Brasília, 6/21/2006 (Agência Brasil - ABr) - Sometime today NV Participações (an investment firm representing Varig employees) must make a mandatory deposit of US$75 million in order to officially take over operation of the Brazil's troubled carrier, Varig.

Meanwhile, president of the country's civil aviation agency (Agência Nacional de Aviação Civil) (Anac), Milton Zuanazzi, says that other domestic airlines, Gol and TAM, are willing to endorse Varig tickets when Varig passengers are unable to embark [because of cancelled Varig flights]. He adds that other domestic carriers may be called on to also endorse Varig tickets.

"Everything is being done to keep Varig flying," says Zuanazzi, "until NV Participações makes the mandatory deposit and takes over operations, putting its own contingency plan in place. We have an emergency plan to ensure the company is able to continue operating which includes understandings with foreign carriers."

Translation: Allen Bennett