RIO DE JANEIRO,
Brazil -- Varig, Brazils largest airline
and the largest air carrier in Latin America, filed for bankruptcy
protection in Brazil and the U.S. June 17 but said its operations
will be not be effected.
Those services
include flights to New York, Miami and Los Angeles.
Varig faced the
possible repossession of 11 of its 87 aircraft June 17, but with
the bankruptcy filing it will have 60 days to present its creditors
and the court with a restructuring plan.
Varig is saddled
with $4 billion in debt and has been losing domestic market share
to low-cost carriers; however, among Brazilian carriers it still
provides the vast majority of the international service.
To contact
the reporter who wrote this article, send e-mail to Andrew Compart
at [email protected].