||VARIG AIRLINES VRG LINHAS AEREAS
||Currently Not Operational
||RIO DE JANEIRO
||+55 (21) 3814 5000
||+55 (21) 3814 5700
Click below for data links:
VAR-2004-08 DEBT PROBLEMS
VAR-2004-10-B STAR ALLIANCE
VAR-2004-11 - 757-200
VAR-2004-12 - STAR ALLIANCE
VAR-2005-06-B STAR ALLIANCE
VAR-DC-10 - VARIGLOG
VAR-MAINTENANCE MRO VEM
VAR-MAINTENANCE MRO VEM-2005-05
VAR-MAINTENANCE MRO VEM-A
VAR-VISIT RIO - 2011-11
FORMED AND STARTED OPERATIONS IN 1927. BRAZILS LARGEST, AND PRINCIPAL CARRIER. FOUNDED BY GERMAN IMMIGRANT OTTO ERNEST MAYER, IN THE CITY OF PORTO ALEGRE. VARIG (VAR) ORIGINALLY OPERATED LOCAL SERVICES IN SOUTHERN BRAZIL, BUT ADDED ITS 1ST INTERNATIONAL ROUTE TO MONTEVIDEO ESTABLISHED IN 1942. TRANSATLANTIC SERVICE BEGAN IN 1965. (VAR) TOOK OVER THE GIANT "REAL" CONSORTIUM IN 1961, MAKING IT THE LARGEST AIRLINE IN SOUTH AMERICA. (VAR) ACQUIRED A CONTROLLING INTEREST IN LOCAL AIRLINE, CRUZIERO DO SUL IN 1975, WHICH WAS FULLY INTEGRATED INTO (VAR) IN 1993. DOMESTIC & INTERNATIONAL, SCHEDULED, PASSENGERS & CARGO, JET AIRPLANE SERVICES.
AVENIDA ALMIRANTE SILVIO DE NORONHA 365
RIO DE JANEIRO, CEP 20 021-010, BRAZIL
BRAZIL (FEDERATIVE REPUBLIC OF BRAZIL) WAS ESTABLISHED IN 1822, IT COVERS AN AREA OF 8,511,965 SQ KM, ITS POPULATION IS 165 MILLION, ITS CAPITAL CITY IS BRASILIA, AND ITS OFFICIAL LANGUAGE IS PORTUGESE.
AUGUST 1995: 1ST 6 MONTHS = -$104 Million (-$245 Million) (NET LOSS): +7% PASSENGERS (PAX).
TO SELL 5 747'S: 2 747-200'S & 3 747-300'S.
NOVEMBER 1995: CODE SHARE WITH DELTA AIRLINES (DAL), NEW YORK TO RIO, & SAO PAULO.
JANUARY 1996: 1995 = +$2.08 Million (-$7.1 Million): +5.3% (RPK) TRAFFIC, +6.1% PASSENGERS (PAX), +24.8% (FTK) FREIGHT TRAFFIC.
MARCH 1996: FERNANDO ABS DA CRUZ SOUZA PINTO, NEW DIRECTOR PRESIDENT, REPLACED WILLY ENGELS.
APRIL 1996: TO CODE SHARE WITH TRANSBRASIL (TBL) FOR SUMMER MONTHS TO USA, SAO PAULO, RIO, BRASILIA, NEW YORK, MIAMI (MIA), DALLAS/FORT WORTH (DFW), & ORLANDO.
19,000 EMPLOYEES (INCLUDING 5,011 FLIGHT CREW (FC)).
JULY 1996: NEW ROUTE TO CHINA.
1ST 6 MONTHS = -$160 MILLION.
AUGUST 1996: VIP RECONFIGURATION FOR PRESIDENT'S 707 (BRF),
SEPTEMBER 1996: 2 737-200'S (JT8D-17), 5 YEAR LEASED, EX-LAPSA (LAZ).
OCTOBER 1996: NEW "IMAGE" ROLLOUT BY LANDOR ASSOCIATES, SAN FRANCISCO.
TO ACQUIRE 2 727-200'S & 2 MD-11'S. SOLD 10 OF 17 737-200'S AND LEASED BACK.
JANUARY 1997: CODE SHARE WITH TRANSBRASIL (TBL), ON INTERNATIONAL ROUTES.
RUMORS THAT VARIG (VAR) WILL EVENTUALLY PURCHASE (TBL).
1996 = -$58 MILLION: 13.54 BILLION (RPM) TRAFFIC (#26 HIGHEST IN THE WORLD).
1 MD-11, (GUI) LEASED, 2ND IN APRIL 1997.
FEBRUARY 1997: 2ND 737-200, 2ND EX-(LAZ) LEASED. LOOKING FOR +2 737-300'S (TALKING TO MAERSK (MRS).
FEBRUARY 1997: ACCDT: (VAR) 737-2C3 (21013) DESTROYED ON LANDING AT CARAJAS, PARAGUAY, IN SEVERE RAIN, VEERED OFF RUNWAY, CROSSED DRAINAGE DITCH, AND STRUCK TREES = CO-PILOT (FC) KILLED OF 6 (FC) - (CA)/46 PASSENGERS. POSSIBLE AQUAPLANING IN LOSS OF CONTROL.
APRIL 1997: 1996 FISCAL YEAR (FY) = +$90 MILLION (NET PROFIT): $2.2 BILLION DEBTS. 1ST QUARTER = +12% (RPK) TRAFFIC.
ENDS CODE SHARE WITH DELTA AIRLINES (DAL). FORMS "PARTNERSHIP" WITH UNITED AIRLINES (UAL). HAS 33% OF USA - BRAZIL MARKET, (UAL) HAS 28%. (UAL) CODE SHARE.
18,203 EMPLOYEES (INCLUDING 4,765 FLIGHT CREW (FC)).
1 ORDER (SEPTEMBER 1998) 737-300, BOULLION (BOU) LEASED. ALSO +2 737'S (1997) & 2 IN 1998. 2ND MD-11 (CF6-80C2) (48500), EX-GARUDA (GIA) DELIVERIES.
MAY 1997: CELEBRATES 70 YEARS OPERATIONS!
AFTER MAINTENANCE ERROR DECISION AID (MEDA) AWARENESS PRESENTATION BY BOEING VISIT LAST MONTH, QUALITY ASSURANCE DEPARTMENT IS ENTHUSIASTIC ABOUT IMPLEMENTING THE PROGRAM.
737-219 (21131) RETURNED TO LADECO (LDE), SOLD TO LANCHILE (LAN).
AUGUST 1997: 737-300 (PQ331) DELIVERY.
SEPTEMBER 1997: FISCAL YEAR (FY) 1996 = -$64 MILLION.
1 737-300, TACA (TAC) 5 YEAR LEASED.
OCTOBER 1997: $400 MILLION TO (IBM)/(SITA), FOR INFORMATION TECHNOLOGY SERVICES: (IBM) FOR FACILITIES OUTSOURCING, AND (SITA) FOR MANAGING VOICE & DATA, NETWORK SERVICES, FOR "SEAMLESS TRAVEL CONCEPT."
JOINS "STAR ALLIANCE," CONSISTING OF: UNITED AIRLINES (UAL), LUFTHANSA (DLH), AIR CANADA (ACN), SCANDINAVIAN AIRLINES (SAS), & THAI AIRWAYS (TII).
767 120 MINUTES (ETOPS) FLIGHTS/MONTH: 126 OVER MID ATLANTIC.
1ST 9 MONTHS = 18,849 MILLION (RPK) TRAFFIC (23RD HIGHEST IN THE WORLD).
1 737-300 DELIVERY (PR006). PAINTS 747-300 (PP-VNI) FUSELAGE IN 6 AIRLINES OF STAR ALLIANCE (SAL) COLORS.
NOVEMBER 1997: 1 DC-10-30 TO BE RETURNED TO LESSOR IN JANUARY 1998. ANOTHER IS FOR SALE. 1 737-36N (28671), (GUI) LEASED.
DECEMBER 1997: AS A MEMBER OF THE STAR ALLIANCE (SAL) WITH (UAL), (DLH), (ACN), (SAS), & (TII), AGREES TO A GLOBAL AIR CARGO SYSTEM, SHARING INFORMATION TECHNOLOGY HANDLING FACILITIES, & TO DEVELOP JOINT PRODUCTS.
1 747-200F (21543), KITTY HAWK INTERNATIONAL (CKF) WET-LEASED. 2 767-375ER'S (24086; 24087), EX-CANADIAN INTERNATIONAL (CDI), WESTINGHOUSE 5 YEAR LEASED. 3 737-300'S (28567; 28671; 28672), (GUI) 5 YEAR LEASED. PLANS TO ORDER (JANUARY 1999) 737-700'S & 5 737-800'S. 3RD MD-11 (48501), EX-GARUDA (GIA) DELIVERY. LETTER OF INTENT (LOI) 2 ORDERS (MARCH 1998) 767-300ER'S (24843; 24844), ITOCHU 5 YEAR LEASED.
JANUARY 1998: CARGO DIVISION PLANS TO INCREASE ITS REVENUE FROM $600 MILLION IN 1997, TO $1 BILLION BY 2000, BY ACQUIRING SEVERAL 727-200F'S, & EITHER A 747-200F, OR A DC-10-30F THIS YEAR.
1997 = 25.3 BILLION (RPK) TRAFFIC (+6.6%), 9.94 MILLION PASSENGERS (PAX).
FEBRUARY 1998: PREVIOUSLY 22,000, NOW 17,000 EMPLOYEES (GOAL 14,500 EMPLOYEES).
737-200 (PK561), 4 YEAR LEASED TO PLUNA (PLU). DC-10-30 (47844) WAS LEASED TO (PLU), NOW SOLD TO NORTHWEST AIRLINES (NWA).
MARCH 1998: 2 737-33R'S (2899-28870, (GAX) LEASED, 2900-28871, SUNROCK (SNR) LEASED) DELIVERIES. DC-10-30 (202-46916) TO CANADIAN INTERNATIONAL (CDI).
APRIL 1998: 18,203 EMPLOYEES (INCLUDING 4,765 FC).
INCREASES ITS SHARES IN (PLU) TO 49%. REMAINDER OWNED BY GOVT 49%, & 2% MESA BROTHERS.
FY 1997 = +$24.2M (NET PROFIT): 68% LF (LOAD FACTOR) (+2).
MAY 1998: NEW FREIGHTER ROUTE, CURITIBA TO MILAN (DC-10-30F).
2 737-300'S (PR043; PR044), EX-(WPA) DELIVERIES.
JUNE 1998: PAINTS 737-300 (PP-VOZ) IN SPECIAL "WORLD CUP SOCCER" PAINT SCHEME, AND BASES IT IN FRANCE, FOR BRAZIL, 1998 WORLD CUP SOCCER TEAM (REIGNING CHAMPIONS). PAINTS 767-200ER (PP-VNS) IN "STAR ALLIANCE" OPERATORS' COLORS.
JULY 1998: TO TAKE 4 MD-11'S, EX-GARUDA (GIA). 1 ORDER 737-300 (29245) (9/98), SUNROCK (SNR) LEASED.
1997 TOP WORLD AIRLINES COMPARISON:
EMPLOYEES (000): 18 IBE 22; 19 SAS 22; 20 ACN 22; 21 TII 22; 22 PIA 21; 23 ALI 19; 24 AIN 19; 25 VAR 18; 26 JAL 17; 27 KAL 17.
1ST 6 MONTHS = +8.7% RPK, +9.4% PAX.
(ETOPS) 120 MINUTES FLIGHTS/MONTH (TOTAL): 12 767'S = 120 (9,357) OVER
SEPTEMBER 1998: FARNBOROUGH SHOW ANNOUNCEMENT OF $2.7B, OF 39 BOEING AIRPLANES, INCLUDING OPTIONS: 4/11 ORDERS 737-700'S, 10 ORDERS 737-800'S, 6 ORDERS 767-300ER'S, & 4/4 ORDERS 777-200'S (1ST IN LATIN AMERICA). 737 DELIVERIES'S, STARTING 2000, 767'S IN 1999, & 777 IN 2001.
FY 1997 = +$221.21M.
4 MD-11'S (48502; 48503; 48504; 48753), EX-GARUDA (GIA). CANCELLED 11 ORDERS 737-300'S, & 6 ORDERS 747-400'S. 737-300 DELIVERY.
OCTOBER 1998: 1ST 6 MONTHS = 12.98B RPK (+8.7%), 649M FTK (+6.3%), 5.17M PAX (+9.4%).
12 767'S, 120 MINUTES (ETOPS) OVER MID-ATLANTIC = 122 (9,726).
5 ORDERS (11/98) 737-700'S (28580; 28582; 28583; 28584; 28585), GECAS (GEH) 5 YEAR LEASED. WET-LEASES 1 737-200 (PK561) TO PLUNA (PLU).
NOVEMBER 1998: 2 ORDERS (4/00) 777-200'S IGW (GE90), (ILF) 10 YEAR (28678; 28679). 737-3Q8 (2139-24962) RETURNED TO (ILF), LEASED TO COLOR AIR (ANW). 2 MD-11'S (520-48502; 528-48503), BOEING (TBC) LEASED.
DECEMBER 1998: HAS REDUCED HEADCOUNT FROM 29,000 (1991) TO TODAY'S 17,000 EMPLOYEES.
3 737-76N'S, GECAS (GEH) LEASED. DC-10-30 (156-46945), LEASED TO AVENSA (AVN). 1 MD-11 (548-48504), (TBC) LEASED.
JANUARY 1999: IN 3/99, TO CODE SHARE WITH ALL NIPPON (ANA) TO TOKYO (747-300) AND NAGOYA, VIA LOS ANGELES (LAX).
FEBRUARY 1999: FERNANDO PINTO, CEO, NAMED "1998 LATIN AMERICA AVIATION PERSON OF THE YEAR" BY SPANISH, AVIATION MAGAZINE "REVISTA." "OFFICIAL AIRLINE GUIDE (OAG) WORLDWIDE" NAMES VARIG (VAR) "1998 BEST CARIBBEAN, CENTRAL & SOUTH AMERICAN AIRLINE."
2 737-700'S DELIVERIES.
MARCH 1999: 1998 = 15.8B RPM (TRAFFIC), 11M PASSENGERS (PAX).
DC-10 FLEET FOR SALE. 2 737-3K9'S RETURN TO LESSOR IN 4/99, TO TRANSBRASIL (TBL). 2 DC-10-30'S RETURNED TO LESSOR (47282; 47845).
APRIL 1999: AS PART OF COST REDUCTION, DUE TO DEVALUATION OF THE REAL, HAS GROUNDED 6 737-200'S, AND 2 DC-10-30'S.
18,203 EMPLOYEES (INCLUDING 4,765 FC).
2 737-3K9'S (23797; 23798) RETURNED TO BAVARIA (BAV), LEASED TO (TBL).
MAY 1999: BRAZILIAN ECONOMY, FORCES CANCELATION OF 2 ORDERS 777-200'S IGW, (ILF) LEASED. MAY CUT WORKFORCE TO 15,500 WITHIN 2 MONTHS. PLANS TO DEFER BOEING DELIVERIES. OUTSOURCES ITS INFORMATION TECHNOLOGY.
2 DC-10-30'S (355; 356), (LOI) BY NORTHWEST AIRLINES (NWA), ANOTHER (335) RETURNED TO MITSUI, (176) STILL FOR SALE. TO GROUND 747-300 FLEET, RETURN 3 TO (ILF), AND 2 TO BE SOLD.
JUNE 1999: PLANS TO REDUCE 87% SHARES TO 51% OF RUBEN BERTA FOUNDATION, AND MAKE AVAILABLE TO INVESTORS, & INTERNATIONAL PARTNERS.
2 DC-10-30'S (355; 356) TO NORTHWEST AIRLINES (NWA). DC-10-30 (335) RETURNED TO MITSUI, LEASED TO SKYJET (SKJ).
1998 TOP WORLD AIRLINES TRAFFIC RPM (B):
22 KAL 19.95; 23 MAS 18.25; 24 SWS 17.43; 25 CDI 16.70; 26 AMW 16.36; 27 VAR 16.25; 28 SAS 12.98; 29 CHI 12.64; 30 VAA 12.27; 31 SVA 11.69; 32 ASA 11.27; 33 ANZ 11.15; 34 ANS 10.14.
JULY 1999: VARIG (VAR) IS HOPING TO GAIN PART OF APPROXIMATELY $1.2B IN GOVERNMENT COMPENSATION FOR 1986, FROZEN, AIR FARE RATES.
AUGUST 1999: 1ST 6 MONTHS = -8.8% RPK (PASSENGER TRAFFIC); -24.9% FTK (FREIGHT TRAFFIC).
PLANS TO GROUND ITS 5 747-300'S IN 1999. 3 737-2C3'S (PK115; PK141; PK145), RETURNED TO AAR SALES & LEASING (AFD).
SEPTEMBER 1999: LAST Q = -$26.5M: INTERNATIONAL 72% LF (LOAD FACTOR), DOMESTIC 71% LF.
2 MD-11'S (476; 478) TO BE RETURNED TO GECAS (GEH) BY END OF 1999. LAST DC-10 (176) SOLD TO COMPASS CAPITAL CORPORATION. WILL KEEP 2 DC-10-30F'S. 737-200 (21130) LEASED TO PLUNA (PLU). DC-10-30 (356-47845) SOLD TO NORTHWEST AIRLINES (NWA).
OCTOBER 1999: 1ST 9 MONTHS = 17.83B RPK (TRAFFIC) (-12%), 764.41M FTK (FREIGHT TRAFFIC) (-20.4%), 7.55M PASSENGER (PAX) (-7.6%).
737-2C3 (397-21014) SOLD TO AAR (AFD).
NOVEMBER 1999: 3RD Q = -$5M (+$64M).
SOLD LAST DC-10-30 (176) TO COMPASS CAPITAL. 2 MD-11'S (613; 615) DELIVERIES. RETURNED MD-11'S (476; 478) TO (GEH).
DECEMBER 1999: 1998 = -$15.3M (+$16.8M): 11.85B RPK (-8.8%), 4.98M PAX (-3.7%); 486.87M FTK (-24.9%).
(LOI) 4 ORDERS (6/00) 737-800'S (2 (SNR), 2 (GAX) LEASED). 3 747-341'S RETURNED TO (ILF), 2 TO AIR ATLANTA ICELANDIC (AID).
JANUARY 2000: VARIG CARGO TO TAKE OVER AIR FREIGHT BUSINESS, FROM SUBSIDIARIES, NORDESTE (NOD) & RIO-SUL (ROS).
2 MD-11'S (476-48434; 478-48435) RETURNED TO LESSOR.
FEBRUARY 2000: HAS BEEN SELLING TICKETS ONLINE, SINCE 1998, & WILL INVEST $100K, IN 2000, TO IMPROVE VARIG (VAR) HOMEPAGE. EXPECTS ELECTRONIC REVENUES OF $5M, IN 2000.
1999 = -12.7% RPK, -16.1% FTK, 65.6% LF INTERNATIONAL, 64.2% LF DOMESTIC.
TO INCREASE FLIGHTS TO VENEZUELA BY 30%, TO ACTIVELY PROMOTE MORE TRADE AND TRAVEL, BETWEEN THE 2 COUNTRIES, WITH AN EMPHASIS ON DAILY SERVICE.
MARCH 2000: PLANS FOR CODE SHARE WITH SPANAIR (SPP). IN 6/00, SAO PAULO TO MUNICH (767-300ER).
1999 = 23.62B RPK (-12.7%); 1.08B FTK (-16.1%); 10.07M PAX (-8.7%).
4 737-800'S, ORIGINALLY SCHEDULED FOR DELIVERY STARTING 5/00, WILL NOW GO TO SOUTH AFRICAN AIRWAYS (SAA). TRANSFERS 737-219 (426-21130, PP-VPE) TO PLUNA (PLU), FOR RETURN OF 737-241 (390-21004, PP-SMI).
