JACKSON FLORES / RIO DE JANEIRO & ANDREW DOYLE / SINGAPORE
Star Alliance is working with its member airline Varig to resolve the Brazilian carrier's fleet problems after it was forced to return aircraft due to the devaluation of the real against the dollar and euro.
The alliance is trying to broker a deal between Varig and three or four of its members for Boeing 737s. It would be the first occasion on which Star has helped one of its members sort out short-term fleet problems.
The talks come as Varig's board looks for a successor for chief executive Ozires Silva who has agreed to step down. The move is widely thought by sources to be a condition specified by parent FRBPar as part of efforts to restructure and refinance the troubled airline.
Varig has been hit by a considerable capacity reduction following the recent return of aircraft, including 11 737s, to lessors in a bid to stem its financial haemorrhaging (Flight International, 6-12 August).
Varig has returned four of its recently retired 737-200s to service, but has initiated discussions with a number of parties for additional aircraft.
Star Alliance is brokering the supply of an additional four or five 737-300/400/500s which are surplus to requirements of some of its members. "We have been co-ordinating to try to come up with a win-win solution," says Jaan Albrecht, chief executive Star Alliance. "There is the possibility that three or four Star carriers would be interested," he adds, saying Varig wants to dry lease the 737s for 9-12 months.
Varig is also discussing the supply of between five and 10 Boeing 757-200s leased from International Lease Finance to make up for the return of GE Capital Aviation Services-leased MD-11s and Boeing 767-200/300ERs.
Silva, who has been Varig's chief executive for two years, remained in his post late last week, pending the board naming a successor. Yutaka Imagawa has already resigned as vice-president. Airline sources indicate the management changes are a non-negotiable requirement of state-owned development bank BNDES as it works to conclude a fundraising scheme.
The airline is declining to comment on a successor to Silva, but local analysts believe he will most likely be replaced by Armin Lore, Rio Sul's financial director. Other candidates include TAM's former commercial and marketing director Luiz Eduardo Falco, although Lore is believed to have BNDES' support.
Meanwhile, Varig's pilots union is proposing an alternative $1.4 billion capitalisation plan backed by GGR Finance, some $250 million of which would come from private investors. The capitalisation plan will be examined by BNDES this week.
Source: Flight International
