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 the first change since 1955 - and the membership of Varig on Star Alliance, as of . Varig was its sixth member airline, and first to join after it was launched only 5 months earlier. In spite of some success in the re-organization of the company, Pinto did not have full support of Ruben Berta Foundation, the controller of Varig and, as a consequence, he left the Presidency of Varig on . That same year he became the CEO of TAP Portugal and successfully re-organized that airline. Pinto was succeeded by Ozires Silva, former president of the Brazilian aircraft manufacturer