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Varig On Verge Of Collapse  
User currently offline7LBAC111 From United Kingdom, joined Jul 2004, 2566 posts, RR: 35
Posted (8 years 3 months 6 days 16 hours ago) and read 13043 times:

Source: CWT Global Update

Quote:
The U.S. Embassy has received reports from official visitors and tourists of recent Varig domestic flight cancellations due to the airline's financial difficulties. These cancellations have resulted in missed connecting flights in São Paulo and Rio and have disrupted travelers' itineraries.

In addition, numerous press articles report that Varig will cease operations as they remain unable to restructure its debt

How long before RG are no more? Considering my company along with all other major travel companies I am familiar with, have stopped selling RG with immediate effect, and have begun to rebook/reaccomodate booked passengers in anticipation of an imminent cesation of flights.

7L


Debate is what you put on de hook when you want to catch de fish.
95 replies: All unread, showing first 25:
 
User currently offlineMaartenV From Netherlands, joined Aug 2005, 271 posts, RR: 0
Reply 1, posted (8 years 3 months 6 days 15 hours ago) and read 12929 times:

Didn't Variglog express their interest in buying Varig recently? What is the status of their bid?

What happened with the co-operation/take over rumors with TAP?



Its all about supply and demand...
User currently offline7LBAC111 From United Kingdom, joined Jul 2004, 2566 posts, RR: 35
Reply 2, posted (8 years 3 months 6 days 14 hours ago) and read 12850 times:

More information from the GB Foreign Office:

Quote:
The Brazilian airline, Varig, is in serious financial difficulty. Several flights, international and internal, have been cancelled or delayed in recent weeks. Varig is a private sector company, and the Brazilian government has said that it will not bail it out; there is therefore an imminent risk of collapse. You should take this into account when booking air travel, and consider the alternative options.

7L



Debate is what you put on de hook when you want to catch de fish.
User currently offlineBilly From United Kingdom, joined Jul 2000, 895 posts, RR: 7
Reply 3, posted (8 years 3 months 6 days 14 hours ago) and read 12801 times:

I have just read that they are transferring all of their Portuguese flights to TAP effective May. Does TP have the capacity to absorb this amount of traffic?

User currently offlineJog From Netherlands, joined Jul 2005, 273 posts, RR: 7
Reply 4, posted (8 years 3 months 6 days 14 hours ago) and read 12766 times:

Quoting Billy (Reply 3):
Does TP have the capacity to absorb this amount of traffic?

Yes as they will expand operations to Brazil beginnig 8th May. For details see RE: TP Expands In GRU, GIG And EWR (by HB-IWC Apr 19 2006 in Civil Aviation)


User currently offlineEurostarVA From Bahrain, joined May 2002, 1296 posts, RR: 7
Reply 5, posted (8 years 3 months 6 days 13 hours ago) and read 12686 times:

I am very saddened by these developments....looks like the forces of economics and good public governance will lead to RG's disappearance...after decades of proudly flying Brazil's flag with style.

TAM and GOL will move quickly to absort RG's international route network.



If there is a will, there is a way
User currently offlineTBCITDG From Australia, joined Jan 2004, 921 posts, RR: 3
Reply 6, posted (8 years 3 months 6 days 12 hours ago) and read 12579 times:

I wonder who we will see first in FRA?
I presume more than likely TAM although they will be in need of more aircraft.
If TAM play their cards right, they will quickly become Latin Americas number 1 carrier!!


User currently offlineUAL777UK From United Kingdom, joined Nov 2005, 3356 posts, RR: 1
Reply 7, posted (8 years 3 months 6 days 12 hours ago) and read 12502 times:

oooh, Varigs dissapearance will be a headache for star alliance. I still think some knight in shining armour will come in and take over the company, or let it collapse and then restart it a bit like Swiss??

User currently offlineAF022 From France, joined Dec 2003, 2147 posts, RR: 1
Reply 8, posted (8 years 3 months 6 days 10 hours ago) and read 12344 times:

Varig's management is pathetic. Years of comically poor mismanagement will kill RG in the end.

