• Categories
  • Archives

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

Tags:

  • Show Comments (1)

  • Guest

    Observer
    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Your email address will not be published.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 *

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

Ads

You May Also Like

Brazil’s E-Commerce Jumps 27%. US$ 2.5 Billion Sold in First Half

Brazil's electronic commerce grew 27% in the first half, compared with the same period ...

Mercedes-Benz Invests Close to US$ 1 Billion in Brazil

Bus body maker Mercedes-Benz is going to invest 1.5 billion Brazilian reais (US$ 928.9 ...

Brazilian Milton Nascimento Releases U.S. Album

American record company Savoy Jazz has just announced the signing of Brazil’s singer-composer Milton ...

Brazil’s Intelligence Leadership Suspended After Spying on Chief Justice

President Luiz Inácio Lula da Silva of Brazil suspended on Monday, September 1st, the ...

US Equity Investor Buys Brazilian Restaurant Chain Frango Assado

Brazil's Frango Assado, the leading operator of highway restaurants in Brazil, has been bought ...

Safety in Rio: Don’t Trust the Statistics

Rio de Janeiro is a big city with a big crime problem. How bad ...

Brazil Decides to Become a Shipbuilding Power

Tuesday, February 7, witnessed the first step towards the concretization of the Technological Improvement ...

Brazil’s Ex-Chief of Staff Uses Delay Tactics to Slow Expulsion from Congress

Next Wednesday, November 30, Brazil’s Federal Supreme Court (STF) Justice Sepúlveda Pertence is expected ...

Furniture Show Brings Europe and US to Brazil

The International Machinery, Raw Materials and Accessories Trade Show for the Furniture Industry – ...