Flying Belgian
Topic Author
Posts: 1906
Joined: Mon Jun 04, 2001 12:45 am

Situation At Varig?

Mon Mar 10, 2003 7:21 pm

Here is what I've read on another website:

Varig will discontinue a number of routes this month (Mar10, 2003)
Rio to Madrid = Already discontinued.
Rio to New York JFK = Discontinued yesterday.
Salvador to Madrid = To be discontinued on 22Mar03.
Salvador to Lisbon = To be discontinued on 23Mar03.
Salvador to Milan = To be discontinued on 25Mar03.
Salvador to Paris = To be discontinued on 25Mar03.
Salvador to Frankfurt = To be discontinued on 26Mar03.

- Does anyone know whether RG had to return its 777 to ILFC ?? What happened to the plane seized in CDG ?
- I assume they already returned a 767 to GECAS ?
- What's their financial situation ? So bad ?
- Are they really going to merge with TAM ?

Thanks for your help !

FB.
Life is great at 41.000 feet...
 
Ciro
Posts: 639
Joined: Mon Aug 16, 1999 5:00 pm

RE: Situation At Varig?

Mon Mar 10, 2003 7:57 pm

Varig is doing bad as you already know... It failed to become a market-oriented company after the deregulation (or whatever you can call the monopoly breach) in Brazil.

Varig will return 6 wide-body aircraft by June, which include 767 and MD-11. If I am not mistaken, the 777 were already sized out or are in the final process of doing so.

Financially speaking, the airline is just a disaster and its directors have always managed to post-pond Varig's sudden death. I am surprised they were actually able to go on with this for over one decade!

Anyways, The Brazilian Aviation Sector does not have a choice to set itself in a stronger position if not by consolidating. Other countries, which are economically much stronger already did so, like Australia, Canada and Japan. The merger is inevitable in this case.

Also, the merger will streamline capacity; since TAM is getting new Airbuses which current passenger demand could not absorb if Varig's jets were still around.
The fastest way to become a millionaire in the airline business is to start as a billionaire.
 
Ciro
Posts: 639
Joined: Mon Aug 16, 1999 5:00 pm

RE: Situation At Varig?

Mon Mar 10, 2003 11:44 pm

According to http://www.estado.com.br/editorias//2003/03/10/eco016.html (in Portuguese), 6 B767-200 will be returned to the lesser on Wednesday.

That's it guys... The almost 80 years-old grandma, Varig, is apparently coming to an end. The funeral will be sad, since it used to be one of our national signs of pride overseas.

The fastest way to become a millionaire in the airline business is to start as a billionaire.
 
Flying Belgian
Topic Author
Posts: 1906
Joined: Mon Jun 04, 2001 12:45 am

RE: Situation At Varig?

Wed Mar 12, 2003 1:52 am

Thanks for the info Ciro,

Unfortunately it seems too late for VARIG to react promptly.
I wasn't aware that their situation was that serious.

FB.
Life is great at 41.000 feet...
 
Jj
Posts: 1189
Joined: Sun Jun 24, 2001 7:40 am

RE: Situation At Varig?

Wed Mar 12, 2003 3:11 am

In the end either Tam or Transbrasil (or both) will fill hte space left by VARIG and (probably) VASP. I didn't really liked Varig, but I of course, hope they can fly through this situation and get better...
 
DETA737
Posts: 617
Joined: Sat Oct 07, 2000 3:47 am

RE: Situation At Varig?

Wed Mar 12, 2003 4:00 am

Jj- Transbrasil went out of business a while ago, in December 2001 to be exact. They were saddled by debt.

I never realised that Varig had flights from Salvador to Madrid, Milan and Paris. I knew about Lisbon and Frankfurt though. Didn't they just start these flights recently? I've heard about the merger with TAM, and I wonder what name the new company will take. It will be interesting to see if they will use mostly Airbus aircraft. It will be sad to see the Varig name disappear it has so much history behind it, but things right now don't look good apparently the company has a $900 million debt.
 
donder10
Posts: 6944
Joined: Sun Oct 21, 2001 5:29 am

RE: Situation At Varig?

Wed Mar 12, 2003 4:35 am

Why are Varig in such a bad state in crude terms?
 
LJ
Posts: 4103
Joined: Wed Nov 17, 1999 8:28 pm

RE: Situation At Varig?

Wed Mar 12, 2003 4:52 am

Does anyone know whether RG had to return its 777 to ILFC ?? What happened to the plane seized in CDG ?

They're still flying the daily POA-GRU-CDG-AMS-CDG-GRU-POA flight.
 
TF-FIW
Posts: 127
Joined: Wed Nov 15, 2000 7:45 pm

RE: Situation At Varig?

Wed Mar 12, 2003 5:17 am

Is it confirmed that RG will vanish ?
I thought they will merge with JJ....
What will happen then to STAR ?

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