H Azmal 0 Report post Posted June 21, 2006 From the BBC: http://news.bbc.co.uk/2/hi/business/5101002.stm The embattled Brazilian airline Varig has been forced to cancel 67 of its 180 daily flights amid mounting fears of financial collapse. The move came just 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 $75m (£40m) by Friday. The judge has warned that without this first payment the buyout will fail. The NV Participacoes, which represents Varig workers and two foreign investors, has agreed to pay $449m for the struggling airline. Reports in the Brazilian media say it is appealing to Brazil's National Development Bank for a loan to cover the first deposit required for the sale. 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. Increased competition Varig has been under bankruptcy protection for a year. It was the top airline in Brazil until 2004, but was then overtaken by TAM and later by Gol. The airline has suffered years of financial problems because of rising costs and growing low-cost competition. It now has just 16.7% of the domestic market, but remains the leading Brazilian carrier internationally, with a 66.4% share. Share this post Link to post Share on other sites
Tamizi Hj Tamby 1 Report post Posted June 21, 2006 Wahh..so sad to hear Varig in trouble now... Share this post Link to post Share on other sites
Seth K 3 Report post Posted June 21, 2006 Brazil's national airport authority has said it will begin demanding that Varig pays its airport fees every day, in cash. Wanna cash only??? Share this post Link to post Share on other sites
Kee Hooi Yen 0 Report post Posted June 22, 2006 Credit cards are not accepted Share this post Link to post Share on other sites
Pieter C. 5 Report post Posted June 30, 2006 Baaaahhhhh, was glad Ijust flew them in time, last Dec14th, between CDG-AMS on the MD11 (might be re-possessed by now) Off-topic: KLM has suspended their interline agreement with Varig as per 29jun06 ... Share this post Link to post Share on other sites
S V Choong 4 Report post Posted June 30, 2006 So is Varig completely 'finished'? Share this post Link to post Share on other sites
Pieter C. 5 Report post Posted June 30, 2006 Think so...apparently, they only fly to 1 US destination now: MIA...most of their ICA-fleet now grounded and lot's of domestic flights also being cancelled... Will have to wait and see if VarigLOG will be successful in 'resurrecting' the airline Share this post Link to post Share on other sites
Andrew Yong 0 Report post Posted July 2, 2006 What ,VARIG in trouble?? so sad, once a time was the famous airline in nouth America !!!! Share this post Link to post Share on other sites
Tamizi Hj Tamby 1 Report post Posted July 2, 2006 What ,VARIG in trouble?? so sad, once a time was the famous airline in nouth America !!!! Andrew,Varig is the South American carrier....Too bad to hear that Varig will gonna be end up just like Sabena and Swissair... Share this post Link to post Share on other sites
Pieter C. 5 Report post Posted July 2, 2006 Some VARIG memories: Share this post Link to post Share on other sites
Tamizi Hj Tamby 1 Report post Posted July 2, 2006 Thanks for sharing the memories,Uncle Pieter Share this post Link to post Share on other sites
Andrew Yong 0 Report post Posted July 7, 2006 Andrew,Varig is the South American carrier....Too bad to hear that Varig will gonna be end up just like Sabena and Swissair... Tamizi I miss the direction already Ha..... Share this post Link to post Share on other sites
Tamizi Hj Tamby 1 Report post Posted July 7, 2006 Tamizi I miss the direction already Ha..... It's ok... Share this post Link to post Share on other sites
