Wed, Jul 19, 2006
Faces Dissolution As Buyout Fails
Varig, Brazil's once stately
flagship carrier, faces dissolution Wednesday... after creditors
rejected an offer to buy the troubled airline for a half-billion
That decision Monday night led to a near-panic on the Brazilian
stock market Tuesday -- as Varig investors rushed to dump their
shares. The activity was so intense that the exchange suspended
Those shares will now be sold at auction... with the opening bid
50-percent lower than at the close on Monday.
The only buy-out offer was tendered by Variglog, which was once
the cargo wing of the troubled airline before it was sold off
earlier this year.
But what killed the deal? While the Associated Press reports
employees -- both current and retired -- favored the buyout... it
was opposed by aicraft leasing companies.
Varig was once the prince of the Brazilian skies, and the
country's biggest airline. Today... it has just 13 planes. Much of
the fleet is grounded... it's unable to pay for fuel and landing
fees... and those leasing companies now want their aircraft
Varig assets are set to go on the block Wednesday.
Also: Air Power Museum, ANN Could Use A Little Help From Its Friends, GE Honda, Mexican-Registry TBM 900, Legacy 500, BBJ Winglets, Wheels Up Order The new Falcon 5X is getting clo>[...]
But Engineers Say The 'Plane Pond' Is The Result Of Serendipity It didn't start out to look like an airplane, but engineers building a water retention pond near Boeing's North Char>[...]
JV Awarded Fuel System For GE9X Engine Powering The New Boeing 777X Woodward has announced a strategic 50/50 joint venture for fuel systems for GE's large commercial aircraft engin>[...]
Greater love hath no man than this, that a man lay down his life for his friends (John 15:13) As we go about our business enjoying a holiday weekend, let us not forget what this is>[...]
Inflow Notch A radar signature characterized by an indentation in the reflectivity pattern on the inflow side of the storm. The indentation often is V-shaped, but this term should >[...]