Viacao Aerea Rio-Grandense SA and Transportes Aereos Regionais SA, Brazil's No. 1 and No. 3 airlines, will take over several international flight routes previously served by rival Viacao Aerea Sao Paulo SA, Gazeta Mercantil newspaper reported.
The government said TAM, as the Sao Paulo-based airline is called, will be allowed to fly to Germany, Spain, Argentina and Uruguay, Gazeta reported. The carrier also gained rights to boost its frequency of flights to France and the U.S., the only two international destinations it was permitted to fly before.
Varig, as Brazil's largest airline is known, will be allowed to boost its frequency of flights to France, Germany, Spain, Italy, Canada and the U.S., where the company already flies, the daily said. The newspaper cited the country's civil aviation department as the source for the information on Varig and Tam.
The two airlines gained the slots previously assigned to debt- laden Vasp, which suspended its international flights in April to North America and Europe to cut costs.