Brazil Varig’s Situation Much Worse Than Expected, Says Expert

Professor Ricardo Teixeira, a Brazilian expert in business administration at the Fundação Getúlio Vargas, says that based on statements by Varig Airline employees he believes the present situation in the company is "much worse than it seemed to be in the past."

Teixeira says things have reached the point where passengers are afraid to buy Varig tickets even though many flights are leaving on schedule.

As for the future of Varig, Teixeira points out various scenarios: if the investment group, NV Participações, manages to make the mandatory deposit of US$ 75 million today that means that the June 8 auction will be valid and Varig workers (represented by NV Participações) will take over.

"If the mandatory deposit is not made a new auction may be necessary. The big problem with these auctions is transparency. Especially the rules regarding company liabilities [Varig has debts totaling over US$ 3 billion]."

Another possibility is for the Brazilian government, through its state-run fuel distributor and airport administrators, to continue to be generous with Varig, allowing the debt-ridden firm to continue to operate.

Teixeira emphasizes that the Varig trademark is one of the company’s most valuable assets but that something must be done rapidly to protect it. "If it is not preserved quickly, it may lose its value."

Agência Brasil


  • Show Comments (1)

  • Guest

    The value of the trademark is already gone. What a bunch of buffons trying to operate an international airline!!!. The shares are worthless. penny stock….

Your email address will not be published.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

comment *

  • name *

  • email *

  • website *


You May Also Like

Florida Professor Accused of Using Brazilians as Guinea Pigs

There are reports that the inhabitants of a riverside village, São Raimundo do Pirativa, ...

From 18 Congressmen to Be Sacked in Brazil, 7 Are from Ruling PT

The Post Office and Vote Buying Congressional Inquiries (CPIs), in Brazil, approved a joint ...

Thanks to China Sugar Exports from Brazil Grow 128%

Brazilian mills had revenues of US$ 825 million with exports of sugar in bulk ...

Reforestation Is a Growth Business in Brazil: 19% More in 2005

Brazil is presently in seventh place in the world ranking of planted forests area. ...

It’s Brazilian Hélio’s day! A Cinderella Story at the Indy 500

On a day that could never have been imagined the very foundation of Brazilian ...

World Slowdown Puts a Freeze on Rio Tinto’s Iron Ore Expansion in Brazil

The collapse of commodity prices and demand has led giant Australian-UK minerals corporation Rio ...

In the Black, Brazil’s Agribusiness Fears World’s Neoprotectionism

Brazil's International Relations secretary at the ministry of Agriculture, Livestock and Supply, Célio Porto, ...

Brazilian Ballet Shoe Maker Dancing on Foreign Floors

Capezio, a traditional Brazilian maker of ballet shoes, shoes, gym and dance clothes and ...

Two Consecutive Quarters of Shrinking Don’t Discourage Brazil Minister’s Rosy Forecast

Brazil has fallen into recession, further weakening President Dilma Rousseff, just weeks before voting ...