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.
Next Big Step Taken In Honda's Plans For The Business Aviation Market The HondaJet has received provisional type certification (PTC) from the FAA. This achievement indicates the FA>[...]
Klyde's Got Worries... Lots Of Them FMI: www.klydemorris.com>[...]
Even The Best Airshow Performers In The World Need Sponsorships, And Julie Clark Has Just Announced She Will Be Sponsored By Tempest And Electroair At Sun-N-Fun 2015 Julie Clark Ai>[...]
Also: AirVenture Update, Barnstorming Opines On Media Aero-Reporting, NTSB Update, ERAU Scholarships, Doolittle Raiders, Tecnam P2010 The loss of Germanwings Flight 9525 due to wha>[...]
“EAA AirVenture creates unmatched opportunities for people to see aircraft in one place that you cannot see anywhere else in the world. It’s only fitting that on the B->[...]