Varig staff are facing the prospect of major job losses

Volo de Brasil, the investment group that bought the airline for $24m (�13m) at auction on Thursday, said it needed time to bring more planes into service.

It said it would start to resume flights to Varig's 11 international and 12 domestic routes after 28 July.

Volo was the sole bidder for Varig, which was under bankruptcy protection.

It already controls Varig's cargo business, VarigLog, and is expected to split the business but keep most of the routes and planes.

An earlier sale to an employee group collapsed because the consortium missed a payment deadline.

Volo will not inherit Varig's debt of about $3.1bn - but will have to commit to a series of payments.

'Reborn'

Once Latin America's largest flag carrier, its perilous financial situation has forced it to cancel hundreds of flights and suspend services to 10 cities, including New York and Paris.

One of Brazil's best-known companies, Varig has lost market share to rivals Tam and Gol who have a lower cost base and cheaper fares.

The 79-year-old airline has been subject to bankruptcy protection for more than a year.

But Varig's chief executive officer, Marcelo Bottini, said: "We have shown all the doubters that Varig has a future. Today, a new Varig is reborn."

Volo could axe about four-fifths of Varig's staff, according to documents lodged with auction officials, trimming the workforce from 10,000 to 2,000.