Jrosa From Brazil, joined Jun 2005, 371 posts, RR: 10 Posted (9 years 3 months 2 weeks 6 days 5 hours ago) and read 27621 times:
Disclaimer: You are about to read a rumor, which was not confirmed by any official source, either the company or the creditors.
There is a very, very strong rumor in the market that Varig will cease its operations tomorrow morning (June 20, 2006) due to lack of cash or receivables to fund its day-to-day operations (fuel, airport fees, catering, maintenance, small expenses and everything else).
According to the information I got the top tier managers of Varig were warned early evening today that all operations will cease tomorrow early morning and all planes should return to GIG.
In addition, there are already two judicial decisions in the USA granting to lessors the repossession of 19 aircraft as soon as the Bankruptcy Court of New York overrule the protective injunction granted to Varig.
I checked a few minutes ago the website of the Brazilian Ministry of Defense, which is the public authority ultimately responsible to supervise the civil aviation activities, and there is a meeting scheduled for tomorrow morning among the Ministry of Defense and the CEOs of all Brazilian airliners, except Varig's CEO.
Notwithstanding, the Judge in charge of the bankruptcy procedure approved today the sale of Varig to NV Participações (a company formed by Varig's employees and some unidentified investors), but NV did not presented any guarantees. The judge granted 3 days for NV to deposit the first installment in the total amount of US$75M. However, this decision was not very welcomed by the creditors.
You all can be absolutely sure that I am really sad and disapointed to start this thread. I was very optmist since the begining of all that, I even worked in Varig's restructuring plan helping to structure some investment funds to fund the plan.
If this rumor about Varig ceasing its operations tomorrow becomes a reality we will see the end of an icon.
DLKAPA From , joined Dec 1969, posts, RR:
Reply 6, posted (9 years 3 months 2 weeks 6 days 5 hours ago) and read 27447 times:
Quoting JetBlueAtJFK (Reply 4): Well I hope not but if it does what time do you think they will stop ops. And tomorrow morning everyone should track many Varig flights to see if they start to cancel any.
Specifically, longhauls from GIG. If they fold, they'll want all the planes there, the announcement probably won't come until sometime midday or into the early afternoon hours, but if they'll announce, it wouldn't make sense to send out their airplanes on longhauls where they'll be away from GIG for 10 or more hours because of the cost in getting the airplane to where it's going but more importantly, getting the airplane back. That's where the shutdown starts.
LTBEWR From United States of America, joined Jan 2004, 13622 posts, RR: 17
Reply 13, posted (9 years 3 months 2 weeks 6 days 4 hours ago) and read 27101 times:
If one follows the way other airlines have ceased ops, the most important thing is to secure the airplanes at a central location, not in other countries where creditors can seize them (like anywhere in the USA). I would suspect that no flights outside of Brazil will occur from 12:01 am Tuesday, and some aircraft outside Brazil will be deadheading (empty) back home. Then the ticket counters will be closed off, the employees when the arrive to work told to go home, except for a selected few to secure the assets, assist pax with other arrangements.
By the way, will the other airlines take Varig tickets/e-tickets toward flights with them on a first come/first served/space available basis for a short time (as sometimes happens in the USA) ?.
Trabalhadores do Grupo Varig = Workers from Varig Group. TGV formed NV Participações, the entity that acquired Varig in the auction.
Quoting LTBEWR (Reply 13): By the way, will the other airlines take Varig tickets/e-tickets toward flights with them on a first come/first served/space available basis for a short time (as sometimes happens in the USA) ?.
According to the Brazilian Government, yes. Including the passengers stranded in Germany because of the World Cup.
Longhornmaniac From United States of America, joined Jun 2005, 3493 posts, RR: 44
Reply 17, posted (9 years 3 months 2 weeks 6 days 4 hours ago) and read 26972 times:
While I have absolutely no affiliation or preference one way or the other about RG, and have never flown them, this is really really sad, almost depressing. To hear about people getting photos of a planes last voyage on a certain airline, and employees asked to go home, and attempting to fathom an airline running out of money to the point where they don't have enough money for one daily operation is really sad.
And a heartfelt thank you and God Bless goes out to all the RG employees, who have done more than their share to keep the airline industry going strong. I hope everyone can find a new job.