Dont call me Shirley
Veteran
- Aug 20, 2002
- 3,270
- 306
A lot of World Cup fans may be looking for a new home. I wonder if Brazil's government will let the country's flag carrier sink. Let's all wish VARIG's people the best.
From bloomberg news line:
http://www.bloomberg.com/apps/news?pid=100...r=latin_america
American, TAM Stand to Gain Most From Varig Collapse (Update1)
June 22 (Bloomberg) -- AMR Corp.'s American Airlines, the world's largest airline, and TAM SA, Brazil's biggest domestic carrier, are the companies poised to benefit most from a shutdown of Brazil's bankrupt carrier Varig, Merrill Lynch said in a report today.
Sao Paulo-based TAM is in a better position to take over Varig's international routes than its local competitor Gol Linhas Aereas SA, the report said. American Airlines, which had than $3 billion of revenue in Latin America last year, would gain the most among U.S. carriers in Brazil, the report said. Varig was Brazil's biggest carrier abroad until last month.
``TAM has more capacity to absorb international routes than Gol because it is has been operating the routes longer and has more traditions in this business,'' Alexandre Povoa, who helps manage 450 million reais ($201 million) of stocks and bonds at Modal Asset Management in Rio de Janeiro, said in a telephone interview.
Varig, which has operated under bankruptcy protection for more than a year, is closer to liquidation after an employee-led group trying to buy the airline said it won't be able to make a court-mandated $75 million payment tomorrow, Selma Balbino, president of Brazil's ground workers union, said. A U.S. bankruptcy judge this week ruled Varig must ground most of its fleet tomorrow unless aircraft leasing companies get the money.
From bloomberg news line:
http://www.bloomberg.com/apps/news?pid=100...r=latin_america
American, TAM Stand to Gain Most From Varig Collapse (Update1)
June 22 (Bloomberg) -- AMR Corp.'s American Airlines, the world's largest airline, and TAM SA, Brazil's biggest domestic carrier, are the companies poised to benefit most from a shutdown of Brazil's bankrupt carrier Varig, Merrill Lynch said in a report today.
Sao Paulo-based TAM is in a better position to take over Varig's international routes than its local competitor Gol Linhas Aereas SA, the report said. American Airlines, which had than $3 billion of revenue in Latin America last year, would gain the most among U.S. carriers in Brazil, the report said. Varig was Brazil's biggest carrier abroad until last month.
``TAM has more capacity to absorb international routes than Gol because it is has been operating the routes longer and has more traditions in this business,'' Alexandre Povoa, who helps manage 450 million reais ($201 million) of stocks and bonds at Modal Asset Management in Rio de Janeiro, said in a telephone interview.
Varig, which has operated under bankruptcy protection for more than a year, is closer to liquidation after an employee-led group trying to buy the airline said it won't be able to make a court-mandated $75 million payment tomorrow, Selma Balbino, president of Brazil's ground workers union, said. A U.S. bankruptcy judge this week ruled Varig must ground most of its fleet tomorrow unless aircraft leasing companies get the money.
