Brazil's civil aviation authority has approved a share transfer process between Brazilian carriers Azul and Trip that will help pave the way for a merger between the two airlines.
The two airlines had announced plans to merge in May, and are still awaiting authorisation from Brazil's anti-trust authority CADE to finalise the merger.
Under the share transfer process, shares in Trip were transferred to the holding company, Azul Trip SA, for the merged carrier. Azul has said it expects final approvals for the merger by end-2012.
Azul and Trip have begun codesharing and together offer flights to 100 destinations within Brazil.