User currently offline7LBAC111 From United Kingdom, joined Jul 2004, 2566 posts, RR: 35
Reply 9, posted (8 years 3 months 6 days 10 hours ago) and read 12307 times:

Quoting AF022 (Reply 8):
Varig's management is pathetic. Years of comically poor mismanagement will kill RG in the end.

Get away?! Hold the front page .... Big grin

7L



Debate is what you put on de hook when you want to catch de fish.
User currently offlineBoeingBus From United States of America, joined May 2004, 1596 posts, RR: 18
Reply 10, posted (8 years 3 months 6 days 10 hours ago) and read 12295 times:

All flights to Portugal were cancelled. This is according to

http://www.forbes.com/markets/feeds/afx/2006/04/21/afx2686530.html

TP is going to be even busier... Poor RG...



Airbus or Boeing - it's all good to me!
User currently offlineZkpilot From New Zealand, joined Mar 2006, 4801 posts, RR: 9
Reply 11, posted (8 years 3 months 6 days 10 hours ago) and read 12256 times:

Quoting UAL777UK (Reply 7):
oooh, Varigs dissapearance will be a headache for star alliance. I still think some knight in shining armour will come in and take over the company, or let it collapse and then restart it a bit like Swiss??

sure will... what with LA being so dominant is South America already. Perhaps AR will join star along with either TAM or GOL...



56 types. 38 countries. 24 airlines.
User currently offlineMexicana757 From United States of America, joined Apr 2001, 3029 posts, RR: 29
Reply 12, posted (8 years 3 months 6 days 10 hours ago) and read 12256 times:

I wish Varig the best. Lets see how much longer the airline will last until it has to shut down.  frown 

User currently offlineBmacleod From Canada, joined Aug 2001, 2242 posts, RR: 0
Reply 13, posted (8 years 3 months 6 days 10 hours ago) and read 12250 times:

VASP  tombstone 
RG next in line????

So what other airlines are in Brazil? There must be at least one LCC...



The engine is the heart of an airplane, but the pilot is its soul.
User currently offlineEurostarVA From Bahrain, joined May 2002, 1296 posts, RR: 7
Reply 14, posted (8 years 3 months 6 days 8 hours ago) and read 12107 times:

TRANSBRASIL - deceased
VASP - deceased
VARIG - on life support

Quoting Zkpilot (Reply 11):
sure will... what with LA being so dominant is South America already. Perhaps AR will join star along with either TAM or GOL...

Buenos Aires is too southerly to contribute significantly to a major airline alliance. The geographical location of Rio or Sao Paulo is much more favorable.



If there is a will, there is a way
User currently offlineJJMNGR From Brazil, joined May 2004, 1018 posts, RR: 15
Reply 15, posted (8 years 3 months 6 days 5 hours ago) and read 11900 times:

Quoting MaartenV (Reply 1):

Didn't Variglog express their interest in buying Varig recently? What is the status of their bid?

What happened with the co-operation/take over rumors with TAP?

The propose of VARIGLOG was ridiculous. They want to but only the good things of VARIG (IF THERE IS SOME....) and all debits, all problems won't be their responsibility....hahaha to buy an airline like this, even I want too.
This is juts part of this never ending soap opera.

VARIG announced today officially that they will stop serving PORTUGAL and this will begin to be done on code-share with TAP.

Quoting Bmacleod (Reply 13):
SP
RG next in line????

So what other airlines are in Brazil? There must be at least one LCC...

Sorry , I don´t want to be rude, but in what planet are you? You are the ones the think VARIG means Brazil and there is nothing else?

Quoting EurostarVA (Reply 14):
Buenos Aires is too southerly to contribute significantly to a major airline alliance. The geographical location of Rio or Sao Paulo is much more favorable.

TAM will increase its actual frequencies to EZE to 08 flights a day!


User currently offlineLTU932 From Germany, joined Jan 2006, 13864 posts, RR: 50
Reply 16, posted (8 years 3 months 6 days 5 hours ago) and read 11882 times:

Quoting Zkpilot (Reply 11):
Perhaps AR will join star along with either TAM or GOL...

I don't know about AR, but JJ would rather be a prime candidate for SkyTeam IMO.

