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
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