jrosa
Posts: 351
Joined: Fri Jun 03, 2005 11:06 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 11:05 am

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.

Unfortunately, thats it.

José Carlos
 
avconsultant
Posts: 709
Joined: Sun Feb 26, 2006 1:18 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 11:07 am

How will the soccer team return home?
 
boeingguy1
Posts: 395
Joined: Mon Jan 02, 2006 4:31 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 11:10 am

Quoting AvConsultant (Reply 1):
How will the soccer team return home?

"Special Lufthansa Charter"... lol
"...Gatwick South!? Id rather crash in Brighton!"
 
FlyDeltaJets
Posts: 1631
Joined: Thu Feb 02, 2006 4:24 pm

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 11:11 am

TO be honest with the exception of the last two days the only RG a/c I have seen is the one by the AA hangar. But it would be sad to see anybody lose thier jobs.
The only valid opinions are those based in facts
 
jetblueatjfk
Posts: 1556
Joined: Sun Jan 02, 2005 4:42 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 11:14 am

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.

B6jfk airplane 
 
avconsultant
Posts: 709
Joined: Sun Feb 26, 2006 1:18 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 11:26 am

Quoting Boeingguy1 (Reply 2):
"Special Lufthansa Charter"... lol

How did Emirates land the World Cup sponsorship in Luthansa's back yard?
 
DLKAPA
Posts: 7962
Joined: Wed Dec 03, 2003 10:37 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 11:28 am

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.
And all at once the crowd begins to sing: Sometimes the hardest thing and the right thing are the same
 
Newark777
Posts: 8284
Joined: Thu Dec 02, 2004 6:23 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 11:29 am

Quoting AvConsultant (Reply 5):

How did Emirates land the World Cup sponsorship in Luthansa's back yard?

The same way Budweiser got the beer sponsorship.  Wink

Harry
Why grab a Heine when you can grab a Busch?
 
Cadet57
Posts: 7174
Joined: Mon Jul 25, 2005 2:02 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 11:36 am

IIRC, diddnt someone say that they only had enought fuel to last them until this coming Sunday?


Filler
Doors open, right hand side, next stop is Springfield.
 
DC10Forever
Posts: 81
Joined: Tue Oct 18, 2005 10:25 pm

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 11:37 am

I have also heart this rumor. They have also opened its crisis room located at GIG this evening.

However, every week since the beggining of its chapter 11 procedure that I hear someme saying that Varig will cease operation this week. But now the rumor is very, very strong.

Dispite the fact that Judge Ayoub approved the sale of the company to TGV, I have just read on O Globo newpaper that they still don't have the money !!!

http://oglobo.globo.com/online/plantao/2006/06/19/284336911.asp

It's a joke.
Better one flying than two grounded
 
sampa737
Posts: 463
Joined: Mon May 09, 2005 2:20 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 11:41 am

Wow...it IS over. Sad day in Brasil.
 
looneytoon
Posts: 438
Joined: Thu Mar 10, 2005 9:33 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 11:48 am

Quoting DC10Forever (Reply 9):
approved the sale of the company to TGV

who is TGV?
LooneyToon
 
mirrodie
Posts: 6789
Joined: Wed Apr 19, 2000 3:33 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 11:59 am

Whoa, so I just got a pic of PP-VRE at JFK

Also saw PP-VTE leaving JFK today, a Varig Charter plane. So I saw its last voyage?!
Forum moderator 2001-2010; He's a pedantic, pontificating, pretentious bastard, a belligerent old fart, a worthless st
 
ltbewr
Posts: 12427
Joined: Thu Jan 29, 2004 1:24 pm

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 12:09 pm

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) ?.
 
jrosa
Posts: 351
Joined: Fri Jun 03, 2005 11:06 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 12:20 pm

Quoting LooneyToon (Reply 11):
who is TGV?

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.
 
looneytoon
Posts: 438
Joined: Thu Mar 10, 2005 9:33 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 12:21 pm

this is going to be a sad moment, whenever it happens...  Sad
LooneyToon
 
B4REAL
Posts: 2559
Joined: Sun Aug 10, 2003 5:53 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 12:21 pm

I'm having trouble doing some tracking of RG flights. Can anyone track them?
B4REAL, spelled like it sounds
 
Longhornmaniac
Posts: 2967
Joined: Wed Jun 15, 2005 2:33 pm

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 12:24 pm

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.

RIP Varig  tombstone 

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.