Quoting EurostarVA (Reply 14):
TRANSBRASIL - deceased
VASP - deceased
VARIG - on life support

Or let's say VP is in suspended animation, because there are actually people who want to restore the estate of VP and restart operations. There is even a recovery plan posted on their website. I personally doubt VP will ever fly again.

http://www.vasp.com.br (Portuguese Only)

Quoting JJMNGR (Reply 15):
VARIG announced today officially that they will stop serving PORTUGAL and this will begin to be done on code-share with TAP.

Why are they stopping service to Portugal now? Do they have an even bigger lack of equipment or were the yields too bad? I don't understand why RG now leaves Portugal.


User currently offlineEddieDude From Mexico, joined Nov 2003, 7561 posts, RR: 43
Reply 17, posted (8 years 3 months 6 days 3 hours ago) and read 11522 times:

Quoting JJMNGR (Reply 15):
TAM will increase its actual frequencies to EZE to 08 flights a day!

Wow! 8 dailies only by JJ is a lot. I am guessing JJ will use mostly 2-class A320's in this route. Does JJ have a lot of domestic flights ex-GRU or will passengers have to take the shuttle bus to CGH for connections?

Quoting LTU932 (Reply 16):
JJ would rather be a prime candidate for SkyTeam

Recently I read in a magazine (not sure if it was Voyages D'Affaires) that JJ and AF was relaunching their commercial relationship and that this could be seen as an indication of AF thinking about courting JJ into SkyTeam. What do you guys think? This would be awesome!



Next flights: MEX-GRU (AM 77E), GRU-GIG (JJ A320), SDU-CGH (G3 73H), GRU-MEX (JJ A332).
User currently offlineReverseThrust From United Kingdom, joined Jan 2005, 113 posts, RR: 0
Reply 18, posted (8 years 3 months 6 days 2 hours ago) and read 11272 times:

Noooooooooooooooo!!! I have my first ever MD-11 flight with Varig from Heathrow to Copenhagen and back at the end of May 06!

I am so keeping my fingers crossed that RG at least manage to hold out until then. My camera will be going mad getting shots if I am lucky enough to still get my rocket ride.



Flown MD11/81/82/83/87/90,B732/733/734/735/737W/738/739/742/752/753,F70/100,A300/319/320/321/332/333/343,TU134A/154M,L10
User currently offlineShane From United States of America, joined Oct 2005, 180 posts, RR: 0
Reply 19, posted (8 years 3 months 6 days 1 hour ago) and read 10847 times:

I just flew Varig GIG --> GRU --> JFK last week. Though the condition of the 777 was awful inside, I'm glad I had the chance while the airline was alive...

User currently offlineVelasco From Portugal, joined Jan 2005, 101 posts, RR: 0
Reply 20, posted (8 years 3 months 6 days ago) and read 10361 times:

Looks like the end is near. Flew on VG to Cidade da Praia (Cape Verde) 2 weeks ago on a code-share with TACV. A very messy plane. TAM remains my favourite. Still, it's awkward to watch such an airline dissapear.


Lisboa-Rio on the A340... São Pedro e São Paulo down below...
User currently offlineJJMNGR From Brazil, joined May 2004, 1018 posts, RR: 15
Reply 21, posted (8 years 3 months 5 days 23 hours ago) and read 10175 times:

Quoting LTU932 (Reply 16):
Why are they stopping service to Portugal now? Do they have an even bigger lack of equipment or were the yields too bad? I don't understand why RG now leaves Portugal.

I´m surprised about your question. Why they are leaving Portugal now? They are broken. Portugal is just one route in the middle of some others already abandoned.

Quoting EddieDude (Reply 17):
Wow! 8 dailies only by JJ is a lot. I am guessing JJ will use mostly 2-class A320's in this route. Does JJ have a lot of domestic flights ex-GRU or will passengers have to take the shuttle bus to CGH for connections?

TAM has its flights going out of GRU and CGH. All depends to where you need to go. But all intl flights for sure out of GRU. Yes, all intl. flights with A320 operated by a two class configuration.


