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VarigLog Makes $500M Bid For Varig  
User currently offlineLeelaw From , joined Dec 1969, posts, RR:
Posted (8 years 4 months 2 days 7 hours ago) and read 3553 times:

SAO PAULO (Dow Jones)--VarigLog, an ex-subsidiary of Brazil's flagship airline Viacao Aerea Rio-Grandense (VAGV4.BR), or Varig, proposed making an investment of $500 million in the ailing airline, according to local press reports Thursday.

The logistics wing of Varig, owned by a group that includes US investment fund Matlin Patterson, committed to pumping funds into the company to keep it afloat, if a worker-led bid for the airline falls apart, sources told local daily O Estado de Sao Paulo.

A VarigLog spokesman could not confirm the proposal...


http://online.wsj.com/article/BT-CO-20060622-706234.html

[Edited 2006-06-22 17:18:37]

19 replies: All unread, jump to last
 
User currently offlineJJMNGR From Brazil, joined May 2004, 1018 posts, RR: 15
Reply 1, posted (8 years 4 months 2 days 6 hours ago) and read 3501 times:

On the stage things are, RG has lost all its credibility. The problem is not money anymore.

User currently offlineChiguire From Venezuela, joined Sep 2004, 2005 posts, RR: 16
Reply 2, posted (8 years 4 months 2 days 6 hours ago) and read 3477 times:

Quoting JJMNGR (Reply 1):
On the stage things are, RG has lost all its credibility. The problem is not money anymore.

That's definitely true. The situation has now been featured in the press all around the world. Most customers know.
BSPs in Europe are blocked - tickets can not be refunded any more. This means that passengers lost their money.
No travel agency is going to sell RG any more (apart of the fact that the can't due to closed BSP).
Credibility is very bad, the cash flow will break down.....

Very sad end for this airline.


User currently offlineJJMNGR From Brazil, joined May 2004, 1018 posts, RR: 15
Reply 3, posted (8 years 4 months 2 days 6 hours ago) and read 3416 times:

Also it is important to mention that that judge has already refused VARIGLOG previous offer due to some technical reason I don´t remember right now.

Just imagining he accepts now. Under what circumstances he refused and now he would accept? If there had conditions to be accepted before and he did not, that would make the difference from 02 or 03 past weeks till now, where their situation deteriorated drastically.

This is just part of this no end imbroglio!


User currently offlineANother From , joined Dec 1969, posts, RR:
Reply 4, posted (8 years 4 months 2 days 6 hours ago) and read 3305 times:

They shoot horses, don't they?

User currently offlineJJMNGR From Brazil, joined May 2004, 1018 posts, RR: 15
Reply 5, posted (8 years 4 months 2 days 5 hours ago) and read 3265 times:

Every post like VARIGLOG is doing gives for a few the impression the light is at the end of the tunel, but this lite is already the machine coming towars!

User currently offlineYVRtoYYZ From Canada, joined Mar 2004, 664 posts, RR: 0
Reply 6, posted (8 years 4 months 2 days 5 hours ago) and read 3185 times:

Quoting Leelaw (Thread starter):
VarigLog, an ex-subsidiary of Brazil's flagship airline Viacao Aerea Rio-Grandense (VAGV4.BR), or Varig, proposed making an investment of $500 million in the ailing airline, according to local press reports Thursday.



Quoting JJMNGR (Reply 3):
Just imagining he accepts now. Under what circumstances he refused and now he would accept? If there had conditions to be accepted before and he did not, that would make the difference from 02 or 03 past weeks till now, where their situation deteriorated drastically.



Quoting JJMNGR (Reply 5):
Every post like VARIGLOG is doing gives for a few the impression the light is at the end of the tunel, but this lite is already the machine coming towars!

So while VARIGLOG is making a bid for $500M which is higher than the current bid by Varig Employees ($495M if I recall), both bids won't be accepted because:

1) its too late, the damage is done?

2) the bids aren't the $800M or so that was being sought?

3) the logistics behind the financing/loans isn't feasible?

In other words, is this latest bid by VARIGLOG just posturing and won't be approved? It seems like a never-ending soap opera.

