Shopping on line can be easy, simple and save you lots of money. It can also take a lot of your time, frustrate you, and result in unwanted purchases. Now the same can be said for regular high street shopping, but with the vast opportunity presented by the Internet it will pay you to spend a few minutes reading this and understanding how to better optimize your Varig shopping experience:

1. Compare - without doubt the biggest advantage that the Varig offers shoppers today is the ability to compare thousands of Varig at a time. This is a great thing, but not necessarily all the time! Too much can be daunting at times so take advantage of the great comparison sites and where possible let them do the hard work for you.

2. Research - if it has been said it will be on the internet. Ignorance is no longer a justifiable reason for buying the wrong thing. Take the time to research in detail everything that you could possible want to know about

3. Testimonials - don't know anybody that has bought a Varig? Wrong! If the Varig is good the internet will let you know. Use the Internet as a friend and get testimonials before you buy.

4. Questions - Got a question about Varig then search the Forums, FAQ's, Blogs etc. Don't be afraid to ask .....

5. Reputation - Never heard of the company selling Varig? Don't worry, no reason why you should know every company in the world, but you know someone that does! Use the internet to find out what people are saying about Varig and build up a picture of their reputation for sales, returns, customer service, delivery etc.

6. Returns - still worried that even after all of the above your Varig wont be what you want? Check out the returns policy. There is so much competition now that someone, somewhere is bound to offer the terms that you are comfortable with.

7. Feedback - happy with your Varig then let people know, after all you are depending on others people input in your buying decision, so why not give a little back.

8. Security - check for the yellow padlock on the Varig site before you buy, and the s after http:/ /i.e. https:// = a secure site

9. Contact - got a question about Varig, or want to leave a comment then check out the sites contact page. Reputable companies have them and respond.

10. Payment - ready to pay for your Varig, then use your credit card or PayPal! Be aware of companies that don't accept them, there may be genuine reasons but given the huge amount of choice you have when buying online there is no reason at all not to buy via credit card or PayPal.

{{Infobox_Airline |airline=VARIG Linhas Aéreas|logo=Varig Logo.svg|logo_size=190px|fleet_size=23|destinations=10|IATA=RG|ICAO=VRG|callsign=VARIG|parent=Grupo Áurea, [Brazil, Brazil|key_people= Guilherme Laager ([CEO)]
Congonhas-São Paulo International Airport
Salgado Filho International Airport
Galeão International Airport owned by [Gol Transportes Aéreos based in Rio de Janeiro, Brazil. Until recently, it was Brazil's leading international airline. In 2005, the airline went into judicial reorganization (similar to Chapter 11, Title 11, United States Code) and in 2006 downsized substantially, making it the second largest airline in Brazil, combined with Gol Transportes Aéreos.

History Varig was the first airline in Brazil, established on May 7 1927 at the Porto Alegre Commercial Association meeting. It was there that Otto Ernst Meyer, a Germany immigrant, signed the certificate declaring Varig an airline company.

Varig's first plane was a nine-passenger Dornier Wal flying boat. Its first employee, the Hungary Ruben Berta, later became the airline's President and led the airline through great expansion until his death in 1966. The airline started operations on 15 July 1927. Varig's first flight was from Porto Alegre to Rio Grande, Rio Grande do Sul, stopping in Pelotas.

It originally operated local services in southern Brazil, but added its first international route to Montevideo on 5 August 1942. Transatlantic services were started in February 1965, when the military government decided to shutdown Panair do Brasil, the country's flag carrier up until then. The airline took over the giant REAL consortium in 1961, making it the largest airline in South America. It acquired a controlling interest in Serviços Aéreos Cruzeiro do Sul in June 1975, which was fully integrated into Varig in January 1993.

Varig had shareholdings in Nordeste Linhas Aereas Regionais (99%), Rio Sul Serviços Aéreos Regionais (97%), and Pluna (49%). Its cargo subsidiary, VarigLog, was sold to the Volo Brasil consortium in January of 2006. Another subsidiary, VEM - Varig Engenharia e Manutenção, Varig's maintenance centre, was sold to a consortium presided by Portugal airline TAP Portugal.



