VARIG BRAZILIAN Airlines president Fernando Pinto has outlined a new expansion programme following two years of substantial cuts in staff, unprofitable routes and aircraft.
The airline plans to invest $40 million developing new routes and is negotiating with leasing companies GECAS and GPA to acquire two McDonnell Douglas MD-11s to increase frequencies on European and North American routes.
Pinto predicts a 3% increase in revenues over 1995's $3.2 billion, to be achieved largely through targeting high-yield traffic by almost doubling business-class seat numbers on long-haul flights. A code-share alliance with Austria's Lauda Air is also being discussed.
Varig is still awaiting permission to fly to Beijing, while rival Transbrasil has applied to fly to London, a route operated by Varig.
Source: Flight International