Cheers,
Cameron
Cheers,
Cameron
 
sampa737
Posts: 463
Joined: Mon May 09, 2005 2:20 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 12:26 pm

Been trying to track since late evening. Haven't been able to yet.  Sad
 
B4REAL
Posts: 2559
Joined: Sun Aug 10, 2003 5:53 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 12:31 pm

I'm found RG 8752 GRU-LHR that should have taken off last night @ 11:40 P.M. not yet airborne on Flytecomm.

I've flown RG, they were good to me. Good service, nice planes, good food.
B4REAL, spelled like it sounds
 
Cleared2Land4
Posts: 168
Joined: Fri Feb 18, 2005 11:42 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 12:37 pm

Nothing new on flightaware.com =(
United Airlines... "It's Time to Fly."
 
B4REAL
Posts: 2559
Joined: Sun Aug 10, 2003 5:53 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 12:37 pm

These two news stories have popped up that don't indicate an operational stop is as soon as now:

http://www.bloomberg.com/apps/news?p...d=aKfL1PaEh8To&refer=latin_america

http://www.forbes.com/home/feeds/afx/2006/06/19/afx2825966.html

However, I still can't find any outbound RG flights from GRU.
B4REAL, spelled like it sounds
 
Newark777
Posts: 8284
Joined: Thu Dec 02, 2004 6:23 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 12:42 pm

Here's the GRU activity page. Is that an unusual amount of cancellations?

http://www.infraero.gov.br/sivnet/modelo.php?ai=SBGR&sent=P

Harry
Why grab a Heine when you can grab a Busch?
 
User avatar
RayChuang
Posts: 8007
Joined: Sat Jun 24, 2000 7:43 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 1:22 pm

With Varig shutting down, can TAM take up the slack? And can other international airlines fill in the gap caused by the shutdown of Varig?
 
TACAA320
Posts: 7153
Joined: Fri Aug 06, 2004 3:03 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 2:07 pm

'Science without religion is lame, religion without science is blind'. Albert Einstein
 
KLM685
Posts: 1506
Joined: Sat May 21, 2005 12:41 pm

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 2:58 pm

Sad Day for Brazil and Latinamerica. Varig was certainly a leader among latin airlines. I was just lucky to fly them when they were still holding up!
KLM- The Best Airline in the World!
 
jog
Posts: 262
Joined: Fri Jul 08, 2005 7:40 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 3:20 pm

Just a current picture of yesterday's GRU flights which are not in the air yet according to infraero's website:
Flight To Date Scheduled Estimated Terminal Stops Status
RG8946 Aruba 19/06/2006 11:55 06:00 2 Caracas Confirmed
RG9232 Aruba 19/06/2006 11:55 06:00 2 Caracas Confirmed
RG2110 Porto Alegre-RS 19/06/2006 14:25 - 2 - Cancelled
RG8648 Buenos Aires 19/06/2006 15:00 - 2 - Cancelled
RG2330 Salvador-BA 19/06/2006 20:45 - 2 - Cancelled
RG8922 Santiago 19/06/2006 21:30 - 2 - Cancelled
RG8714 Madrid 19/06/2006 22:20 07:10 2 - Confirmed
RG9642 Madrid 19/06/2006 22:20 07:10 2 - Confirmed
RG8836 Los Angeles 19/06/2006 23:50 - 2 - Cancelled
RG8818 Miami-Florida 19/06/2006 23:55 - 2 - Confirmed
RG9834 Miami-Florida 19/06/2006 23:55 - 2 - Confirmed
RG8864 Nova Iorque-NY 19/06/2006 23:59 - 2 - Cancelled
 
AR385
Posts: 6742
Joined: Fri Nov 07, 2003 8:25 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 3:21 pm

If this rumor is true,

I think we should stop with the silly jokes, at least for a few days. A lot of actual people are going to go through hard times and suffering because of this. As an ex-ENRON employee I simpathyze with all the VARIG employees who may have their company disappear from underneath them.

I am truly sorry to see such a worldwide institution disappear. VARIG was very important for the development of commercial aviation in Latin America and between Latin America and the world. It is a huge loss for the aviation community worldwide and a sad one at it.

Having said that. This has been going on for years. For at least seven years VARIG has been in financial trouble. Why did it have to come to this? It would cut routes and lay off employees, then, it would pick up the routes again and re-hire the employees. It got new planes and then returned them. Then it picked them up again. What kind of management would be so incompetent?

I also believe that VARIG's troubles are not due to 9/11 or to the price of fuel. They predated those events. Why did no one did anything? You can keep year after year throwing good money after bad money. This is the result. It's as if VARIG lost its will to survive close to a decade ago.

