in a statement late Tuesday. Any potential agreement between Abra and Azul would not be binding on the company, according to the document. 

Sao Paulo-based Gol is said to be in talks for a merger with rival Brazilian airline Azul. In one scenario under consideration, Abra Group would contribute its Gol shares to Azul in exchange for a stake in the combined entity. Last week, both airlines announced an agreement to connect their flight networks, which is said to be the first step toward the companies consolidating.

Azul added in a securities filing it is holding “independent talks” with Abra and has not signed any agreement regarding a potential business combination with Gol.

Gol filed for Chapter 11 earlier this year after carrying out a dozen debt exchanges. It plans to raise $1.5 billion in fresh equity to repay its existing debtor-in-possession financing and shore up its balance sheet, according to its new five-year financial plan.

Azul and Gol are part of a trio of carriers — including Santiago-based Latam Airlines Group SA — that dominate air travel in Brazil, Latin America’s largest market.