Brazilian Airline May Cut Routes Due to Heavy Debt

Summary


BRASILIA, Brazil - Varig, Brazil's flagship airline, may be forced to cut domestic routes soon if the company and government officials don't reach an agreement aimed at reducing the carrier's mammoth debt, Varig's top executive says.

Varig wants to slash debt by using proceeds of a December court decision expected to give the carrier about 2 billion reals ($741 million) for losses from government-imposed price controls on airline ticket prices in the late 1980s and early 1990s.

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Brazilian Airline May Cut Routes Due to Heavy Debt

Brazil's government has said it will appeal the ...

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