Following in the footsteps of Varig, Vasp filed their recovery plan with a Sao Paulo state bankruptcy court, which approved it today. Judge Alexandre Lazzarini also stated that the management appointed by the labour courts will remain in control of the airline during the recovery process.
Like Varig, VP's plan consists in effectively splitting the company in 2. One company will retain investment funds for VP's assets (real estate, aircraft and parts), while the other will be the operational airline. Creditors will be able to obtain quotas of the investment funds and receive the profits from the sale of VP's assets. The plan is to get VP flying again in 8 to 10 months.
Vasp's case is more complicated than Varig's, however. As crippled as RG may be, their brand is still somewhat valuable, based on their history and sheer size. RG also had a large enough fleet that even with the recent shrinkage, they're still able to operate some routes with decent (if not good) aircraft. Vasp, on the other hand, has a long history of not honouring commitments with creditors, customers, governments and partner airlines. Their fleet, or whatever remained of it, is old and costly to mantain. The final nail in VP's coffin was the withdrawal by Brazil's civil aviation authority of their operating certificate, since VP failed to comply with airworthiness directives for their 737-200 fleet. At the time it was rumoured that the cost of bringing these aircraft up to date was higher than what the aircraft themselves were worth, and now you can see several of these aircraft rotting away in several airports around Brazil. Last but not least, they don't have a good image with the Brazilian public. Afther they finally went bust, what little market share they still held was quickly absorbed by GOL, TAM, BRA and even RG. It would take a lot of effort and money to bring VP up again, and it's probably not a very wise investment.
[Edited 2006-08-25 20:43:55]