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
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