If Varig Goes Belly Up Too Bad, Life Goes On, Says Brazilian Government

Brazil’s embattled airline Varig announced a restructuring of domestic and international routes in a last ditch effort to explain the massive canceling of flights that caused chaos in Brazilian air terminals.

In a short release Wednesday morning, June 21, Varig said the flights’ suspensions were "temporary" and respond to a restructuring of its network.

"Varig restructured its network giving priority to those routes with greater passenger demand and profitability", said the first official release in a week. Over 50 of a total 180 daily flights have been cancelled.

The temporary suspensions include flights to Milan, Munich, Madrid, Paris, New York, Miami, Los Angeles, Mexico City, Montevideo, Asuncion and Bogotá.

However flights which will continue to operate are: Frankfurt (twice daily); London (daily); Miami (daily); Buenos Aires (four daily); Lima (one daily); Santa Cruz de la Sierra (one daily); Santiago and Caracas (daily).

The announcement comes a day after a bankruptcy judge agreed to sell the airline to a consortium of Varig workers and two foreign investors. This saved Varig from immediate liquidation, but the consortium must now find US$ 75 million by Friday. The judge has warned that without this first payment the buyout will fail.

NV Participações, which represents Varig workers and two not-disclosed foreign investors, has agreed to pay US$ 449 million for the struggling airline.

Meanwhile the Brazilian government took distance from the company’s agony, "If Varig goes down, too bad. People live and die, so happens with companies. But if it’s possible to save her, we will", said Brazilian Defense minister Waldir Pires.

The minister said president Lula da Silva is following closely Varig’s sale negotiations and praised the judicial ruling.

"I think the judge did the right thing. The truth is that if liquidation can be avoided, it must be so," said Pires who added the government’s willingness to help but "in the framework of the law".

Brazil’s national airport authority has said it will begin demanding that Varig pays its airport fees every day, in cash. The news came as the country’s civil aviation authorities met other airlines to divide up Varig’s routes should it cease to fly.

Varig currently controls 16.7% of Brazil’s domestic market, but has a 66% share of the country’s international air traffic.

Mercopress – www.mercopress.com

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

56% of College Students in Brazil Are Women. Bad Sign, Says Expert.

Over the course of 13 years, in Brazil, the number of women enrolled in ...

Trade Between Brazil and Arabs Tops US$ 10 Billion

Trade between Brazil and the Arab countries grew 28.3% last year and reached US$ ...

Last Palestinian Refugee Group Resettled in Brazil

The last group of a total of close to 100 Palestinian refugees who lived ...

Brazilian Ceramic Tile Factory with Subsidiaries in the US Exports to 80 Countries

Eliane S/A, a Brazilian ceramic tile factory, exported the equivalent to US$ 78 million ...

Brazil’s Legend Ary

Ary Barroso was the dominant figure of Brazil’s "Radio Era" (the decades of the ...

Brazil’s Varig Gets to Fly to Paris Again

Brazilian Varig Airline, the bankrupt company which has become a subsidiary of Gol after ...

Brazil Exports to Arabs Up 62%

The Brazilian foreign trade figures with the 22 Arab countries have already exceeded, from ...

Brazil Wants to Be the OPEC of the Future. But It Has to Invest in Research.

Brazil may become the great generator of energy in a not very distant future. ...

A biodiesel factory in Brazil

A Whole Lot Going on in Africa Courtesy of Brazil

Last December Morocco became the first Arab country in North Africa to establish a ...

Jovino’s Alchemy

Last December, when Brazzil interviewed composer, flautist, and keyboardist Jovino Santos Neto, he spoke ...