Brazilian budget airline, Gol, is buying struggling Varig. The plan is for Varig and Gol to continue as separate companies with Varig keeping its Smiles frequent flyer program. The number of Varig planes will double. Gol will continue with its low-cost, low-fare business model with its single class of service in the Brazilian domestic market and South America. Gol has grown at an average annual rate of 75 percent since its launch in 2001.

In other news, Gol has entered into a baggage and ticketing agreement with Delta Air Lines allowing for faster and more convenient connections between the two airlines.