Leasing firm seizes Varig jet over unpaid rental

Gordon Werner · 01-30-2003, 04:05 PM

Leasing firm seizes Varig jet over unpaid rental
Thursday January 30, 2:39 pm ET

(Recasts with ILFC comment)

SAO PAULO, Brazil, Jan 30 (Reuters) - International Leasing Finance Corporation (ILFC), owned by U.S. insurer AIG (NYSE:AIG - News), on Thursday said it had seized a Boeing 777 operated by Brazil's beleaguered flagship airline Varig (Sao Paolo:VAGV4.SA - News) in Paris due to nonpayment of its rental.

It is the first plane operated by Latin America's largest airline to be seized by a leasing company and comes as the lossmaking 75-year-old carrier struggles to pay off its big debts amid a slump in the global aviation industry.

"ILFC, through a court order in Paris, has seized a VARIG AIRLINES B777-2Q8ER, MSN 28692, at Charles de Gaulle Airport due to nonpayment of rentals," the leasing company said in a brief statement.

Varig confirmed the aircraft had been seized, and said it was currently negotiating with ILFC representatives.

"As you know Varig is a serious company that has been around for 75 years," said Sylvia Leccia, from Varig's press and marketing department in Paris. "It's clear we are in the storm like all airlines, but that we have always honored our debts."

Varig has suffered along with other Brazilian airlines in the last year as the Sept. 11 attacks and an economic slump hit demand for flights, while a slump in Brazil's currency magnified its dollar-denominated fuel and jet leasing costs.

The company said its passengers' travel plans would not be affected by the seizure in Paris and they would continue on their journeys on another aircraft.

The seized jet, a 220-passenger Boeing 777, flies the Porto Alegre, Sao Paulo, Paris, Amsterdam route, and had been leased since 2001, Varig said.

richie154 · 01-30-2003, 05:37 PM

that must have been fun for the repo man!! sux for Varig.

smoothjazz · 01-30-2003, 06:24 PM

Poor Varig... Well, hope things work out and looking foward to
see Varig 777s in the skies for long time~! Good luck Varig~!

ba777-236 · 01-30-2003, 06:50 PM

This is most definately not good news for them.

Does anybody know if Varig may go as far as claiming bankruptcy? I surely hope not...

01-31-2003, 09:40 AM

HAHA the reason why the bill was not paid is because Varig got a cheaper accountant to save money and he is...

01-31-2003, 02:11 PM

, how do u exactly seize a airplane.

01-30-2003, 04:05 PM	#1
Gordon Werner Insane Collector Join Date: Jun 1998 Location: Somewhere else Age: 37 Posts: 2,059	Leasing firm seizes Varig jet over unpaid rental Leasing firm seizes Varig jet over unpaid rental Thursday January 30, 2:39 pm ET (Recasts with ILFC comment) SAO PAULO, Brazil, Jan 30 (Reuters) - International Leasing Finance Corporation (ILFC), owned by U.S. insurer AIG (NYSE:AIG - News), on Thursday said it had seized a Boeing 777 operated by Brazil's beleaguered flagship airline Varig (Sao Paolo:VAGV4.SA - News) in Paris due to nonpayment of its rental. It is the first plane operated by Latin America's largest airline to be seized by a leasing company and comes as the lossmaking 75-year-old carrier struggles to pay off its big debts amid a slump in the global aviation industry. "ILFC, through a court order in Paris, has seized a VARIG AIRLINES B777-2Q8ER, MSN 28692, at Charles de Gaulle Airport due to nonpayment of rentals," the leasing company said in a brief statement. Varig confirmed the aircraft had been seized, and said it was currently negotiating with ILFC representatives. "As you know Varig is a serious company that has been around for 75 years," said Sylvia Leccia, from Varig's press and marketing department in Paris. "It's clear we are in the storm like all airlines, but that we have always honored our debts." Varig has suffered along with other Brazilian airlines in the last year as the Sept. 11 attacks and an economic slump hit demand for flights, while a slump in Brazil's currency magnified its dollar-denominated fuel and jet leasing costs. The company said its passengers' travel plans would not be affected by the seizure in Paris and they would continue on their journeys on another aircraft. The seized jet, a 220-passenger Boeing 777, flies the Porto Alegre, Sao Paulo, Paris, Amsterdam route, and had been leased since 2001, Varig said.

01-30-2003, 05:37 PM	#2
richie154 Retired Hookah Master Join Date: Aug 2002 Location: Valley of Heart's Delight Age: 24 Posts: 3,718	that must have been fun for the repo man!! sux for Varig. __________________ The Devil can cite Scripture for his purpose. An evil soul producing holy witness is like a villian with a smiling cheek, a goodly apple rotten at the heart. Oh, what a goodly outside falsehood hath! Private Pilot: 10/20/2005 Private Multi Engine: 05/09/2008 The more things change, the more Mesa still sucks.

01-30-2003, 06:24 PM	#3
smoothjazz More Korean Air in 1/200! Join Date: Nov 2001 Location: SEOUL KOREA Posts: 6,251	Poor Varig... Well, hope things work out and looking foward to see Varig 777s in the skies for long time~! Good luck Varig~! __________________ BENJAMIN MY COLLECTION http://www.diecastaircraftforum.com/...tion-1179.html

01-30-2003, 06:50 PM	#4
ba777-236 400SH Co-Owner Join Date: Apr 2002 Location: About a 40 minute drive from Toronto, Canada Posts: 5,554	This is most definately not good news for them. Does anybody know if Varig may go as far as claiming bankruptcy? I surely hope not... __________________ Faheem Ahmed 400 Scale Hangar Maintained Websites

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01-31-2003, 09:40 AM	#5
geminiman Guest Posts: n/a	HAHA the reason why the bill was not paid is because Varig got a cheaper accountant to save money and he is...

01-31-2003, 02:11 PM	#6
Romania is #1 Guest Posts: n/a	, how do u exactly seize a airplane.