Panama Jack
11th Dec 2004, 20:03
Brazil's Vasp Airline Fading From Market, Government Data Show
Friday December 10, 12:38 PM EST
SAO PAULO -(Dow Jones)- Financially troubled Brazilian airline Vasp has dramatically lost market share and is fading from the scene, according to the monthly report released Friday by Brazil's Civil Aviation Department, or DAC.
All three of Vasp's main rivals gained at the stricken airline's expense, the report showed.
Vasp's market share fell to 1.39% in November compared with 11.2% in November 2003.
The company has been experiencing financial difficulties since the 2001 recession that hit the industry. Vasp has vowed to present a comprehensive debt payment plan before the end of the year.
The airline's debts include 760 million Brazilian reals ($1=BRL2.77) owed to the Federal Airport Authority, known as Infraero, for airport charges not paid since the 1990s.
Currently, Vasp is operating on a six-month emergency license granted by the federal government pending presentation of the comprehensive plan.
The DAC report showed Brazil's three other main airlines gaining at Vasp's expense: TAM SA's (TANC4.BR) market share rose to 39.2% in November compared with 34.8% in November 2003; Gol Linhas Aereas Inteligentes SA (GOL) increased its share to 23.9% compared with 19% a year ago, while Varig (VAGV4.BR) lifted its share to 33.4% compared with 32.7% seen in the previous November.
The DAC report showed the overall number of passengers on domestic flights in Brazil rising 12.4% in November compared with the same month a year ago, to 2.36 million passengers.
-By Rogerio Jelmayer, Dow Jones Newswires; 5511-3145-1478; [email protected]
Friday December 10, 12:38 PM EST
SAO PAULO -(Dow Jones)- Financially troubled Brazilian airline Vasp has dramatically lost market share and is fading from the scene, according to the monthly report released Friday by Brazil's Civil Aviation Department, or DAC.
All three of Vasp's main rivals gained at the stricken airline's expense, the report showed.
Vasp's market share fell to 1.39% in November compared with 11.2% in November 2003.
The company has been experiencing financial difficulties since the 2001 recession that hit the industry. Vasp has vowed to present a comprehensive debt payment plan before the end of the year.
The airline's debts include 760 million Brazilian reals ($1=BRL2.77) owed to the Federal Airport Authority, known as Infraero, for airport charges not paid since the 1990s.
Currently, Vasp is operating on a six-month emergency license granted by the federal government pending presentation of the comprehensive plan.
The DAC report showed Brazil's three other main airlines gaining at Vasp's expense: TAM SA's (TANC4.BR) market share rose to 39.2% in November compared with 34.8% in November 2003; Gol Linhas Aereas Inteligentes SA (GOL) increased its share to 23.9% compared with 19% a year ago, while Varig (VAGV4.BR) lifted its share to 33.4% compared with 32.7% seen in the previous November.
The DAC report showed the overall number of passengers on domestic flights in Brazil rising 12.4% in November compared with the same month a year ago, to 2.36 million passengers.
-By Rogerio Jelmayer, Dow Jones Newswires; 5511-3145-1478; [email protected]