Financial situation Since 1945, Varig has been majority owned by the Ruben Berta Foundation (RBF), Ruben Berta Foundation a not-for-profit foundation formed in 1945 to provide health, financial, social and recreational benefits to the employees of the companies. RBF controls VARIG through a holding company, FRB-Par Investimentos S.A.

Long-running discussions to merge Varig with TAM Linhas Aéreas ended unsuccessfully in 2004.

As of May 2005, Varig had 87 aircraft (76 passenger, 11 cargo), with an average age of 13.2 years. 83 of the 87 had operating leases; the remaining four had finance leases. As of June 2005, Varig had a negative net worth of approximately US $2.5 billion, with balance sheet debt of $2.8 billion and off-balance sheet debt of $2.0 billion.

On June 17, 2005, Varig applied to the Commercial Bankruptcy and Reorganization Court in Rio de Janeir for the commencement of "judicial reorganization" proceedings pursuant to the New Bankruptcy and Restructuring Law of Brazil, Law No. 11.101, which had become effective only eight days earlier. Under the NBRL, debtors like Varig are permitted to remain in possession and control of their businesses and properties.Varig does however continue to provide service to and from Brazil despite its financial troubles.

On May 9, 2006, the judicial administrator of Varig's assets announced a decision had been reached about a recovery plan for the company. Varig is to be auctioned for a minimum bid of United States dollar860 million. If the minimum price is not reached, the company may be divided and its assets sold separately. O Globo

On May 25, 2006, because Varig did not pay the leasing fees, one of Varig's Boeing 777 aircraft () was seized at John F. Kennedy International Airport in New York City by its lessor, US Bank.

On June 8, 2006, an auction of Varig's assets (minus its debts) was held in Rio de Janeiro. The first round of bids, with a minimum amount of US$860 million, ended with no bids. On the second round, which had no minimum bid limit, a group of Varig employees under the name NV Participações placed the only bid, offering US$449 million for the airline. Since the amount was well below the minimum bid, the decision to sell the airline fell upon bankruptcy judge Luiz Roberto Ayoub. The next day, the bankruptcy judge issued an injunction forcing the airline to stop operating their fleet and to return the active jets to the owners by June 16. The order also called for Varig to return planes not in active use by July 1.

As of June 20, 2006, the Brazilian judge approved the sale to TGV, the consortium representing the airline workers. However, by June 21 Varig had cancelled 180 of its 356 flights. The airline officially announced these flights would be cancelled through June 28. Also, a US bankruptcy judge had allowed the airline to continue flying 16 leased planes until June 21. If the company ceases to exist before the World Cup in Germany is over, the government and other airlines are looking into providing transport for the Brazilian team and the fans back to Brazil. Since TGV did not meet the first deposit for US$75 million on Friday, June 23, the Brazilian judge annulled the auction.

On Monday, June 26, VarigLog (previously bought by Volo and a US investment fund Matlin Patterson) made a bid for $500 million, including an immediate $20 million payment for which $3 million were paid the same Monday to keep the company afloat.

On July 20, 2006, Varig was finally sold to Volo for $24 million. Volo will not inherit Varig's previous debt but will have to complete several financial reforms in order to bring the airline up again. The "old Varig" and its debts will be acquired by Nordeste Linhas Aereas Regionais. The next day the new Varig cancelled all its flights except for Rio de Janeiro-São Paulo flights. The airline reported it needs more time to bring additional planes into service and all flights are cancelled until further notice.

On July 28, 2006, Varig announced they were cutting 60% of their staff. Varig laid off 5,500 of the 9,485 jobs, with a remaining workforce of only 3,985.

On August 23, 2006, Varig announced plans to lease 50 new Embraer E-Jets aircraft under the BNDES Bank in Brazil. Varig also claims it is negotiating with aircraft manufacturers Boeing and Airbus.

