Air Transport World

The planned merger of TAM and Varig. (Latin America/Caribbean report).(Brief Article)

The planned merger of TAM and Varig was dealt a legal setback recently after Gilberto Carlos Rigono, former chairman of the Rubem Berta Foundation that controls Varig, was ordered reinstated by a federal judge. Rigono, who had been ousted by other shareholders, opposes the merger, as do Varig's employees.

Nevertheless, observers see some kind of consolidation as inevitable and the carriers already are rationalizing capacity and schedules in the domestic market. …

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