I am truly sorry
 
jog
Posts: 262
Joined: Fri Jul 08, 2005 7:40 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 3:27 pm

Quoting B4real (Reply 21):
These two news stories have popped up that don't indicate an operational stop is as soon as now:

http://www.bloomberg.com/apps/news?p...erica

This article finally explains what this job really is about (it is so often so true...):

Quote:
The group, formed by Varig's pilots and fight attendants, won its approval after presenting the judge with two unnamed investors, Marsillac said.


[Edited 2006-06-20 08:34:07]
 
adriaticus
Posts: 989
Joined: Thu May 06, 2004 3:29 pm

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 3:34 pm

Quoting Jog (Reply 28):
this article finally explains what this job really is about:

Quote:
The group, formed by Varig's pilots and fight attendants, won its approval after presenting the judge with two unnamed investors, Marsillac said.

And your point is...??

__Ad.
A300/18/19/20/21 B721/2 B732/3/G/8 B741/2/4 B752 B762/3/4 B772/3 DC8/9/10 MD11 TU134/154 IL62/86 An24 SA340/2000 E45/90
 
jog
Posts: 262
Joined: Fri Jul 08, 2005 7:40 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 3:55 pm

Quoting Adriaticus (Reply 29):
And your point is...??

if I am not totally wrong it should be flight attendant, although you often have to fight in this job... and I really look up to these flight attendants of RG that try everything to save their company. So they really fight for their jobs.

[Edited 2006-06-20 09:00:12]
 
WesternA318
Posts: 4477
Joined: Sun Oct 17, 2004 11:55 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 4:03 pm

Quoting DLKAPA (Reply 6):
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.

Isn't this kinda how Braniff shut down? By making sure all the planes were parked home at DFW?

Quoting B4real (Reply 19):
I've flown RG, they were good to me. Good service, nice planes, good food.

Same here, I flew them in 92 on a 747-300 from LAX to GIG, absolutely incredible.
Check out my blog at fl310travel.blogspot.com!
 
User avatar
Aeroflot777
Posts: 2995
Joined: Mon Mar 22, 2004 2:19 pm

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 4:10 pm

It's truly sad to see such a carrier go. By now I think its pretty certain that the airline is completely shutting down. Good luck to all the Varig employees out there!!

Aeroflot7777
 
HBDAN
Posts: 560
Joined: Fri Jan 20, 2006 10:05 pm

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 4:25 pm

Hey hey hey, calm down!!!!

http://www.terra.net.lb/wp/Articles/....aspx?ArticleID=291431&ChannelId=6
http://www.thestar.com/NASApp/cs/Con...geid=968350072197&col=969048863851
http://news.bbc.co.uk/1/hi/business/5097180.stm

So, now TGV has got the ball (and hope some money) & tickets are still bookable on their site... Why is everyone "grounding" them? I know their situation is really bad, but I still can see some hope!

Regards,
HBDAN
Next flight: hopefully soon...
 
blueflyer
Posts: 3657
Joined: Tue Jan 31, 2006 4:17 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 4:38 pm

Quoting Jog (Reply 26):
Just a current picture of yesterday's GRU flights

Not a pretty picture, and RG8818/MIA is now more than 4 hours late without an explanation. On the other hand, RG8752/LHR left, 30 minutes late, but it's on its way. That can be interpreted as a good sign (or a short reprieve). Varig probably would cancel that flight too if they intended to shut down on Tuesday.

With RG8752 in the air, it is likely that any official shutdown will not commence until that plane comes back, for fear of having the aircraft grounded in LHR at the request of one British creditor or another (I'm pretty sure there's some, if only BAA). The flight is still scheduled out of LHR at 22:00 on Tuesday and I don't think it would deadhead over such a long distance. Varig may postpone the official shutdown until that plane comes back Wednesday morning and cancel a growing number of flights between now and then.

A good indicator is RG8714/MAD. If it does take off at 7:10 as rescheduled, the airline will probably live to see another day. If it doesn't, well, if you're optimistic, it's just another cancellation, but if you think the glass is half-empty, it's just another sign the end is near.

Or it may be just another rumor... The bankruptcy judge's approval of the sale may have convinced a creditor to give Varig another line of credit to cover its running expenses for the three days that the buyer has to make its first payment. Paying for Varig's fuel for an extra three days in the hope that the airline does get sold and live on, and that creditors are fully paid up, may be a good bet when the alternative is to see the carrier go under and creditors get pennies on the dollar.
Recep Tayyip Erdoğan has no clothes.
 