APRIL 2000: 1999 = -$54M (-$14.3M), MOSTLY ATTRIBUTABLE TO THE SHARP DEVALUATION OF THE CURRENCY, IN THE CONTEXT OF BRAZIL'S ACUTE RECESSION.
CREATES VARIG TRAVEL VACATIONS, TOUR DIVISION, TO USE LATEST E-COMMERCE TECHNOLOGY.
BOOST FROM STAR ALLIANCE, ALLOWS CAPACITY (ASK) 8% INCREASE/YEAR, FOR 3 YEARS.
2 747-300'S SOLD TO ATLAS (TLS) FOR CONVERSION TO FREIGHTER. EXPECTS TO ACQUIRE 15 777'S. 8 777'S ALREADY ON ORDER, WITH 4 IN 2001, 4 IN 2002. OTHER 7 TO BE LEASED IN 2001, POSSIBLY INCLUDING -300'S. 4 737-700/-800'S, & 4 MD-11'S, TO BE DELIVERED IN 2000.
MAY 2000: IN 6/00, SAO PAULO - MUNICH (767-300ER).
CONSIDERING PLANS TO REACTIVATE SUBSIDIARY ROTATUR, AS LOW COST, DOMESTIC AIRLINE, TO COMPETE WITH LATEST OPERATIONAL AGREEMENT BETWEEN TRANSBRASIL (TBL), & TAM BRAZIL (TPR).
OZIRES SILVA, PRESIDENT & CEO, 69, CHAIRMAN OF (VPTA), WHICH CONTROLS VARIG (VAR)'S DOMESTIC SUBSIDIARY, RIO-SUL (ROS) AND NORDESTE (NOD), & WHO IS ALSO PRESIDENT OF EMBRAER, REPLACES FERNANDO PINTO.
2 737-300'S (24098; 24377), EX-TAESA (TES), ING LEASED. 2 MD-11'S (488; 491), EX-VASP (VSP).
1 737-300, EX-TRANSBRASIL (TBL), GECAS (GEH) LEASED. 2 747-341C'S (23394; 23395) SOLD TO ATLAS AIR (TLS).
JUNE 2000: IN 9/00, WILL IMPLEMENT A CARGO MARKETING & OPERATIONS AGREEMENT WITH LUFTHANSA (DLH), TO INCREASE CARGO FLIGHTS 40%, WITHOUT PURCHASING EXTRA AIRPLANES TO EUROPE, USING LUFTHANSA GERMAN CARGO (LUB) AIRPLANES.
1ST Q = -$9M (-$27M).
4 737-4YO'S, EX-TRANSBASIL (TBL), (GEH) LEASED. (LOI) 2 ORDERS (10/01) 777-241'S, (ILF) LEASED, TO REPLACE 2 MD-11'S. PLANS TO LEASE +2 737-800'S, DUE TO INCREASED DEMAND. WILL ULTIMATELY NEED +15 777'S.
JULY 2000: BRAZIL CELEBRATES ITS 500TH ANNIVERSARY OF EUROPEAN DISCOVERY BY PORTUGESE EXPLORER, PEDRO ALVARES CABRAL, WHO SET OUT FROM LISBON IN 1500 HEADING FOR WEST INDIA, BUT SOUTH AMERICA GOT IN THE WAY. THE EXPEDITION SPOTTED MOUNT PASCOAL, IN BRAZIL. A REPLICA OF THE BOA ESPARANCA (GOOD HOPE) IS MAKING ANOTHER TRIP TO BRAZIL THIS SPRING AND SUMMER.
1999 = -$52M (-$14M): 23.62B RPK (-12.7%); 1.08B FTK (-16.1%); 10.07M PAX (-8.7%); 17,741 EMPLOYEES (-1.4%).
767-341ER (314-24843, PP-VOK) HAS SPECIAL COLOR SCHEME. 2 MD-11'S (CF6-80C2) (48413; 48414), EX-VASP (VSP), TOMBO (TOM) LEASED.
AUGUST 2000: 2ND Q = -$4.6M (-$24.3M).
CLOSES VARIG CARGO OPERATIONS, AND INVESTS $100M, OVER 5 YEARS, IN NEW AIR FREIGHT SUBSIDIARY, VARIG LOGISTICA, WHICH WILL COMPETE WITH BRAZIL'S POST OFFICE. TO START OPERATIONS 10/00, WITH 12 CARGO AIRPLANES & 2,000 DELIVERY TRUCKS, WITH WAREHOUSES, & DISTRIBUTION CENTERS, IN STRATEGIC LOCATIONS, THROUGHOUT BRAZIL. WILL DELIVER CARGO AND PARCELS, TO ALL OF BRAZIL'S 5,500 MUNICIPALITIES, WITHIN 6 MONTHS.
JOSE ROCHA LIMA, CEO, VARIG LOGISTICA, SAYS BUSINESS WILL GROW 600% IN 5 YEARS.
2 ORDERS (10/01) 777-200ER'S (GE90-90B) (28689; 28692), (ILF) 10 YEAR LEASED. 1 737-4Y0 (1759-24511, /89 37 32, PP-VQR), EX-TRANSBRASIL (TBL), (GEH) 4 YEAR LEASED. LAST 747-300 DELIVERED TO ATLAS AIR (TLS).
SEPTEMBER 2000: NEW AIR CARGO SUBSIDIARY, NAMED VARILOG (FOR LOGISTICS), TO START IN 10/00.
2 727-200F'S, EX-VASP (VSP), PEGASUS (PSS) LEASED (-2J7: 1037-20880, PP-SFF, -242: 725-2166, PP-SFE). 2 MD-11'S (601; 603), EX-(VSP), (TBC) LEASED.
OCTOBER 2000: 1ST 6 MONTHS, TOP WORLD AIRLINES TRAFFIC RPK (B):
12 ACN 20.96; 13 KAL 19.47; 14 IBE 18.77; 15 AMW 15.02; 16 VAR
12.59; 17 SAS 11.16; 18 GUN 10.79; 19 AAT 9.47.
1 737-4YO (24513), EX-TRANSBRASIL (TBL), (GEH) 4 YEAR LEASED. SUBSIDIARY, ROTATUR, IS CHARTERING 1 737 FROM VARIG (VAR), PLUS RIO-SOL (ROS), AND NORDESTE (NOD), FOR LOW-FARE, NIGHT FLIGHTS.
NOVEMBER 2000: 15,852 EMPLOYEES (INCLUDING 1,326 FLIGHT CREW (FC), 2,942 CABIN ATTENDANTS (CA), & 3,884 MAINTENANCE TECHNICIANS (MT) (-12%).
3RD Q = -$90K (-$5M).
DECEMBER 2000: IN 4/01, CODE SHARE WITH ALITALIA (ALI), TO ITALY.
1ST 9 MONTHS = 19.79B RPK (+11%); 883.63M FTK (+15.6%); 8.12M PAX (+7.6%).
TOP WORLD AIRLINES TRAFFIC RPK (B):
17 IBE 30.21; 18 AMW 23.12; 19 VAA 22.08; 20 VAR 19.79; 21 CHI 19.04; 22 ANA 17.66; 23 SAS 17.41; 24 GUN 16.36.
JANUARY 2001: TALKS WITH TAM BRAZIL (TPR) RE-POSSIBLE INTERNATIONAL ALLIANCE. VARIG (VAR), & (TPR), TOGETHER, CONTROL 70% OF DOMESTIC MARKET.
2000 = +12.6% RPK, +14.3% FTK; INTERNATIONAL 72.7% LF; 62.9% LF DOMESTIC.
RESTRUCTURES ORGANIZATION, INCLUDING FRB-PAR INVESTMENTS, A NEW CREATION OF THE RUBEN BERTA FOUNDATION, WHICH HAS ALWAYS BEEN THE CONTROLLING ORGANIZATION. (VAR) IS THE LARGEST HOLDING, BUT 2 ADDITIONAL HOLDINGS, INCLUDING VARIG PARTICIPATION EM TRANSPORTS AEREAS (VPTA), & VARIG PARTICIPACOES EM SERVICOS COMPLEMENTARES (VPSC). (VPTA) NOW CONTROLS RIO-SUL (ROS), NORDESTE (NOD), & ROTATUR (TRAVEL AGENCY), WHILE (VPSC) INCLUDES HOTELS, SATA (AIRPLANE GROUND SERVICE GROUP) & AMADEUS BRASIL (RESERVATIONS SYSTEM).
VARIG LOGISTICA (VARIG LOG), WILL BE VARIG (VAR)'S CARGO OPERATIONS, & ALSO PART OF (VPTA). WILL HAVE 5 727-100F'S, 2 727-200F'S, & 2 DC-10-30F'S.
THE NEW ORGANIZATION WILL HAVE "A CLEARER VIEW OF THE COMPANY'S CORPORATE VISION, AND EACH OF THE COMPANIES, WILL HAVE MORE FLEXIBILITY, AGILITY, AND QUICKNESS TO RESPOND TO THE ECONOMIC CHANGES OF THE NEW MILLENIUM."
PLANS TO ORDER NEW, 767-400'S, WITHIN NEXT 2 YEARS.
TOP WORLD AIRLINES 2000 TRAFFIC:
22 MAS 23.58; 23 SWS 21.28; 24 AMW 19.10; 25 VAA 18.31; 26 VAR
16.33; 27 CHI 16.14; 28 SAS 14.07; 29 ANZ 13.81.
FEBRUARY 2001: SUBSIDIARY, VARIGLOG, EXPANDS IN ARGENTINA, CHILE, COLOMBIA, MEXICO, PERU, URUGUAY, AND VENEZUELA. HAS 15% MARKET SHARE IN BRAZIL. TO USE DC-10'S, TO SAO PAULO, LIMA, MEXICO CITY, LOS ANGELES (LAX), BOGOTA, MIAMI (MIA), AND NEW YORK.
1 DC-10-30F (179), CURTIS & CO LEASED. PLANS TO ACQUIRE 5 747-200F'S.
MARCH 2001: 2000 = 26.60B RPK (+12.6%), 1.24B FTK (+14.3%), 10.90M PAX (+8.3%).
+15 ORDERS EMBRAER 145'S, DOUBLING ITS FLEET. 1 737-3S3 (1374-23787, PP-VQW), EX-(VSP), (ILF) LEASED.
APRIL 2001: CODE SHARE WITH TRANSBRASIL (TBL), TO LISBON (767, 24C, 162Y PAX).
2000 = -$90M (-$54M): +12.6% RPK; 73% LF.
1 DC-10-30F (179-46949, PP-VQY) DELIVERY.
MAY 2001: IN 6/01, (LAX)-LIMA (767-300, 6/WEEK), CONTINUING ONTO RIO DE JANEIRO, AND SAO PAULO.
MAINTENANCE CONTRACT FOR "C" CHECKS (30 DAYS), ON AEROLINEAS ARGENTINAS (ARG) 7 737-200'S.
2 ORDERS (9/01) 737-800'S, (GAX) LEASED WITH WINGLETS. NEGOTIATING LEASE OF 2 MD-11'S (600; 624). 1 MD-11 (CF6-80C2) (603-48769, /96 15 04 PP-VQX), EX-(VSP).
JUNE 2001: CODE SHARE WITH ASERCA (SEZ), TO CARACAS.
1ST Q = -$83M (-$7M).
1 737-33A (27284), AWW LEASED, EX-TAROM (TRM). 1 737-3S3 (1374-23787, /87 PP-VQW), EX-VASP (VSP), AVIATION CAPITAL (CGP) LEASED. 2 747-200'S FROM AEROLINEAS ARGENTINAS (ARG), HEAVY MAINTENANCE CHECKS COMPLETED.
JULY 2001: MANAUS, BRAZIL, TO MIAMI (737-700, 2 CLASS, WEEKLY).
LUIZ BARROS, CHAIRMAN.
VARIG (VAR), 51% OWNER OF URUGUAY-BASED, PLUNA (PLU), WILL COVER PART OF (PLU)'S, $10M LOSSES.
AUGUST 2001: 1ST 6 MONTHS = -$205M (+19.71%). TOTAL DEBT IS $1.3B.
PLANS TO SELL 35% OF 87% EQUITY, IN ORDER TO RESTRUCTURE ITS DEBT. FOREIGN OWNERSHIP IS LIMITED TO 20%.
SEPTEMBER 2001: FOLLOWING CURRENT AIRLINE INDUSTRY DOWNTURN, CUTS WORKFORCE BY 1,700 JOBS, AND RETURNS 13 NARROWBODY AIRPLANES (14% OF FLEET) TO LEAVE 82 AIRPLANES.
737-85F (936-30571, PP-VSA), GAX LEASED. 1ST 777-200 DELIVERY.
INCDT: 737-2C3 (392-21012, PP-CJN), WRITTEN OFF (W/O) ON LANDING.
OCTOBER 2001: FACED WITH WORST CRISIS IN LATIN AMERICAN, AVIATION HISTORY, THE HEADS OF 11 MAJOR AIRLINE MEMBERS, OF THE LATIN AMERICAN, AIR TRANSPORT ASSOCIATION (AITAL): INCLUDING (ACE); (AVI); (AMX)/(CMA); (LAV); (AVN); (SEZ); (COP); (LAN); (TAC); (VAR); & (VSP), MET IN MIAMI, TO SEEK SOLUTIONS, AND POSSIBLE HELP FROM GOVERNMENTS.
TOP WORLD AIRLINES 1ST 9 MONTHS TRAFFIC RPK (B):
16 MAS 27.98; 17 ALI 27.92; 18 KAL 27.24; 19 AMW 24.20; 20 VAR 19.81; 21 CHI 19.70; 22 SAS 18.17; 23 EAD 17.59; 24 ANA 15.31; 25 ASA 15.31.
2 MD-11'S RETURNED TO (GEF). 12 737-200'S TO BE GROUNDED WITHIN NEXT 2 MONTHS, AND RETURNED TO LESSORS, OR SOLD.
NOVEMBER 2001: LAUNCHES TENZING COMMUNICATIONS, E-MAIL, AND INTERNET SERVICE ON ITS FLEET OF 6 777'S, VIA ITS NEW MATSUSHITA, MAS 3000, IN-FLIGHT ENTERTAINMENT SYSTEM.
1ST 9 MONTHS = -$239M (-$10M): 19.81B RPK (+.1%); 880.76M FTK (-.3%); 7.95M PAX (-2.2%).
2ND 777-2Q8 DELIVERY. 4 777'S, SCHEDULED FOR DELIVERY IN 2002, HAVE BEEN DEFERRED. 737-85F (30477), (GAX) LEASED.
DECEMBER 2001: REDUCES INTERNATIONAL CAPACITY, BY -12%, AND INCREASES DOMESTIC BY +4%.
JANUARY 2002: IN 2001, BRAZILIAN INTERNATIONAL TRAFFIC (RPK), UP +6%, WITH MARKET SHARE: VARIG (VAR) 82.3%, TAM BRAZIL (TPR) 17.7%, OTHERS 9.9%. BRAZILIAN DOMESTIC: +8.1% RPK, WITH MARKET SHARE (TPR) 36.68%, (VAR) 28.3%, VASP (VSP) 14.1%, RIO SUL (ROS) 8.9%, GOL (GOT) 8.1%, NORDESTE (NOD) 3.2%, AND OTHERS 1.5%.
FORMS A MAINTENANCE, REPAIR & OVERHAUL (MRO), SUBSIDIARY, CALLED VARIG ENGINEERING & MAINTENANCE (VEM), INCLUDING VARIG (VAR)'S, 4,000 MAINTENANCE TECHNICIANS (MT) PROFESSIONALS AND 49 FACILITIES THROUGHOUT LATIN AMERICA, WITH WIDEBODY BASE AT RIO DE JANEIRO, AND NARROW BODY BASE AT PORTO ALEGRE.
MANAUS - MIAMI (737-800).
2001 = 26.01B RPK (-2.2%); 1.19B FTK (-4.2%); 10.49M PAX (-3.8%).
2001 TOP 50 WORLD AIRLINES - TRAFFIC B RPM:
1 UAL 116.60; 2 AAL 106.15; 3 DAL 97.60; 4 NWA 73.11; 5 BAB 64.24; 6 AFA 59.54; 7 CAL 58.76; 8 DLH 56.76; 9 JAL 50.77; 10 USA 45.93; 11 SWA 44.50; 12 SIA 42.76; 13 QAN 42.14; 14 ACN 41.49; 15 KLM 35.76; 16 ANA 33.16; 17 CAT 27.81; 18 TII 27.43; 19 IBE 25.64; 20 KAL 23.73; 21 ALI 22.45; 22 MAS 22.29; 23 AMW 19.06; 24 VAA 17.65; 25 VAR 16.02; 26 CHI 16.00; 27 EAD 14.37; 28 SAS 14.26; 29 ANZ 13.54; 30 SAA 12.70; 31 SVA 12.56; 32 BEJ 12.39; 33 ASA 12.23; 34 JAS 10.06; 35 THY 9.35; 36 AMX 8.51; 37 PAL 8.36; 38 GIA 8.15; 39 CMA 7.99; 40 ELA 7.79; 41 GUL 7.65; 42 PIA 7.24; 43 AIN 7.10; 44 TAP 6.43; 45 EGP 5.53; 46 OLY 5.24; 47 AUL 5.06; 48 FIN 4.93; 49 IND 4.52; 50 CQT 4.51.
MARCH 2002: IN 1/02, VARIG (VAR) INTERNATIONAL 81.2% MARKET SHARE (-5.2% RPK); TAM BRAZIL (TPR) 18.8%; (VAR) DOMESTIC 38.8% MARKET SHARE; (TPR) 37.4%; GOL (GOT) 8.3%.
(TELEPHONE: (21) 814 50 00). (FAX: (21) 814 57 00).
2 MD-11'S RETURNED TO BOEING, FOR CONVERSION TO FREIGHTER, AND ON TO UNITED PARCEL SRVICES (UPS).
APRIL 2002: 2001 = -$207M.
VARIG (VAR) INJECTS $14.5M, AND URUGUAYAN GOVERNMENT $5.5M, INTO PLUNA (PLU), TO CANCEL DEBTS, AND AVOID TECHNICAL BANKRUPTCY.
TOP WORLD AIRLINES (2001 TRAFFIC B RPK):
16 CAT 44.79; 17 IBE 41.30; 18 KAL 37.95; 19 ALI 36.52; 20 AMW 30.69; 21 VAR 26.01; 22 CHI 25.06; 23 SAS 23.3.
(TELEPHONE: +55 (21) 3814 5000). (FAX: +55 (21) 3814 5700).
MAIN BASE: RIO DE JANEIRO - GALEAO INTERNATIONAL (GIG); SAO PAULO - CONGONHAS INTERNATIONAL (CGH).
HUBS: SALVADOR (SSA); RECIFE - GUARAPES INTERNATIONAL (REC); BRASILIA INTERNATIONAL (BSB).
PARENT ORGANIZATION/SHAREHOLDERS: RUBEN BERTA FOUNDATION (55.63%); STATE OF RIO GRANDE DO SOL (0.43%).
SUBSIDIARIES SHAREHOLDINGS: NORDESTE LINHAS AEREAS REGIONAIS (NOD) (99%); PLUNA (PLU) (49%); RIO-SUL SERVICOS AEREOS REGIONAIS (ROS) (97%); & VARIG LOG (100%).
BRAZIL'S PRINCIPAL AIR CARRIER, OPERATES TO 19 COUNTRIES ON 4 CONTINENTS, AS WELL AS 34 CITIES IN BRAZIL.
MD-11 (554-48439, PP-VPM) RETURNED TO BOEING CAPITAL.
