Varig economic difficulty. This purchase not only made Varig the largest airline in South America but also granted rights to other cities in Latin America, Miami, the West Coast of the United States and to Japan. European services started on . Varig had been lobbying for European concessions for more than ten years, but after the sudden shutdown of Panair do Brasil by the Brazilian military government Varig was granted rights previously held by Panair and was ordered to immediately operate all scheduled services, including Panair's flight scheduled to depart that very night from Rio de Janeiro-Galeão to Recife, Lisbon, Paris-Orly
Varig on . The new owner radically restructured the fleet, the network, eliminated the First Class cabin from the aircraft, and gradually transformed the brand Varig into the arm of Gol Group specialized in international scheduled and charter medium and long-haul destinations. On , Varig's new corporate image was unveiled, stressing the orange colour of Gol.<ref name="Other News - 10/29/2007"></ref> On Gol was merged into VRG Linhas Aéreas and thus VRG Linhas Aéreas became an airline with two different brands: Varig and Gol. As a consequence, on mid-April 2009, Varig's booking systems were integrated into Gol's and the Smiles frequent flyer