Brazilian airline Gol to buy Varig

Brazilian low-cost airline Gol Linhas Aereas Inteligentes agreed to buy rival carrier Nova Varig for around $275 million. Brazilian budget airline Gol has said it is buying its struggling rival Varig for $275m. The deal will see Gol take on Varig's debt of about $45m, and get access to its routes to the US and Europe as well as valuable slots at Sao Paulo airport.
Once Latin America's largest flagship carrier, Varig almost collapsed under debt last year and was operating under bankruptcy protection.
Gol said the two airlines will be managed as independent companies. It will operate the acquired airline under its old Varig brand and offer differentiated services incorporating Gol's low-cost business model. Varig flights will drop first class seats and will operate only economy and business class.
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