-YVRtoYYZ


User currently offlineGhost77 From Mexico, joined Mar 2000, 5224 posts, RR: 51
Reply 7, posted (8 years 4 months 2 days 4 hours ago) and read 3104 times:

VARIGLOG should instead invest that good money on something better... fleet.. routes.. whatever... and also keep it's name and brand alive for the records and future just as a heritage of what RG once was.

ghooost77 APM



Ricardo Morales - flyAPM - ¡No es que maneje rapido, solo estoy volando lento!
User currently offlineOzarkD9S From United States of America, joined Oct 2001, 5153 posts, RR: 21
Reply 8, posted (8 years 4 months 2 days 2 hours ago) and read 2962 times:

This sounds like the whole Eastern Airlines debacle. Every straw was grasped at...Uebberoth, Icahn (!), ANYTHING. In the end...well we know what happened.

My sympathies for the Varig employees.

The planes, the gates, the routes, the history are nothing. Any company is built or sunk on the dedication of the employees, regardless of how many circumstances and decisions are out of thier control.



Next Up: STL-EWR-STL for my first mileage run!
User currently offlineIncitatus From Brazil, joined Feb 2005, 4030 posts, RR: 13
Reply 9, posted (8 years 4 months 2 days 1 hour ago) and read 2872 times:

Quoting JJMNGR (Reply 5):
Every post like VARIGLOG is doing gives for a few the impression the light is at the end of the tunel, but this lite is already the machine coming towars!

JJ:

My question is not what Brazil can do for Varig, but what TAM can do for Brazil. If Varig folds, will TAM continue with its mediocre international network? One destination is Europe with two daily flights is bizarre. Please share with us: Will TAM serve Portugal, Spain, Italy, UK, Denmark, Netherlands, Germany, Mexico, Japan?



Stop pop up ads
User currently offlineLeelaw From , joined Dec 1969, posts, RR:
Reply 10, posted (8 years 3 months 3 weeks 5 days 17 hours ago) and read 2572 times:

VarigLog puts up $3 million for Varig, has until today to finalize offer
Wednesday June 28, 2006

VarigLog, the former freight and logistics arm of Varig, has until Wednesday to finalize its offer for the beleaguered airline, a Rio de Janeiro bankruptcy court said yesterday, according to press reports.After canceling the bid made by an employee-led consortium that could not make a required $75 million payment on Friday (ATWOnline, June 27), the court accepted a $3 million payment from VarigLog to keep Varig afloat while the new bid is prepared. VarigLog's offer reportedly has risen to around $500 million, higher than the approximately $450 million offered by NV Participacoes but still far below the original minimum set by the court...


http://atwonline.com/news/story.html?storyID=5535


User currently offlineRicardoFG From Spain, joined Feb 2005, 677 posts, RR: 0
Reply 11, posted (8 years 3 months 3 weeks 5 days 16 hours ago) and read 2529 times:

What happened to the rumoured TAP Portugal investment in Varig??

User currently offlineJog From Netherlands, joined Jul 2005, 273 posts, RR: 7
Reply 12, posted (8 years 3 months 3 weeks 5 days 15 hours ago) and read 2482 times:

Quoting Incitatus (Reply 9):
f Varig folds, will TAM continue with its mediocre international network?

After thinking a bit about it, I must say that I have the feeling that TAM is maybe not growing as fast as Etihad or EK, but they continuously expanded their international network by one destination per year plus at least one destination gets an increase in capacity:

2004: GRU-MIA, increase from 7 to 14 flights/week (and one weekly stop in SSA), GRU-CDG from 7 to 10 weekly flights, new daily international destination SCL with A320

2005: GRU-CDG from 10 to 14 weekly flights (and 1 weekly stop in REC), 4 weekly flights GRU-JFK

2006: GRU-JFK from 4 weekly to daily, new daily GRU-LHR, GRU-SCL from daily A320 to daily A330, new daily FOR-BEL-MAO-MIA with A320


User currently offlineJJMNGR From Brazil, joined May 2004, 1018 posts, RR: 15
Reply 13, posted (8 years 3 months 3 weeks 5 days 6 hours ago) and read 2293 times:

Quoting Incitatus (Reply 9):
My question is not what Brazil can do for Varig, but what TAM can do for Brazil. If Varig folds, will TAM continue with its mediocre international network? One destination is Europe with two daily flights is bizarre. Please share with us: Will TAM serve Portugal, Spain, Italy, UK, Denmark, Netherlands, Germany, Mexico, Japan?

Dear Incitatus,

Part of VARIG current situation is because it flew to many destinations for patriotism and not for make money.
Independent of VARIG situation it was decided by the company that TAM will open more intl. destinations, with or without VARIG. The difference is that if RG goes from the morgue to the crypt, these plan are going to be anticipated. Just that.
But be sure TAM will not do anything for Brazil. Will do for its owners, employees, etc..

