Brazil - Brazzil Mag - Brazil's Varig at the End of Its Rope. It Might Stop Flying Any Minute Now.
Advertisement
  Home arrow Back Issues arrow 2004 arrow October 2004 arrow Brazil's Varig at the End of Its Rope. It Might Stop Flying Any Minute Now. Monday, 30 November 2009 
Main Menu
Home
News
Back Issues
Advertising
Contact Us
Brazil Forum
Magazine
Brazzil Classic
Yellow Pages
Classifieds
Images
BrazzilMag Newsfeed
Custom Search
Amazon Body Care
-------------
Brazil /Organic personal skin care wholesale / Brazil
--------------
Who's Online
We have 97 guests online
Latest News
Statistics
Members: 494
News: 11488
Web Links: 0
User Menu
Your Details
Submit News
Check-In My Items
My Comments
Login Form





Lost Password?
No account yet? Register
Most Read
Related Items
Contribution
Have you got news?

Do you have news, comment or story on Brazil you want to share with Brazzil? Just send it our way to brazzil@brazzil.com.

 
The Latest from Brazzil Magazine
Home
Brazil's Varig at the End of Its Rope. It Might Stop Flying Any Minute Now. PDF Print E-mail
Written by Newsroom   
Thursday, 06 April 2006

Varig Brazilian Airlines on its last legThe president of Brazil's debt-burdened flagship airline Varig acknowledged Wednesday, April 5, that his company was running short on cash, but said there was no risk its money woes would soon force it out of the skies.

Marcelo Bottini said Viação Aérea Rio-Grandense SA, or Varig would not be grounded in the near term, despite juggling more than US$2 billion in debt and facing federal demands for payments.

Bottini's comments came in response to reports in the financial daily Valor and O Globo newspaper that the airline's financial problems would force it to suspend its flights as early as today, for failing to pay maintenance and airport bills on time, breaking agreements made earlier this year.

Bottini said he had asked to meet with President Luiz Inácio Lula da Silva to discuss plans to rescue the ailing company, which already is operating under bankruptcy protection.

He also said he was seeking a line of credit to cover airport fees and fuel costs, to help the airline through Brazil's off-season.

Varig owes the federal airport administration some US$ 54 million and spends about US$ 422,000 to cover its airport fee each day.

Creditors appeared to reject an offer from Volo do Brasil, which purchased the airline's former cargo subsidiary VarigLog in January for US$ 46 million.

Volo do Brasil had offered to buy Varig for US$ 350 million, without taking responsibility for any of the company's debts. Under the proposed deal, Volo do Brasil was expected to lay off about half of the airline's 10,000 employees.

Mercopress

Hits: 8017
Comments (3)Add Comment
Varig\'s Debt Problem
written by Guest, April 07, 2006
What is Varig's problem - bad management, too many routes, too many aircraft?

Try getting a seat on a Varig flight from Europe at short notice at any time of year and you'll find it's impossible. Why don't they concentrate on improving the level of service they offer on routes where there is strong demand instead of trying to be a global airline?
report abuse
vote down
vote up
Votes: +0
Why Varig Sucks
written by Guest, April 09, 2006
Varig is burdened with the same problems as United or American - it is structured to operate within a 100% regulated business environment. It has too many workers, legacy systems, union contracts and outdated infrastructure. This means it has to charge higher prices than its competition to make a profit. Compounding its problems is the fact VARIG is losing market share to its more nimble competitors, TAM and GOL. So that means it has to reduce the number of flights -- but it still has to pay for the idle planes it bought on credit from Boeing and AirBus. All in all, VARIG should disappear like VASP and TransBrasil. A new, more efficient and modern company will appear to fill the void in the market.
report abuse
vote down
vote up
Votes: +0
GET STUCK
written by Guest, July 06, 2006
I am get stuck in the Los Angeles ). I am supposed to fly to Porto Alegre today, Varig has cancelled all the flights. I was told by the Varig staff that I could be arranged to get on the UNITED AIRLINES 2 days later ( from Los Angeles to Chicago, from Chicago to Sao Paulo ), it spends 6 more hours than the direct flight from Los Angeles to Sao Paulo, and the domestic transit from SAO PAULO to PORTO ALEGRE is not yet confirmed ! That means theres no BRAZIL domestic airlines has promised to take care the mess of VARIGS CHAOS.My gosh, should I had to stay 12 hours or one day in the Sao Paulos airport ??? Who Knows !!! And the return flight schedules are also
impossible to be confirmed.
I am totally screw up by VARIGS f**k UP situation. My trip is destructed as many thousands of VARIGS passengers all over the world. The VARIG FINANCIAL CRISIS DRAMA IS RIDICULOUS.OBVIOUSLY, THEY KNOW THEIR PROBLEMS, THEY SHOULD HAVE STOPPED SELLING AIR-TICKETS A MONTH AGO, ITS A DEFINITE FRAUDULENCE. I WILL NOT TOLERATE IT AND LET MYSELF BECOME A SILENT VICTIM.I HAVE ALREADY WASTED TIME AND SACRIFICED MY VACATION WITH NO COMPENSATION.
I WILL CANCEL THE TRIPAND I WILL FIGHT HARD TO ASK FOR MY TOTAL FARE REFUND.
ASHAME ON BRAZIL!!!
report abuse
vote down
vote up
Votes: +0