On September 13, 2006, Varig announced its intentions to resume more international flights in two stages, when given authorization by federal aviation authorities. In the first stage, Varig plans to resume flights to Mexico, Peru, and England within 180 days. In the second stage, flights to Chile, United States, and Portugal are expected.

On November 29, 2006, Varig announced periodic expansions to its domestic routes for the Brazilian summer season. Varig will begin these seven new routes (including three new destinations) starting December 18, 2006, and lasting through March 4, 2007.

On December 14, 2006, under a deal hammered out between new Varig, the bankruptcy court, the two agencies regulating commercial aviation and Varig Logística the new owners of Varig, new air operators certificates (Certificação de Homologação de Empresas de Transporte Aéreo - CHETA) were granted by Brazil's National Civil Aviation Agency (Agência Nacional de Aviação Civil - ANAC) to new Varig (VRG Linhas Aéreas)Agência Nacional de Aviação Civil - Brasil 14 December 2006 . VarigLog purchased the ailing airline in July 2006 for $24.5 million. Soon after the certificates´ arrival, orders for 16 aircraft will go forward, to bring the fleet to 31 aircraft.Flight International 12-18 December 2006

On December 21, 2006, VARIG Brazilian Airlines (or "old" VARIG) was suspended from membership in Star Alliance as of 31 January 2007 because it did not fulfill membership requirements. VARIG leaving Star Alliance 21 December 2006

The new Varig had struggled to find a strategic partner, after relaunch in December 2006, with aircraft, network and personnel inherited from the old airline. Lack of market credibility and the suspension of domestic and international routes let to monthly losses as high as US$20 million. In January 2007 LAN Airlines of Chile offered a US$17.1 million loan, in an unsuccessful attempt to acquire a 20% stake in the airline.

On March 28, 2007, Varig was officially purchased by Gol Transportes Aéreos for US$320 million. Gol announced that Varig will continue to operate under its current name. The current fleet of 17 aircraft is to be increased to 34, consisting of 20 Boeing 737 and 14 Boeing 767. With the new fleet Varig will operate to 12 international destinations: Buenos Aires, Bogotá, Caracas, Frankfurt, London, Madrid, Milan, Paris, New York, Miami, Mexico City and Santiago. Varig's international flights will no longer have First Class, therefore consisting only of Economy Class and Business (Executive) Class. Gol may also be negotiating the lease of four to six Boeing 777 - Boeing 777-300ER aircraft to resume Varig international routes. Key domestic services will be operated, including the Rio de Janeiro to São Paulo shuttle, exploiting Varig's 124 slots at Congonhas-São Paulo International Airport.

On June 21, 2007, Constantino de Oliveira Jr., the CEO of Gol Transportes Aéreos announced Varig's immediate future plans for its fleet and destinations. The plan includes the acquistion of nine of the more fuel efficient Boeing 737 model and 10 Boeing 767. Constantino also announced that the airline is in negotiations with both Boeing and Airbus for the acquisition of either Boeing 787 or Airbus A350 aircraft.The plan also includes flights to Madrid, London, Paris, Milan,Rome and Mexico City by the end of 2007, and New York City and Miami in 2008. Interview-The Expansion of Varig (in Portuguese) 21 June 2007

Statistics As of 2004, combined with its subsidiaries Rio Sul Serviços Aéreos Regionais and Nordeste Linhas Aereas Regionais, Varig carried approximately 13 million passengers annually and had over 11,000 full-time employees. As of December 31, 2004, Varig had total operating revenues of $3.4 billion, of which about $3.15 billion was from flight operations. As of May 2005, Varig's share of passengers flying into or out of Brazil was 43% for the South American market, 17% for the United States market, 35% for the European market, and 48% for the Asian market. Varig employs 3,985 staff. As of February 2007, Varig held 4.54% of the domestic Brazilian market, doubling its previous 2.2% share of August 2006, but still well below the 25.02% held in August 2005, and only 21.64% of the International market, compared to 76.06% one year before.