User currently offlineLTU932 From Germany, joined Jan 2006, 13864 posts, RR: 50
Reply 22, posted (8 years 3 months 5 days 23 hours ago) and read 10047 times:

Quoting JJMNGR (Reply 21):
I´m surprised about your question.

That's because I was surprised about the announcement in the first place.  Wink

Quoting JJMNGR (Reply 21):
Why they are leaving Portugal now? They are broken. Portugal is just one route in the middle of some others already abandoned.

So simply because they're broke, they're axing a route that was somewhat profitable, with all the Portugal-Brazil traffic that exists through TP as well? I would have thought that either they'd drop routes which are highly unprofitable and reduce frequencies in other routes that do make some money.

That being said, now that RG is leaving the Portuguese market to TP, is there perhaps a way JJ could step in and start for example GIG-GRU-LIS?


User currently offlineGhost77 From Mexico, joined Mar 2000, 5215 posts, RR: 51
Reply 23, posted (8 years 3 months 5 days 23 hours ago) and read 10030 times:

Quoting JJMNGR (Reply 15):
VARIG announced today officially that they will stop serving PORTUGAL and this will begin to be done on code-share with TAP.

Why Portugal? Isn't Portugal one of the most important countries RG serves? Or at least a country where they could gain more pax than flying to other cities... why not closing MUC, CPH, MEX or MAD first.. and just leaving a few routes to Europe, that is, LIS, LHR, FRA...

So sad for RG! Once the biggest in Latam and now everything will soon be over... JJ get ready!

g77 APM



Ricardo Morales - flyAPM - ¡No es que maneje rapido, solo estoy volando lento!
User currently offlineCXA330300 From South Africa, joined May 2004, 1560 posts, RR: 2
Reply 24, posted (8 years 3 months 5 days 23 hours ago) and read 10013 times:

Well......this has been expected for a long time.......but *A will lose most of their LA network and an airpass............and there will be thousands of stranded passengers........RIP Varig.........

Quoting ReverseThrust (Reply 18):
Noooooooooooooooo!!! I have my first ever MD-11 flight with Varig from Heathrow to Copenhagen and back at the end of May 06!

Don't count on getting on it.



