Varig finally obtained its own air operating certificate in mid-December, but the changes that have already swept through Brazil's aviation sector will permanently relegate it to a reduced role.
TAM now controls 61% of Brazil's international market. Within Brazil, TAM enjoys a 52% market share, followed by Gol's 37%. Varig currently operates only four international and 13 domestic routes. Even with the 16 additional aircraft it is able to acquire because it now has its own operating certificate, Varig cannot recover its former dominance. Moreover, it faces deadlines to restore more dormant routes that could be reallocated to rivals if it fails to revive them.
Change has come remarkably fast. A year ago Varig and TAM were Brazil's only international carriers. Now there are five. In recent months TAM, Gol, BRA, and Oceanair have gained almost 100 domestic routes.
Source: Airline Business
