LipeGIG From Brazil, joined May 2005, 11230 posts, RR: 61 Posted (8 years 2 weeks 4 days ago) and read 1477 times:
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RG has announced today in Rio de Janeiro its results for the first quarter (1Q). It has a net loss of BRL 51 mm (USD 21,1 million) performing 70% better than in 2004 while has a loss of BRL 171 million.
Even with such net loss Varig has presented a strong performance with an operational profit of BRL 146,5 million (USD 60,8 million). More than TAM and even GOL. The problem is that with huge debits and a negative capital, Varig use all its cash with interest and principal of the debts.
Load factor for international flights hits 79% while domestic flights hits 68% (due to strong competition).
Costs increased in 25% due to oil higher prices than in 2004.
Yesterday (june 2nd) Varig published a strong message in the main Brazilian newspapers (O Globo, Estado de Sao Paulo among others) stating in more words that "it will change to recover pax"
Last sentence: " If you are flying with other airline companies, be sure. Varig will bring you back."
Rgds,
Felipe
New York + Rio de Janeiro = One of the best combinations !
PPVRA From Brazil, joined Nov 2004, 8497 posts, RR: 42 Reply 2, posted (8 years 2 weeks 3 days 11 hours ago) and read 1415 times:
Any idea when RG might cash-in that lawsuit they won against the government? Worth some BRL 2.5 Billion and it could cancel out most, if not all, of their debt with the government (60% of RG's total debt?).
PPVRA
"If goods do not cross borders, soldiers will" - Frederic Bastiat
FMAL From Brazil, joined Jan 2004, 486 posts, RR: 1 Reply 4, posted (8 years 2 weeks 3 days 6 hours ago) and read 1357 times:
I've read today that the government has finally accepted to talk about, in light of the lawsuit won by Varig, cancel Varig's debt and move on....
I think this is ok. The government has spent far more to help banks that now cash in record profits year after year, it would spend much less (or nothing, since I believe many creditors don't expect to actually receive all the money owed). It would save a icon of Brazilian society, and one of the most recognized Brazilian brands, worldwide, not to mention the jobs. With the old administration, I would be against any help for Varig, because its administration structure is just ancient. But the new management seams to be actually working to change the company and make it competitive again, including major changes in its governance structure, an old taboo hardly discussed a few years ago.
LipeGIG From Brazil, joined May 2005, 11230 posts, RR: 61 Reply 5, posted (8 years 2 weeks 3 days 4 hours ago) and read 1351 times:
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Dear friends,
The amount informed by the press is not perfect due to interest and probably it will exceed R$ 3 billion which is more than RG debts with government related parties.
Quoting FMAL (Reply 4): I've read today that the government has finally accepted to talk about, in light of the lawsuit won by Varig, cancel Varig's debt and move on....
If it's really happen (and as FMAL i strong believe that it will as TP is in fact confirming they will manage RG and its future) RG debit will be reduced to BRL 3 billion and ALL with private sector. Many financial market friends believe that a discount of at least BRL 800 million will be granted to RG and long term conditions (like 7 years agreements) will help RG to reduce it to BRL 2.3 bi.
With USD 200 mm as a capital increase RG can easily be a very profitable airline and with their employees (i think they are the best asset RG has nowadays), in two years they become a positive Net capital.
Let's see...
Regards,
Felipe
New York + Rio de Janeiro = One of the best combinations !
PPVRA From Brazil, joined Nov 2004, 8497 posts, RR: 42 Reply 7, posted (8 years 2 weeks 3 days 4 hours ago) and read 1338 times:
Ok guys, but any idea until when the government can go back to the courts to defend itself from RG's allegations? There's gotta be a time limit here( RG won this lawsuit last year!), or they'll just delay it forever.
PPVRA
"If goods do not cross borders, soldiers will" - Frederic Bastiat
Jrosa From Brazil, joined Jun 2005, 365 posts, RR: 12 Reply 9, posted (8 years 2 weeks 3 days 3 hours ago) and read 1323 times:
I haven't seen the files of such lawsuit, but I believe that the Brazilian Federal Government still has one type of appeal to the Superior Court of Justice (STJ) which should not take a long time to be decided, in fact it is a very limited appeal which has the main purpose to clarify any aspect of the judicial decision that is not clear to the appealing party. However, if the Brazilian Federal Government argued any constitutional matter, it still has one main appeal judgment at the Federal Supreme Court (STF), and also such final and limited appeal type to the STF in order to clarify any aspect of the judicial decision that is not clear to the appealing party.
It is very difficult to guess how long it will take yet, but I would say that maybe it will be 2 more years.
LipeGIG From Brazil, joined May 2005, 11230 posts, RR: 61 Reply 10, posted (8 years 2 weeks 2 days 14 hours ago) and read 1312 times:
AIRLINERS.NET CREW FORUM MODERATOR
Quoting Jrosa (Reply 9): I haven't seen the files of such lawsuit, but I believe that the Brazilian Federal Government still has one type of appeal to the Superior Court of Justice (STJ) which should not take a long time to be decided, in fact it is a very limited appeal which has the main purpose to clarify any aspect of the judicial decision that is not clear to the appealing party. However, if the Brazilian Federal Government argued any constitutional matter, it still has one main appeal judgment at the Federal Supreme Court (STF), and also such final and limited appeal type to the STF in order to clarify any aspect of the judicial decision that is not clear to the appealing party.
It is very difficult to guess how long it will take yet, but I would say that maybe it will be 2 more years
I'm not a lawyer or a judge but i strong believe that STF will not allow any kind of appeal from the Government (and the Government knows that and it's why they do not do it till now). The Government as per Gazeta Mercantil and Valor Econômico has just informed they are now thinking in adjust the lawsuit with RG.
My opinion: The Government will not accept a solution that keeps Rubem Berta foundation in charge of RG. As RG is going to be managed by TP and probably by other investors, the government can adjust the suit in the near future in favor of them. They strong believe now RG have a "market solution".
There is another lawsuit against Sao Paulo state, Minas Gerais state and others which cover ICMS (Brazilian VAT/Value Added Tax) and it's in high
instances too. RG probably will receive back R$ 1.1 billion in tax credits (due
to the actual revenues level, will be compensated in less than two years giving RG more cash)
Both are not in RG financials (only as a foot note)
Regards,
Felipe
New York + Rio de Janeiro = One of the best combinations !
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