Although its first-half loss doubled to $276 million, Varig chief executive Arnim Lore expects a substantial improvement by the end of the year. A federal court in Brasilia recently ordered the government to reimburse Varig for the losses it suffered through state economic plans between 1986 and 1992 - this could add $530-795 million to its next set of accounts. The Brazilian flag carrier is also accelerating its recapitalisation plans.
Source: Flight International