Varig: "Bankruptcy Filing Won´t Affect Flight Operations"

Varig, Brazil´s largest airline and the largest air carrier in Latin America, filed for bankruptcy protection in Brazil and the U.S. last June 17, but said its operations will not be affected.

Varig faced the possible repossession of 11 of its 87 aircraft, but with the bankruptcy filing it will now have 60 days to present its creditors and the court with a restructuring plan.

Varig is saddled with $4 billion in debt and has been losing domestic market share to low-cost carriers. However, among Brazilian carriers it still provides the vast majority of the international service.