INTERNATIONAL - Sale Saves Varig Miles
||:: Late-Breaking News
(Posted: Jul 21, 2006)
In a last-minute deal, Brazilian airline Varig has been sold to a Rio De Janeiro investment firm, saving the miles of some 6 million members of Varig?s Smiles frequent flyer program.
The sale, which must be approved by Brazil's Civil Aviation Agency, will keep the carrier afloat at a time when its survival was in doubt. For months, the cash-strapped carrier has been canceling flights, unable to meet fuel and airport-fee expenses.
The $24 million sale will see Varig split into two groups. One company will assume the airline?s debt, while another will inherit its fleet and frequent flyer program.
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