MAY 2002: 5th anniversary of Star Alliance: (ACN); (ANZ); (AUL);(BMA); (CMA); (DLH); (LAL); (SAS); (SIA); (TII); Tyrolean; (UAL); & (VAR).
CELEBRATES 75TH YEAR ANNIVERSARY!
WILL LAY OFF 10% OF WORKFORCE, TO HELP REDUCE ITS DEBT. LONG-TERM PLANS INCLUDE BECOMING 1ST LATIN AMERICAN CARRIER TO FLY TO CHINA, WITH SELECTING A PARTNER TO OPERATE JOINTLY FROM THE USA, OR EUROPE.
1ST Q = -$54.4M/#135.1M REAIS (-#196M REAIS).
JUNE 2002: PLANS TO REDUCE FLEET BY RETURNING 7 737'S TO GECAS (GEF) (ALL 5 737-700'S & 2 737-300'S (PQ983; PQ985). 767-341 (289-24752, PP-VOI) PAINTED AS "OFFICIAL CARRIER OF BRAZILIAN SOCCER TEAM" (BRAZIL WON THE 2002 WORLD SOCCER FINAL).
July 2002: Salvador to Miami (767-200, weekly).
2001 = -$271.24M (-$22.08M): 26.01B RPK (-2.2%); 67.9% LF; 10.49M PAX (-3.8%); 1.19B FTK (-4.2%); 16,993 EMPLOYEES (+1.7%).
DC-10-30F (PP-VQY) painted with "VARIGLOG" on side of airplane, with VARIG in blue, and LOG in gold, on upper white fuselage, with lower, dark blue.
August 2002: Fortaleza - Salvador.
Plans to integrate subsidiaries, Rio Sul (ROS): 19 737's; 15 ERJ145's; & 5 EMB 120's, and Nordeste (NOD): 4 737's; 4 F 50's; & 3 EMB 120's, into its mainline operations, to give it 38.2% domestic mkt share, over TAM's (TPR) 35.6% share.
Names Arnim Lore, ex-CFO, of Rio-Sul (ROS), as President, and CEO, replacing Ozires Silva, who has headed (VAR), since 5/00. Envisions a $300M, capital injection from BNDES, the federal govt investment and development bank, with up to $200M more, coming from private investors. Debt is around -$900M.
Will return 11 737's to GECAS (GEF), over time. 2 737-36N's (28564; 28571), returned to lessor, leased to Norwegian (NWG).
September 2002: Sao Paulo - Paris - Amsterdam. To Madrid (767-200ER, 3/week).
1st 6 months = -# 1.04B REAIS/-$323.5M (-# 509.2M).
Plans to lease 4/5 737-300/400/500's, from Star Alliance partners, for up to a year, as well as 5-10 757-200's, from (ILF).
1 727-2A1F (1253-21341, PP-LGB), ex-(UPS), Platinum (PCM) leased. 3 737-341's (24277; 24278; 24279), returned to (GEF). 2 737-36N's (2964-28566; 2971-28567) returned to lessor.
October 2002: A federal court in Brasilia, ordered the government to reimburse Varig (VAR) for the losses it suffered through state economic plans, between 1986 - 1992. This could add $530 - $795M to its next set of accounts. (VAR) is accelerating its recapitalisation plans.
1st 6 months Top World Airlines Traffic B RPK:
1 AAL 95.18; 2 UAL 84.56; 3 DAL 74.53; 4 NWA 56.50; 5 BAB 49.30; 6 AFA 48.21; 7 CAL 47.49; 8 DLH 42.06; 9 JAL 39.44; 10 SWA 36.03; 11 SIA 36.00; 12 ACN 33.69; 13 USA 33.06; 14 KLM 27.54; 15 CAT 23.07; 16 IBE 19.53; 17 KAL 16.47; 18 CHI 15.70; 19 AMW 15.20; 20 ALI 14.21; 21 EAD 13.45; 22 VAR 12.68; 23 GUN 12.49; 24 SAS 12.01; 25 BEJ 10.32.
Florianapolis - Rio De Janeiro (GIG). Still the largest carrier in Latin America, Varig (VAR) carries 11.4M passengers/year, and operates 435 flights daily, to 18 countries.
737-4YO (1963-24692) returned to (GEF).
November 2002: Will cut -1,800 staff (-10%) by end of 2002.
In 12/02, code share with Air Canada (ACN), to Calgary, Ottawa, Montreal, and Vancouver, which connect with (ACN)'s Sao Paulo - Toronto flight.
Domestic Market share: 1 (VAR) 40.34%; 2 (TPR) 32.4%; 3 (GOT) 14.82% (+3.83%); 4 (VSP) 10.97% (-1.3%).
Varig (VAR)'s plan to restructure its -$900M debt and raise $300M capital (approved by management/creditors/Government) was rejected by the Ruben Berta Foundation, (VAR)'s majority stakeholder, leading to the resignation of Arnim Lore, President, and the Board of Directors. Manuel Guedes, was appointed interim President.
1st 9 months = 19.66B RPK (-.8%); 7.25M PAX (-8.8%); 853.47M FTK (-3.1%).
1st 9 months Top World Airlines Traffic RPK B:
1 AAL 148.39; 2 UAL 132.89; 3 DAL 123.75; 4 NWA 88.26; 5 BAB 76.23; 6 AFA 74.00; 7 CAL 73.12; 8 DLH 67.07; 9 SIA 55.60; 10 SWA 55.20; 11 JAL 54.81; 12 ACN 54.41; 13 USA 50.38; 14 KLM 48.87; 15 QAN 43.76; 16 CAT 36.14; 17 IBE 30.78; 18 KAL 28.06; 19 AMW 23.82; 20 TII 19.76; 21 ALI 19.68; 22 SAS 18.82; 23 CHI 18.23; 24 VAR 17.47; 25 GUN 17.21.
(VAR) is preparing their 737-200 airplanes for sale or lease return. 3 737-341's (1637-24275; 1645-24276; 1660-24278) returned to GECAS (GEF).
January 2003: Chapeco - Florianopolis - Sao Paulo. Santiago - Florianapolis (weekly charter). Santiago - Sao Paulo - Cabo Frio.
January 2003: Domestic market share for month: VAR 35.91% (+.2); TPR 32.94% (-4.52); GOT 16.66% (+8.26); VSP 13.27% (-.82).
ILFC (ILF), through a court order in Paris, seizes Varig (VAR) 777-2Q8ER (28692) at Paris Charles de Gaulle (CDG) due to nonpayment of lease. Plans to return 7 Brasilias and 3 Embraer 145's to lessors.
February 2003: Aided by the Brazilian government, struggling airlines Varig (VAR) and TAM Brazil (TPR) signed a "protocol of understanding" intended to combine services to form a new airline within 6 months, under an agreement reached between the two parties. The carriers did not go so far as to state that the deal will result in a full-fledged operational integration, but did say they will create a new publicly traded holding company, with private control shared among the partners. With (TPR), will reduce flights on key domestic routes by close to 30% under a new code share deal.
777-2Q8ER (373-28692, PP-VRB), (ILF) leased (again). Will return 6 767-241ER's leased from GECAS (GEF).
March 2003: Code share with TAM Brazil (TPR), Sao Paulo (Congonhas) and Rio de Janeiro (SDU) to Curitiba, Florianapolis, Pampulha, Porto Alegre, and Vitoria, reducing flights by -30%. On the Rio de Janeiro to Sao Paulo "air bridge" Varig (VAR) and (TPR) will reduce flights from 66 to 42.
1st 9 months 2002 = -# 2.02B reais/-$563M.
737-341 (1673-24279) returened to (GEF). Had 767-241ER (161-23803, PP-VNN) repossessed by GECAS (GEF) at Miami. Returned 4 737-500's and 6 767-200's to lessors and will return 3 MD-11's by 6/03.
April 2003: Manuel Guedes, President, resigned.
May 2003: Varig Engineering & Maintenance (VEM) has heavy maintenance contract for "D" checks on 2 MD-11's of Thai International (TII) at Rio de Janeiro.
June 2003: In 11/03, (Rio de Janeiro) - Sao Paulo - Cancun - Mexico City (weekly).
July 2003: Has delayed its merger with TAM (TPR) following a dispute over maintenance facilities. Varig (VAR)'s majority shareholder FRBPar wants the Engineering & Maintenance division spun off into a separate entity.
August 2003: 2002 = -# BRL 2.8B/-$942M. Has a -ve net worth of -# BRL 4.5B.
September 2003: Manaus - Recife.
2002 = -$453.9M (-$204.3M): 26.12B RPK (+.4%); -.6% ASK; 69% LF (+1); 9.70M PAX (-7.5%); 1.18B FTK (-.9%). 10,572 EMPLOYEES (-7.5%).
2002 TOP WORLD AIRLINES TRAFFIC RPK (B):
20 (IBE) 40.47; 21 (MAS) 37.65; 22 (AMW) 32.00; 23 (EAD) 31.66; 24 (ALI) 30.03; 25 (GUN) 28.94; 26 (VAA) 27.00; 27 (CHI) 26.81; 28 (VAR) 26.12; 29 (BEJ) 24.00; 30 (SAS) 23.21.
1 +2 ORDERS MD-11 (463-48446, PP-VTG; 459-48444, PP-VTF, 10/03; 498-48457, PP-VTH, 12/03). 2 737-300's, Bavaria (BAV) leased. 2 767-3Y0ER's (505-26208, PP-VTE), Lift Missouri LLC leased.
December 2003: Varig Engineering & Maintenance (VEM) signed a long-term contract with Israel Aircraft Industries (IAI) under which (VEM) was named the (IAI) 767 freighter conversion center outside Israel. Under the contract, (VEM) will be responsible for the only modification line outside Israel, while fabrication of modification kits, engineering, marketing & sales are still under (IAI) responsibility.
3rd Q = -$85M, but posted its 1st quarterly operating profit of $47M since 1995.
2 MD-11's (48444; 48457), ex-Swiss (CSR), ABN-Amro leased.
January 2004: Star Alliance (Varig (VAR) is one of 15 members) signed a 5-year Info Technology (IT) accord with BEA Systems Inc, San Jose, California, an application infrastructure software firm. The contract gives Star's 15 members "the opportunity to introduce BEA's innovative application platform suite at a cost no single airline would be able to negotiate" said Michael Stagl, Star CIO. United Airlines (UAL), Lufthansa (DLH), & Singapore Airlines (SIA), as well as the alliance itself, have developed ticketing, baggage handling, and loyalty software applications on the BEA WebLogic platform in recent years. Under the new agreement, BEA WebLogic Server and BEA WebLogic Integration become Star's preferred application server and integration software.
777-236 (19-27109, PP-VRD), ex-British Airways (BAB), Boeing (TBC) leased.
February 2004: TAM (TPR) requested the Brazilian government to defer its merger with Varig (VAR) for 2 years.
(VAR) rejected a proposed investment of $500M from NV Particpacacoes, who had offered the investment in exchange for a 50% stake in the airline. NV Participacoes is 40% owned by (VAR) pilots with the remaining 60% held by foreign investors.
In 4/04, to resume Rio de Janeiro - Johannesburg (3/week). Natal - Madrid (weekly).
Varig Log, the cargo entity of (VAR), joined the Global Freight Exchange, a neutral reservations system for the airfreight industry.
737-341 (25050) returned to GATX (GAX) leased to BRA (BRW). 777-236
(17-27108, PP-VRC), ex-British Airways (BAB), Boeing (TBC) leased.
March 2004: MD-11 (48455, PP-VTJ), ex-Swiss (CSR), ABN-Amro leased.
April 2004: Fiscal Year (FY) 2003 = -# BRL 1.8B/-$625.8M (-# BRL 2.8B/-$973.4M).
737-4YO (1655-23977, PP-VTM), Aircraft SPC-6 leased.
May 2004: Resumes Manaus - Caracas (737, 1/week). In 6/04, resumes Rio de Janeiro - Miami (4/week). Sao Paulo (GRU) - Vitoria. Rio de Janeiro - Sao Paulo - Caracas - Aruba (weekly).
Upgrades Sao Paulo - New York (JFK) from MD-11 to 777.
Star Alliance: Air Canada (ACN); Air New Zealand (ANZ); All Nippon Airways (ANA); Asiana (AAR); Austrian (AUL); Blue 1 (applicant); bmi (BMA); (LOT) Polish Airlines; Lufthansa (DLH); Scandinavian Airlines (SAS); Singapore Airlines (SIA); South African Airways (SAA) (applicant); Spanair (SPP); (TAP) Air Portugal (applicant); Thai Airways (TII); United Airlines (UAL); US Airways (USA); & Varig (VAR).
MD-11 (611-48540, PP-VTK), ABN-Amro leased.
June 2004: (TAP) Portugal is considering taking a 20% stake in Varig (VAR). In 11/04, code share with (TAP) on all services between Brazil and Portugal.
July 2004: 737-4S3 (25116, PP-VTL), KM Association leased and 2 737-48E's (25764, PP-VTN; 25765, PP-VTO), Debis AirFinance (DEA) leased.
August 2004: 1st Q = -$58.8M. /03 = (-$783.51M): 26.55B RPK (+1.7%); 71.4% LF; 11.04M PAX (+13.8%); 1.06B FTK (-10.1%).
757-256 (860-26247, PP-VTQ), ex-Iberia (IBE), (ILF) leased.
2 MD-11's (48413; 48414), returned to Mitsui, sold to Lufthansa Cargo (LUB), which will be converted to freighter by Boeing at (SASCO), Singapore. MD-11 (571-48539, PP-VTP), Central Air Leasing leased.
September 2004: Sao Paulo - Buenos Aires - Lima (757 1st service).
757-256 (863-26248, PP-VTR), ex-Iberia (IBE), (ILF) leased. MD-11 (621-48541, PP-VTU), Central Air Leasing leased.
October 2004: 737-5H6 (2527-26456, LV-), (GEF) leased.
November 2004: Is attempting to sell its 49% stake in PLUNA (PLU). The Uruguayan government, who own the remaining 51%, is weighing bids between Aerolineas Argentinas (ARG) and Ashmore Global Fund Ltd, a British emerging markets fund.
3rd Q = +# BRL 262M/$95.8M (-# BRL 243M/-$88.8M). 1st 9 months = -# BRL 305M/-$111.5M (-43%).
757-256 (881-26249, PP-VTS), ex-Iberia (IBE), (ILF) leased. 777-222ER (232-30213, PP-VRE) delivery.
December 2004: May be taken over by the government. Euro Atlantic Airways (MAE) and (LAN) are interested in taking a 20% stake in the airline.
757-256 (889-26250, PP-VTT), ex-Iberia (IBE), (ILF) leased.
January 2005: MD-11P (48443), ex-Swiss (CSR).
February 2005: 777-222 (26918), ex-United Airlines (UAL).
March 2005: (VAR) Engineering & Maintenance (VEM) completes its first 767-200SF-ER freighter conversion and delivered the airplane to Tampa Cargo (TMP).
737-5Q8 (28201), ex-Rio-Sul (ROS).
May 2005: (MOU) for (TAP) Portugal to acquire up to 20% of Varig (VAR), the maximum permitted by Brazilian legislation. Both companies will remain independent. (TAP) operates 38 flights a week from Portugal to Brazil and generates 22% of its revenue.
June 2005: Henrique Neves, Executive President, replaces Carlos Luiz Martins. David Zylersztajn, Chairman, ex-President ANP, Brazil's national petroleum agency.
(TAP) Portugal ended negotiations to acquire 20% of Varig (VAR) after (VAR) filed for bankruptcy which is similar to USA's chapter 11. (VAR) has a -ve net worth of -$2.5B, a balance sheet debt of -$2.8B and an off-balance sheet debt of approximately -$2B. It has no significant assets because all of its airplanes are leased.
Varig Engineering & Maintenance (VEM) is a separate legal entity from parent Varig, and has not sought bankruptcy protection and continues to maintain its normal operation.
July 2005: VARIG (VAR) is Brazil's principal air carrier operating services to 19 countries on 4 continents, as well as to 34 cities in Brazil.
(IATA) Code: RG - 042. (ICAO) Code: VRG (Callsign - VARIG).
Parent organization/shareholders: Ruben Berta Foundation (55.63%); state of Rio Grande do Sul (0.43%).
Owns: Nordeste Linhas Aereas Regionais (NOD) (99%); Pluna (PLU) (49%); Rio-Sul Servicios Aereos Regionais (ROS) (97%); & Varig Log (VLO) (100%).
Alliances: Star Alliance; Aerosur (REO); Alitalia (ALI); Aserca Airlines (SEZ); euroAtlantic Airways (MAE); Nordeste (NOD); Pluna (PLU); Rio-Sul (ROS); South African Airways (SAA); TAM Linhas Aereas (TPR); & (TAP) Portugal.
Main Base: Rio de Janeiro Galeao International airport (GIG); & Sao Paulo Guarulhos airport.
Hubs: Salvador airport (SSA); Recife Guarapes International airport (REC); & Brasilia International airport (BSB).
Domestic, Scheduled Destinations: Aracaju; Belem; Belo Horizonte; Boa Vista; Brasilia; Campina Grande; Campinas; Chapeco; Cruzeiro do Sul; Curtiba; Fernando de Noronha; Florianapolis; Fortaleza; Goiania; Iguassu Falls; Ilheus; Joao Pessoa; Joinville; Maceio; Manaus; Natal; Navegantes; Petrolina; Porto Alegre; Porto Seguro; Recife; Rio Branco; Rio de Janeiro; Salvador; Santarem; Sao Luiz; Sao Paulo; Trombetas; & Vitoria.
International, Scheduled Destinations: Amsterdam; Arua; Asuncion; Bogota; Buenos Aires; Cancun; Caracas; Copenhagen; Cordoba; Frankfurt; La Paz; Lima; Lisbon; London; Los Angeles; Madrid; Mexico City; Miami; Milan; Montevideo; New York; Paris; Santa Cruz; Santiago; & Tokyo.
Varig (VAR) signeda 6-month consultancy contract with Lufthansa (DLH) Consulting for its reorganization and restructuring.
Varig (VAR) has been ordered by (ILF) to return 11 airplanes: 5 737-300's, 4 757-200's & 2 777-200ER's due to lease payment arrears.
August 2005: Omar Carneiro da Cunha, President, replaces Henrique Neves.
11,727 employees (+7.3%).
September 2005: Varig (VAR) would eliminate -1,500 jobs, or around -13% of its workforce, and the Rubem Berta Foundation would give up majority control of the airline under the company's bankruptcy reorganization plan presented in court earlier this week in Brazil. The Foundation, which represents current and retired employees, owns 56% of Varig (VAR). In the past it blocked restructuring efforts that would have resulted in a reduction in its stake. According to wire service reports, the proposal also calls for the creation of a new company, Nova Varig, which would manage most operations including the Rio Sul (ROS) and Nordeste (NOD) airline affiliates, while Varig (VAR) would manage the debt restructuring and reorganization. Varig (VAR) owes R$7.7 billion/$3.3 billion, much of it representing unpaid taxes and social security payments.
Star Alliance chose UK-based Zero Octa as the preferred vendor for revenue recovery and protection services. Ten member carriers - - Air Canada (ACN), Air New Zealand (ANZ), Asiana Airlines (AAR), bmi (BMA), (LOT) Polish Airlines, Singapore Airlines (SIA), Spanair (SPP), United Airlines (UAL), US Airways (USA) and Varig (VAR) - - will be using Zero Octa.
Varig Engineering & Maintenance (VEM) delivered the fifth and final A300B4 freighter to Express.Net (TCN). The airplanes were maintained nose-to-tail beginning in October. Work included inspection checks, several Airworthiness Directives (AD)s, Corrosion Prevention & Control Program (CPCP), Collision Avoidance System (TCAS) installation, large structural repairs, painting, other mandatory services and some specific modifications such as installation of armored cockpit doors.