The sky is the limit as long as you can stay there
25 Commavia : My guess is that they probably felt that, given their new close cooperation with TP, it would be easier to cancel LIS and dump the passengers onto TP
26 Post contains images LH463 : Must have been all that import substitution industrialization
27 LTU932 : My thoughts exactly, Ricardo. I'll have to agree on this as well. It seems to me that RG is getting desperate. Had they planed this earlier on, then
28 Post contains images Latinplane : So sad, but I think that's whats going to end up happening! Although, if you think about it, let's suppose that VARIG LOG starts looking into leasing
29 Post contains links Drinkstrolley : Old news. http://news.bbc.co.uk/1/hi/business/4902792.stm[Edited 2006-04-22 10:26:25]
30 GSM763 : A bit O.T but a friend who flew a Varig domestic flight recently told me that there were only about 25 PAX on board an aircraft with about 150 seats.
31 LipeGIG : Ricardo, the main problem is the lack of aircraft. Two days ago a RG 777 (PP-VRI) face a problem (loss of oil in one of the engines) when runing MXP-
32 Rafabozzolla : JJMNGR, Can U give some more info on the new EZE flights?
33 TWAviator : JJ, GOL, OCEAN AIR, BRA Both BRA and GOL are LCC's regards TWAviator
34 Sunshine79 : Myself and a few other n.netters are doing the same flight on 19th May for the CPH meet. Let�s just keep our fingers crossed that they last unti
35 Post contains images Photolppt : In one word: StarAlliance. And although the brazilian comunnity here is huge, it is a very low yeld route for RG. Also the 40+ weekly TP flights to B
36 CB777 : On a side note if Varig does collapse, Continental is desperately looking for additional 777's---Varig's VRA and VRB would be a perfect fit.
37 ReverseThrust : Hey Sunshine 79. I'm flying a week later on 26th! Fingers crossed buddy. I hope your ride is good and the MD-11 still takes you. Was great value for m
38 LTU932 : Hi Felipe. Of course if JJ is lacking the aircraft, they cannot start it, but eventually they can. It doesn't have to be immediately, but rather once
39 Shane : If I were a wealthy, airline-focused investor, I'd turn Varig into an all-international airline serving Europe and the USA with 777s only (maybe going
40 NoelG : Myself and my wife are due to be taking this flight too on 19 May, I really hope they don't pull CPH or LHR before then and rebook us on another carr
41 Pdpsol : Several caveats to your comments. RG and JJ cancelled their code-sharing arrangement over a year ago; this is an important reason why RG's demise has
42 Avianca : thought first also the same... but at least they can code-share to Portugal on TP metal, not to places like MUC, CPH, MEX or MAD, at least not for no
43 JJMNGR : Guys, here I go, RG is leaving Portugal because they loose money on the Iberic Peninsula since they started to fly there...not only Portugal but also
44 Fsimmer : I just flew RG from GIG to GRU on the second half of a roundtrip on the 19th of april. My outbound leg GRU to GIG on the 28th of march was cancelled a
45 Post contains links and images Varig_dc10 : As a child I flew loads of flights on Varig DC10's in the late 70's. The interiors were never dirty and the service was excellent. I used to get to se
46 TAL727 : In deed, Varig is pretty close to bankruptcy. Cancelling the flight to LIS is just a tactical move on a low yield route. TP would like to buy 20% of V
47 SQ773 : Talking about the low yield passanger traffic from Portugal to Brazil, now that TP will serve this route on a monopoly basis, will they increase their
48 Post contains images ReverseThrust : Quoting NoelG: I see your point. If it all went pear-shaped, I'd rather go with SAS - at least they are in StarAlliance. If it was BA I'd want a refun
49 Post contains images PRAirbus : RG has been cancelling its MIA flight on and off the past couple of days...not a good sign.
50 StarGoldLHR : Must be corruption. Look at Varig... 3rd world staff salaries. HUGELY over priced tickets to Europe (Never less than £600 to UK, or £700 via Spain)
51 LipeGIG : Lack of planes, i just return from MIA yesterday, arrived today in Brazil. RG is really in bad situation over there (MIA). Their brand is rated very
52 Ghost77 : Yeap, sure main problem is lack of aircraft. And now we add VRI to the big list of inactive frames! 5 out of 8! That's a near to IMPOSSIBLE to be abl
53 LipeGIG : Agree 100% ! Perfect, and where's the mistake ? RG when the market keep loads at very high numbers (close to 100%) instead of improving flights and p
54 Jog : Maybe a bit off-topic but as there were a lot of discussions in here about JJ's lack of aircraft (and as the "TAM daily to JFK"-thread is already arch
55 Post contains images OHLHD : I had the same when flying from GIG-BSB-MAO and everything lokked so wasted. Most of the PTV´s were not working anymore or were replaced with sticke
56 COERJ145 : I'll miss spotting their MD-11s at LAX if they shut down.
57 LipeGIG : Just because they can't stop a plane during a few days to fix PTV's. Last week PP-VRI face problems and it's on ground at LPA. Yesterday, PP-VSB (738
58 Billy : I note today that the UK Foreign Office is warning travellers to be aware of Varig's financial difficulties and that they advise avoiding the carrier.
59 9252fly : Would there be anyone in Brazil that has an update on RG financial position?Considering that this thread started nine days ago,it gave the impression
