TBCITDG From Australia, joined Jan 2004, 921 posts, RR: 4 Posted (5 years 10 months 1 week 4 days 23 hours ago) and read 460 times:
Reports from Brasilia indicate that both Varig and TAM have asked the Brasilian authorities for a delay of up to 2 years before they merge. Their argument is that the current code share agreements that both airlines share with one another, has benifeted both of them by reducing costs where they once competed head to head. This argument was backed up by the profits that both airlines had in 2003.
They recomend that the "union" is currently not a viable option at the moment due to the large amount of debts that would be brought in by both carriers if they where to merge.
FMAL From Brazil, joined Jan 2004, 486 posts, RR: 1 Reply 2, posted (5 years 10 months 1 week 4 days 12 hours ago) and read 372 times:
This came as no surprise to the aviation community in Brazil. Everybody knew that a merger at this time was almost impossible.
Both companies are entirely different, and Varig's employees have no love for TAM and vice versa, so a merger now would be very difficult.
If they really still think about it, they will have to work on the relationship between the two companies and their employees, because right now, they mostly dislike each other.
EddieDude From Mexico, joined Nov 2003, 4990 posts, RR: 50 Reply 3, posted (5 years 10 months 1 week 4 days 11 hours ago) and read 365 times:
Besides, JJ is unwilling to absorb the huge debt of RG, while RG shareholders are unwilling to end up with around 5% of the merged company. The new plans, however, will have the same effect of a merger of domestic operations vis-à-vis consumers because a 50-50 owned joint venture company would be in charge of selling tickets for both airlines and prices would be the same for the same routes (in addition to the codesharing program expanding even further).
NIKV69 From United States, joined Jan 2004, 8482 posts, RR: 56 Reply 4, posted (5 years 10 months 1 week 4 days 7 hours ago) and read 308 times:
I have heard a lot about Varig looking down on TAM, well TAM is not a great airline and I believe Varig should merge with them. I hope this get done ASAP. I would never fly TAM but I love Varig!!
EddieDude From Mexico, joined Nov 2003, 4990 posts, RR: 50 Reply 5, posted (5 years 10 months 1 week 4 days 6 hours ago) and read 298 times:
I have never been on an RG flight, only on JJ flights, but JJ is very good. Their fleet is very young and the aircraft are very clean and in good shape; on board service is not spectacular but is pretty good. Brazilians who fly abroad and domestically on a constant basis repeatedly say that JJ is better in terms of quality; some blame RG's on board service (flight attendants) as the reason why people prefer other airlines.
In any case, there will be no merger in the short or medium term. The new structure of their partnership will allow them to retain their individual brands, fleet and identity while sharing most everything else, slashing costs in the process. For one, I would like to see CADE (Brazil's antitrust regulator) authorize this scheme and the two airlines prosper.
NIKV69 From United States, joined Jan 2004, 8482 posts, RR: 56 Reply 6, posted (5 years 10 months 1 week 4 days 6 hours ago) and read 292 times:
I don't see why Varig's FA get such a bad rap, every flight I have been on the FAs have been professional and pleasant. In fact when I was lucky enough to fly first class on a flight from Natal to SP last year the FA was great!
TBCITDG From Australia, joined Jan 2004, 921 posts, RR: 4 Reply 7, posted (5 years 10 months 1 week 4 days 3 hours ago) and read 254 times:
As with you NIKV69 I flew with Varig to FRA not too long ago and I thought that the service was quite good.
Regarding the topic: Of course they would hold out on the merger. Especially nopw that they are both making $$. I doubt that if things continue to pick up in Latin America, that the merger will ever take place!!
EddieDude From Mexico, joined Nov 2003, 4990 posts, RR: 50 Reply 9, posted (5 years 10 months 1 week 4 days 3 hours ago) and read 236 times:
The filing that the companies made with CADE stating that they intend to delay the merger two years is simply a reflection that none of the companies is willing to go ahead with the merger anymore. I also believe that the situation of both companies, especially RG, will improve with their new strategy and with the return of growth to Latin America so it looks like we will have JJ and RG for long.
FMAL From Brazil, joined Jan 2004, 486 posts, RR: 1 Reply 10, posted (5 years 10 months 1 week 4 days 1 hour ago) and read 219 times:
Varig benefits from their image as the Brazilian national carrier. And they are too. I will always prefer Varig over TAM or any other Brazilian airline.
One of the problems is what NIKV69 has said. Varig employees and flight crew kind of look down on TAM's people. Varig has been around since 1927 and TAM is seen as this "newcomer" who thinks too much of themselves.
I'll go for whatever saves the Brazilian airlines, specially Varig. Since they got rid of a few people (or should I say cancers?) from the Ruben Berta Foundation (owners of Varig), things have gotten a lot better for them.
There are rumors of major acfts orders, but they are just rumors.
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From Australia, joined Jan 2004, 921 posts, 
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