Leelaw From , joined Dec 1969, posts, RR: Posted (9 years 1 month 3 weeks 5 days 3 hours ago) and read 17559 times:
SAO PAULO (Dow Jones)--Brazil's embattled flagship airline Viacao Aerea Rio-Grandense, or Varig, will announce this month the purchase of 50 airplanes to supplement its dwindling fleet, Marco Antonio Audi, chairman of the airline's new owners, Volo do Brasil, said late Thursday.
According to the local Estado newswire, he said the company could invest up to $300 million in purchases from two different plane makers.
Audi said he is negotiating "with all plane makers," including Brazil aircraft manufacturer Empresa Brasileira de Aeronautica SA and Airbus...
Stitch From United States of America, joined Jul 2005, 33102 posts, RR: 85
Reply 3, posted (9 years 1 month 3 weeks 5 days 3 hours ago) and read 17473 times:
$300 million isn't going to get them 50 new Cessnas, to say nothing of Airbus narrowbody or widebodies.
Did the "new" Varig get any of the planes from the "old" Varig (which is now being used to dumb all the debts)? If not, perhaps this $300 million is being used to acquire some "pre-existing" Embraer and Airbus assets that might have been returned to the lessors/lein-holders?
JAM747 From United States of America, joined Feb 2005, 550 posts, RR: 1
Reply 5, posted (9 years 1 month 3 weeks 5 days 3 hours ago) and read 17215 times:
On a previous trend it was mentioned that RG had laid off the 777 crew and were considering used 747s. I do not know if this true or if there has been a change of thought. Does anyone know if this is really true?
RoseFlyer From United States of America, joined Feb 2004, 10485 posts, RR: 52
Reply 7, posted (9 years 1 month 3 weeks 5 days 2 hours ago) and read 17127 times:
Quoting ThePRGuy (Reply 4): Unless they are planning to buy a bunch of clacked out jets, $300m is way too low to buy brand new jets outright.
Unless they are speaking of financing them.
Of course $300M won't buy many planes outright, but it is a huge deposit. Planes are bought with financing and paid off through their lifetime or they are leased. Few airlines pay for planes up front since the cost of airplanes is so high. The finances of an airline are just not high enough. The planes are the biggest asset of an airline.
If you have never designed an airplane part before, let the real designers do the work!
Antiuser From Italy, joined May 2004, 657 posts, RR: 1
Reply 9, posted (9 years 1 month 3 weeks 5 days 2 hours ago) and read 17025 times:
The information is they'll announce the timeline for the acquisition of 50 new aircraft in 2 weeks, not that they'll be acquiring 50 new aircraft outright. That'd just be silly given the situation the company's in.
Embraer and Airbus only... and no Boeing... this is a very stupid management announcement. Airbus will not lower its prices. And certainly RG-Boeing strong relationship for years is now terminated!!
Not necessarily. What if Airbus and Embraer were to inject $ into the airline directly or otherwise? Think of US Airways which had a deal struck with Airbus. Also, what if the 5-year strong relationship with Boeing was unfavourable and contributed to the airline's financial woes? Airlines do get into certain unfavourable deals because they have no alternatives and have to meet with demand and face off competition, and when things get better, they do review and act according to their best interest.
LVZXV From Gabon, joined Mar 2004, 2041 posts, RR: 34
Reply 12, posted (9 years 1 month 3 weeks 5 days 1 hour ago) and read 16796 times:
So clearly RG's management is still high as a kite...
Such is the credibility of said announcement that if I were RG, I would pack-up tomorrow to avoid further embarassment. RG have become the laughing stock of the aviation world, and it seems that their management is yet to realise that the jokes are on them.
LipeGIG From Brazil, joined May 2005, 11496 posts, RR: 57
Reply 13, posted (9 years 1 month 3 weeks 5 days ago) and read 16553 times:
Ok guys, all the information i have right now:
1) There are 2 747 (and will be 747-400) under negotiations with a lessor. The condition is not the one Varig is looking for, but they are still trying as they are looking for this big bird!
2) A decision in favor of a new plane on RG fleet is now 75% in favor of Airbus A320/A319. The US$ 300 mm is really just the deposit and Varig is looking for long term financing and seems that Air Canada is helping them!
New York + Rio de Janeiro = One of the best combinations !
Quoting LVZXV (Reply 12): Such is the credibility of said announcement that if I were RG, I would pack-up tomorrow to avoid further embarassment. RG have become the laughing stock of the aviation world, and it seems that their management is yet to realise that the jokes are on them.
I would cut the slack on them, ZXV. Remember, this is not the Fundación Ruben Berta smashing RG to the ground and still making delirious promises. Sounds logical that they announce the timeline for a 50 airplane acquisition so that they expand their service to more profitable routes, in the future, of course.
Just like UA and US should be. If RG kept afloat going that deep, don't underestimate her. You won't be seeing RG dead anytime soon.
Quoting Ghost77 (Reply 1): Embraer and Airbus only... and no Boeing... this is a very stupid management announcement. Airbus will not lower its prices. And certainly RG-Boeing strong relationship for years is now terminated!!
Strong relationship? I thought that only started when Boeing bought out McDonnell Douglas. And if you read correctly, they said they are considering all plane manufactures - Airbus and Embraer INCLUDED.
Indeed good news. RG shaking up the remnants of a horrible administration and narrowing everything down to profitability has been the way to go.
Let's hope the 'Volo' group, owner of both Varig and VarigLog can get RG back where she belongs and where she used to be, along with AR - a premium airline, the pride of Latin America.
Gastón - The MD11junkie
There is no such thing as Boeing vs Airbus as the queen of the skies has three engines, winglets and the sweetest nose!
Antiuser From Italy, joined May 2004, 657 posts, RR: 1
Reply 21, posted (9 years 1 month 3 weeks 4 days 19 hours ago) and read 15810 times:
Quoting American777 (Reply 20): I already knew RG operated the type before! The only reason I posted that modification was because since RG wants 744's again that is a preview of how they'll look like in the CURRENT LIVERY!
Gotcha. Won't look too different from the 747-300s they had