Varig from the assets of Condor Syndikat. This aircraft, named "Atlântico", was also the first aircraft registered in Brazil as P-BAAA. Operations started on with a flight from Porto Alegre to Rio Grande via Pelotas. Varig inherited the route rights from Condor Syndikat which since had operated the service. VARIG slowly but consistently in spite of difficulties added aircraft and destinations to its network initially focusing on the state of Rio Grande do Sul. On Varig began its first international route from Porto Alegre to Montevideo using its de Havilland DH 89 Dragon Rapide. On 1941, as the United States declared
Varig airlines, on Varig acquired a controlling interest in Cruzeiro do Sul, which was in a particularly delicate economic situation. Cruzeiro do Sul was fully integrated into VARIG on . On , the Brazilian Federal Government created the Brazilian Integrated System of Regional Air Transportation and divided the country in five different regions, for which five newly created regional airlines received a concession to operate air services. Rio-Sul Serviços Aéreos Regionais S/A was the fourth of those regional airlines to be made operational and it was established by Varig in partnership with Top Táxi Aéreo, Bradesco Bank, and Atlântica-Boavista Insurance. Its