November 2005: Varig (VAR) and its controlling shareholder the Rubem Berta Foundation have chosen (TAP) Portugal as its partner in a debt-restructuring process aimed at saving it from liquidation, the Brazilian airline said yesterday. (TAP)'s proposal was chosen over six other offers. The plan includes an initial $62 million in financing to pay off debts owed to overseas leasing companies, avoiding the repossession of 20 - 40 airplaners In a second phase, (TAP) would help Varig (VAR) with a $500 million recapitalization effort. The (TAP) plan still needs to be approved by Brazil's federally owned development bank BNDES, according to reports. Last week, (TAP) chairman Fernando Pinto told Diario Economico that the carrier is ready to inject about $500 million into Varig (VAR) in return for a 20% stake. Varig (VAR) filed for bankruptcy in July with debts of approximately R$7.7 billion/$3.4 billion. A New York bankruptcy court has given it until Nov 9 to conclude negotiations.
(TAP) Portugal will assume a controlling interest in Varig Engineering and Maintenance (VEM) and VarigLog (VLO) (Logistics and Cargo) as part of its participation in the carrier's restructuring. Total consideration for the controlling stakes is $62 million. A (TAP) spokesperson said that the airline will not be drawing on its own cash for the transaction. Two-thirds of the amount will be financed by Brazil's National Economic and Social Development Bank and the balance by external investors, whom the spokesperson declined to identify. (TAP) said in a statement that the deal would allow Varig (VAR) "to obtain the necessary capital funds to respond to its immediate cash needs that will allow the company to pursue its regular operations." It added that (VEM) represents a strategic objective to (TAP) as the company is focusing on expanding its jet airplane Mainternance Repair & Overhaul (MRO) unit in South America. VarigLog (VLO) also offers potential for the development of (TAP)'s cargo business. The company operates an 11-freighter fleet worldwide.
All Nippon Airways (ANA) will move into the new South Wing of Narita Airport Terminal 1 in June 2006, along with fellow Star Alliance members Air Canada (ACN), Asiana Airlines (AAR), Austrian Airlines (AUL), Lufthansa (DLH), Scandinavian Airlines (SAS), Singapore Airlines (SIA), Thai International (TII), United Airlines (UAL), and Varig (VAR).
1st 9 months = 21.77B RPK (passenger traffic) (+3%); 904.83M FTK (freight traffic) (-1.3%); 9.95M passengers (+4.1%).
December 2005: Varig (VAR)'s bankruptcy reorganization took a new twist after a Brazilian buyout fund reportedly took controlling interest in the airline's parent, Varig SA. According to Reuters, the fund, Docas Invertimentos, owned by Nelson Tanure, paid $112 million to the Rubem Berta Foundation for 25% of the voting shares owned by the Foundation. It agreed to "rent" a further 42% of the shares, giving it control of the airline. (TAP) Portugal previously agreed to participate in a restructuring of Varig (VAR) that would see the Foundation lose control of the carrier.
Later, Varig (VAR) creditors rejected the carrier's sale to Docas Investimentos, a fund owned by newspaper owner Nelson Tanure, who paid $112 million for a 25% stake in (Varig) SA (VAR) and a 10-year "lease" on an additional 42%. The decision drew cheers from Varig (VAR) employees, according to the Associated Press. A Varig (VAR) spokesperson said creditors have approved an alternative recovery plan involving investment funds and that the airline intends to put into service next year the 18 airplanes currently grounded. It has until January 8 to present its restructuring plan.
January 2006: Full year 2005 = Passenger traffic 28.57B (RPK); Freight traffic 1.24B (FTK); 12.98M passengers (-.5%).
Marcelo Bottini, President, 45, ex-Pluna (PLU), replaces Omar Carneiro da Cunha.
Varig (VAR) paid $56 million owed to airplane leasing companies, eliminating the threat that 40 of its airplanes - - around 70% of its fleet - - would be repossessed.
The carrier, which has been operating under Brazilian bankruptcy protection since last June, also announced that it completed the sale, announced in December, of two subsidiaries for $72 million. A portion of the proceeds from the sales was used to pay off the lessors.
VEM-Varig Engineering & Maintenance went to Aero-LB, a consortium led by (TAP) Portugal. VarigLog (VLO), its cargo and logistics subsidiary, also went to (TAP), which then sold it to Volo Brasil, a consortium headed by USA-based Matlin Patterson, a private equity fund.
Both consortia, according to Varig (VAR), also committed to play important roles in the recovery of the carrier, whose restructuring plan was approved by its creditors' committee on December 19.
The ongoing recovery plan includes an increase of the fleet from 57 to 66 airplanes by April through addition of one 777, one 767, five 737s and two MD-11s. The plan also calls for a route network readjustment.
Varig (VAR) inaugurated nonstop service from Sao Paulo (GRU) to Munich (MUC). The airline operates 3 flights a week with an MD-11 departing (GRU) on Thursdays, Fridays & Sundays and (MUC) on Mondays, Fridays & Sundays. At the same time, the airline discontinued service to Tokyo (NRT). Varig (VAR) suspended service from Sao Paulo to Amsterdam via Paris (CDG) that was operated 3x a week. The airline still continues its daily service into Paris and could resume Amsterdam service in the summer season.
April 2006: VarigLog (VLO), the former cargo and logistics subsidiary of Varig (VAR) that was sold in January to a Brazilian holding company financed in part by USA fund MatlinPatterson, offered to buy the restructuring airline for $350 million, according to press reports. The bid was scheduled to be presented to Varig (VAR)'s creditors.
VarigLog (VLO), raised its offer to buy the struggling Brazilian airline to $400 million, according to a VarigLog (VLO) statement cited in press reports. It had offered $350 million two weeks ago. Reports from Brazil indicated the carrier is canceling flights, running out of cash and at risk of shutting down. Varig (VAR) said in a statement that the buyout proposal requires approval of its board.
Brazilian low-cost carrier, Gol (GOT) likely will emerge a much more significant force in the domestic market owing to Varig (VAR)'s financial problems, according to a new report from JP Morgan forecasting that Varig (VAR) will reduce domestic flying 50% - 100% within the year. JP Morgan's Jamie Baker pins the probability that Varig (VAR) will downsize at 70%, but says a 20% probability exists that the airline will close its doors for good. Varig (VAR)'s capacity share of the domestic market is estimated at close to 20% currently, with Gol (GOT) having 26%, TAM (TPR) around 43% and other operators 11%. Were Varig (VAR) to cease operating, Baker estimates that the market could absorb around 80% of the displaced capacity, boosting TAM (TPR)'s share to 53% and Gol (GOT)'s to 43%.
Singapore Airlines (SIA) now offers interline e-tickets for connections to American Airlines (AAL), British Airways (BAB), Continental Airlines (CAL), Delta Air Lines (DAL), and Varig (VAR), bringing to 17 the number of carriers with whom (SIA) has partnered for interline e-ticketing.
Varig (VAR) announced it will temporarily suspend all flights to Portugal from mid-May.
May 2006: Varig (VAR) will auction off a portion of its assets to raise the money it needs to maintain operations under a plan approved yesterday during a meeting in Rio de Janeiro of employees, government officials and the carrier's creditors, according to media reports. The government confirmed it will not bail out the bankrupt carrier, which reportedly will be split into two companies and sold in approximately two months. Two options are on the table, depending on investor intentions. One would split Varig (VAR) into a flight operations company and a service unit handling distribution, reservations, etc. The operations unit would be auctioned off at a minimum $860 million, with the proceeds used to pay off the debt of the service unit. The other option would split Varig (VAR) into domestic and international carriers, with the proceeds from the sale of the domestic carrier bailing out the new international airline, according to Bloomberg.
Varig (VAR) has received bids from 17 companies interested in buying its flight operations, including rivals TAM (TPR), Gol (GOT), OceanAir and WebJet (WEB), according to Merrill Lynch. Under a plan put forward earlier this month, Varig (VAR)'s Flight Operations will be separated from its commercial and nonairline activities and sold separately. The minimum bid for the entire flight operation is $860 million, which includes 46 airplanes. However, the international and domestic arms could be sold separately, with a minimum bid of $700 million for the domestic arm, including 30 airplanes.
Brazil's National Development Bank, which is charged with evaluating the feasibility of the plan, has said it will provide up to $250 million in financing to the winning bidder.
Also, according to Merrill Lynch, Brazil's Supreme Court recently upheld a ruling ordering the government to pay Varig (VAR) R$3 billion /$1.4 billion in compensation for losses suffered by the airline "due to a government policy to control airfares from 1985 - 1992 as part of its plan to control inflation."
Merrill said further that Petrobras, the state-owned fuel supplier, is seeking to reverse a separate lower court ruling requiring it to provide Varig (VAR) with fuel without guarantee of payment.
June 2006: The auction of Varig (VAR)'s assets has been moved forward from July 9 to today in what JP Morgan considers "a last-ditch attempt to raise cash to avoid further airplane confiscation. "Separately, a judge presiding over the airline's USA bankruptcy reorganization "extended his injunction barring seizure of company airplanes until June 13," according to Merrill Lynch.
The auction has been opened to any and all interested parties with no pre-qualification required, JP Morgan stated. Also, according to the same source, "Varig (VAR) routes and slots that have been abandoned in the last 30 days will not be recovered, but rather passed on to incumbent operators." This eliminates any incentive for potential buyers such as Gol (GOT) or TAM (TPR) to bid, as they are likely to pick up the assets for free, or for far less money, if Varig (VAR) dissolves, the firm suggested.
Currently, the minimum bid for the airline's domestic operations is $700 million, while $800 million is the minimum for both domestic and international operations. However, the minimum will be lifted after the first round of bids, suggesting that Varig (VAR) will go for considerably less if it is bought intact. JP Morgan estimates the carrier is operating at "roughly half" its 2005 capacity levels.
So far Gol (GOT), TAM (TPR), (TAP) Portugal, OceanAir and Brookefield, a USA investment firm, have paid to have access to Varig (VAR)'s books, Reuters reported.
Later, Varig (VAR) received just one bid at the bankruptcy auction, a BRL1.01 billion/$446.4 million offer during the second round from a consortium of employees, well below the minimum bid for just the domestic routes, which was $700 million. The bankruptcy court judge said he would take a day to decide whether to approve the sale anyway. A $75 million deposit would be required, the Associated Press reported. The judge also may liquidate the carrier. There will not be another auction.
The employee group, NV Participacoes, is composed of pilots (FC) and flight attendants (CA) financing their bid with $125 million in cash, according to Bloomberg News. The rest would come from claims against Varig (VAR) for wages, pensions, etc. Unions not involved in the bid have asked the government to take over the airline but the Brazilian Defense Minister said that will not happen, Bloomberg News reported.
Reuters reported that TAM (TPR), Gol (GOT) and OceanAir were among five groups, that offered bids during the auction's first round, but none reached the minimum. NVP was the only bidder during the second round.
Eventually, a Brazilian bankruptcy court judge granted Varig a glimmer of hope, approving an employee group's BRL1.01 billion/$445.5 million offer for the beleaguered airline with certain conditions. NV Participacoes (TGV), composed of pilots (FC) and flight attendants (CA), presented the only bid at the auction, one that fell well below the minimum. Judge Luiz Roberto Ayoub ruled in Rio de Janeiro, that (TGV) had until Wednesday to demonstrate it could amass the required funds and to clarify its proposal to issue debentures to finance part of the transaction, according to press reports. (TGV) offered $125 million in cash and intends to pay off the remainder with the debentures and claims against the carrier for unpaid wages and other benefits. The bid is backed by four unidentified investors, Bloomberg News reported, but Ayoub told the group, that additional investors would be allowed. (TGV) reportedly wanted to finance some of the purchase with future profit-sharing, but Ayoub disallowed that part of the proposal. If he approves the deal, (TGV) will have three days to make a $75 million cash payment, Reuters said, quoting the judge as saying, "The judiciary will do everything possible to save this company and any other company in a similar situation," and that "It's very premature to say what I'll do." He has the right to liquidate the airline under Brazilian bankruptcy law.
Varig (VAR) said in filing to the USA Bankruptcy Court in New York, submitted prior to the Rio ruling, that (TGV) would have to increase its cash offer to $346 million to satisfy the Brazilian court, according to Bloomberg. Varig (VAR) also asked the New York court to extend an injunction, protecting its airplanes from seizure. The New York State Supreme Court ruled that Boeing could repossess five MD-11s and two 777s on June 16. Varig (VAR) President, Marcelo Bottini told the Associated Press (AP), that a hearing was scheduled to determine who has rights to those airplanes, plus 27 additional leased airplanes, Knight Ridder reported. Varig (VAR) owes USA creditors approximately $71 million and already has grounded 14 airplanes, because it cannot pay maintenance costs, according to press reports.
Varig (VAR) representatives said at a hearing in New York that a second, unidentified investor offered $450 million in cash for the airline, a figure higher than the bid offered last week by a group of employees that included just $125 million in cash, Bloomberg News reported. The employees' bid was approved in principle by a Rio de Janeiro bankruptcy court judge, who asked the group to double its cash commitment before he issues a final ruling today. A Varig (VAR) attorney called the potential new bidder a "Brazilian airline industry investor," Bloomberg said. Meanwhile, Varig (VAR)'s request for an extension to an injunction blocking the seizure of approximately 30 leased airplanes was granted in New York, giving the airline until June 21, Reuters reported.
Varig (VAR) and the group of employees and unidentified investors who bid for the carrier, NV Participacoes (NVP), were granted another extension by Rio de Janeiro bankruptcy court Judge Luiz Roberto Ayoub, who had given the group until the following week to make a case for its BRL1.01 billion /$439 million bid. The court now will reconsider the bid next week, giving it time to examine documents (NVP) delivered just half an hour before the last deadline and the opportunity to consider other offers. (NVP) proposed to pay BRL285 million cash, BRL225 million on workers' credit and BRL $500 million on debentures and future profits.
In Brazil, rumors grew earlier that three additional groups had interest in bidding for Varig (VAR). Some of those appeared confirmed, as Bloomberg reported that (TAP) Portugal and Air Canada (ACN), two of Varig (VAR)'s Star Alliance partners, might enter the fray along with Brookfield Asset Management, according to (TAP) CEO, Fernando Pinto, who was in Rio de Janeiro. Investment groups Syn Logistica and Fontidec also have bid for Varig (VAR), Bloomberg said. Brazilian aviation authorities have a contingency plan in place in case the airline stops flying, including orchestrating the return of thousands of Brazilians who traveled to Germany for the World Cup.
Apparently satisfied that an investor group organized by Varig (VAR) 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. Judge Luiz Roberto Ayoub had given his conditional blessing to the proposal from NV Participacoes (NVP) just the week before, 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 the end of this month to deposit $75 million or Varig (VAR) will go back onto the auction block.
(NVP) recently met with bank officials seeking $150 million in working capital, according to Bloomberg News. Former Varig (VAR) executive, Arnim Lore told Bloomberg, that it was unlikely (NVP) would get the loan, without which it would be unable to keep the carrier afloat and hold off airplane lessors eager to retrieve their assets. He said (NVP) had only BRL10,000 of capital and that the unidentified investors backing the bid, might have to deal with the banks directly.
However, (NVP)'s Marcio Marsillac told Bloomberg, that the group does have the financial guarantees it needs to secure the loans and make the required deposit, and that it has "a good business plan for the new company." It was scheduled to meet with the Brazilian government's development bank.
Meanwhile, a (TAP) Portugal official told the Associated Press that the airline no longer is interested in partnering with Air Canada (ACN) and other investors to bid for Varig (VAR) if the (NVP) effort fails.
Varig (VAR) said that it is suspending some flights to the USA, Europe and three cities in South America after being forced by a USA Bankruptcy Court judge to ground leased airplanes. In a statement on its website, the airline said it will stop serving New York, Los Angeles (leaving Miami as its only USA 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 airplanes, according to various sources. The court was scheduled to rule on a request by Varig (VAR) to extend a restraining order against lessors attempting to repossess airplanes. 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 (VAR) flights or by other airlines.
Varig (VAR)'s future is up in the air again as NV Participacoes, the employee-led investor group that was the only bidder at the June 8 auction of the bankrupt carrier, failed to make an initial $75 million down payment at the end of the month, forcing a Rio de Janeiro bankruptcy court to cancel the deal. Judge Luiz Roberto Ayoub told reporters he will meet with government officials, creditors and accountants to determine Varig (VAR)'s fate, which could include another auction or liquidation.
The airline's former freight unit, VarigLog (VLO), made another offer for its former parent, this time for $485 million, according to press reports. VarigLog (VLO) was purchased in January by a consortium headed by investment firm Matlin Patterson. That offer is under review by the court and the Brazilian government. Approximately two-thirds of Varig (VAR)'s flights were cancelled on Friday.
VarigLog (VLO), has until Wednesday to finalize its offer for the beleaguered Varig (VAR), according to a Rio de Janeiro bankruptcy court. After canceling the bid made by an employee-led consortium that could not make a required $75 million payment recently, the court accepted a $3 million payment from VarigLog (VLO) to keep Varig (VAR) afloat while the new bid is prepared. VarigLog (VLO)'s offer reportedly has risen to around $500 million, higher than the approximately $450 million offered by NV Participacoes, but still far below the original minimum set by the court. "The request to extend the timeframe came from Varig (VAR) itself, so that its creditors and the judicial administrator can study the bid better," the court said in a statement cited by Reuters. VarigLog (VLO)'s purchase by Volo do Brasil was approved by the Brazilian government over the weekend.
VarigLog (VLO) deposited an additional $1.8 million on Tuesday and Wednesday to keep Varig (VAR) afloat, according to press reports, while a Rio de Janeiro bankruptcy court, prosecutors and creditors analyzed the freight and logistics company's $500 million bid for the airline. No ruling had been announced by yesterday afternoon.
Meanwhile, a New York bankruptcy court judge extended an injunction against ILFC (ILF), Boeing and other creditors, preventing them from seizing 25 airplanes before July 21, Reuters reported.
July 2006: VarigLog (VLO)'s $485 - $500 million bid for Varig (VAR) was declared fit to be considered by the airline's creditors, but a Rio de Janeiro bankruptcy court said there likely will be another auction July 11, just in case anyone wants to offer more, Reuters reported. VarigLog (VLO), stepped forward last week after a bid by an employee-led consortium failed. VarigLog (VLO)'s offer reportedly includes guarantees for the airline's loyalty program and pension fund.
Later, the Brazilian bankruptcy court postponed both a new auction for Varig scheduled for July 12 and a meeting of creditors that was to consider a $500 million bid from VarigLog (VLO), the Associated Press reported. Judge Luiz Robert Ayoub apparently reversed his own decision of July 3, when he said VarigLog (VLO)'s bid was ready for review and that higher bids would be accepted at the new auction.
Brazilian freight and logistics company VarigLog (VLO), boosted its bid for the bankrupt carrier after a Rio de Janeiro bankruptcy court judge reversed his decision last week to present the approximately $500 million bid to creditors, who may be better off if Varig (VAR) is liquidated, Bloomberg News reported. The judge will ask creditors to review the higher offer at a July 17 meeting. If it is approved, VarigLog (VLO) could win the carrier's operating assets at an auction scheduled for the following day.
The new bid includes the option of a payment to creditors who prefer cash over 10-year bonds, among other provisions involving debt assumption, leasing and real estate. VarigLog (VLO) already has spent $11 million keeping the airline afloat.
A Varig (VAR) creditors meeting, scheduled to evaluate VarigLog (VLO)'s bid for the bankrupt airline, was postponed after the freight and logistics company altered its offer, Bloomberg News reported.
