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
Nordeste Linhas Aéreas Regionais of this process, the airline was divided into two portions, informally known as "old" Varig and "new" Varig. "Old" Varig was judicially known as Viação Aérea Rio-grandense. "New" Varig, judicially known as VRG Linhas Aéreas, is a new airline formed with some assets of the original Varig and which was auctioned on 14 July 2006. The legal procedures were finalized on 20 July 2006. Since that day VRG Linhas Aéreas and Viação Aérea Rio-grandense have been different judicial entities and airlines. At the time of the auction, the assets of VRG Linhas Aéreas comprised the brands Varig and Rio Sul,