With Pluna, Uruguay's flag carrier, on the verge of bankruptcy, Spain's Iberia is being discussed as a candidate to take over Varig's 49% stake and management rights in Pluna. Uruguay's new government, which is taking a more active role in the carrier than the previous regime, has suggested that it may not renew Varig's contract when it expires at the end of June, claiming that Varig has ignored Pluna because it is preoccupied with its own economic woes. Government officials are considering Iberia to replace Varig.

Source: Airline Business