After initially postponing a meeting at which they planned to review a $500 million bid from freight and logistics company VarigLog (VLO)due to reported changes in the offer, Varig (VAR) creditors decided to reject the bid, forcing the Sao Paulo stock exchange to suspend trading in Varig (VAR) stock briefly after a rush to sell, according to press reports, and leaving Brazil's flag carrier on the cusp of liquidation.
The Associated Press (AP) reported that airplane leasing companies were united in opposition to the bid, which was arranged by VarigLog (VLO) parent Volo do Brasil.
Varig (VAR) management said it will continue to attempt to auction off the airline's assets while the Rio de Janeiro bankruptcy court handling the case decides whether or not to seek a third bidder - - an initial offer from a consortium of employees and investors failed last month - - or put the floundering airline out of its misery. VarigLog (VLO) will challenge the decision in court, according to press reports, claiming the majority of creditors had given their consent to the bid.
At present, Varig (VAR) is operating only 13 airplanes and has seen a -80% plunge in monthly revenues to $32 million, according to a statement from a Varig (VAR) attorney cited by the (AP). Reuters reported that the carrier canceled 86 of 139 flights scheduled for yesterday, the last day of an emergency plan implemented by Brazil's civil aviation administration calling for other airlines to honor Varig tickets. That plan may be extended.
Volo do Brasil has spent $13 - $14 million to keep the carrier afloat. Varig (VAR) was given until Friday to return 25 airplanes to leasing companies.
Varig (VAR) may not be well, but it is alive; three days after its bid was rejected by the airline's creditors, freight and logistics company VarigLog (VLO), the former Varig (VAR) subsidiary purchased this year by a consortium led by Volo do Brasil, was the sole and winning bidder at a public auction. It paid BRL52.4 million/$23.9 million, according to press reports, and will split Varig (VAR)into two companies, one operational and one that will handle facilities and the carrier's $3 billion debt. Volo will not be responsible for the debt. The airline currently is flying just 13 airplanes and will have to negotiate the fate of much of its fleet with leasing companies.
"Varig (VAR) will be back on its feet in no time," VarigLog (VLO) President, Joao Luis Bernes de Souza told employees in Rio de Janeiro, according to Bloomberg News. To get it there, VarigLog (VLO) agreed to invest more than $600 million - - $128 million for assets like routes, slots and brand and $485 million for operations, Bloomberg said. Its initial bid of $500 million was turned down by creditors late Monday.
The BBC reported that documents filed with auction officials indicated the new owners might eliminate up to -80% of Varig's workforce of about 10,000 employees.
Varig (VAR) said it reestablished domestic service Wednesday from Rio de Janeiro and Sao Paulo to Porto Alegre, Salvador, Recife, Fortaleza and Manaus, and is continuing international flights to Buenos Aires and Frankfurt. The airline said on its website that it already has "solved a series of problems in this period of transition" following last week's purchase at auction by former subsidiary VarigLog (VLO). "We recognize the discomfort that the passengers of Varig (VAR) have experienced, but all can be certain that we are working hard and quickly to solve the problems, reinstitute the network and normalize services," Varig (VAR) President, Marcelo Bottini said. The VarigLog (VLO) board member, Marco Antonio Audi said the carrier is reestablishing credit with lessors and airlines who honored Varig (VAR) tickets and is looking to bring airplanes back into the fleet and reestablish service on discontinued routes.
August 2006: VarigLog (VLO) parent Volo do Brasil's acquisition of the troubled carrier hit another snag when a Brazilian court ruled that a $75 million cash payment originally intended to pay debts and keep Varig (VAR) running during the transition, instead must be used to pay employees, the Associated Press reported. In addition, TAM (TPR) notified Brazilian authorities it would no longer honor Varig (VAR) tickets on international flights. Varig (VAR) reportedly owes TAM (TPR) $1.5 million.
Varig (VAR) confirmed it intends to lay off approximately -5,500 of 9,500 Brazilian employees. "Today, we begin one of the most important phases of the project of restructuring Varig (VAR), promoting the balancing of the company's staff with current operational necessities," CEO, Marcelo Bottini said in a statement to employees cited by Reuters.
(TAP) Portugal suspended acceptance of Varig (VAR) tickets. "Responsibility of the new company [Volo do Brasil] for tickets issued in advance, has not yet been clearly defined or declared," (TAP) noted in a statement. "This is reflected in increased financial risk to (TAP) that is worsening by the day." (TAP) added it will continue to pursue negotiations with Varig (VAR) on the potential resumption of commercial agreements between the carriers.
Varig (VAR) intends to add five airplanes this week and operate a fleet of 45 by year end, up from the current 12, according to an official of parent Volo do Brasil cited by Reuters. The carrier employs 3,985 people following last week's layoffs and intends to raise that to 5,400 by year end. Marco Antonio Audi told Reuters Varig (VAR) is looking at leasing Airbus and Embraer jets - - it has operated an all-Boeing fleet - - and that it now will begin purchasing airplanes at the end of their leases.
VarigLog (VLO) completed arrangements to request a 15-year, $1.7 billion financing deal in funding from Brazil's state bank (BNDES) for the acquisition of 50 airplanes to help re-build Varig (VAR). This represents 85% of what (VLO) requires to secure the airplane deal. The remaining 15% ($250 million to $300 million) will be footed by (VLO). Parent Volo do Brasil aims to rebuild its domestic routes with a single-type fleet in the 115- to 135-seat category.
Varig (VAR)'s President, Bottini, stepped down.
October 2006: Varig Engineering & Maintenance (VEM) appointed Filipe Morais de Almeida as CEO. He replaces Evandro Braga de Oliveira.
The new owners of Brazil's Viacao Aerea Rio-Grandense, or Varig (VAR), plan to invest $173 million to expand the fleet of the embattled airline, the Estado newswire said. Of the sum, $140 would be spent on the lease of seven new planes of the 757-200 type of Boeing Co (TBC), while $33 million would go into the purchase of 22 medium-size Cessna planes, the newswire said.
Yet, Varig (VAR) is still awaiting a final regulatory approval of the recent sale of its operating assets before being able to make any purchases.
November 2006: (TAP) Portugal Maintenance & Engineering is working to become a significant third-party player in South America following its acquisition of (VEM) - Varig (VAR) Engineering and Maintenance earlier this year. (TAP), which led the consortium that purchased the Brazilian company, invested €20 million in the recently renamed (VEM) Maintenance & Engineering, in which it holds a 51.1% stake. The (VEM) unit is 2.5 times larger than the (TAP) Maintenance Repair & Overhaul (MRO) center in Lisbon.
"The main reason for [the deal with (VEM)] is 50% of our (MRO) business in Lisbon is for third parties. We have a good cost base here and we can compete with the rest of the world. Brazil is a good place for growth and (TAP) can't grow any more in Lisbon," (TAP) CEO, Fernando Pinto said. He added that the (MRO) is a $200 million business for the company and remains one of its most important units. "We hope (VEM) will be making money by the end of next year at the latest," he said.
The airlines of Latin America and the Caribbean region are enjoying strong traffic demand and face a bright future, Merrill Lynch airline analyst, Michael Linenberg told attendees at the third annual Latin American Airlines Leaders Forum sponsored by Asociacion Latinoamericana de Transporte Aereo (ALTA) in Cancun.
"The [stock] market has recognized opportunities in Latin America," Linenberg said, pointing to the successful Initial Public Offerings (IPO)s of Copa Airlines (COP), Gol (GOT), (LAN) Airlines and TAM (TPR)over the past decade and the strong stock performance. He noted that Latin American traffic growth, at +6.9% per year, "is second only to China," while +4% (GDP) growth for the region is slightly ahead of the world average.
He compared the situation to the one USA airlines enjoyed in the 1960s, a period he described as "the golden era" of the USA airline industry, with strong growth matched by strong profitability. Airline equities "were the tech stocks" of the period, he said.
Also at the conference, (ALTA) Chairman & Copa Airlines CEO, Pedro Heilbron noted that while the Latin America/Caribbean region generates just 4.9% of world airline passengers, its population is 9.2% of the world total, suggesting ample room for additional growth. Traffic growth has exceeded +12% in each of the past two years, and although it was down nearly -1% through the first nine months of 2006, this was owing to Varig (VAR)'s downsizing. Excluding Varig (VAR), growth would be around +9%. Domestic traffic represents 67% of the total, with intra-region traffic accounting for 16%.
Among the challenges facing the region's airlines is improving safety, which (ALTA) is addressing by mandating that members pass an (IATA) Operational Safety Audit. Fuel costs also are an issue. Carriers pay an average of +15% more for their fuel than those in North America and Europe, Heilbron said. Airport and air navigation charges also are a concern.
Nevertheless, air transport in the region "is a growing industry at a rate above other parts of the world," he concluded. (ALTA) has more than doubled its membership since 2003, growing from 15 airlines to 33, Executive Director Alex, de Gunten said.
December 2006: VarigLog (VLO) CEO, Joao Luiz Bernes de Souza said at (ALTA)'s Latin American Airline Leaders Forum in Cancun, that Varig (VAR), which the logistics company purchased over the summer, will add 16 airplanes to its fleet, once it gets its new Air Operating Certificate (AOC), Reuters reported. It currently operates 15 airplanes.
Varig (VAR) was conspicuously absent from this month's Star Alliance (SAL) meeting and ceremony in Istanbul, prompting speculation about whether or not the struggling Brazilian carrier remains a viable component of Star (SAL). Star Alliance (SAL) CEO, Jaan Albrecht told reporters that "Varig (VAR) is a full member of the Star Alliance (SAL) . . . of good standing," and that "we have made every effort into supplying our required support, what the members can do, for one of the members who is under this restructuring process."
The airline, rescued by former logistics subsidiary VarigLog (VLO) over the summer, "is flying its schedule, a smaller schedule, with the possibilities of restructuring on the airplanes, on the composition of the routes, and a more limited schedule compared to what they were flying before," according to Albrecht. He said Varig (VAR) is realigning its operation around its hubs in Rio de Janeiro and Sao Paulo and will add airplanes "very carefully."
Varig (VAR) received its new air operating certificate (AOC), Merrill Lynch (ML) said. The restructuring carrier is operating 15 737-300s and up to three MD-11s to nine Brazilian destinations plus Bogota, Buenos Aires, Caracas and Frankfurt. (ML) said that Varig (VAR) must relaunch service on abandoned domestic routes by January 13 or risk losing them to other Brazilian airlines. It has 180 days to restart its international operations or face the same consequence. The investment bank said, "We expect both Gol (GOT) and TAM (TPR) to benefit from this process and expand their respective market shares in slot-constrained domestic airports as well as international markets."
Guilherme Laager, President of "new Varig (VAR."
The Star Alliance (SAL) expelled Varig (VAR) from its ranks just two weeks after CEO, Jaan Albrecht told reporters at a briefing in Istanbul that the restructuring Brazilian carrier was a member in "good standing." The alliance said the decision was "prompted" by a reduction in flying and services by Varig (VAR), whose status changed when its new owner was awarded its own operating certificate earlier this month under the name "VRG Linhas Aereas." "In order to deliver the Star Alliance (SAL) benefits, products and services to customers around the globe on a consistent basis, our member carriers work to certain standards and processes," Albrecht said last week. "Unfortunately, the 'old' Varig (VAR) will no longer operate as a network airline and will therefore have to give up its membership in the alliance."
Varig (VAR) officially will leave Star (SAL) on January 31. The alliance will be the only one of the three major airline groupings to lack a member based in Latin America, although Albrecht said it "continues to offer the most intercontinental flights serving more cities in Brazil than any other alliance, and will continue to expand its services in this important and growing aviation market." Six Star (SAL) carriers offer some 270 weekly international flights from six Brazilian airports.
Varig (VAR) is looking to double its current fleet.
Precision Conversions will provide seven full 757-200PCF conversions that will be leased by VarigLog (VLO). SkyWorks Capital of Connecticut is managing the deal. The first airplane will be delivered in January.
January 2007: In 2006, Varig (VAR) had 13.08 billion (RPK)s (-54.2%); 869, 87 million (FTK)s (-29.7%), and 5.78 million passengers (-55.5%).
Varig Engineering & Maintenance (VEM) aims to become a major player in the repair and maintenance of Airbus (EDS) airplanes in South America, according to Filipe Morais de Almeida, who joined the company as CEO last October from Bombardier Portugal, where he served as Chairman & CEO. (VEM), the former Varig Engineering & Maintenance, was acquired by (TAP) Portugal in early 2006. It has bases in Rio de Janeiro, Porto Alegre and Sao Paulo.
Almeida noted that (VEM) already offers airframe maintenance for all Boeing and former McDonnell Douglas airplanes, as well as the Embraer EMB-120, EMB-145 and F 50. It is in the final phase of achieving certification to perform heavy maintenance on the A300/A310 family while A320 approvals are expected in the second half of 2007. It already is providing line maintenance to (TAP) supporting A310 flights into Brazil. It also operates the only 767 passenger-to-freighter line in South America, and is considering entering into the 757 conversion business as well, Almeida said, although he noted that conversions are a supplemental activity, not a core function. In addition to airframe Maintenance Repair & Overhaul (MRO), (VEM) is active in component support and aims to grow this business.
Biggest challenge, according to Almeida, who spent several years with (TAP) Maintenance & Engineering, is changing the internal mindset at (VEM) to make it a more customer-focused organization. "Basically, the cultural change we need to make here is to part from a culture that was very linked with the operator [Varig (VAR)] to the culture of an (MRO) dedicated to the third-party activity where the customer is the first reason of our existence," he explained. He added, "We are forced to succeed. We don't have too much choice."
February 2007: (LAN) Airlines is providing $17.1 million in financing to VRG Linhas Aereas (VAR), the "new" Varig (VAR). The loans may be converted into shares of the new airline, (LAN) said, which would make it a minority owner.
Varig (VAR) will apparently change its name to Nordeste (NOD) in the months ahead.
It was told by the Brazilian regulatory authorities to relaunch services on abandoned domestic routes or risk losing them to other Brazilian airlines. At the same time it was given 180 days to restart its international operations or face the same consequence. It is currently looking to add 16 airplanes.
Has been operating 15 737-300s and up to 3 MD-11s to nine Brazilian destinations, plus Bogota, Buenos Aires, Cracas, and Frankfurt.
March 2007: Gol (GOT) reached an agreement to acquire Varig (VAR)from VarigLog (VLO) and Volo, the controlling shareholders of the airline that was Brazil's market leader before hitting hard financial times in recent years and barely surviving bankruptcy last summer.
The deal is worth an aggregate $320 million. The purchase consists of $98 million in cash and approximately 6.1 million nonvoting shares issued by Gol (GOT), or 3.2% of Gol (GOT)'s shares, collectively valued at $177 million. The Low Cost Carrier (LCC) also is assuming $45 million in Varig (VAR) debt. The carriers will maintain separate financials and operate under their own brands with independent executive teams. "Gol (GOT) will maintain focus on its low-cost, low-fare business model, with a single class of service in the Brazilian domestic market and South America," it said in a statement. "Varig (VAR) will offer differentiated services, with direct flights and a mileage program [that] currently serves more than five million clients." Gol (GOT) said Varig (VAR) will offer two-class (C/Y) service on long-haul international flights but a single service class (Y) in the domestic market. It will prioritize "flights between the main economic centers of Brazil," Gol (GOT) said, noting that Varig (VAR)'s principal bases of operation will be Sao Paulo Guarulhos, Congonhas and the Rio de Janeiro airports of Galeao and Santos Dumont. Both companies will "explore synergies" to improve efficiency and Varig (VAR)'s international flights will feed into the domestic networks of both Gol (GOT) and Varig (VAR). Gol (GOT) said the two airlines combined will carry more than 20 million passengers annually, and will be "capable of competing on the South American and world stages against other large international airlines . . . The acquisition represents the best opportunity for operations under the Varig (VAR) brand to remain a Brazilian-managed and controlled airline."
Varig (VAR)'s fleet of 17 airplanes will increase to 34, comprising 20 737s and 14 767s, Gol (GOT) said. International destinations will include Frankfurt, London Heathrow, Madrid, Milan, Paris Charles de Gaulle, Miami, New York (JFK), Mexico City, Buenos Aires, Santiago, Bogota and Caracas.
The sale's closing is conditioned on regulatory approvals from the Brazilian Antitrust Agency and the National Civil Aviation Agency. No timeline for completing the transaction was released.
Latin American Air Transport Assn's 33 member airlines flew 11.15 billion (RPK)s passenger traffic in January, down -7.6% from the year-ago month, a decline the organization attributed to cutbacks at Varig (VAR). Capacity fell -4.9% to 15.89 billion (ASK)s and load factor dropped -2.1 points to 70.2% LF.
Varig (VAR) Engineering & Maintenance (VEM) completed its sixth 767 freighter conversion, its first for (ABX) Air, in Rio de Janeiro. (ABX)'s second of five airplanes already is undergoing conversion. (VEM) is working in conjunction with Israel Aerospace Industries (IAI).
April 2007: Gol (GOT) detailed its fleet plan for Varig (VAR) in conjunction with its first-quarter earnings release. It said the Varig (VAR) fleet, which will continue to operate independently of the new parent company, will comprise 14 737-300s and two 767-300ERs at the end of the current quarter. By year end, Varig (VAR) will operate nine 737-300s, five 737-800s and eight 767-300ERs. The 737-300s will be phased out by 2009, when Varig (VAR) is scheduled to fly eight 737-700s, nine 737-800s and 16 767-300ERs. By 2012, it will operate 14, 15 and 22 of the respective types. Gol (GOT) said Varig (VAR) "will provide an attractive service offering to business travelers in the domestic market and offer new services to high-traffic destinations in South America, Europe and North America."
June 2007: Starts Rio de Janeiro - Frankfurt, using 767-300s.
Gol (GOT), which operates the Low Cost Carrier (LCC) of the same name, as well as the recently acquired Varig (VAR), issued updated second-quarter and full-year guidance, that reflects the difficulty of integrating the floundering flag carrier. For the full year, Gol (GOT) reduced its earnings per share projection to BRL3.70 to BRL4.20/$1.94 to $2.20 from the original forecast of BRL4.20 to BRL4.70, and its operating margin guidance to approximately 18% from 20%. Revenues should be BRL6 billion, rather than BRL6.1 billion, but capacity still is expected to rise +80% year-over-year, and load factor remains pegged at 72% LF. The company expects a full-year nonfuel (CASK) of BRL0.081. Gol (GOT) officially assumed control of Varig (VAR) on April 9. Year-over-year traffic and capacity comparisons, also are affected by the addition of Varig (VAR), which is expected to end the current quarter, operating 16 737s and three 767s. Both will increase substantially. The two airlines expect a combined second-quarter load factor of approximately 68% LF, yield of BRL0.18, and unit revenue of BRL0.14. Nonfuel unit cost is expected to drop -5% from the year-ago quarter to BRL0.088. Each figure is slightly worse than the company's forecast for the (LCC) as a standalone entity.
August 2007: VRG Linhas Aereas, the new Varig (VAR), said it has begun selling tickets for a daily Sao Paulo Guarulhos - Paris Charles de Gaulle - Rome Fiumicino service. It did not reveal a launch date.
Focus Aviation (FOS), acting on behalf of Central Air Leasing, managed the sale to (UPS) of an MD-11 formerly operated by Varig (VAR).
777-2Q8ER (28692), returned to (ILF), leased to AeroMexico (AMX).
October 2007: VRG Linhas Aereas (VAR), the new Varig (VAR), reached interline agreements effective this month with Hahn Air, Malev Hungarian Airlines (HGA), El Al (ELA), Air One (ADH), Mexicana (CMA), and Qatar Airways (QTA), in addition to its deal with owner carrier Gol (GOT).
