Varig filed for bankruptcy protection in 2005 after becoming Latin America’s largest airline.
Founded in 1927, Varig was Brazil’s first airline and became an important international carrier. For decades it connected Brazil with North America, Europe, and other parts of Latin America. Its long-term problems included heavy debt, competition, fuel costs, and disputes involving regulated fares and government policy.
Varig entered judicial recovery proceedings in June 2005 under Brazil’s new bankruptcy law. The restructuring did not restore the original airline to financial health. Varig’s viable operating assets were sold in 2006, and its remaining operations were eventually absorbed or shut down.
Varig is sometimes confused with TAM, which later became part of LATAM Airlines Group. Varig’s distinctive historical identity came from its earlier international network and its role as Brazil’s flagship carrier before its collapse.