On March 28, Brazilian airline Gol confirmed the acquisition of Nova Varig for a total of US$320 million.

Of that amount, US$98 million will be paid in cash, while US$177 million will be funded by the transfer of 6.1 million Gol shares. The company will also take the responsibility over debentures issued by Nova Varig, which amount to the remaining US$45 million.

After the acquisition, Gol is expected to transport over 20 million passengers per year. The airline said in a statement that it will be ready to take over the lead position in the Brazilian domestic market by the end of this year.

Gol currently holds a 40-percent share of the domestic market led by airline TAM with 47 percent.

Nova Varig's new owners plan to keep the acquired company's market profile, which does not match Gol - a pioneer in low-fare airlines in Brazil. According to the statement, the companies will operate independently.

As Gol only operates limited international flights, analysts said the acquisition could represent an expansion of the company's portfolio of international services.

Nova Varig accounted for 11.8 percent of all international flights operated by Brazilian airlines in February, according to official figures.