Varig services to Varig. Year-long discussions to merge Varig with TAM Airlines ended unsuccessfully in 2004 and the same year Varig fell to third place in the Brazilian domestic market share, behind TAM and Gol. VARIG applied to the Commercial Bankruptcy and Reorganization Court in Rio de Janeiro on , for the commencement of "judicial reorganization" proceedings pursuant to the New Bankruptcy and Restructuring Law of Brazil (Law 11.101). The request was granted on 22 June 2005. VARIG continued to provide services despite its financial troubles. In order to raise funds, the Bankruptcy and Reorganization Court decided to sell two of
American Flyers Airline to operate transatlantic flights, from the mainland US to London Gatwick and Manchester in the United Kingdom, and to Frankfurt, Germany. Around this time the airline moved its operations to Middletown, Pennsylvania. By 1970, American Flyers was operating just two leased Douglas DC-8 Series 63CF having sold the Electras and later the Boeing 727s. AFA was taken over by Universal Airlines on May 25, 1971, which in turn was absorbed by Saturn Airways the next year. Its DC-8s went to Flying Tiger Line. AFA was founded by Reed Pigman who was an early aviation pioneer who was instrumental in developing