JACKSON FLORES / RIO DE JANEIRO
Efforts to merge the struggling Brazilian carriers TAM and Varigare back on track after a Rio de Janeiro court annulled a recent decision to reinstate Gilberto Rigoni, the evicted head of Varig main shareholder Fundação Rubem Berta (FRB).
Rigoni was removed in May from his post as chairman of the FRB's administrative council, and his return had threatened to jeopardise the merger.
Stating that the June merger agreement "contained an entirely unacceptable 5% FRB shareholding in the new airline", Rigoni argues that the merger is unnecessary and that there are other viable solutions to bail out Varig from its financial predicament.
The latest turn of events has prompted local analysts to voice concerns that the stand-off could result in postponement of the merger well into the fourth quarter, if not an outright end to negotiations. Infraero, Brazil's airport authority and one of Varig's largest creditors, has called for government intervention to transform Varig into a state-owned airline.
The court decision that voided Rigoni's reinstatement has cleared the way for Varig's merger with TAM. Nevertheless, the signing of the final agreement has not been scheduled - although government sources say the event should occur in August.
Source: Flight International
