Varig Natal along the Brazilian coast and was thus better prepared to compete with Panair do Brasil and Cruzeiro do Sul. In 1949 the Brazilian government granted to Varig the concession to fly to the United States, since the original airline which had the concession, Cruzeiro do Sul, was unable to operate the services. The inaugural flight between Rio de Janeiro-Galeão and New York-Idllwild (later renamed John F. Kennedy International Airport) was on . The services were operated by three new Lockheed L-1049G Super Constellations. On flights to Buenos Aires using Curtiss C-46s started. In January 1956 Varig served 55 cities
Varig a new competitor in the Brazilian market: Gol Airlines and increasing competition of VASP and Transbrasil fighting for survival by dumping fares. Furthermore, for the first time since 1961, Varig lost the first place in the domestic market share in terms of passengers/km for TAM Airlines. Later in the year, the September 11 attacks further increased operational and economic difficulties of Varig. In 2002, Ruben Berta Foundation merged the administration of Varig and its subsidiary Rio Sul Serviços Aéreos Regionais (which included the brand Nordeste Linhas Aéreas Regionais). The three brands were used separately with Rio-Sul and Nordeste providing feeder