Saturday, June 24, 2006
Brazil's Varig In Trouble
If you are planning to visit Brazil anytime soon, beware! Varig, the largest international Brazilian airline, is in the middle of serious financial situation. Lacking the funding to buy fuel and unable to make lease payments on their planes, the airline has been forced to ground much of its fleet. With flights to South America, Europe, North America, and Latin America, the airline, which has cancelled 189 of its 276 daily scheduled flights, passengers are stranded around the world. Due to the enormous amount of Brazilian in Germany for the World Cup, other international airlines are attempting to find room on their over-sold flights from Europe to Brazil. The Brazilian government, fearing over 30,000 Brazilian being stranded abroad, has agreed to allow the Air Force to fly five military planes to take stranded passengers back home. The irony of this situation is that the airline already owes the government nearly $3.5 billion dollars. With critical flights from NYC and Atlanta cancelled to Brazil, business and leisure travel has been significantly decreased. Using the courts to resolve the situation, many of the flight rights that Varig has for these highly-desired routes will be awarded to other international airlines. So...If you're lucky enough to be going to Brazil anytime soon, be sure to check your tickets to see if your airline is still in business!
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