Group Who Bought Bankrupt Brazil’s Varig Can’t Raise the Money to Pay for It

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NV Participações, an investment firm representing Varig employees, (TGV) admitted, yesterday, for the first time that they might not have  by Friday, the deadline, the mandatory deposit of US$ 75 million in order to officially take over operation of the Brazil’s troubled carrier, Varig.

Meanwhile, the president of the country’s civil aviation agency (Agência Nacional de Aviação Civil) (ANAC), Milton Zuanazzi, says that other domestic airlines, Gol and TAM, are willing to endorse Varig tickets when Varig passengers are unable to embark because of cancelled Varig flights.

He adds that other domestic carriers may be called on to also endorse Varig tickets.

"Everything is being done to keep Varig flying," says Zuanazzi, "until NV Participações makes the mandatory deposit and takes over operations, putting its own contingency plan in place.

"We have an emergency plan to ensure the company is able to continue operating which includes understandings with foreign carriers."

TGV’s coordinator, Márcio Marsillac, blamed the government and the judge’s delay in approving the employees offer for his difficulties in raising the money.

Talking to a group of Varig workers he said, "Nobody is 100% sure that the financial resources will be presented on Friday. If our negotiations don’t pan out then we will not have the money to make the necessary deposit."

The ANAC announced that Varig cancelled yesterday, June 21, 83 national flights with 3,018 passenger plus 39 international trips leaving 1,994 passengers stranded.

Meanwhile, Infraero, the company in charge of managing Brazilian airports informed that the total of cancelled flights were 180, being 154 of them domestic and 26 international. Both agencies belong to the federal government.

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