Varig Back On The Ropes | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne 09.19.14 ** HD iPad-Friendly -- Airborne 09.19.14 **
** Airborne 09.17.14 ** HD iPad-Friendly -- Airborne 09.17.14 **
** Airborne 09.15.14 ** HD iPad-Friendly -- Airborne 09.15.14 **

Wed, Jul 19, 2006

Varig Back On The Ropes

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 dollars.

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 trading.

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 back.

Varig assets are set to go on the block Wednesday.

FMI: www.varig.com

Advertisement

More News

Aero-News: Quote Of The Day (09.21.14)

"The RCAF took the initiative to remove these functional, perfectly good parts and use them effectively. It was a sound decision, helping to ensure the long-term viability of the a>[...]

Enhanced F-35 Logistics Systems Delivered To Flight Test Locations

Integrates Preventative Maintenance, Flight Scheduling, And Mission Planning The 'next evolution' of the F-35 Lightning II's information technology backbone called the Autonomic Lo>[...]

Airbus Forecasts Strong Demand For Air Travel In The Middle East

Delivers First A380 To Qatar Airways Saying Airplane Is 'Ideal' For The Region Airbus has delivered Qatar Airways' first A380, and has used the occasion to tout the airplane as pla>[...]

NBAA Names 2014 Humanitarian Award Recipients

International Jet Aviation, Make-A-Wish Foundation, To Be Honored In Orlando The NBAA is pleased to announce that International Jet Aviation Services of Centennial, CO and the Make>[...]

NASA Seeks America's 'Best And Brightest' For Research Fellowships

Applications Period Open For Space Technology Grants NASA is seeking applications from U.S. graduate students for the agency's Space Technology Research Fellowships. The research g>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC