Airline Finance News - Latin America / Caribbean.

For more airline finance news, data and analysis, please go to: http://www.airguideonline.com/professional.htm Jun 26, 2006

Varig

Varig users should be very careful over the coming weeks until its solvency position clarifies itself. As things stand flights are being canceled at an alarming rate and on Friday a Brazilian judge failed to approve the sale of the airline to a consortium backed by TVG, the airline's main trade union. But with various aircraft grounded in the US and creditors at the door nothing is certain. In the meantime Brazil's other airlines are hanging around like vultures (and who can blame them). Should Brazil win the World Cup Varig, as the team's official sponsor, would be hard pressed to bring the victorious 11 home. (plus a mass of hangers on - Brazilians traditionally travel in numbers). The carrier has indefinitely suspended services to ten cities including New York, Paris, Los Angeles and Milan. London, for the time being, remains. http://www.varig.co.uk Jun 24, 2006

Varig

Varig said yesterday that it is suspending some flights to the US, Europe and three cities in South America after being forced by a US Bankruptcy Court judge to ground leased aircraft. In a statement on its website, the airline said it will stop serving New York, Los Angeles (leaving Miami as its only US gateway), Mexico City, Montevideo, Asuncion, Bogota, Milan, Munich, Paris and Madrid. Operations are suspended until at least June 28, according to press reports. The carrier has grounded 20-35 aircraft, according to various sources. The court was scheduled to rule yesterday on a request by Varig to extend a restraining order against lessors attempting to repossess aircraft. The airline said it will focus on prioritizing more popular and higher-yield routes. Passengers holding tickets on the suspended services will be accommodated on other Varig flights or by other airlines. Jun 22, 2006

Varig

Rio judge gives Varig employees until Friday to pay $75 million. Apparently satisfied that an investor group organized by Varig employees has its financial affairs in order, a Rio de Janeiro bankruptcy court judge approved a BRL1.01 billion ($449.7 million) bid for the ailing airline late Monday.Judge Luiz Roberto Ayoub had given his conditional blessing to the proposal from NV Participacoes last week but said he needed more time to review the bid structure and financial details. "The consortium has presented the explanations and the guarantees necessary and the court is satisfied," the judge told reporters. NVP has until Friday to deposit $75 million or Varig will go back onto the auction block. Jun 21, 2006