Paul Lewis/WASHINGTON DC Mario Fonseca/RIO DE JANEIRO
Airbus has made Varig an attractive offer on up to 24 A330s in an effort to break Boeing's control of the carrier's fleet. The proposal comes at a critical time for the Brazilian airline as it renegotiates deliveries and payments with the US manufacturer for up to 39 737, 767 and 777 aircraft.
Varig is expected to decide shortly on an Airbus sales proposal for 12 A330s and a similar number of options to replace its Boeing 767-200/300s.
The A330s would be used on Varig's shorter international routes to North America that employ 767s, rather than to Europe. Lease contracts on some of the older 767s are due to expire and Varig wants to renegotiate lower leases on the remaining widebody jets, which one source describes as "murderous" on account of the continued weakness of the Brazilian real against the US dollar.
"We're in the market and our staff have paid a very useful visit to Airbus," Varig chief executive Ozires Silva recently confirmed to Flight International. "Airbus is a serious player and it's our responsibility to check what kind of aircraft this is and understand whether or not it fits our network," he adds.
Airbus, in addition to offering attractive financing, is understood to be discussing a local maintenance venture with Varig as an extra inducement. Boeing has much at stake with Varig, not least the future of its aircraft ordered by Varig in 1998 but as yet undelivered in the wake of recent economic difficulties. These include six more 767-300s, eight 777-200s, 10 737-800s and 15 more 737-700s.
A fresh foothold at Varig would be important for Airbus, as, after success at the carrier with the sale of two A300B4s in 1981/82, it has had a barren spell. Since the disposal of the two twinjets 10 years ago, Varig has operated a Boeing and McDonnell Douglas fleet.
The deal may also open up Varig to Rolls-Royce and Pratt & Whitney powerplant alternatives to General Electric which dominates the carrier. Varig plans to use 777s to Europe starting with two International Lease Finance aircraft due for October delivery.
Source: Flight International
