Good morning all,
This is some fresh news on VARIG according to the Brazilian travel trade newmagazine Panrotas ( I have added the portuguese version immediately below and have translated it to english for non-portuguese speakers - apologize for any mistakes in the translation!):
Quote:
Jornal do Panrotas:
" Varig já sente as perdas no internacional (Varig is already counting losses in the international market):
Com o market-share doméstico caindo mês a mês (atingiu pela primeira vez menos de 19% em março), a Varig começa a ver também sua hegemonia no internacional ser ameaçada. Também pela primeira vez a empresa teve participação de mercado entre as companhias nacionais (BRA, Gol, Meta, Taf e Tam) abaixo dos 70%, segundo dados divulgados hoje pelo Departamento de Aviação Civil (DAC)/Anac. A empresa teve 69,6%, contra 79% há um ano, uma perda de dez pontos percentuais. A Tam cresceu de 15,78% para 23,16% e a Gol de 1,99% para 4,89%. A BRA caiu de 3,14% para 2,24% e Meta e Taf tem menos de 0,1% cada.
A indústria nacional caiu 8,4% em oferta e 6,8% em passageiros transportados para o Exterior. A estimativa dos especialistas é que as empresas aéreas brasileiras transportem 40% dos passageiros que vão ao Exterior e as estrangeiras 60%. Em março as nacionais levaram dois milhões de passageiros para fora do PaÃs (ou os trouxeram de volta).
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In short, the article states that in addition to the sharp drop in marketshare in the domestic arena, where it´s reached an ever-low 18% of marketshare, Varig´s share in the international market has dropped to 69,6% versus 79% a year ago. At the same time TAM´s marketshare has gone from 15,78% last year to a whopping 23,16% in the first few months of 2006. Gol has 4,89% whereas BRA´s dropped to 2,24%.
Overall the national travel industry´s capacity has fallen from 8,4% to 6,8% in volume of passengers travelling abroad and the specialists forecast is that the Brazilian airlines carry 40% of the total volume of international travellers whereas the international carriers are responsible for the other 60%.
On the same issue, travel agents are seriously concerned about Varig´s short-term fate as both Infraero and BR Distribuidora have been constantly announcing their plans to further reduce or even cancel Varig´s line of credit with both companies, which in simple terms mean no landing, parking rights at every Brazilian airport or no fuel supply UNLESS they get paid in advance and in cash.
Is this the beginning of the end for Varig?
My heart goes to all the employees who have not contributed to this tragic situation and still are the ones who will suffer the hardest hit.
y´all have a great week!
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