Air Transport World

Varig. (Latin America Report).(company plans to restructure finances)(Brief Article)

Varig said it will fold its two subsidiaries, Nordeste and RioSul, into its main operations as part of its restructuring that also envisions a $300 million capital injection from BNDES, the federal government investment and development bank, with up to $200 million more coming from private investors. Incorporation of the two airlines will boost Varig's market share to 38.2%. above TAM's 35.6% share.

As part of a strategy to cut costs and reduce capacity and service in the face of the regional economic crisis, Varig was set to return four 737-400s and seven 737-300s to lessors this month, bringing to 18 the number of aircraft returned over the past 10 months. …

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