Forget about Portugal, Netherlands, Denmark....these are routes operated by RG for patriotism and it won´t take TAM no anywhere. Other possible routes are public and on the press.

If 02 flights /day to Europe is bizarre??? Maybe your opinion...mine is that they are always full and are profitable.


User currently offlineLipeGIG From Brazil, joined May 2005, 11442 posts, RR: 58
Reply 14, posted (8 years 3 months 3 weeks 5 days 5 hours ago) and read 2238 times:
AIRLINERS.NET CREW
FORUM MODERATOR

Quoting JJMNGR (Reply 13):
If 02 flights /day to Europe is bizarre??? Maybe your opinion...mine is that they are always full and are profitable

As per JOG comments, i believe it's very correct strategy. In one year we will see Tam flying 5 to 7 daily flights to Europe, all profitable !

Felipe



New York + Rio de Janeiro = One of the best combinations !
User currently offlineGhost77 From Mexico, joined Mar 2000, 5224 posts, RR: 51
Reply 15, posted (8 years 3 months 3 weeks 5 days 4 hours ago) and read 2188 times:

Quoting JJMNGR (Reply 13):
Forget about Portugal, Netherlands, Denmark....these are routes operated by RG for patriotism and it won´t take TAM no anywhere. Other possible routes are public and on the press.

JJMNGR, thanks for the hints! But what about Mexico? With AM flying the route, LA,LB,CM,AV,AR and several others offering good fares all the way down and connections I think an A330 is too big to fly it daily but sure JJ could be considering 4X or 5X? What about the aircraft widebody shortage, where will it be sourced? I know several EK frames are due to return but still you'll need more frames, will Mexico and Brazil be directly linked (+- a whole year?) only by AM? I will enjoy a lot seing JJ turning final to runway 05R!

ghooost77 APM



Ricardo Morales - flyAPM - ¡No es que maneje rapido, solo estoy volando lento!
User currently offlineAisak From Spain, joined Aug 2005, 763 posts, RR: 10
Reply 16, posted (8 years 3 months 3 weeks 5 days 3 hours ago) and read 2148 times:

Quoting Incitatus (Reply 9):
One destination is Europe with two daily flights is bizarre



Quoting JJMNGR (Reply 13):
Forget about Portugal, Netherlands, Denmark....these are routes operated by RG for patriotism and it won´t take TAM no anywhere. Other possible routes are public and on the press.

If 02 flights /day to Europe is bizarre??? Maybe your opinion...mine is that they are always full and are profitable

Well maybe one only destination in Europe is odd.. but that's only for ONE airline. As long as IB, TP, BA, LH, AF.... continue flying down there you'll have plenty of destinations from Brazil... There will be a slight reduction in numbers of seats but it's not the end of the world. To avoid following the path of Varig, Tam has to carefully choose where to fly, keep the profitable routes for themselves and rely on codeshares and connections for the rest of the world


User currently offlineJJMNGR From Brazil, joined May 2004, 1018 posts, RR: 15
Reply 17, posted (8 years 3 months 3 weeks 4 days 23 hours ago) and read 2033 times:

Ghost77

I´d love to see TAM to go to MEX...I did some internal maneuvers to seem what can be done, but some other destinations are priorities. But for sure MEX would be great. I share same opinion with you.


User currently offlineABK777 From United States of America, joined Jun 2006, 11 posts, RR: 0
Reply 18, posted (8 years 3 months 3 weeks 4 days 18 hours ago) and read 1937 times:

Do you think TAM has interest in LAX and is it at the top of their priority list or are other destinations more desirable?

User currently offlineLeelaw From , joined Dec 1969, posts, RR:
Reply 19, posted (8 years 3 months 3 weeks 4 days 5 hours ago) and read 1808 times:

Brazil Judge Demands VarigLog Detail Varig Bid Thursday

DOW JONES NEWSWIRES
June 29, 2006 9:01 a.m.

SAO PAULO (Dow Jones)--Brazilian bankruptcy judge Luiz Roberto Ayoub gave VarigLog until the end of Thursday to detail its $500 million proposal to buy its ailing ex-parent, Brazil's flagship airline Viacao Aerea Rio-Grandense, or Varig.

Ayoub will then decide whether to accept the bid from the cargo company, owned by a group of investors including U.S. investment fund Matlin Patterson, put the airline up for auction once again or start liquidating the company...


http://online.wsj.com/article/BT-CO-20060629-707249.html


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