Brazilian Varig Airline employees are planning a demonstration at company headquarters in Rio de Janeiro, today, to show their disposition to continue supporting the firm.
The Varig workers (Trabalhadores do Grupo Varig) (TGV), representative, NV Participações, an investment group, must make a mandatory deposit of US$ 75 million today if the June 8 Varig auction is to remain valid.
At the June 8 auction, only one bid was made; by NV Participações. The bid was to pay a total of US$ 449 million for Varig Operations.
The US$ 75 million deposit should have been made at 11 am, Brazilian time, this Friday, May 23, but the deadline passed and no money was delivered.
Luiz Roberto Ayoub, the judge in charge of the Varig bankruptcy case didn’t take any action against TGV, however, and said that he would be flexible and wait that the money be presented until 4 pm today.
The director of the Department of Consumer Protection (DPDC), at the Ministry of Justice, Ricardo Morishita, reports that Varig, is not supposed to sell tickets for lines it is no longer operating. Morishita called the practice "unacceptable," and said it was "offensive to consumers."
"If a flight is cancelled the consumer has a right to fly on another airline. People have a right to be able to get home," he declared. As for the problem of mileage benefits, he said the problem was under examination.