Grounded Transbrasil airline to cut up to 1,000 jobs

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RIO DE JANEIRO, Brazil, Dec 19 (Reuters) - Brazil's financially troubled and
recently grounded airline Transbrasil (TRBR4) said on Wednesday it will shed
as many as 1,000 workers, paring its staff down to 1,200.

But the company, which has been paralyzed for 16 days by its inability to
pay debts and operating costs, said it did not have money to pay severance
packages as required by Brazilian law.

"Transbrasil will give complete attention to these professionals when it
regains financial and operational equilibrium in its activities," the
company said in a statement.

Transbrasil, which was Brazil's fourth largest airline, will lose its
operating license if it fails to operate flights for 30 days, according to
the Department of Civil Aviation (DAC).


The company said it would continue negotiating with creditors to find a way
to begin operating by the first week of January.

The company said 300 employees had agreed to voluntary dismissal, 300 others
were fired earlier this week and another 400 workers would be cut in the
coming weeks.

Transbrasil said its reduced fleet of 12 planes, only five of which are now
in working condition, could not justify the larger work force, an argument
it has used in recent months when the company announced staff cuts from
4,200 to 2,200.

The carrier blamed the Brazilian government for the job cuts citing the
"lack of a positive response on the part of the government in helping the
company receive what it has the right to receive."

The company says it is waiting on a tax refund of 335 million reais for the
1989-1994 period as well as a 15 million real credit from BR Distribuidora
(BRDT4), a subsidiary of Petrobras (PETR4), for fuel.

($1=2.296 reais)


©2001 Reuters Limited.

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