Topic Author
Posts: 247
Joined: Wed May 19, 1999 7:20 am

bad news for Varig

Fri Mar 19, 1999 5:04 am

varig brazilian airlines ahs seized operations to the following destinations:

Washington D.C
Porto, Portugal

flights from miami to rio de janeiro and sao paulo will continue regularly but flights from miami to northeastern brazil will be reduced. Varig has canceled these flights because the company is in major financial toruble since the brazilian currency was devalued by 35%. this will only mean the other brazilian airlines will soon follow varigs decisions to reduce intl operations.
Posts: 2115
Joined: Tue May 18, 1999 3:49 am

RE: bad news for Varig

Fri Mar 19, 1999 5:53 am

That's dispoiting !!

Air France has just reached an agreement with TAM (second acrrier in Brazil) to increase its flights to Brazil, because they needed it fro the guests... !!

AF flies now non-stop flights to Rio de Janeiro too (it was with a stop at Sao Paulo).

Certainly the troubles of the brazilian currency have been harder for Varig than the global economy in Brazil.


RE: Bad News For Varig

Mon Mar 22, 1999 6:50 am

Varig is in so much trouble because of their old and pending debts and with the devaluation of the brazilian currency, it only got worse. Also they are changing their livery and that's consuming more money, and also a major power struggle inside the company is helping to make things bad. Varig used to enjoy a lot of privileges in the brazilian airline market, and they still have an state owned company structure, something that comes from the privilage days. But Varig is a major part of World airline history, having been around since 1927, and it can't be shutdown. I don't think it will come to this though.