Brazil’s airline Varig in death throes

A bankruptcy judge on Friday canceled the planned sale of Brazil’s flagship Varig airline to a workers’ group, throwing the future of the carrier into limbo and virtually ensuring more travel chaos ahead for ticket holders in Brazil and abroad.

Varig, or Viacao Aerea Rio-Grandense SA, continued mass cancelations of flights Friday in Brazil, Latin America, Europe and the United States.

Lacking money to pay for fuel and with planes grounded amid demands by leasing companies for overdue payments, the airline canceled 189 of its 276 flights scheduled to depart by 5 p.m. local time Friday, Brazil’s National Civil Aviation Authority said.
Hundreds of Brazilians trying to return to Brazil from the World Cup in Germany were stuck in Frankfurt, and other airlines didn’t have space to take them, Brazil’s Agencia Estado news wire service said.

Other passengers in Europe and Brazil were managing to get on flights to go where they want to go, but delays were lasting anywhere from hours to days as the heavy summer holiday goes into high gear.

The government estimated a day earlier that 28,000 people are abroad with Varig tickets between this week and June 30.

CNN