Gol (GOT) continued its resurrection of Varig (VAR) with the launch of "(VRG) Linhas Aereas" (VAR) daily Rio de Janeiro Galeao - Sao Paulo Guarulhos - London Heathrow service. (VRG) (VAR) already served Frankfurt, Paris Charles de Gaulle, and Rome Fiumicino. Gol (GOT) launched Varig (VAR)'s new identity, featuring a new logo and blue and orange livery "with waves that simulate the aerodynamics of an airplane during flight." In conjunction with the unveiling, Varig (VAR) launched inflight product enhancements including an Espaco Vita Concept in business class (C) with significantly upgraded amenity kit, inflight health and nutrition guide, plus expanded on-demand food options, with traditional food in economy.
AWAS (AWW) delivered the second of four 767-33AERs to Gol (GOT). The airplanes will be operated by "VRG Linheas Aereas," the new Varig (VRG), that now is a Gol (GOT) subsidiary. Two further 767s will be delivered over the next six months.
2 767-33AERs (27477, PR-VAB; 27909, PR-VAA), ex-Air China (BEJ).
November 2007: Gol (GOT) and Varig (VAR) flew 2.17 billion traffic (RPK)s in October, a +62.7% increase from the year-ago month, against a +65.4% rise in capacity (ASK)s to 3.15 billion. Load factor fell -1.2 points to 68.8% LF.
1st 9 months = 2.69 billion (RPK)s (-77.6%) traffic; 232.36 million (FTK)s (-89.8%) freight traffic; 2.01 million passengers (-59.8%).
Gol Linhas Aereas Inteligentes (GOT), which now operates the Low Cost Carrier (LCC) of the same name, as well as the new Varig (VAR), concluded a third quarter it called "a period of growth, consolidation and innovation" with a net income of +BRL45.5 million/+$26.1 million that was -76% lower than the +BRL190 million profit posted in the year-ago quarter (USA GAAP). The company said its principal focus was the enhancement of Varig (VAR)'s product and route network, bringing its costs in line with those of the (LCC), and readjusting its routes in response to the new restrictions resulting from the July TAM (TPR) A320 accident at Sao Paulo Congonhas. "By the end of September, the company had implemented adjustments to its flight network, redirecting connecting passengers through other airports and alleviating passenger traffic in the Sao Paulo airspace," it said, adding, "The Brazilian air transportation system is returning to regular and efficient standards of operation."
Third-quarter turnover climbed +20.4% year-over-year to BRL1.3 billion, as falling yields and load factors were offset by a significant capacity increase and the incorporation of Varig (VAR)'s revenue, Gol (GOT) said. Costs rose +49.8% to BRL1.27 billion, as the airline expanded, and operating profit plummeted -86.8% to +BRL30.8 million from +BRL233.1 million in the third quarter of 2006.
Operating statistics were influenced heavily by the "demand retraction" that followed the TAM (TPR) accident, the company admitted. It added five 737-800s to the Gol (GOT) fleet and one 767-300 to Varig (VAR), contributing to a year-over-year capacity increase of +71.6% to 8.94 billion (ASK)s. Traffic climbed +33.2% to 5.47 billion (RPK)s, dropping load factor -17.6 points to 61.2% LF. The (LCC)'s standalone load factor fell -15.5 points to 63.3% LF.
Yield declined -11.7% to 21.73 USA cents as operating unit revenue dropped -29.9% to 14.58 cents, and operating (CASK) fell -12.8% to 14.23 cents. Excluding fuel, (CASK) was down -7.9% to 8.69 cents.
Gol (GOT) will take four new 737-800s in the current quarter and return two 737-300s, while Varig (VAR) will add seven 737-800s and six 767-300s, and return six 737-300s. At year end, Gol (GOT) and Varig (VAR) will be operating 76 and 27 airplanes respectively to 64 combined destinations.
The company said it will continue to expand and expects "to benefit from economies of scale as we continue to add new airplanes to our already well-established and highly efficient operating network" going forward. It adjusted its full-year guidance and now expects revenue to be BRL5.2 to BRL5.3 billion, rather than BRL5.2 to BRL5.4 billion, operating margin to be 5% to 8%, rather than 7% to 11%, and earnings per share to come in at BRL1.50 to BRL1.80, instead of the originally forecast BRL1.60 to BRL2.10.
December 2007: Gol (GOT) and Varig (VAR) flew 2.02 billion combined (RPK)s passenger traffic in November, up +59.9% from the year-ago month. Capacity climbed +61.6% to 3.07 billion (ASK)s, and load factor fell -0.7 point to 65.8% LF.
Gol (GOT) and Varig (VAR) parent, Gol Linhas Aereas Inteligentes reduced its full-year profit outlook once again, while offering a preliminary indication of next year's performance. The carrier now expects its operating margin for 2007 to be in the 4% to 5% range. Just one month ago, it predicted a full-year 2007 operating margin of 5% to 8% rather than the 7% to 11% foreseen in October. The latter figure was a reduction from an earlier 12% to 15%. But based on its plans "to benefit from economies of scale, as the company continues to add new airplanes" and to reduce nonfuel unit cost, it expects operating margin to soar to 13% to 15% in 2008.
Gol (GOT) is targeting 27.4 million passengers next year, compared to an expected 24.1 million this year, along with a +41% increase in capacity to 50.2 billion (ASK)s from 35.6 billion. The percentage of international (ASK)s will rise +10 points to 32% in 2008. Traffic is expected to climb +37.6% to 32.2 billion (RPK)s from an anticipated 23.4 billion in 2007. Interestingly, Gol (GOT) expects to spend less on a liter of fuel next year, with the per-liter price falling to BRL1.60/$0.91 from BRL1.65 in 2007. Unit cost, excluding fuel, is expected to drop to BRL0.082 from BRL0.085.
Varig (VAR) launched daily Sao Paulo Guarulhos - Santiago service.
In-flight services have been re-vamped with "Sabores e Aromas do Brasil" (Tastes and Aromas of Brazil), menus for domestic passengers, and an "Espaco Vita" (Life Space) product for International flights.
For (GOT)/(VAR) plans - SEE ARTICLE "(VAR)/(GOT) PLANS DEC07."
737-8AS (PR-VEB - see photo), ex-Ryanair (RYR), GOL (GOT) wet-leased in new livery - has blue tail with part of the traditional compass rose emblem (now red).
January 2008: Gol (GOT) and Varig (VAR) flew 2.38 billion system (RPK)s passenger traffic in December, a +55.7% increase over the year-ago month. Capacity rose +53.8% to 3.48 billion (ASK)s and load factor climbed +0.9 point to 68.3% LF.
2007 statistics: 3.74 billion (RPK)s passenger traffic -71.4%; -62.6% capacity (ASK)s; -16.3 load factor for 53% LF. SEE ATTACHED COMPARISON CHART TO SELECTED OPERATORS - "VAR-2007-STATS."
Varig (VAR) now plans to have 111 airplanes by year end (36 737-700s, 61 737-800s, and 14 767-300ERs), 116 the following year (31 737-700s, 71 737-800s, and 14 767s), and 151 at the close of 2014 (137 737-800s, and 14 767s).
(IATA) (ITA) blasted the Brazilian government's proposal to raise per-hour airplane parking fees at Sao Paulo Guarulhos (GRU), significantly, asserting that the hike could cost international airlines operating there, as much as $90 million per year, and likely violates bilateral aviation accords. It is not uncommon for airplanes operated by international carriers to land at (GRU) early in the day and remain parked before departing again that night. In an effort to ease congestion at the crowded airport, Brazil is trying to either force carriers to keep airplanes moving or pay large fees for leaving them parked for extended periods.
(IATA) (ITA) Director General & CEO, Giovanni Bisignani argued in a letter sent to Brazilian President, Luiz Inacio Lula da Silva that a significant rise in parking fees likely would lead to reduced international service to the country by airlines unwilling or unable to pay. He added that the fee increase would violate "various bilateral aviation agreements" and "provoke strong international protests," that could include other nations "applying similar measures to Brazilian airlines operating overseas."
Varig (VAR) Engineering & Maintenance (VEM) Maintenance & Engineering received (EASA) certification for maintenance services on A310 airplanes and components. The certificate follows similar certification from the USA (FAA).
Gol Linhas Aereas Inteligentes, parent of Gol (GOT) and Varig (VAR), announced a one-year share repurchase program of up to 5 million preferred shares, representing 8.8% of the total outstanding. The shares will be held in treasury and resold or canceled, the company said.
Gol Linhas Aereas Inteligentes (GOT) said its Varig (VAR) subsidiary will adjust its network in an "aim at improving efficiency and the quality of services." Domestic flights will be reconfigured with business (C) travelers in mind, and making use of a policy reinstating connections at Sao Paulo Congonhas. Varig (VAR) Marketing Director, Murilo Barbosa said the airline intends to replace its 737-300 fleet with 737-700s/737-800s by year end. It will limit its long-haul operation to 767-300ER flights to Paris Charles de Gaulle and Madrid, ending its London Heathrow service on March 1, and flights to Frankfurt and Rome Fiumicino on March 29. Service to the USA is scheduled to start this year.
767-31AER (27619, PR-VAE), ex-(PH-MCV), ex-Martinair (MTH), (ILF) leased.
February 2008: Gol (GOT) and Varig (VAR) flew 2.58 billion (RPK)s passenger traffic in January, up +40.1% from the year-ago month. Capacity rose +54.4% to 3.77 billion (ASK)s and load factor fell -7 points to 68.5% LF.
A turbulent year for Brazilian commercial aviation and the acquisition of floundering flag carrier Varig (VAR) hit hard at Gol (GOT)'s bottom line as the Low Cost Carrier (LCC)'s Gol Linhas Aereas Inteligentes (GOT) parent reported a -82% plunge in full-year profit to +BRL102.5 million/+$58.6 million from the +BRL569.1 million earned in 2006, plus an operating loss. The company attempted to put a positive spin on the result, calling 2007 "a year of strategic investment and growth," adding, "The fact that Varig (VAR) was acquired during a difficult year . . . proves we are ready and prepared to manage growth, despite occasional adversity." It said it invested BRL2.2 billion last year on the acquisition of Varig (VAR), fleet expansion, technology and other upgrades. Full-year revenue rose +29.9% to BRL4.94 billion against a +60% surge in costs to BRL4.96 billion, as the average number of operating airplanes climbed +76.8% to 88.6. The operating result sank to a -BRL23 million loss from the +BRL701.5 million profit reported in 2006. Gol (GOT) also cited the regulatory restrictions in place at Sao Paulo Congonhas, the late delivery of seven 767s, that delayed international route launches, and difficulties with Brazil's air traffic controller (ATC)s as contributors to the poor results. It said the government has "worked to restore credibility to the Brazilian aviation sector," an effort it said "will generate effective results and necessary improvements in both the medium and long term."
Gol (GOT) and Varig (VAR) flew 22.67 billion (RPK)s passenger traffic in 2007, up +53% year-over-year, against a +69.5% increase in capacity to 34.35 billion (ASK)s. Load factor slipped -7.1 points to 66% LF. Yield declined -16.6% to BRL0.201 and operating (RASK) dropped -23.4% to BRL0.145. Unit cost improved +5.6% to BRL0.144, or +3.6% to BRL0.089 excluding fuel. Gol (GOT) took delivery of eight airplanes in the fourth quarter and said it suffered as a result of the new regulations at Congonhas, reporting a net loss of -BRL24.2 million compared to a profit of +BRL92.7 million in the final three months of 2006. Operating result swung to an -BRL85.4 million loss from a +BRL112.3 million profit.
Gol (GOT) and Varig (VAR) operated a combined fleet of 106 airplanes at year end. The company has 161 airplanes on order. By the end of 2008, it will be flying 111, with all 27 737-300s leaving the fleet and 29 737-800s, and three 767s arriving. It expects 2008 traffic to rise approximately +37% year-over-year, while (ASK)s are forecast to increase at around the same rate.
VRG (VAR) and Japan Airlines (JAL) inked an interline agreement that will allow passengers to purchase single tickets for flights serving all destinations of both carriers. Passengers traveling under VRG (VAR)'s "Smiles" frequent-flier program will only accumulate miles on flights operated by VRG (VAR), formerly Varig.
March 2008: Varig (VAR) and Korean Air (KAL) announced a comprehensive interline agreement.
Varig (VAR) added to its growing list of interline agreements by reaching deals with six more European carriers: Aegean Airlines (CRM), Air Moldova (MOL), Air Comet (APZ), (CSA) Czech Airlines, (LOT) Polish Airlines, and Ukraine International Airlines (UKR). The new agreements follow interline accords already forged with its parent Gol (GOT), Air France (AFA)/(KLM), Hahn Air, Malev Hungarian Airlines (HGA), El Al (ELA), Air One (ADH), Japan Airlines (JAL), Mexicana (CMA), Korean Air (KAL), Iberia (IBE), Qatar Airways (QTA), and Delta Air Lines (DAL). While the pacts allow passengers to book connecting flights on single tickets, those traveling under its "Smiles" frequent-flier program can only accumulate miles on flights operated by Varig (VAR).
Varig (VAR) announced an interline agreement with China Airlines (CHI).
VRG Linhas Aereas (VAR), the new Varig, unveiled a revamped domestic schedule focusing on business markets, its new Brasilia hub and Sao Paulo Congonhas (CGH). It will fly to nine domestic airports from (CGH), and eight from the capital, operating 737-700s/-800s on a majority of the routes.
JetBlue (JBL) founder & Chairman, David Neeleman is trying his hand at starting yet another airline and signed a contract for 36 EMB-195s to operate in Brazil. The new carrier will be based in Sao Paulo, where Neeleman was born, and is targeting a 2009 launch. It eventually will serve most major Brazilian markets, flying up to 76 EMB-195s by 2013. The agreement with Embraer includes options on 20 airplanes, plus 20 purchase rights. The firm order is valued at $1.4 billion and the 118-seaters will feature LiveTV satellite InFlight Entertainment (IFE), a first for a Brazilian airline. Neeleman has raised $150 from unnamed investors in the USA and Brazil to fund the venture. "The EMB-195 is the perfect airplane for the Brazilian market," he said. "Our target market is the 150 million passengers, who travel annually by long-distance bus as well as those who, for lack of a convenient alternative, don't travel at all." The airline, as yet unnamed, has applied for its air operating certificate (AOC). It plans to take delivery of its first airplane this year. "It's a market that is overpriced and underserved," Neeleman spokesperson Gareth Edmonson-Jones said. "Fares in Brazil are about +50% more expensive than comparable flights in the USA. Cost efficiencies and a focus on the bottom line will bring those fares down." The discount fares offered by the new carrier could triple or quadruple enplanements in the coming years, he added. Neeleman acknowledged the stiff competition the startup will face from Gol (GOT) and TAM (TPR), which are well established. "We respect TAM (TPR) and Gol (GOT) as well-run companies with deep pockets," he said. "We believe, however, that the Brazilian market is ready for a third major airline, and that there is sufficient untapped potential to support all of us."
April 2008: Gol (GOT) and Varig (VAR) flew 2.12 billion system (RPK)s passenger traffic in March, up +43.1% from the year-ago month. Capacity rose +55% to 3.72 billion (ASK)s, dropping load factor -4.7 points to 57.1% LF.
May 2008: Gol (GOT) and VRG (VAR) flew 2.31 billion (RPK)s passenger traffic in April, up +17.8%, against a +25.1% increase in capacity to 3.65 billion (ASK)s. Load factor fell -3.9 points to 63.2% LF.
Gol (GOT) reported a first-quarter net loss of -BRL3.5 million/-$2.1 million, reversed from a profit of +BRL116.6 million in the year-ago period, as last year's acquisition of Varig (VAR) and its subsequent integration with Gol (GOT) weighed heavily and led to sinking load factors. The company noted that it is reorganizing the renamed VRG (VAR)'s loss-making international network, dropping service to Frankfurt, London, and Rome in March, and planning to end Madrid and Mexico City flights during the current quarter. VRG (VAR)'s nine 767-300ERs will be eliminated from its fleet this year, as will Gol (GOT)/VRG (VAR)'s 28 737-300s. Both carriers will operate only 737NGs by year end (108 total) and their networks will be focused on domestic and South American flying. Gol (GOT) claimed these measures will allow it to return to profitability by the third quarter.
Revenue rose 54.3% to BRL1.61 billion, though the company cautioned that year-over-year comparisons show misleadingly large increases/decreases because last year's results do not include VRG (VAR). Expenses climbed +77.7% to BRL1.63 billion, producing an operating loss of -BRL21.4 million, reversed from a +BRL125.1 million profit in the year-ago quarter. Traffic grew +39.7% to 6.84 billion (RPK)s on a +57.7% jump in capacity to 11.06 billion (ASK)s, producing a load factor of just 61.8% LF, down -8 points. Yield lifted +10% to 21.93 BRL cents as RASK fell -2.2% to 14.53 BRL cents, and (CASK) climbed +12.8% to 14.73 BRL cents. (CASK) ex-fuel, increased +10.2% to 8.72 BRL cents.
President & CEO, Constantino de Oliveira Junior said the move to an all-737NG fleet by year end will allow Gol (GOT) to keep operating costs down and offer "demand-stimulating" low fares that will help it return to profitability.
June 2008: Gol (GOT) and VRG (VAR) flew a combined 2.36 billion (RPK)s passenger traffic in May, up +20.7% year-over-year. Capacity climbed +18.6% to 3.61 billion (ASK)s, and load factor rose +1.1 points to 65.4% LF.
Gol Linhas Aereas Inteligentes (GOT) received permission to complete its acquisition of VRG (formerly Varig) (VAR) "with no restrictions" from the Brazilian Administrative Board for Economic Defense, the final agency from which it needed to gain approval for the transaction. It appears that the two carriers will continue to operate separately, but Gol (GOT) President & CEO, Constantino de Oliveira Jr said the ruling "will allow us to consolidate our investments and improve synergies between the airlines' operations . . . integrating [Gol (GOT)'s] and VRG (VAR)'s operations will allow the company to optimize revenues and costs as well as maximize the consolidated company's operational, financial and ancillary revenue capabilities." The regulatory agency determined that the acquisition would "have no effect on market competition or consumer options in the Brazilian aviation industry."
Gol Linhas Aereas Inteligentes (GOT) received permission to complete its acquisition of VRG (formerly Varig) (VAR) "with no restrictions" from the Brazilian Administrative Board for Economic Defense, the final agency from which it needed to gain approval for the transaction. It appears that the two carriers will continue to operate separately, but Gol (GOT) President & CEO, Constantino de Oliveira Jr said the ruling "will allow us to consolidate our investments and improve synergies between the airlines' operations . . . integrating [Gol (GOT)'s] and VRG (VAR)'s operations will allow the company to optimize revenues and costs as well as maximize the consolidated company's operational, financial and ancillary revenue capabilities." The regulatory agency determined that the acquisition would "have no effect on market competition or consumer options in the Brazilian aviation industry."
The USA and Brazil announced an enhanced air services agreement that will provide for a nearly +50% increase in passenger flights between the countries, while eliminating restrictions on the number of airlines that can fly the routes. "This agreement will help air carriers meet the growing demand for passenger and cargo services between the USA and Brazil," USA Secretary of Transportation, Mary Peters said. "Now more than ever, it is crucial that we give USA carriers every possible opportunity to compete and succeed wherever passengers want to fly." The previous agreement allowed only four airlines from each country to fly to the other, while the new deal removes those limits. In addition, the number of permissible weekly flights between the nations will increase in four stages to 154 from the current 105 between next month and October 2010.
USA carriers will gain access to Fortaleza, Curitiba, and three additional new cities to be selected by USA authorities. At present, American Airlines (AAL), Continental Airlines (CAL), Delta Air Lines (DAL), and United Airlines (UAL) fly to Sao Paolo and Rio de Janeiro Galeao. USA and Brazilian carriers also now will be permitted to provide certain codeshare services with partners from third countries.
