This program was reviewed and rated by our editors in October 2009. Changes in the program past this date are possible, especially program partner information. We recommend you subscribe to the #1 source of frequent flyer information, Inside Flyer Magazine, to get the most current information possible.

The last time we took a look at Varig three years ago, the airline was in the midst of an economic crisis and struggling to emerge from bankruptcy. VarigLog purchased the airline in 2006, and a year later the airline was purchased by Gold Linhas Aereas Inteligentes, the parent company of low-cost carrier GOL. Varig was suspended from the Star Alliance on Jan. 31, 2007 for failing to fulfill its membership requirements.

With GOL as the owner, the "new" Varig continued to operate under its own name until June 2009. Varig now operates flights for GOL and Smiles has been integrated into GOL. The Smiles program has 6.4 million members.

Members can earn miles on GOL, Varig, Air France, KLM or American Airlines. Generally, members earn one mile for each mile flown, with a 25 percent bonus for Flex fares and a 50 percent bonus in Free and Comfort fares. Short hops earn a minimum of 1,000 miles and promotional fares earn only 30 percent of miles flown. Not all classes are eligible for mileage accrual on partner airlines, but in general, members earn 100 percent in coach, 125 percent in business and 150 percent in first class when flying with partners.

In addition, Smiles boasts partnerships with 150 non-airline companies, including credit cards, car rentals, hotels, restaurants, retail stores and more.

Only flight awards are offered. Smiles flight awards are divided into two basic types: standard and "Any Day" awards. As you may have guessed, "Any Day" awards are free of blackout dates and capacity controls, but require twice as many miles.

Standard awards are more or less in line with the industry average. Within South America, awards are 10,000 miles in economy class one way (20,000 miles for Any Day awards ) and 15,000 miles one-way in Comfort (business) class (30,000 miles for Any Day awards). Roundtrip awards within South America range from around 6,000 miles to 10,500 miles one way. Stopovers are not allowed on award tickets. Varig and GOL only fly to destinations in South America and for flights to other countries, members will need to redeem miles on partner airlines. Members will need 70,000 miles to fly roundtrip between South America and Europe in economy class (105,000 in business) on partners.

Miles and money awards are offered on a limited-time basis. Sample fares include 10,000 miles and $99 to fly between Buenos Aires and Sao Paulo or 10,000 miles and $309 to fly between Bogota and Rio de Janeiro. Smiles frequently offers reduced mileage awards, such as a promotion that ended Oct. 31, 2009 that required only 6,000 miles for an award ticket instead of 10,000 miles for flights within South America.

Members will not find other travel-related awards, such as car rental, hotel or merchandise awards common to other programs. While members could redeem miles for upgrade awards with the old Smiles, upgrade awards are no longer available.

Since Varig exited the Star Alliance, its list of airline partners has decreased dramatically. Smiles members can earn miles when flying on Varig, GOL, American, Air France and KLM.

While its list of airline partners has shrunk in the past few years, Smiles boasts a large list of 42 hotel partners, including Golden Tulip Hotels (500 miles per stay); Grupo Posadas (250-500 miles per stay); Hilton (500 miles per stay or one mile per dollar spent); InterContinental (one to two miles per dollar spent or 500 miles per stay); Marriott (one to two miles per dollar spent) and Starwood (two miles per dollar spent), among others.

Car rental partners include Avis, Hertz, Movida and Sixt and generally give out between 250 and 500 miles per rental.

Smiles partners with a number of credit card partners in Brazil, Argentina and Uruguay that have point-earning programs with points that can be converted into Smiles miles. Rates vary, but tend to hover around one point per U.S. dollar spent, with each point convertible into one mile. American Express Membership Rewards members can convert points into miles at a 1:1 ratio.

Smiles also offers a host of other mileage-earning partners, from parking lots to educational courses and magazines such as Newsweek and Rolling Stone, online merchants, restaurants (primarily in Brazil), telecommunications, scuba diving lessons and other recreational partners and currency exchange.

Varig Smiles offers a three-tiered elite program: Silver, Gold and Diamond. Members who earn 20,000 flight miles or 25 segments with GOL or Varig during 12 consecutive months are entitled to Silver status. They may expect a 25-percent earning bonus, a one-time 5,000-mile threshold bonus after reaching the Silver level, an additional 3,000-mile bonus upon each renewal and 10 kg of excess baggage allowance for flights on GOL and Varig.

Members who fly 50,000 miles or 60 segments with GOL or Varig get Gold status. Gold members earn 50-percent bonus miles, a one-time 7,500-mile threshold bonus (5,000 miles upon renewal), 20 kg of extra baggage allowance on GOL or Varig, business class check-in, access to the VIP lounge when flying with GOL or Varig regardless of your travel class and access to an exclusive service center.

Road warriors who rack up 100,000 flight miles or 100 segments in a year with GOL or Varig earn Diamond status. Diamond members receive all the benefits of Gold plus a full 100-percent earning bonus and a one-time 10,000-mile threshold bonus (7,000 miles upon renewal).

Smiles miles are valid for three full years, and will expire in the same month as the member's enrollment in the Smiles program. Award tickets are valid for one year from the issue date. Missing miles can be requested up to six months from the flight date or partner transaction and members must send in a copy of the ticket and the original boarding pass for flight credit. Miles may not be transferred or combined but awards may be issued to anyone. A below-industry-average $25 administrative fee will be charged for changes to the flight date, flight or routing of an award ticket.

Our own experience with Smiles is limited. We have spoken with customer service representatives in Brazil who were efficient and friendly, but at times there was a lot of background noise in the service center that made it difficult to hear. The service center is open 24 hours a day and you can also email inquiries to Smiles.

Varig's English-language Web site needs some work. When we clicked links to flight awards, we were told that they were unavailable but the Portuguese-language pages had award charts and award information. Some topics were in Portuguese, making navigation through the English site difficult. Awards can be booked online, which is a plus, but missing miles must be requested through the mail. Members can register for Smiles, update their profile and view their account balance online.

While most FFPs in the U.S. have eliminated 500-mile minimums, Smiles offers 1,000 minimum miles on short flights. The program offers a wide variety of mileage-earning opportunities across the board. The elite-level program offers threshold bonuses and a solid number of legitimately valuable perks.

When Varig left the Star Alliance members lost valuable airline partnerships and a broad international network of earning and redeeming opportunities. Flight award levels are acceptable, but it would be good to see Smiles offer a greater variety of awards considering its many non-airline partnerships. Members are unable to redeem miles for upgrades.

In Brazil:
Caixa Postal 18039
CEP 04626-970
Sao Paulo - SP
Brazil
Phone: 4003-7001
Fax: 0XX11 2164-2005
Email: smiles@varig.com

In the U.S.:
BUSINESS SUPPORT CENTER
14411 Commerce Way, Suite 200
Miami Lakes, Fla. 33016-1596
Phone: (800) 468-2744
Fax: (785) 522-2407
Email: smiles.usa@varig.com