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
Indigo Airlines (American airline) approval and was granted a Certificate of Public Convenience and Necessity. In its initial operations the company distributed a request for proposal to several aerospace manufacturers for a new regional business jet to eventually replace its initial aircraft. The Brazilian Embraer Legacy was a customized business jet version of the Embraer regional airline aircraft. Indigo was the first U.S. certified commercial operator of the Legacy and launched service with the then new stage 4 aircraft in 2003 in a 16-seat all business-class service. Former senior American Airlines executive and American Eagle President Peter Pappas was hired as manager, during the