Bankruptcy and merger of Brazilian Airlines

VARIG, a world-class airline nicknamed Embraer, closed down in 2006 due to poor management and international and domestic socio-economic climate, and was auctioned to a bankruptcy handling company at a low price. Finally, a new star in Brazil's air traffic industry, a low-cost airline, GOL Airlines, acquired VARIG, including the Smile frequent flyer program. At present, VARIG maintains its original company logo, original international and domestic routes and frequent flyer program, but all the property rights and management rights are owned by Gore Airlines, and a new airline, VRG Airlines, has been established.

VARIG officially withdrew from Star Alliance on June 5438+ 10, 2007, and its international partners include American Airlines and Air France. But so far, there is no sign of joining an aviation alliance or SkyTeam with Gore Airlines.

Gore Airlines bought VARIG, but this did not replace VARIG's position as a Brazilian airline. Because Gore Airlines has taken the route of ordinary customers since its establishment, and occupied the market by selling cheap air tickets and simple services. The vacancy left by VARIG was quickly replaced by TAM, a Brazilian Tianma airline.

The bankruptcy and merger of VARIG did not affect the position of Embraer in the international and domestic markets. Azul Air Lines, another Brazilian airline, uses 10 Embraer 195 and 17 Embraer 195 as its backbone models.