60 LipeGIG : 9252fly, the situation is unclear: - The government nowadays says it will help anyone who buys RG with long term financing. - The government also, sh
61 9252fly : I would be very happy and pleased to see RG continue as an airline. It's difficult to fully understand it's complex history and why it has to come to
62 JJMNGR : Just remembering you all....if BR and INFRAERO gives more time for VARIG to pay, they will be pushed to do the same to JJ and G3. VARIG is not paying,
63 Ghost77 : Latam is a joke! g77 APM
64 LipeGIG : JJMNGR, both (JJ and G3) has a 30 days term to pay their current use of airports, Varig need to pay at sight. IMO, the government can drive a solutio
65 Post contains images EMB195ER : JJMNGR If Brazil is a joke, why don't you move back to Portugal or any other more serious country around the world??
66 LH526 : Same here! Flew RG PP-VRA B777 (one of two "new", not second hand from UA): - Airplane a total mess (uncleaned, ...) - Stewardesses in their upper 50
67 JJMNGR : Yes!!! Good indication...but I prefer UK!!! This issue is about the lousy VARIG and all its "factoids", what about go back to the roots? Brazil is my
68 Glennpower : Hi all, Well well RG still alive,really surprising really,after all the predictions of there demise i made last year,well let me say this much the qui
69 BSBIsland : I agree that Brazil is a joke, but 'some brazilians' in this forum are also a joke...
70 LipeGIG : You're right, no doubt that the government need to give the same condition only to those who are paying their debts. I believe RG will receive the sa
71 Box37 : 100% correct. In a situation in which emotions play an important part in the decision process you can not forget that JJ has two primary obligations,
72 JJMNGR : Agree 300%....
73 StarGoldLHR : Varig is expensive !!!! and if it's sold out.. then where's this money going ? At £600-£800 for LHR - GIG (5000 miles), when you can fly LHR-SYD (10
74 Post contains images EMB195ER : You can say whatever you want in private, not in a public place like that. Brazil is my country and I don't feel comfortable when people say things l
75 JJMNGR : ERJ195ER, I have my opinion, you have yours. I respect yours, but pls do the same. Respect the others point of view. It doesn't matter if you don't ag
76 Rojo : Too bad to see RG going down, but in this century you need to be profitable to keep investors happy. RG has been an icon for LATAM and if they stop fl
77 Mpdesa : Could be the Varig Log MD11F that suffered that loading incident a while back. RG doesnt fly the MD11 to MEX for pax flights. MD
78 EddieDude : Wow! I saw it on April 16 and would have thought it had already been repaired and sent back to Brazil. I hope that the damage to the tail was not ext
79 Pdpsol : Huh? Are you suggesting Brasil should expend public resources to assist a PRIVATE company in financial distress? Why? What public good could possibly
80 Post contains images EMB195ER : No, I am not suggesting it, at all. You must be Brazilian and must be reading the news about RG and the government, right? A few days ago the judge i
81 UA772IAD : Just out of curiosity- if RG does go down, what will Star Alliance do to fill the large hole in their South American Network? RG is their major carrie
82 LTU932 : Could be a possibility, since some, if not all, of those are 772As they can use on short, high density flights to Europe.
83 Antiuser : The thing is, this has happened before - with TR and then VP, and the government did nothing...
84 Post contains images EMB195ER : Good point! However, I understand that when TR and VP stopped flying they were already reduced to a few planes and a few number of employees. Additio
85 StarGoldLHR : This is even more reason Varig should be raking in the cash... less competition = higher fares... and it's always sold out... so wheres the Cash goin
86 Zizou : Where does this leave the Star Alliance if Varig is no more. No South Aemerican partner anymore. Will they get TAM or Aerolineas Argentinas?
87 EddieDude : If the planes have been sold, and title has passed from UA or whoever to RG, how can they repossess? Repossession would only be an option to creditor
88 Ghost77 : ALL RG's fleet is LEASED! During the last 10 days several jets have been returned to lessors... g77 APM
89 Post contains images TBCITDG : Eddie: I must agree that JJ would be a more lucrative option for Star as opposed to AR. Although keep in mind that Argentina has CAT1 status. And rega
90 Post contains images Mikephotos : Varig has a 777 at JFK parked over by United hangar missing an engine (#2). It's been there several weeks. Just have the CO boys drive over and pick
91 Pdpsol : Eddie, the FAA changed Argentina to CAT I in December 2005. For this reason, LAN Argentina, 4M, needs to register the 767-316ER's as "LV" with the Ar
92 Antiuser : That's true about VP, but the story with TR was different and quite similar to what RG is going through now. Transbrasil went through a period of con
93 F9Animal : How badly do you think the fuel prices are affecting them? What is the going rate compared to say the United States? What International carriers besid
94 Ghost77 : Hi Mike! I saw from Skyliner two B777-222s (the ex-UAs) as been de-regd, the one STD @ JFK and LIS. Perhaps its owners have taken them away from RG.
95 AF022 : What engine type on the 777s?
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