Latest news on VARIG and oneworld
Jan 30, 2007 | 5:06 am
#1
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Join Date: Jun 1999
Location: Rio de Janeiro, BRAZIL
Programs: AA 4MM EXP; Starwood Lifetime Plt
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Latest news on VARIG and oneworld
Today's edition of O Globo, the leading newspaper in Rio de Janeiro, has an article stating that Star Alliance carriers are offering status-matching comps to VARIG Smiles card holders. Towards the end of the article, O Globo reports: "The new VARIG has not yet decided which alliance it will join and states that the Star Alliance is being considered. Sources say that the outcome will depend on agreements with other airlines. If the new VARIG forms a partnership with LAN Chile, the company may join oneworld. If VARIG comes to an agreement with Air Canada, it will remain it in the Star Alliance." The background to this is that the new VARIG needs aircraft and funds to resume flying the routes it inherited from the old VARIG. It is negotiating with other airlines, but the situation is made difficult by Brazilian laws that limit foreign investment.
Feb 1, 2007 | 1:16 am
#2
Join Date: May 2006
Location: Toronto
Programs: HGP Globalist, SPG P100, Hilton Dia
Posts: 470
LAN To Financing To New Varig
LAN Airlines Announces Financing To VRG LINHAS AEREAS S.A.
SANTIAGO, Chile--(BUSINESS WIRE)--LAN Airlines S.A. and its related companies, (LAN or the Company) (NYSE:LFL / IPSA: LAN), one of the leading airline groups in Latin America, announced today that it has provided a total of approximately US$ 17.1 million in financing to Brazilian company VRG LINHAS AEREAS S.A. (New Varig). These loans may be converted into shares of New Varig and if LAN were to exercise its option to convert the loans into stock, the Company would then have a minority stake in New Varig.
New Varig is a Brazilian airline company formed for the purpose of acquiring part of the assets of airline Varig S.A. during the latters bankruptcy procedures. New Varig is currently operating in accordance with its technical and operational certification (CHETA) which is granted by the Brazilian National Aviation Authority.
LAN in currently involved in ongoing negotiations with New Varigs shareholders in order to potentially exercise its option to participate in such company through the capitalization of its loans.
Link
I guess the new Varig will be close to oneworld once the financing deal is done. I wish TAM will join oneworld instead of Varig due to its current limited network.
SANTIAGO, Chile--(BUSINESS WIRE)--LAN Airlines S.A. and its related companies, (LAN or the Company) (NYSE:LFL / IPSA: LAN), one of the leading airline groups in Latin America, announced today that it has provided a total of approximately US$ 17.1 million in financing to Brazilian company VRG LINHAS AEREAS S.A. (New Varig). These loans may be converted into shares of New Varig and if LAN were to exercise its option to convert the loans into stock, the Company would then have a minority stake in New Varig.
New Varig is a Brazilian airline company formed for the purpose of acquiring part of the assets of airline Varig S.A. during the latters bankruptcy procedures. New Varig is currently operating in accordance with its technical and operational certification (CHETA) which is granted by the Brazilian National Aviation Authority.
LAN in currently involved in ongoing negotiations with New Varigs shareholders in order to potentially exercise its option to participate in such company through the capitalization of its loans.
Link
I guess the new Varig will be close to oneworld once the financing deal is done. I wish TAM will join oneworld instead of Varig due to its current limited network.
Feb 1, 2007 | 5:20 am
#3
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Join Date: Jun 1999
Location: Rio de Janeiro, BRAZIL
Programs: AA 4MM EXP; Starwood Lifetime Plt
Posts: 2,498
The loan from LAN Airlines to the new VARIG is reported in today's edition of O Globo, together with speculation that LAN will buy Matlin Patterson's shares of the Brazilian airline and take it into the Oneworld Alliance. Although foreign capital is limited to 20% under Brazilian law, LAN could gain effective control of VARIG. Only time will tell how all of this will play out.