Brazil´s VASP Rolls Back into Heavy Debts

A deeply indebted VASP, the former leading Brazilian airline, announced Monday it will furlough half its flying personnel of 800 employees after slashing its fleet dramatically a few weeks ago in an effort to put up with a galloping financial crisis.

Airport authorities in Brazil are now pressing charges on VASP after the air carrier refused a proposal to pay off its debts with that state-run institution. The Brazilian air company made short shrift of two different deadlines to get rid of a $12 million debt.

VASP has also passed up two opportunities to file for bankruptcy due to similar debts with a subsidiary of General Electric Co. and with a local hotel chain.