Weekly cargo flights will increase to 35 from 24 immediately, and to 42 in 2010, while the number of cargo charters allowed, also will rise. USA cargo companies now will be permitted to transfer freight from airplanes to ground vehicles for home and office delivery in Brazil. The terms of the agreement will be applied on a reciprocal basis until it enters into force.
Genesis Lease of Ireland will lease two former Aloha Airlines (ALO) 737-700s to Brazil's VRG (VAR) for seven years each. Delivery is expected before August.
737-76N (PR-GOQ), transferred from Gol (GOT) fleet - - SEE ATTACHED PHOTO - - "VAR-737-76N-JUN08."
July 2008: Gol (GOT) and VRG (VAR) flew a combined 2.23 billion (RPK)s traffic in June, a +18.4% increase over the year-ago month. Capacity rose +19.6% to 3.42 billion (ASK)s and load factor dropped -0.6 point to 65.4% LF.
Varig (VAR) Engineering & Maintenance (VEM) reached agreement with TAM (TPR) for maintenance of 767-300 components across its fleet. The contract includes provisioning of exchange and repair components including Auxilliary Power Units (APU)s, landing gears, avionics, pneumatics, and hydromechanical systems.
(VAR)'s 767s will be returned to lessors at end of summer.
August 2008: Gol (GOT) and VRG (VAR) parent, Gol Linhas Aereas Inteligentes reported a second-quarter net loss of -BRL171.7 million/-$106.4 million, widened from a -BRL35.4 million loss in the year-ago quarter, as it consolidated (Gol) and VRG (VAR)'s flight networks during the three-month period and contended with rising fuel costs. "Fuel prices reached record levels faster than fares could be adjusted, especially in a quarter where we were facing ramp-up of our new flight networks," the company said. President & CEO, Constantino de Oliveira said measures to lower fuel costs will be a top priority going forward including slowing capacity growth, adding winglets to its 737NGs and implementing a policy of reducing flight speed and shutting down one engine after landing. "We are taking all possible measures to lower costs and reduce fuel consumption to offset the recent increase in fuel prices," he said.
Second-quarter revenue rose +27.2% year-over-year to +BRL1.46 billion, while expenses increased +41.7% to BRL1.76 billion, producing an operating loss of -BRL299.2 million, widened from a -BRL93.4 loss last year. Fuel costs leaped +47.9% to BRL733 million, nearly three times greater than labor, the next highest expense category.
Traffic lifted +20.1% to 6.9 billion (RPK)s on a +22.8% rise in capacity to 10.68 billion (ASK)s, producing a load factor of 64.6% LF, down -1.4 point. (RASK) increased +3.5% to BRL13.72 cents, while (CASK) heightened +15.4% to BRL16.53 cents. (CASK), excluding fuel, grew +12.1% to BRL9.66 cents.
While growth going forward will be moderated slightly (year-end fleet will comprise 104 airplanes instead of the previously planned 108), it still will be aggressive, with 2008 full-year capacity rising about +20%. "The air transportation market in Brazil remains underpenetrated and increasing the number of available seats at low fares is important for the continued development of the sector and the economy," Gol (GOT) said.
Gol (GOT) and VRG (VAR) parent, Gol Linhas Aereas Inteligentes submitted a request to Brazil's National Civil Aviation Agency for authorization to integrate Gol (GOT) and VRG (VAR) into a single airline company. "The proposed reorganization will simplify the corporate structure of Gol (GOT)'s subsidiaries, maximizing administrative efficiencies, optimizing revenues, and reducing financial and operational costs, besides greater operational flexibility," it said. The Gol (GOT) and Varig (VAR) brands would be maintained, Gol (GOT) said.
Gol (GOT) reduced its fleet plan by two leased 737-800s in 2008 and five leased 737-800s in 2009. Full-year 2008 capacity growth will be around +20% instead of the +25% previously forecast. The Brazilian airline's board voted to suspend quarterly dividends for the remainder of 2008, freeing "cash to fund investments and improve credit ratios."
September 2008: Gol (GOT) and VRG (VAR) parent, Gol Linhas Aereas Inteligentes said that Brazil's National Civil Aviation Agency has approved its request to integrate Gol (GOT) and VRG (VAR) into a single airline company. "The reorganization aims at improving operational structure," Gol (GOT) said. "The reorganization will allow increased efficiency in the air transport services, since it will become possible to integrate the operations of [GOT] and (VAR), exploit synergies, and broaden and improve service offerings." It added, however, that (GOT) and (VAR) will be maintained as separate brands.
Developed by Boeing (TBC) and certified two years ago in order to allow Gol (GOT) to fly more efficiently to and from Brazil's urban airports, the 737-800 Short Field Performance airplane now will help the company target business (C) travelers more comfortable with the Varig (VAR) name. In late August, Gol (GOT) and VRG (VAR) parent Gol Linhas Aereas Inteligentes announced that Boeing (TBC) had delivered the first of three 737-800SFPs directly to Varig (VAR). The airplanes were commissioned by Gol (GOT) several years ago so it could operate better at the confined spaces of Rio de Janeiro Santos Dumont (SDU) and Sao Paulo Congonhas (CGH), which feature runways shorter than 5,000 ft. Certified in July 2006, the kit is standard on 737-900s, optional on other 737NGs and includes a two-position tail skid that reduces approach speeds, sealed leading-edge slats for lift, increased spoiler deflection on the ground, and blended winglets. Gol (GOT) VP Technical, Fernando Rockert de Magalhaes said that the kit sells for $2 million, but was provided free to Gol (GOT), which has committed to 160 airplanes. Currently, 33 737-800SFPs are flying in Gol (GOT)'s orange-and-white livery.
The airplane burns less fuel, and accommodates larger payloads at both airports, Rockert said. "The majority of our network begins, ends or passes through Sao Paulo," he told this website. "The old 737-800s, they are not able to take off and land here at [Congonhas] unless you have the penalty on the payload. The 737-800SFP can do it almost with no restrictions, because of the new features."
Now, he revealed, the airplane will be part of Gol (GOT)'s plan to woo business travelers on the popular (SDU) - (CGH) route. Originally pegged to handle a significant portion of the company's international traffic, Varig (VAR) still carries a brand that many Brazilians regard as distinct from Gol (GOT)'s no-frills service. "We identified that the business (C) community that fly, almost all of them between Santos Dumont and Sao Paulo, they appreciate very much the Varig (VAR) name, the livery. It's still a very strong brand among the businessmen," Rockert said.
As a result, the 737-800SFP will become the "backbone" of both fleets, he said. "We understand this will be a machine that will bring us the profitability, the reliability, the on-time flights, and also give us seat-km costs very attractive [compared] to the older models." SEE ATTACHED - - "VAR-GOT-NEWS-SEP08."
October 2008: Gol (GOT) flew 1.73 billion consolidated (RPK)s passenger traffic in September, down -3.1% year-over-year. Capacity rose -4.1% to 3.03 billion (ASK)s, dropping load factor -4.2 points to 57% LF.
Gol (GOT) and Varig (VAR) parent, Gol Linhas Aereas Inteligentes said losses on its fuel hedges and gains on currency hedges would result in a BRL48 million/$22.1 million charge against its third-quarter results, which it is scheduled to report October 27. It expects to report an operating margin of -1% to 1%.
Gol (GOT) Linhas Aereas Inteligentes (GLAI) announced the formal integration of Gol (GOT) and VRG (once again called Varig (VAR)) into a single airline company, and from October 19 will launch a new route network in which Gol (GOT) will focus on shorter routes and Varig (VAR) will operate longer-haul flights. The company said the reorganization will increase operational efficiency. "The new network complements the company's unified structure by eliminating overlapping routes and schedules between Gol (GOT) and Varig (VAR)," it said.
Gol (GOT) will operate all domestic flights and short-haul flights to Asuncion, Buenos Aires, Cordoba, Rosario, Montevideo, Lima, and Santa Cruz de la Sierra. Gol (GOT) also will operate a Rio de Janeiro - Santos Dumont - Sao Paulo Congonhas shuttle with departures every 30 minutes. Varig (VAR) will operate medium-haul international flights to Bogota, Caracas, and Santiago de Chile.
"The new network will . . . improve flight occupancy levels by allowing the company to increase offerings in markets, where it has consolidated operations, while also allowing for new connections between previously unlinked cities," (GLAI) said. The integrated airline company will operate 800 daily flights to 49 destinations.
The integration will mean a unified ticket sale system and operating under one (IATA) (ITA) code. "The entire timetable, including Varig (VAR)'s inventory in the Iris and Amadeus systems, will be gradually migrated to the New Skies system," (GLAI) said. "By doing this, the company will reduce costs and simplify processes."
Passengers on the medium-haul 737-800 Varig (VAR) flights will be offered the option to purchase "comfort class" tickets that will provide access to fast-track boarding, increased legroom and enhanced InFlight Entertainment (IFE), the company said. Beginning November 16, Gol (GOT) and Varig (VAR)'s frequent-flier programs and airport lounges will be integrated.
(VEM) Maintenance & Engineering (VAR) said it completed the first phase of its contract with Air Transat (AIJ), delivering the first of four A310s in line for "C" checks.
On October 16, the Company launched a new "Comfort Class" on VARIG's medium-haul international flights, which provides passengers with a number of important benefits, including a wide variety of meal choices, more legroom between seats, on-demand entertainment during the flight, and many other benefits.
November 2008: Gol (GOT) flew 1.79 billion (RPK)s traffic in October, down -17.5% year-over-year. Capacity was level at 3.14 billion (ASK)s, and load factor dropped -12 points to 56.8% LF.
Preliminary unaudited financial results for the third quarter of 2008 stated net revenues reached R$1.8 billion, representing growth of +37.2% compared to the same period last year. (GOT) transported 6.0 million passengers during the quarter, representing growth of +8.7% over 3Q 2007. Ancillary revenues (cargo and other) increased +55.0% over 3Q 2007 to R$178. Consolidated operating income for the quarter was +R$61.2mm, representing an operating margin of 3.4%. Consolidated net loss for the quarter was -R$294.3 million/-US$176.3 million, due to a negative exchange variation of R$261.8mm with no impact on cash and negative net hedging results of R$48.0mm. Consolidated net loss per share (EPS) was R$1.47; net loss per (ADS) was US$0.88.
Consolidated operating costs per (ASK) (CASK) increased +22.4% from 14.23 cents (R$) in 3Q 2007 to 17.42 cents (R$) in 3Q 2008. Non-fuel (CASK) increased +13.6% to 9.87 cents (R$) due to planned lower airplane utilization, extraordinary expenses related to airplane return expenses, lower stage length, and increases in salaries, wages and benefits, sales and marketing and depreciation.
In line with its fleet renewal plan, (GOT) received four 737-700NGs and eight 737-800NGs, and removed ten 737-300s and eight 767-300s from the operating fleet during the quarter, resulting in a net reduction of eight airplanes in the operating fleet. (GOT) plans to end 2008 with a consolidated fleet of 104 airplanes, mostly comprised of 737-800 and 737-700 airplanes.
Consolidated domestic (RPK)s traffic decreased -17.7% and capacity (ASK)s decreased -4.6%, versus 2Q 2008. Consolidated international (RPKs) increased +3.4% and (ASK)s decreased -16.6% versus 2Q 2008.
Consolidated (RPK)s increased +8.7% from 5,470 million in 3Q 2007 to 5,944 million in 3Q 2008 and (ASK)s increased +10.9% from 8,941 million in 3Q 2007 to 9,912 million in 3Q 2008. Consolidated average load factor decreased +1.2 percentage points versus 3Q 2007 to 60.0% LF. Consolidated break-even load factor decreased -1.9 percentage points versus 3Q 2007 to 57.9% LF.
GOL (GOT) now offers over 790 daily flights to 59 different destinations in Brazil and South America, the most of any airline group. In 3Q 2008, GOL (GOT) added 19 new daily flight frequencies. (GOT)'s low-cost operating structure permits flights to medium-sized cities with lower traffic volumes, allowing GOL (GOT) to serve various destinations outside of Brazil's main economic centers.
On August 31, (GOT) ceased long-haul services with the last intercontinental flight to Paris, France. Beginning August 31, (GOT) ceased operating 767s and now operates only 737s on its short and medium-haul flights.
On October 19, GOL (GOT) launched its new integrated route network. The new network compliments (GOT)'s unified structure by eliminating overlapping routes and schedules between GOL (GOT) and VARIG (VAR), which improves flight occupancy levels by allowing the Company to increase offerings in markets where it has consolidated operations while also allowing new connections between previously unlinked cities.
Beginning on October 16, customers flying on both VARIG (VAR) and GOL (GOT) are able to accumulate miles through the "SMILES" frequent flyer program. Beginning November 16, miles can be exchanged for tickets to all destinations served by the Company.
On October 23 (GOT) signed an interline agreement with Germany- based Condor Airlines (CDF). Through this partnership, passengers of (CDF) can purchase tickets on (GOL) to Belo Horizonte, Brasilia, Fortaleza, Maceio, Natal, Rio de Janeiro, and Sao Paulo.
December 2008: 737-7BX (30739, PR-VBW), ex-Senegal International (SNG), (GEF) leased..
February 2009: (TAP) Maintenance & Engineering listed VEM (VAR) Maintenance & Engineering as an affiliated company extending the scope of its membership in the Airbus (EDS) Maintenance Repair & Overhaul (MRO) Network. Affiliation means (TAP) will be the first member to offer base maintenance services for (EDS) airplanes in South America.
March 2009: Gol Airlines (GOT) and Varig (VAR) parent, Gol Linhas Aereas Inteligentes swung to a -BRL1.39 billion/-$606.7 million loss in 2008 from a +BRL272.3 million profit the prior year, but said it "continues to evaluate expansion opportunities" while approving a +BRL203.5 million capital increase. Key culprits in the deficit were a +31.5% year-over-year increase in expenses and -BRL757.5 million in foreign exchange losses. Revenue was up +29.7% to BRL6.41 billion and costs rose to BRL6.5 billion, producing an operating loss of -BRL88.6 million that represented a reversal from the +BRL2.4 million profit reported in 2007.
The board announced its approval for the sale of 6.6 million common shares and 19.5 million preferred shares at BRL7.80 each. It did not say how the company would use the new capital.
(GOT) called 2008 "a year of significant transformation . . . aimed at strengthening the foundations of the company's low-cost, low-fare business model." It said it "heavily invested in standardizing its fleet, technology and training . . . as well as the formidable challenge of integrating [(GOT) and (VAR)]." (VAR) now operates on medium-haul international flights with a fleet of 737-700s/-800s and in October, the company unveiled an integrated route network designed to eliminate overlaps and create more point-to-point service.
The carriers transported 25.7 million passengers in 2008, up +8.3%, and flew 25.31 billion (RPK)s traffic, a +11.6% increase year-over-year. Capacity rose +19.7% to 41.12 billion (ASK)s, dropping load factor -4.4 points to 61.6% LF. Yield grew +15.5% to BRL23.27 and operating (RASK) was up +8.3% to BRL15.58. Unit cost climbed +9.9% to BRL15.8, or +6.2% to BRL9.4, excluding fuel. (GOT) and (VAR) finished the year with 106 operational airplanes out of a fleet of 115. It plans to be operating 108: 40 737-700s, 16 737-800s and 52 737-800SPFs, by year end.
Its fourth-quarter net loss of -BRL687.1 million was widened from a -BRL6.5 million deficit in the final three months of 2007. It was profitable on the operating level, however, reporting a +BRL53.9 million surplus compared to a -BRL78.2 million loss last year. Exchange losses were behind the net loss.
(GOT) issued revised guidance for 2009 and said it expects to transport 28 million passengers this year, down from the originally forecast 29 million. Capacity will stay at 40.5 billion (ASK)s, with a slight increase in domestic and a corresponding decrease in international. Unit cost, excluding fuel, is expected to be BRL9.5, up from the BRL8.9 expected earlier.
May 2009: Gol (GOT) reported first-quarter net income of +BRL61.4 million/+$29.1 million, reversed from a net loss of -BRL20.5 million in the year-ago period, despite a -5.4% drop in revenue to BRL1.52 billion. (GOT) said its profit resulted from lower fuel costs, "cost control and yield management" and synergies from the (GOT)/Varig (VAR) "operational consolidation." Expenses lowered -9.2% to BRL1.41 billion and operating income more than doubled to +BRL105.1 million from +BRL49.2 million last year.
Traffic declined -14.9% to 5.82 billion (RPK)s on a -13.7% fall in capacity to 9.55 billion (ASK)s, producing a load factor of 61% LF, down -0.9 point. Yield rose to BRL23.82 cents as (RASK) lifted +9.5% to BRL15.89 cents and (CASK) increased +5.1% to BRL14.79 cents. (CASK) ex-fuel, jumped +25.5% to BRL10.2 cents.
(GOT) is adding flights from Rio de Janeiro's downtown airport. (GOT) recently launched non-stops to Vitoria, an Atlantic Ocean port city, and will start service to Belo Horizonte Confins and the capital, Brasilia.
August 2009: (TAP) Maintenance and Engineering Brazil was certified by the USA (FAA) to perform heavy maintenance on A330 and A340 airplanes. The company also is (FAA)-certified for the A300-B4, A300-600, and A310. It is a member of the Airbus (EDS) Maintenance Repair & Overhaul (MRO) Network.
October 2009: To start Sao Paulo (GRU) to Aruba in the Caribbean, via Caracas with 737-800s.
March 2010: 767-33AER (27477, PR-VAB) and 767-383ER (24846, PR-VAO), removed from storage and will re-enter service after a maintenance check.
April 2010: Gol (GOT) will launch weekly, Rio de Janeiro Galeao - Sao Paulo Guarulhos - Caracas - Punta Cana service on April 3 aboard a Varig (VAR) 737-800.
May 2010: Gol Linhas Aereas Inteligentes (GOT) said its Varig (VAR) subsidiary will launch weekly, Sao Paulo Guarulhos - Bridgetown's Grantley Adams International airport, Barbados, service on June 26. “We will be the only Brazilian airline to offer regular flights to Barbados,” says GOL (GOT)’s Market VP, Claudia Pagnano. “Our operation will reduce the journey time of Brazilians visiting this destination by several hours. Currently, the fastest route is via the United States.”
1 767-27GER (27048, PR-VAC) and 767-38EER (25132, PR-VAF), returned to service (RTS) after storage.
January 2011: Brazilian aviation authorities report a more than >20% year-on-year increase in air travel, with start-up carriers recording the biggest growth rates. Domestic travel increased +23.5% and international activity +20.4%, the civil aviation authority says. Load factors on domestic flights came in at 68.8% LF, up from 65.8% LF, with loads on international rates climbing to 76.4% LF from 69.2% LF.
TAM (TPR) remains the market-dominating carrier, with 42.8% of domestic operations, followed by GOL (GOT) at 39.5%. Each carrier posted year-on-year growth of about +16%. Low cost carrier (LCC) Azul, now the third-largest carrier with 6.1% market share, experienced growth of more than >100%. Rival WebJet (WEB)’s growth rate was +64%, representing 5.9% market share.
February 2011: GOL (GOT) and Varig (VAR) is currently interviewing First Officer flight crew (FC) on a weekly basis. They interview USA pilots (FC) but they must have a Brazilian green card and a commercial Brazilian pilot (FC)'s license. This year, (GOT) introduced Central America routes and charters to Orlando.
January 2012: GOL (GOT) Varig (VAR) will conduct a Flight Crew (FC) pilot class in February of 2012.
February 2014: (GE) Capital Aviation Services Limited (GECAS),(GEF) announced delivery of four new leased 737-800 airplanes to VRG Linhas Aéreas S A (VAR) to expand its fleet.
The airplanes were part of a purchase-and-leaseback transaction between the airline and (GEF). The first airplane delivered in December 2012; two delivered in 2013; and the final delivered late last month.