Incidents and accidents Varig has had five relevant events since 1970:

Destinations See article Varig destinations.

Current Fleet {| class="toccolours" border="1" cellpadding="3" style="border-collapse:collapse"|+ VARIG-VRG Linhas Aéreas Passenger Fleet|- bgcolor=white!Aircraft!Total!Passengers
(Business/Economy Class)!Routes!Notes|-|Boeing 737-300|6
(10 orders)|250 (16/234)|Long haul routes|Delivery ongoing until April 2008|-|[Boeing 737|5
(4 orders)|189 (0/189)|Medium haul routes|Delivery begins September 2007|-|Boeing 737|0 ( 9 orders)|136(0/136)|Medium haul routes|delivery begins 2008|-|-!Total number of aircraft|20
(20 orders)|Updated: June 2007|}

Retired Fleet Aircraft retired due to financial crisis in June of 2006:

Previously retired aircraft:

Rio-Sul and Nordeste retired aircraft:

External links

References

{{Infobox_Airline |airline=VARIG Linhas Aéreas|logo=Varig Logo.svg|logo_size=190px|fleet_size=23|destinations=10|IATA=RG|ICAO=VRG|callsign=VARIG|parent=Grupo Áurea, [Brazil, Brazil|key_people= Guilherme Laager ([CEO)]
Congonhas-São Paulo International Airport
Salgado Filho International Airport
Galeão International Airport owned by [Gol Transportes Aéreos based in Rio de Janeiro, Brazil. Until recently, it was Brazil's leading international airline. In 2005, the airline went into judicial reorganization (similar to Chapter 11, Title 11, United States Code) and in 2006 downsized substantially, making it the second largest airline in Brazil, combined with Gol Transportes Aéreos.

History Varig was the first airline in Brazil, established on May 7 1927 at the Porto Alegre Commercial Association meeting. It was there that Otto Ernst Meyer, a Germany immigrant, signed the certificate declaring Varig an airline company.

Varig's first plane was a nine-passenger Dornier Wal flying boat. Its first employee, the Hungary Ruben Berta, later became the airline's President and led the airline through great expansion until his death in 1966. The airline started operations on 15 July 1927. Varig's first flight was from Porto Alegre to Rio Grande, Rio Grande do Sul, stopping in Pelotas.

It originally operated local services in southern Brazil, but added its first international route to Montevideo on 5 August 1942. Transatlantic services were started in February 1965, when the military government decided to shutdown Panair do Brasil, the country's flag carrier up until then. The airline took over the giant REAL consortium in 1961, making it the largest airline in South America. It acquired a controlling interest in Serviços Aéreos Cruzeiro do Sul in June 1975, which was fully integrated into Varig in January 1993.

Varig had shareholdings in Nordeste Linhas Aereas Regionais (99%), Rio Sul Serviços Aéreos Regionais (97%), and Pluna (49%). Its cargo subsidiary, VarigLog, was sold to the Volo Brasil consortium in January of 2006. Another subsidiary, VEM - Varig Engenharia e Manutenção, Varig's maintenance centre, was sold to a consortium presided by Portugal airline TAP Portugal.



Financial situation Since 1945, Varig has been majority owned by the Ruben Berta Foundation (RBF), Ruben Berta Foundation a not-for-profit foundation formed in 1945 to provide health, financial, social and recreational benefits to the employees of the companies. RBF controls VARIG through a holding company, FRB-Par Investimentos S.A.

Long-running discussions to merge Varig with TAM Linhas Aéreas ended unsuccessfully in 2004.

As of May 2005, Varig had 87 aircraft (76 passenger, 11 cargo), with an average age of 13.2 years. 83 of the 87 had operating leases; the remaining four had finance leases. As of June 2005, Varig had a negative net worth of approximately US $2.5 billion, with balance sheet debt of $2.8 billion and off-balance sheet debt of $2.0 billion.

