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.............................. Varig Brasil
Logo and Trademark..............................
Varig (Viação Aérea RIo Grandense) is an airline owned by Gol Transportes Aéreos based in Rio de Janeiro, Brazil. Until recently, it was Brazil's leading international airline. In 2005, the airline went into judicial reorganization (similar to bankruptcy protection) and in 2006 downsized substantially, making it the second largest airline in Brazil, combined with Gol. Varig was the first airline in Brazil, established on May 7, 1927 at the Porto Alegre Commercial Association meeting. It was there that Otto Ernst Meyer, a German immigrant, signed the certificate declaring Varig an airline company.
Varig's first plane was a nine-passenger Dornier Wal flying boat. Its first employee, the Hungarian Ruben Berta, later became the airline's President and led the airline through great expansion until his death in 1966. The airline started operations on 15 July 1927. Varig's first flight was from Porto Alegre to Rio Grande, stopping in Pelotas.
It originally operated local services in southern Brazil, but added its first international route to Montevideo on 5 August 1942. Transatlantic services were started in February 1965, when the military government decided to shutdown Panair do Brasil, the country's flag carrier up until then. The airline took over the giant REAL consortium in 1961, making it the largest airline in South America. It acquired a controlling interest in Cruzeiro do Sul in June 1975, which was fully integrated into Varig in January 1993.
Varig had shareholdings in Nordeste Linhas Aereas Regionais (99%), Rio Sul Serviços Aéreos Regionais (97%), and Pluna (49%). Its cargo subsidiary, VarigLog, was sold to the Volo Brasil consortium in January of 2006. Another subsidiary, VEM - Varig Engenharia e Manutenção, Varig's maintenance centre, was sold to a consortium presided by Portuguese airline TAP Portugal.
As of 2004, combined with its subsidiaries Rio-Sul and Nordeste, Varig carried approximately 13 million passengers annually and had over 11,000 full-time employees. As of December 31, 2004, Varig had total operating revenues of $3.4 billion, of which about $3.15 billion was from flight operations. As of May 2005, Varig's share of passengers flying into or out of Brazil was 43% for the South American market, 17% for the United States market, 35% for the European market, and 48% for the Asian market. Varig employs 3,985 staff. As of February 2007, Varig held 4.54% of the domestic Brazilian market, doubling its previous 2.2% share of August 2006, but still well below the 25.02% held in August 2005, and only 21.64% of the International market, compared to 76.06% one year before.
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