Varig Buyers Can’t Produce Deposit Money on Time. They Get New Deadline.

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.

Unacceptable Practice

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.



  • 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Your email address will not be published.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.


You May Also Like

Brazil’s Eco Prize Has New Category: Sustainable Business Management

Companies interested in competing for the Eco Prize 2005 have until today to register. ...

Fears Over New US Fed Chief Shake Brazil’s Stock Market

Brazilian stocks sank into the red Monday, February 13, as investors anxiously awaited the ...

Brazil Says Child Sex Is Serious Matter. Crime Involves Authorities and Elites.

Sexual exploitation of children continues to be a serious problem in Brazil, "reaching worrisome ...

Brazil Looks for Ways to Help Tobacco Farmers

Nearly 95% of the proposals contained in the World Health Organization’s Framework Convention on ...

Brazil Solidary with Earthquake Victims

The Brazilian government has sent a message of condolences and solidarity for the victims ...

Rousseff: Brazil Finally Gets a President With No Self-mythicizing Agenda

The first four months of any new president will give some indication of the ...

The US Treacherous Roads for Illegal Brazilian Immigrants

Pedro Lima, a house painter from Brazil who has been in the United States ...

Dengue and TB: A Two-Front Battle in Brazil

Brazil government’s actions to control dengue resulted in a 73.3% reduction in the incidence ...

Brazil’s Most Thorough Heart Study Ever Warns: Country Needs Prevention

The biggest ever study of heart problems in Brazil, which has been two years ...