JACKSON FLORES / RIO DE JANEIRO
Brazilian airline partners transfer aircraft and domestic routes as possible precursor to full merger
Brazilian carriers Varig, Nordeste and Rio Sul, all part of the FRBPar airline grouping, have merged their networks in a bid to reduce costs.
The move comes as the fleet of troubled flag carrier Varig continues to shrink as aircraft are returned to lessors. The process has been under way since early this year. It recently handed back 13 Boeing 737-300s, -400s and -700s and two Boeing MD-11s, and a further five 737s are due to be returned this month. The network consolidation is likely to see several aircraft and domestic routes transferred between the airlines, but they will keep their brand identities.
But some analysts see the move as a prelude to a full merger of the carriers, as part of a BNDES development bank-sponsored plan to capitalise Brazil's largest airline. With an integrated route network, services to 90 destinations and over 700 daily flights, the airlines are expected to enhance shuttle services between major destinations. This will include the use of Varig's Boeing 777-200ERs and MD-11s on certain domestic routes.
Talks to transfer 737-300/500s from three or four of Varig's Star Alliance partners continue. Discussions have also been held with International Lease Finance for the lease of up to 10 Boeing 757-200s to replace widebodies returned to lessors. Meanwhile, Rio Sul has taken a single ex-Midway Airlines 737-700 on lease from Boullioun Aviation Services.
To offset the lack of available aircraft, FRBPar's charter operator Rotatur has signed a deal with domestic charter airline BRA Transportes Aéreos for six weekly 737-300/400 flights between S‹o Paulo and Brazilian cities Presidente Prudente and São José do Rio Preto.
Source: Flight International