User avatar
LTU932
Posts: 13075
Joined: Fri Jan 06, 2006 12:34 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 4:42 pm

I still hope these rumours are false, but if they were to be confirmed, it would be a very sad day for Aviation. My sympathies to the employees of RG, and best of luck for the future.

- Richie
 
MaartenV
Posts: 261
Joined: Wed Aug 10, 2005 6:16 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 4:49 pm

Quoting BlueFlyer (Reply 34):
Paying for Varig's fuel for an extra three days in the hope that the airline does get sold and live on, and that creditors are fully paid up, may be a good bet when the alternative is to see the carrier go under and creditors get pennies on the dollar.

Seeing that RG has been financially unstable the last couple of years. Knowing that the bid for Varig which has been accepted by the judge was way lower then the bottom price the judge proposed at the beginning of the auction, which, to me, is an indication that the new owners don't have a whole lot more to spent, but are just employees who are trying to save their job (can't blame them). I would be a bit pessimistic as a creditor and not really eager to give risk more money.
Its all about supply and demand...
 
padster
Posts: 55
Joined: Mon Nov 28, 2005 8:03 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 4:52 pm

The varig LHR flight is "contact airline " on the LHR website , it does not look good...
 
HBDAN
Posts: 560
Joined: Fri Jan 20, 2006 10:05 pm

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 5:08 pm

Quoting Padster (Reply 37):
The varig LHR flight is "contact airline " on the LHR website , it does not look good...

It is yesterday's flight. Today's flight is on its route to LHR.

Regards,
HBDAN
Next flight: hopefully soon...
 
blueflyer
Posts: 3657
Joined: Tue Jan 31, 2006 4:17 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 5:25 pm

Quoting MaartenV (Reply 36):
I would be a bit pessimistic as a creditor and not really eager to give risk more money.

Fair and probably accurate reasoning, but with a company in a financial situation such as Varig, it is as much risk management as gambling. If, as a creditor, you're already in the hole for a huge amount, the payoff that a small additional risk may bring is just as huge. When you get confronted with a situation such as this, you go visit your in-house statistician and make him run the numbers based on whatever probability you think the new business plan has to succeed. Then you look at the numbers and you still end up making a gutt call.

I've seen this process three times. That doesn't make me an expert in the field, but for what I understood of those numbers, all I can say is that tney never pointed to one obvious direction, so in the end, I still think it comes down to the account manager deciding how much more hair he is willing to lose (and I like my hair just fine, one of many reasons I'll never be in a position to make such calls).
Recep Tayyip Erdoğan has no clothes.
 
User avatar
Luxair
Posts: 836
Joined: Tue Jan 30, 2001 12:17 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 5:33 pm

As said above, it's another rumour and I hope that it's not true, if yes, than it will be a very sad day in aviation history. VARIG, one of the big names in the industry who will just disappear like that, that can't be true!!! I hope that they will survive those very difficult times. I will miss those nice painted MD11's and/or 777's here in Europe. Good luck to you VARIG!
 
lamedianaranja
Posts: 1195
Joined: Mon Nov 08, 2004 1:21 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 6:15 pm

Quoting LTBEWR (Reply 13):
If one follows the way other airlines have ceased ops, the most important thing is to secure the airplanes at a central location

That's how I remember the end of Viasa, late afternoon of the 23rd of January 97 all a/c had returned home to CCS and then they announced the cease of operations. Even after almost 10 years it is something that is still a big part of the ex-Viasa employees' life and I really hope nobody at Varig has to go trhough what we all went through. Hopefully the company can make a go-around, now owned by their workers consortium TGV  crossfingers 
I wish that all skies were orange and blue!!
 
SR800
Posts: 13
Joined: Sun Mar 05, 2006 12:57 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 6:37 pm

As a former SR employee I can only imagine what the 1000s of dedicated RG staff must be thinking & going through now. Stay strong, and all the best to you all for whatever lies ahead - here's hoping it won't be the debacle that we experienced in Switzerland in October '01.
 
aircanada014
Posts: 1224
Joined: Sun Oct 09, 2005 2:24 pm

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 6:52 pm

Well if tomorrow is over don't forget you still have AC and TP to decide if they will invest in RG by midnight tonight.
 
JJMNGR
Posts: 924
Joined: Wed May 26, 2004 9:06 pm

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 8:28 pm

Guys,

Rumors or not that this will happen today, all this is just part of this long soap opera. If will not be today, might me tomorrow, or in 5 days, or in two weeks....fact is that RG has no condition.

