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: Blue Origin, Flying Cucumber?, BBJ Combi, NetJets Partners w/Ohio State, ExIm Helo Deal, Long-Range Navy UAS Obviously, the stunt pulled by Douglas Hughes of Ruskin, Florida >[...]
ANN, Aero-TV, Airborne Unlimited Return to Lakeland E-I-C Note: There really does seem to be a whole new generation at Lakeland, these days... we're not only looking forward to cov>[...]
“It’s great to see the strong and growing endorsement for the versatile A330 Family. This reflects the market’s continuing appetite for the A330’s winning c>[...]
Senator John McCain (R-AZ) One Of The Plan's Strongest Proponents Some Congressional leaders say the Pentagon is taking too cautious an approach in developing unmanned aircraft tec>[...]
Iris Cummings Critchell, Fitz Fulton, Bob Gilliland, And Burt Rutan To Be Honored The Santa Monica based Museum of Flying will host the induction into the California Aviation Hall >[...]