MercoPress. South Atlantic News Agency

Massive redundancies in Varig

Brazilian flag carrier Varig, which was recently sold to one of its former subsidiary, announced Friday that it will lay off 5,500 workers as part of a broad restructuring plan.

According to a press release issued by the airline, in making the move the company is adapting to "real current operational needs". The release adds the company will "retain 3,985 employees out of a total of 9,485 in Brazil".

Varig admitted there's "a commitment to gradually re-hire redundant staff depending on the pace in which the airline's fleet is restored and the consequent expansion of the national and international routes".

The company said it will maintain its current operations, which are for the moment limited to flights among the Brazilian cities of Sao Paulo, Rio de Janeiro, Porto Alegre, Fortaleza, Salvador, Recife and Manaus.

Varig also runs daily flights to Frankfurt, Germany, and Buenos Aires and on alternate days to Miami and New York.

The company estimates that the layoffs will cost an estimated 116 million US dollars. Varig must also meet another 50 million US dollars payment in arrears through July, according to the local press.

Varig, which until three months ago ran 70% of all international flights originating in Brazil, currently operates with just 10 aircraft.

Saddled with debts of some 3 billion US dollars, the air carrier was acquired at public auction last Thursday by VarigLog, the company's former cargo subsidiary, for 24 million US dollars.