The judge acknowledge the TGV proposal to buy VARIG. In fact what does it mean? He washed his hands and trowed RG to market scenario which is deeply bad. And supposing that TGV presents the credits, etc, etc...do they really have capacity to manage VARIG from now on?
They are not buying an airline with troubles but with health enough to get up from the bad. They are buying an airline on its way to the grave.

I was always criticized by many for going straight to the point. Sorry again if what I wrote above disliked some but it is reality.

I posted before and I agree with AR385. No matter what happens, there are some thousands of employees and their families mourning all this situation and they need some respect. I wouldn´t like to be in their shoes.
 
noelg
Posts: 2313
Joined: Fri Apr 26, 2002 11:39 pm

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 8:50 pm

Quoting SR800 (Reply 42):
As a former SR employee I can only imagine what the 1000s of dedicated RG staff must be thinking & going through now.



Quoting JJMNGR (Reply 44):
No matter what happens, there are some thousands of employees and their families mourning all this situation and they need some respect. I wouldn´t like to be in their shoes.

Look on the bright side. Nobody has died, other jobs are out there. I've been made redundant before and as much as it feels crap at the time, there are other jobs out there. (unless you have the attitude of certain members of their UK/Ireland callcentre, in which case they'd struggle and I hope their attitude bites them on the ass  Wink)

So chin up Varig employees - it's not the end of the world!
 
HBDAN
Posts: 560
Joined: Fri Jan 20, 2006 10:05 pm

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 8:56 pm

Quoting Noelg (Reply 45):
Look on the bright side. Nobody has died, other jobs are out there. I've been made redundant before and as much as it feels crap at the time, there are other jobs out there. (unless you have the attitude of certain members of their UK/Ireland callcentre, in which case they'd struggle and I hope their attitude bites them on the ass )

So chin up Varig employees - it's not the end of the world!

1- You live in England, not in Brazil. The unemployement rate is sligtly different I belive.
2- You were made redundand, it was not your company (for many: your dream company) that went bust! You were made redundand, not thousend and thousend besides you.

Do you love your company? Well, think that tomorrow it goes bust... yes, you can start to fill your pants with s**t!

Regards,
HBDAN
Next flight: hopefully soon...
 
panamair
Posts: 3767
Joined: Fri Oct 12, 2001 2:24 am

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 9:05 pm

Quoting JJMNGR (Reply 44):
Rumors or not that this will happen today, all this is just part of this long soap opera. If will not be today, might me tomorrow, or in 5 days, or in two weeks....fact is that RG has no condition.

The judge acknowledge the TGV proposal to buy VARIG. In fact what does it mean? He washed his hands and trowed RG to market scenario which is deeply bad. And supposing that TGV presents the credits, etc, etc...do they really have capacity to manage VARIG from now on?
They are not buying an airline with troubles but with health enough to get up from the bad. They are buying an airline on its way to the grave.

I haven't been following all the details closely, but from what I've read so far, sadly, I have to agree with you. Even though the new owners don't have to assume the huge debt, where are they going to get the funds to dig RG out of this tailspin and continue to fund operations? Is the $450 million purchase price going to pay off some of the current creditors or will it be used for day-to-day operations? If the latter, then there is a little hope, but RG is not going to turn around overnight just because there are new owners. It is conceivable that for RG to continue operating, there will need to be quite a cash cushion for continued losses until changes take place.
And another thing, what is the new business strategy? I haven't really seen much regarding what RG is going to do differently with this fresh start? Are they going to rationalize the fleet, streamline the network, focus on a different market segment, etc.? If it's to continue with the status quo, then it will only be a matter of time before this new money runs out too....
 
GBan
Posts: 488
Joined: Thu Jun 16, 2005 5:10 pm

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 9:07 pm

Quoting AvConsultant (Reply 5):
How did Emirates land the World Cup sponsorship in Luthansa's back yard?



Quoting Newark777 (Reply 7):
The same way Budweiser got the beer sponsorship.

Difference is that we are still allowed to fly Lufthansa but we are not allowed to drink German/Bavarian beer anywhere near the world cup venues. Not even in places where they show the games on large public screens...

Freedom/Business the way FIFA likes it.

(Sorry for being off topic)
 
hangarrat
Posts: 428
Joined: Wed Jul 06, 2005 12:24 pm

Rumor: Varig Will Cease It's Operations Tomorrow

Tue Jun 20, 2006 9:27 pm

As of 0826 on 6-20, PANYNJ is still listing outbound RG flights on its Web site.
Spell check is a false dog