Write comment
quote
bold
italicize
underline
strike
url
image
quote
quote
smile
wink
laugh
grin
angry
sad
shocked
cool
tongue
kiss
cry
smaller | bigger

security code
Write the displayed characters


busy




Reddit!Del.icio.us!Facebook!Slashdot!Netscape!Technorati!StumbleUpon!Newsvine!Furl!Yahoo!Ma.gnolia!Add this social bookmarking functionality to your website! title=
 
< Prev   Next >
Brazzil Magazine on Twitter


Visit Brazzil Social with Video, Music and Chat


Home
Brazzil Magazine - Since 1989 trying to understand Brazil
  • Iranian Leader's Visit to Brazil Takes the Gloss off Lula's International Image


    Ahmadinejad meets LulaThe only good thing to say about the visit to Brazil of Iran's president, Mahmoud Ahmadinejad, on Monday November 23, is that it was mercifully short and lasted less than 24 hours. Ahmadinejad had his picture taken being hugged by president Luiz Inácio Lula da Silva who gave him a warm welcome and said Iran had every right to develop nuclear energy for peaceful purposes.

  • Poor Women from Northeast Brazil Learn Joy of Meeting and Helping Each Other


    Joined hands The small, coastal town of Condé is located just a twenty minute's drive from João Pessoa, the capital of Paraíba. The Northeast of Brazil has historically been a place of encounter and mixing between peoples. For millenia groups of indigenous people fished, farmed, migrated and sometimes fought along this large, fertile area.

  • Ahmadinejad's Visit: Iran, Honduras and Brazil's Hypocrisy in Dealing With Them


    Ahmadinejad and Lula The Brazilian diplo-MÁ-cia (bad diplomacy) carries on its accelerated course towards the non-acknowledgment of human rights, although sometimes it takes pleasure in saying that it does precisely the opposite. The visit of Iran's president, Mahmoud Ahmadinejad, is another example of a diplomatic omission that verges on hypocrisy.

  • Lula Is About to Fulfill His Wish of Getting His Good Friend Chavez in Mercosur


    Lula and Chavez On July 4, 2006, representatives of Argentina, Brazil, Paraguay and Uruguay met in Caracas to sign the protocol for the entrance of Venezuela into the Southern Common Market (Mercosur). After two and a half years, the protocol was approved by the legislative bodies of Argentina and Uruguay, and as of now it may be only days away from being ratified by the continent's economic megalith, Brazil.

  • Denying Education is the Other AIDS. And Brazil Is Guilty of Inflicting It


    Children from a Diadema band Some sectors of the fight against AIDS have suggested that Thabo Mbeki, the former president of South Africa, committed genocide through his absence from the fight against the illness in his country throughout his two terms.

  • Child Labor Went Down in Brazil, But 5 Million Underage Workers Are Still Way Too Many


    Child labor in Brazil One hundred and eleven years after Brazil abolished slavery, the number of workers deprived of their freedom is still huge. They raise cattle, produce charcoal, sugar cane or timber. Some of them, most undocumented Bolivians, work in basements of small apparel factories in São Paulo and other metropolis.

  • Some Humility Would Do Lula Good. On Human Rights Brazil Has Long Way to Go


    A prison in Rio de Janeiro, Brazil On November 7, 2009 a few friends and I had an opportunity to take a look inside a Brazilian jail outside the city of Rio de Janeiro. We were able to take some amateur footage of our experience on video (see link below). It's no surprise, of course, that the typical Brazilian jail lacks some of the functionality of those in North America or Europe, but our experience that day was quite shocking.

  • Brazil's Amazon Rainforest Policy Is a One-Way Road to Disaster


    Trasamazonian road in BrazilDepletion of the Amazon Rainforest is not a new concern facing environmentalists, biologists, ecologists, and a growing number of the Amazonian indigenous peoples. For decades they have feared for the fate of the world's most biologically diverse and species-rich hothouse.

  • Geisy, Brazil's Miniskirt Student, Should Try US College Next Year


    Geisy Arruda from BrazilGeisy Arruda made history this week in Brazil, but for all the wrong reasons. What began as a poorly planned fashion statement has become a worldwide tale. Geisy decided to wear a pink mini-dress to her private college in São Paulo state, and after that, all hell broke loose.

  • Vigilante Groups in Brazil Trump Drug Gangs and Become Rio's New Authority


    Brazilian favela in Rio The push of vigilante groups in Rio de Janeiro's favelas (shantytowns) in the last three years is the most important and alarming information of the just-released study by the Rio de Janeiro University's Violence Research Center (Nupev-Uerj).