Today's edition of O Globo, the leading newspaper in Rio de Janeiro, has an article stating that Star Alliance carriers are offering status-matching comps to VARIG Smiles card holders. Towards the end of the article, O Globo reports: "The new VARIG has not yet decided which alliance it will join and states that the Star Alliance is being considered. Sources say that the outcome will depend on agreements with other airlines. If the new VARIG forms a partnership with LAN Chile, the company may join oneworld. If VARIG comes to an agreement with Air Canada, it will remain it in the Star Alliance." The background to this is that the new VARIG needs aircraft and funds to resume flying the routes it inherited from the old VARIG. It is negotiating with other airlines, but the situation is made difficult by Brazilian laws that limit foreign investment.