GE Engines Forms Varig JV By Ron Wilbur, Managing Editor FARNBOROUGH, England - GE Engine Services announced today it purchased the Varig engine overhaul facility creating a new joint company called GE Varig Engine Services located in Rio de Janeiro. GE Engine Services through its GE-Calma subsidiary in Brazil will own 95 percent of the joint venture and Varig will retain a 5 percent ownership. The Varig Engine Shop was established in the 1980s to service both Varigšs maintenance needs and third party service. The new GE Varig Engine Services will maintain and overhaul primarily CFM56-3, CF6-50 and CF6-80C2 engines. Varig president Fernando Pinto says the carrier needs to focus solely on its core passenger business now. The new company will allow GE to expand its South American commercial business while also servicing military engines for Brazilšs government. Varig signed a separate agreement with GE for the maintenance of its engines. Varig says its aircraft have been powered by GE engines since 1974. The sale is expected to be finalized at the end of the month.