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Varig auction sale prospects good - CEO

9-Jun-2006

Varig CEO Marcelo Bottini said prospects are good for today's auction of the Brazilian flag carrier. The buyer will not assume the airline's 3 bln usd of debts, meaning that the sale "will permit the new owner to develop a new Varig," Bottini told a news conference.


Bidders include Portuguese airline TAP and Brazilian carrier GOL, according to local media reports.

The base price for the selloff of Varig, which has been operating under bankruptcy protection since last year, was set at 860 mln usd last month.

Amadeus Global Travel Distribution SA - which is jointly owned by Iberia Lineas Aereas de Espana SA, Air France, Deutsche Lufthansa AG and financial investors - denied news agency reports that it putting in a bid. 

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