On June 17, 2005, Varig applied to the Commercial Bankruptcy and Reorganization Court in Rio de Janeir for the commencement of "judicial reorganization" proceedings pursuant to the New Bankruptcy and Restructuring Law of Brazil, Law No. 11.101, which had become effective only eight days earlier. Under the NBRL, debtors like Varig are permitted to remain in possession and control of their businesses and properties.Varig does however continue to provide service to and from Brazil despite its financial troubles.

On May 9, 2006, the judicial administrator of Varig's assets announced a decision had been reached about a recovery plan for the company. Varig is to be auctioned for a minimum bid of United States dollar860 million. If the minimum price is not reached, the company may be divided and its assets sold separately. O Globo

On May 25, 2006, because Varig did not pay the leasing fees, one of Varig's Boeing 777 aircraft () was seized at John F. Kennedy International Airport in New York City by its lessor, US Bank.

On June 8, 2006, an auction of Varig's assets (minus its debts) was held in Rio de Janeiro. The first round of bids, with a minimum amount of US$860 million, ended with no bids. On the second round, which had no minimum bid limit, a group of Varig employees under the name NV Participações placed the only bid, offering US$449 million for the airline. Since the amount was well below the minimum bid, the decision to sell the airline fell upon bankruptcy judge Luiz Roberto Ayoub. The next day, the bankruptcy judge issued an injunction forcing the airline to stop operating their fleet and to return the active jets to the owners by June 16. The order also called for Varig to return planes not in active use by July 1.

As of June 20, 2006, the Brazilian judge approved the sale to TGV, the consortium representing the airline workers. However, by June 21 Varig had cancelled 180 of its 356 flights. The airline officially announced these flights would be cancelled through June 28. Also, a US bankruptcy judge had allowed the airline to continue flying 16 leased planes until June 21. If the company ceases to exist before the World Cup in Germany is over, the government and other airlines are looking into providing transport for the Brazilian team and the fans back to Brazil. Since TGV did not meet the first deposit for US$75 million on Friday, June 23, the Brazilian judge annulled the auction.

On Monday, June 26, VarigLog (previously bought by Volo and a US investment fund Matlin Patterson) made a bid for $500 million, including an immediate $20 million payment for which $3 million were paid the same Monday to keep the company afloat.

On July 20, 2006, Varig was finally sold to Volo for $24 million. Volo will not inherit Varig's previous debt but will have to complete several financial reforms in order to bring the airline up again. The "old Varig" and its debts will be acquired by Nordeste Linhas Aereas Regionais. The next day the new Varig cancelled all its flights except for Rio de Janeiro-São Paulo flights. The airline reported it needs more time to bring additional planes into service and all flights are cancelled until further notice.

On July 28, 2006, Varig announced they were cutting 60% of their staff. Varig laid off 5,500 of the 9,485 jobs, with a remaining workforce of only 3,985.

On August 23, 2006, Varig announced plans to lease 50 new Embraer E-Jets aircraft under the BNDES Bank in Brazil. Varig also claims it is negotiating with aircraft manufacturers Boeing and Airbus.

On September 13, 2006, Varig announced its intentions to resume more international flights in two stages, when given authorization by federal aviation authorities. In the first stage, Varig plans to resume flights to Mexico, Peru, and England within 180 days. In the second stage, flights to Chile, United States, and Portugal are expected.

On November 29, 2006, Varig announced periodic expansions to its domestic routes for the Brazilian summer season. Varig will begin these seven new routes (including three new destinations) starting December 18, 2006, and lasting through March 4, 2007.

