Varig health, financial, social and recreational benefits to its employees. Decades later this foundation would be called . In 1946, with the addition of Douglas DC-3 and later the Curtiss C-46 to its fleet, Varig was able to greatly increase its network by adding cities in the states of Santa Catarina, Paraná, São Paulo, and Rio de Janeiro, facing fierce competition with Real Transportes Aéreos, and SAVAG. On , Varig bought Aero Geral, a small airline with concessions to fly from Natal until Santos. With this purchase Varig greatly enlarged its operations in Brazil, extending services beyond Rio de Janeiro until
Varig 2009, "old Varig" remained in Recovery Order in the 1st Business Court of Rio de Janeiro, under the leadership of Judges Luiz Roberto Ayoub and Miguel Dau. After the bankruptcy protection was lifted, the administration of the airline could have returned to its original owner, Fundação Ruben Berta, which still owed 87% of the shares of Varig. However, Fundação Ruben Berta preferred to keep a judicial administrator. In September 2006 "old" Varig sold its participation in PLUNA (49% of the shares) to the Uruguayan Government. On , Varig Brazilian Airlines ("old" Varig) was suspended from membership in Star Alliance for