(VRG) Linhas Aéreas (VAR) is a subsidiary of parent company Gol (GOT), which is the second largest carrier in Brazil, operating a fleet of 140 airplanes to some 70 destinations.
EPILOGUE/EPITAPH: Varig (VAR) flew 747s from 1985 - 2000 - - see photo - "VAR-747-341 - 2015-09.jpg." (VAR) was the first national carrier of Brazil, having started services in 1927. Its demise began in the 1980s, with high inflation rates, political problems and increased competition. By 2006, Varig (VAR) was in bankrupty and was split into two carriers. The "New" Varig was integrated into Gol (GOT) and ceased being Varig (VAR) in mid-2006.
Another "Old" Varig was known as Nordeste Linhas Aéreas Regionais (NOD), and operated as a charter carrier in October 2007 under the brand-name Flex Linhas Aéreas. Flex declared bankrupty in 2010.
Click below for photos:
VAR-737-7Q8 - 2005-07-A
VAR-747-341 - 2015-09.jpg
VAR-757-200 - 2004-10
VAR-757-256 - 2004-09
VAR-MD-11-WLD CUP SOCCER 2006
2 727-172C (JT8D-7A/9A) (457-19508, /67 PP-VLS; 480-19666, /67). WET-LST (VLO). FREIGHTER.
1 727-30C (JT8D-7A/9A) (374-19009, /67 PP-VLV), EX-(DLH). WET-LST (VLO). FREIGHTER.
2 727-41 (JT8D-7A/9A) (810-20423, /70 PP-VLG; 824-20425, /70 PP-VLD).
2 727-2A1F (JT8D-17) (1253-21341, PP-LGB; 1256-21342, PP-LGC), EX-(UPS), (PCM) LSD 2002-09. WET-LST (VLO). FREIGHTER.
1 727-2J7 (JT8D-17) (1037-20880, /74 PP-SFF), EX-(TIG), (PSS) LSD.
1 727-243 (JT8D-17) (1725-22166, /81 PP-VQV), EX-(ALI), (PSS) LSD.
0 737-2C3 (JT8D-17A) (392-21012, /75 PP-CJN; 410-21017, /75 PP-CJT), (PLI) LSD. 21012 W/O 2001-09. 21017 RTND. 21015 PARTED OUT 2005-01. 109Y.
0 737-2K9 (JT8D-17A) (804-22504, /82 PP-VNF), (PLI) LSD. RTND. 109Y.
0 737-2Q8 (JT8D) (522-21518, /78 CX-FAT), EX-(FAT), RTND 2001-12.
0 737-219 (JT8D) (426-21130, /75 PP-VPE), EX-(ANZ), RTT (PLU). (21130; FOR SALE - NORTHERN JET SALES TEL: (615) 217-1006 APL LOCATED IN SMYRNA, TENNESSEE).
0 737-241 (JT8D-17A) (378-21000, /74 PP-VME; 417-21009, /75 PP-VMN), (PLI) LSD. 21009 RTND, LSD (NCT) 2002-01. 21000 LST (NCT). 21000; 21008; 21009; LST (RLE) 2003-07. 21005 RTND, LST (SOW) 2003-12; 21009; RTND (PLI) 2004-02. 21001 WFU. 21004; PARTED OUT 2005-01. 109Y.
0 737-3K9 (CFM56-3B2) (2416-23797, PP-VTA; 2429-23798, PP-VTB; 1918-24864, /90 PP-VNY; 24969, PP-VNZ; 25210, PP-VOY; 2100-25239, /91 PP-VOZ; 26856, PP-VPB; 26857, PP-VPC), (BAV) LSD. RTND. 132Y.
0 737-3Q8 (CFM56-3) (2133-24961, /91 PP-VOW; 26295, PR-WJO), (ILF) LSD. RTND. 132Y.
0 737-3Q8 (CFM56-3) (26295, PR-WJO), (AWW) LSD. RTND. 132Y.
0 737-3S1 (CFM56-3) (1896-24834, /90 PP-VPF), EX-(TAC), (DEA) LSD. RTND.
0 737-3S3 (CFM56-3) (1374-23787, PP-VQW), EX-(VSP), (CGP) LSD 2001-06. RTND, LST (BRU) 2006-03. 132Y.
0 737-33A (CFM56-3B2) (1446-23828, /87 PP-VNT; 23829, PP-VNX; 1763-24098, /89 PP-VQN), (AWW) & (LHD) LSD. RTND. 132Y.
0 737-33A (CFM56-3) (2606-27284, /94), EX-(TRM), (AWW) LSD 2001-06. RTND.
0 737-33R (CFM56-3) (2899-28870, /97, PP-VPX; 2900-28871, /97, PP-VPY), EX-(WPA), (GAX) LSD 1998-03. 132Y.
0 737-341 (CFM56-3) (1637-24275, /88 PP-VOD; 24935, PP-VON; 26856, /92 PP-VPB; 2326-26857, /92 PP-VPC). 24277; 24278; 24279 RTND (GEF) 2002-09. 24275; 24276; 24278; RTND 2002-12. 25050 RTND (GAX) LST (BRW) 2004-02. 26856; 26857; TO (WEB).
0 737-36N (CFM56-3) (2936-28564, /97 PP-VQP; 2971-28567, /97 PP-VPU), (GEF) LSD. 28564; 28671 RTND 2002-08, LST (NWG). 28567 RTND 2002-09.
0 737-36N (CFM56-3) (28590, PR-WJL), ACG LSD 2009-06. RTND.
0 737-36Q (CFM56-3) (2940-28664, /97 PP-VPQ; 23011-28761, /98 PP-VPR), (BOU) LSD. RTND.
0 737-382 (CFM56-3) (1699-24366, PP-VTW), (PSS) LSD 2005-09. RTND.
0 737-4S3 (CFM56-3) (2061-25116, PP-VTL), KM ASSOC LSD 2004-08. RTND.
0 737-4YO (CFM56-3C1) (1733-24467, /89 PP-VQQ; 1963-24692, /90 PP-VQT), (GEF) LSD. 24692 RTND 2002-10, 24467; & 24513; RTND 2002-12. 158Y.
0 737-4YO (CFM56-3C1) (1655-23977, PP-VTM), LSD 2004-04. RTND.
0 737-48E (CFM56-3) (2314-25764, PP-VTN; 2335-25765, PP-VTO), (DEA) LSD 2004-07. RTND.
0 737-5H6 (CFM56-3C1) (2527-26456, /93 LV-), EX-(AFA), (GEF) LSD 2004-10. RTND. 112Y.
0 737-5Q8 (CFM56-3C1) (2999-28201, /98 PT-SSF), EX-(ROS) 2005-03. RTND. 111Y.
0/00 ORDERS 737-700 (CFM56-7B), DEFERRED FOLLOWING "9/11" & CANCELED.
2 737-7BX (CFM56-7B24) (716-30738, /00 PR-VBX; 758-30739, /01 PR-VBW), EX-(SNG), EX-(6V-AHN), (GEF) LSD 2008-12. 144Y.
2 737-7EA (CFM56-5B24) (859-32406, /01PR-VBM; 904-32407, /01 PR-VBP), EX-(N815PG) & (N160CK) 2001-05. 144Y.
0 737-7Q8 (CFM56-7B) (369-28224, PR-SAG; 30635), XFRD FROM (ROS) 2004-12. RTND (ILF), LST (GOT) 2005-11. 132Y.
2 737-73A (CFM56-7B26) (390-28499, /99 PR-VBY; 414-28500, /99 PR-VBZ), EX-(ALO), EX-(N736AL & N739AL) 2008-08. GENESIS 7 YR LSD. WITH WINGLETS. 144Y.
3 737-76N (CFM56-7B24) (124-28577, /98 PR-VBN; 463-28613, /99 PR-GOM; 1215-33417, /02 PR-GOQ), 2008-08. 144Y.
0 737-76N (CFM56-7B24) (135-28580, /98 PP-VQA; 173-28585, /99 PP-VQE), (GEF) 5 YR LSD, ALL 5 RTND BY 2002-07. 28580 LST (GOT) 2003-05. 144Y.
2 737-76N (CFM56-7B26) (372-29905, /99 PR-VBU; 429-30050, /99 PR-VBU), EX-(ALO), EX-(N746AL & N748AL) 2008-09, WITH WINGLETS. 144Y.
1 737-76N (CFM56-7B24) (1215-33417, /02 PR-GOQ - - SEE ATTACHED PHOTO - - "VAR-737-76N-2008-06), XFRD FROM (GOT) 2008-06. 144Y.
1 737-76N (CFM56-7B22) (1068-30135, /02 PR-VBQ), EX-(PR-GOO) 2008-05,
3 737-8AS (CFM56-7B24) (210-29916, /99 PR-VBA; 298-29917, /99 PR-VBB; 307-29918, /99 PR-VBC; 341-29919, /99 PR-VBD; PR-VBE - SEE PHOTO DEC07), EX-(RYR), (GOT) WET-LSD 2007-12. WITH WINGLETS. 184Y.
1 737-8EH (CFM56-7B27) (2445-34271, /07 PR-VBK; 2449-34272, /07 PR-VBL; 2700-35066, /08 PR-VBG - - SEE PHOTO - - "VAR-747-8EH-2008-08;" 2716-34276, /08 PR-VBF), (GOL) LSD 2008-01. WITH WINGLETS. 187Y.
1 737-8HX (CFM56-7B26) (2706-36434, /08 PR-VBJ), WITH WINGLETS. 8PY, 170Y.
1 737-8Q8 (CFM56-7B26) (768-30636, /01 PR-GIX), (GOL) LSD, EX-(N330LF) 2009-05. WITH WINGLETS. 8PY, 170Y.
3 +0/0 ORDERS 737-85F (CFM56-7B24) (936-30571, /01 PP-VSA). 30477, PP-VSB, 2001-11, (GAX) LSD, WITH WINGLETS. 7/4 CANCELED. WET-LST (VLO) FREIGHTER.
1 747-269F (JT9D-7A) (359-21543, /79 N708CK), (CKF) WET-LSD EX-(KUW).
WET-LST (VLO). RTND. FREIGHTER.
0 747-341B (701-24106, /88 43 08), (ILF) LSD, (702-24107; 703-24108; RTND 1999-05), LST (TLS) 2000-08.
0 747-341BC (CF6-50E) (627-23394, /85), ST (TLS) 2000-03.
7 ORDERS (1/07) 757-200PCF, CONV TO F BY PRECISION CONVERSIONS.
4 757-256 (RB211-535E4) (860-26247, PP-VTQ 2004-08; 863-26248, PP-VTR 2004-09; 881-26249, PP-VTS, 2004-11; 889-26250, PP-VTT, 2004-12), EX-(IBE), (ILF) LSD. 200Y.
0 767-241ER (CF6-80C2B2) (161-23803, /87 PP-VNN; 181-23806, /87 PP-VNS), (GEF) LSD, (ETOPS) EQ'PD, RTND 6 IN 2003-02. TO (TMP). TO (BEB) 2005-06. 18C, 176Y.
1 767-27GER (27048, PR-VAC), RTS 2010-05 AFTER STORAGE.
0 767-3YOER (CF6-80C2) (25411, PP-VTC, 2007-10; 505-26208, PP-VTE, 2003-09), LSD, TO BE RTND END OF SUMMER 2008. TO (ANG) 2008-12.
0 767-31AER (PW4060) (595-27619, /95 PR-VAE), EX-(MTH), (ILF) LSD 2008-01. TO BE RTND END OF SUMMER 2008. 24C, 248Y.
1 767-328ER (27427, PR-VAN), FERRIED PORTO ALEGRE - BELO HORIZONTE FOR RETURN TO SERVICE 2010-04.
1 767-33AER (PW4056) (780-27477, /95 PR-VAB; 591-27909, PR-VAA), EX-(BEJ), (AWW) LSD 2007-10. 2 TO BE RTND END OF SUMMER 2008. 27477; REMOVED FROM STORAGE 2010-03 & WILL RE-ENTER SERVICE AFTER A MAINTENANCE CHECK. 21C, 196Y.
0 767-341ER (CF6-80C2) (289-24087, /89 PP-VOI; 314-24843, PP-VOK; 324-24844, /90 PP-VOL), 24844 RTND 2004-10. 24843 RTND, LST (LOT) 2005-03. 2 TO BE RTND END OF SUMMER 2008. 10F, 18C, 185Y.
0 767-375ER (CF6-80C2) (24086, PP-VPV; 249-24087, /89 PP-VPW), EX-(CDI), (TCI) LSD. RTND 2005-06. LST (ACN) 2005-10.
1 767-38EER (25132, PR-VAF), RTS AFTER STORAGE.
1 767-383ER (309-24846, PR-VAO), REMOVED FROM STORAGE 2010-03 & WILL RE-ENTER SERVICE AFTER A MAINTENANCE CHECK.
0 777-222ER (PW4090) (26918, 2005-02; 232-30213, PP-VRE 2004-11; 254-30214, PP-VRF), EX-(UAL). 26918; 30213; RTND 2006-12. 10F, 49C, 216Y.
1 +4 OPTIONS 777-2Q8ER (GE90-85B) (28689, PP-VRA, 2001-09), 1ST IN LATIN AMERICA, 28692 REPOSSESSED BY (ILF) AT (CDG) IN 2003-01, LSD AGAIN 2003-02. 28692; LST (AMX) 2007-08.
2 777-236 (17-27108, PP-VRC, 2004-02; 19-27109, PP-VRD, 2004-01), EX-(BAB), (TBC) LSD. RTND.
0 ORDERS 777-241 IGW (GE90-85B) (28678; 28679; 28689), (ILF) 10 YR LSD. 4 ORDERS CANCELED.
00 ORDERS 777-200/-300, LSD. 15 CANCELED.
0 DC-10-30 (CF6-50C2) (133-46944, PP-VMA; 156-46945, PP-VMB), RF (AVN), 46945 LST (CQC) 2000-09.
1 DC-10-30F (CF6-50C2) (355; 356; TO (NWA) 1999-06; 335 RTND MITSUI, TO (SKJ), (329-47841, /80 PP-VMT; 332-47842, /80 PP-VMU), 47842 RTND (PSS) 2003-02. WET-LST (VLO). FREIGHTER.
1 DC-10-30F (CF6-50C2) (179-46949, PP-VQY), CURTIS LSD 2001-02, WET-LST (VLO). FREIGHTER.
8 MD-11 (CF6-80C2D1F) (486-48499, /92 PP-VPN; 554-48439, /93 PP-VPM) (476-48434; 8-48435, RTND LESSOR 2000-01). 2 RTND 2001-10. 48439 RTND (TBC) 2002-04. 48404; 48405; RTND (TBC) LST (UPS) 2005-06. 12F, 49C, 221Y.
3 MD-11 (CF6-80C2D1F) (48443, 2005-01; 463-48446, PP-VTG, 2003-09; 459-48444, PP-VTF, 2003-10; 487-48455, PP-VTJ, 2004-03; 48456, PP-VTI; 498-48457, PP-VTH, 2003-12), EX-(CSR), ABN-AMRO LSD. 48444; 48446; RTND 2004-08. 48455; 48456; RTS 2007-01.
0 MD-11 (CF6-80C2D1F) (488-48413, /92, PP-VQL; 491-48414, /92, PP-VQZ; 48502, PP-VQF), EX-(VSP) 2000-05, (MIU) LSD. ST (LUB) 2004-09. 48413 RTND 2004-08. 12F, 49C, 221Y.
2 MD-11 (CF6-80C2D1F) (473-48453, PP- 2004-08; 571-48539, PP-VTP 2004-08; 621-48541, PP-VTU 2004-09), CENTRAL LEASING LSD. 48539; RTND, TO (UPS) FOR CONV TO FREIGHTER.
0 MD-11 (CF6-80C2D1F) (611-48540, PP-VTK), ABN-AMRO LSD 2004-05. RTND, TO (UPS) FOR FREIGHTER CONV.
1 MD-11 (CF6-C2D1F) (603-48769, PP-VQX), EX-(VSP), (ZMF) LSD 2001-05.
0 MD-11ER (CF6-80C2) (608-48753, /96 PP-VQI; 48758, PP-VQK), EX-(GIA), (TBC) LSD 1998-08. RTND, LST (FIN) 2005-12. 12F, 49C, 221Y.
00 EMBRAER 145. 3 RTND TO LESSOR.
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CONSTANTINO DE OLIVEIRA, CHAIRMAN.
GUILHERME LAAGER, PRESIDENT (2006-12).
JOAQUIM FERNANDES DOS SANTOS, PRESIDENT.
FILIPE MORAIS DE ALMEIDA, CHIEF EXECUTIVE OFFICER (CEO), VARIG ENGINEERING & MAINTENANCE (VEM), EX-BOMBARDIER-PORTUGAL & (TAP) (RIODMRG) (2006-10).
MIGUEL DAU, VP OPERATIONS & TECHNICAL.
ALBERTO FAJERMAN, VP PLANNING (RIOOZRG),
JOSE CARLOS ROCHA LIMA, VP CARGO BUSINESS.
ROBERTO GARCIA DE MACEDO, VP COMMERCIAL.
DORIVAL RAMOS SCHULTZ, VP FINANCE.
ELDOY BINDER, VP FLIGHT OPERATIONS.
CLAUDIO JUNQUEIRA, MAINTENANCE GENERAL DIRECTOR.
CAPTAIN CARLOS LUIZ MARTINS PERREIRA DE SOUZA, DIRECTOR FLIGHT OPERATIONS (RIOOZRG) (email@example.com).
CAPTAIN GILBERTO SANTOS, CHIEF PILOT.
JOAO LUIZ BERNES DE SOUZA, CEO VARIG LOG (VLO).
DAO MIGUEL, CARGO DIRECTOR.
LUIS MOR, COMMERCIAL DIRECTOR.
MURILO BARBOSA, MARKETING DIRECTOR.
MAURICIO MARANHAO, SAFETY ADVISOR, (RIOEARG) (firstname.lastname@example.org).
CARLOS ROBERTO PEREIRA, GENERAL MANAGER ENGINEERING % MAINTENANCE (RIOUESL) (email@example.com).
HAROLD BRAUN, GENERAL MANAGER ENGINEERING (POAMERG) (firstname.lastname@example.org).
HUMBERTO GARCEZ PALHA DA SILVA, GENERAL MANAGER MAINTENANCE (RIO) (9/97) (GIGMURG) (email@example.com).
TOR KAMEYAMA, GENERAL MANAGER QUALITY ASSURANCE (QA) (GIGBQRG) (firstname.lastname@example.org) (email@example.com).
PABLOE S SENG, GENERAL MANAGER MARKETING & CONTRACTS
LUIS ALBERTO D CORREA, CONTRACT MANAGER (firstname.lastname@example.org).
WALTER DOMINGUEZ, REGIONAL SALES MANAGER (email@example.com).
ALEXANDRE CLAROFLEISCHHAUER, BUSINESS DEVELOPMENT MANAGER, (firstname.lastname@example.org).
EDUARDO PIRES CORREA, MANAGER ENGINEERING (GIGBSRG)
ANTONIO MAZZOLI, MANAGER FLIGHT OPERATIONS ENGINEERING (GIGOERG)
SERGIO FRANCESHINI, AIRCRAFT OVERHAUL MANAGER.
WALTER DOMINGUEZ, LINE MAINTENANCE MANAGER.
ANDERSON FENOCCHIO, ENGINE/(APU) OVERHAUL SHOP MANAGER.
NORBERTO GORZIZA, QUALITY ASSURANCE (QA) MANAGER (POA).
MAURON CAMPAGNOLO, FLUID MECHANICS SHOP MANAGER.
JOSE SIEBEN, COMPONENT OVERHAUL SHOP MANAGER.