VARIG Airlines

Well from what I've read the legal battle is still stalled. Those employees whose pensions are administered by Aerus have seen their coverage virtually evaporate. They're hoping for some kind of settlement that could possibly see Varig on the receiving end of about R$4 billion, which would be divided among Aerus beneficiaries. Not a pretty outlook though, according to APVAR (Associação de Pilotos da Varig) there is no indication as to when the case will be heard.

Cheers,
James        Expat-blog Experts Team

Thanks for the info James. Do you happen to know the background of this situation ? How did it come to be ?

Yes, Varig sold out to VarigLog (the logistics and cargo company) in 2006. Many consider the sale a fraud and designed solely to evade labor rights responsibilities.

The President of APVAR, Commander Elnio Borges Malheiros described as "fraud" non-payment of labor rights, including compensation and wages to former employees of the company. He said that of a total of 10,500 employees, only 850 were retained by the New Varig - VRG - controlled by GOL Linhas Aereas.

Brazil, in fact, has a very long and sordid history of bankrupt airlines and government watchdog agencies that are supposed to be ensuring that when airlines are bought out it's not for the purpose of eliminating fair competition by dismantling them. This has certainly not been what they have proven to be doing. They have allowed several airlines to be bought out and destroyed, especially by GOL as was the case with the recent sale of Webjet, which was gone within a year after GOL promised that this would not happen following the sale. That little sweetheart deal put over 900 employees out of work.