Brazil's budget airline GOL announced yesterday that it is to acquire Varig for $275m, a sum which will include liability for Varig's debts of approximately $45m.

Provided the deal goes through this will give GOL access to Varig's routes to the US and Europe, as well as valuable slots at Sao Paolo airport. It will also bring to an end the uncertainty over the carrier's future that has lasted for years, with a near total collapse last year.
GOL management said it would run both airlines separately with GOL continuing to operate its single-class service to routes in South America and the Brazilian domestic market.
GOL is buying the airline from investment group Volo de Brasil, which acquired it from a consortium of workers after a judge ruled that the latter group had failed to keep up with its loan payment obligations.