Maintenance provider VarigLog has raised its offer for ailing former parent and Brazilian flag carrier Varig to $400 million. The bid has been approved by the airline’s board and awaits a green light from Varig’s controlling shareholder Fundação Rubem Berta and Brazil’s civil aviation agency ANAC, writes Jackson Flores.
Controlled by Volo do Brasil, which holds a 95% stake in the company, VarigLog’s proposal would lead to the airline’s 9,800-strong workforce being cut to around 6,000.
With debts of $3.3 billion and in the restructuring phase of bankruptcy proceedings, Star Alliance member Varig has struggled to maintain its services with a dwindling fleet of aircraft and the requirement to make immediate payments for fuel and airport services.
Source: Flight International