SAO PAULO, Nov 10 (Reuters) - Latin American airline

holding Abra Group said on Monday it has reached an

agreement-in-principle for Chilean low-cost carrier Sky Airline

to join the group, which already includes Brazil's Gol and

Colombia's Avianca.

The move follows Abra's announcement last month of a planned

initial public offering in the United States and further

consolidates it as one of the largest airline groups in Latin

America, rivaling Chile-based LATAM Airlines.

Formed in 2022, when Gol and Avianca announced they were

combining under the roof of a common firm, Abra also holds a

strategic investment in Spain's Wamos and already had

convertible debt representing a minority stake in Sky.

Abra and Sky have submitted documentation to competition

authorities seeking regulatory approval for the transaction, the

holding said in a statement, adding that under the deal Sky

would retain its brand.

"Bringing Sky into the group will allow us to continue

strengthening the region's air market," said Abra Group CEO

Adrian Neuhauser.

Abra will consolidate ownership of Sky at closing, with

the current majority shareholders of the Chilean airline

becoming minority shareholders of Abra, the firm said. Sky

President Holger Paulmann will continue to serve as chairman of

its board.

Financial details were not disclosed.

Paulmann said the deal would bring more routes and more

travel options for Sky's clients, highlighting that Abra already

has a fleet of more than 300 aircraft, which includes both

Boeing and Airbus jets.

Sky was founded in the early 2000s and operates a fleet

of Airbus A320/A321neo aircraft, with subsidiaries in Chile and

Peru. It serves more than 40 destinations in the Americas.