On December 14, 2006, under a deal hammered out between new Varig, the bankruptcy court, the two agencies regulating commercial aviation and Varig Logística the new owners of Varig, new air operators certificates (Certificação de Homologação de Empresas de Transporte Aéreo - CHETA) were granted by Brazil's National Civil Aviation Agency (Agência Nacional de Aviação Civil - ANAC) to new Varig (VRG Linhas Aéreas)Agência Nacional de Aviação Civil - Brasil 14 December 2006 . VarigLog purchased the ailing airline in July 2006 for $24.5 million. Soon after the certificates´ arrival, orders for 16 aircraft will go forward, to bring the fleet to 31 aircraft.Flight International 12-18 December 2006

On December 21, 2006, VARIG Brazilian Airlines (or "old" VARIG) was suspended from membership in Star Alliance as of 31 January 2007 because it did not fulfill membership requirements. VARIG leaving Star Alliance 21 December 2006

The new Varig had struggled to find a strategic partner, after relaunch in December 2006, with aircraft, network and personnel inherited from the old airline. Lack of market credibility and the suspension of domestic and international routes let to monthly losses as high as US$20 million. In January 2007 LAN Airlines of Chile offered a US$17.1 million loan, in an unsuccessful attempt to acquire a 20% stake in the airline.

On March 28, 2007, Varig was officially purchased by Gol Transportes Aéreos for US$320 million. Gol announced that Varig will continue to operate under its current name. The current fleet of 17 aircraft is to be increased to 34, consisting of 20 Boeing 737 and 14 Boeing 767. With the new fleet Varig will operate to 12 international destinations: Buenos Aires, Bogotá, Caracas, Frankfurt, London, Madrid, Milan, Paris, New York, Miami, Mexico City and Santiago. Varig's international flights will no longer have First Class, therefore consisting only of Economy Class and Business (Executive) Class. Gol may also be negotiating the lease of four to six Boeing 777 - Boeing 777-300ER aircraft to resume Varig international routes. Key domestic services will be operated, including the Rio de Janeiro to São Paulo shuttle, exploiting Varig's 124 slots at Congonhas-São Paulo International Airport.

On June 21, 2007, Constantino de Oliveira Jr., the CEO of Gol Transportes Aéreos announced Varig's immediate future plans for its fleet and destinations. The plan includes the acquistion of nine of the more fuel efficient Boeing 737 model and 10 Boeing 767. Constantino also announced that the airline is in negotiations with both Boeing and Airbus for the acquisition of either Boeing 787 or Airbus A350 aircraft.The plan also includes flights to Madrid, London, Paris, Milan,Rome and Mexico City by the end of 2007, and New York City and Miami in 2008. Interview-The Expansion of Varig (in Portuguese) 21 June 2007

Statistics As of 2004, combined with its subsidiaries Rio Sul Serviços Aéreos Regionais and Nordeste Linhas Aereas Regionais, Varig carried approximately 13 million passengers annually and had over 11,000 full-time employees. As of December 31, 2004, Varig had total operating revenues of $3.4 billion, of which about $3.15 billion was from flight operations. As of May 2005, Varig's share of passengers flying into or out of Brazil was 43% for the South American market, 17% for the United States market, 35% for the European market, and 48% for the Asian market. Varig employs 3,985 staff. As of February 2007, Varig held 4.54% of the domestic Brazilian market, doubling its previous 2.2% share of August 2006, but still well below the 25.02% held in August 2005, and only 21.64% of the International market, compared to 76.06% one year before.

Incidents and accidents Varig has had five relevant events since 1970:

Destinations See article Varig destinations.

Current Fleet {| class="toccolours" border="1" cellpadding="3" style="border-collapse:collapse"|+ VARIG-VRG Linhas Aéreas Passenger Fleet|- bgcolor=white!Aircraft!Total!Passengers
(Business/Economy Class)!Routes!Notes|-|Boeing 737-300|6
(10 orders)|250 (16/234)|Long haul routes|Delivery ongoing until April 2008|-|[Boeing 737|5
(4 orders)|189 (0/189)|Medium haul routes|Delivery begins September 2007|-|Boeing 737|0 ( 9 orders)|136(0/136)|Medium haul routes|delivery begins 2008|-|-!Total number of aircraft|20
(20 orders)|Updated: June 2007|}

Retired Fleet Aircraft retired due to financial crisis in June of 2006:

Previously retired aircraft:

Rio-Sul and Nordeste retired aircraft:

External links

References



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