Brazilian airlines, Varig and TAM, announced today that they are to merge later this year.
In a joint statement, the carriers said the new company would be formed over the next six months but did not disclose further details, apart from saying that the two
If the deal is approved, the two would control a major share of Brazil`s domestic traffic. Varig, based in Rio de Janeiro, is not only the country`s principal air carrier but its oldest. It celebrated its 75th birthday last year. The carrier flies both international and domestic services and employs over 16,000 people.
Sao Paulo-based TAM is a smaller airline, operating regional and domestic flights. It has a workforce of around 5,500.