Internal flights are quite expensive. The main options you have are TAM, Varig and Gol. Gol is supposed to be the new cheap airlines all over Brazil but the prices are not significantly lower than the others. There was an offer while still abroad to buy 4 flights for $900-1000USD approx, which seemed expensive and we didn't think we would use these many flights.
However if your stay here is limited to about a month like us, it is not always viable to catch the buses which can have a lot of traffic and can take more than 24hours from Sao Paulo to Salvador. The thing is Brazil is SO beautiful that you will want to see as much as you can, but unless money is free flowing or you have plently of time (like 5 months) then you will need to make some hard choices of what you see and what you don't see.
For example, the cost for flying from Rio to Manau and return is 700-800USD which is just 2 flights. So I recommend you take the 4 flight deal as it is real and not just some scam to get more business.
Due to this we had to cancel the idea of going to salvador and the Amazonas. A real shame as it was something we really wanted to do. However as our friends reminded us, perhaps this is not the time - there is always next time when we come to Brazil and who knows - maybe they can join us.
Instead we are off to Rio now to spend a week there. Wish us luck and safety!
Ciao for now!