You have been sent this message from psa188@juno.com as a courtesy of the W= ashington Post - http://www.washingtonpost.com=20 =20 =20 =20 To view the entire article, go to http://www.washingtonpost.com/wp-dyn/art= icles/A47304-2002Nov27.html =20 Brazil Varig Airline Names New President =20 By Michael AstorRIO DE JANEIRO, Brazil –– Brazil's largest airl= ine Varig named Manuel Guedes as its acting president Wednesday, two days a= fter the previous president quit in a dispute over debt renegotiations.<P>G= uedes, who had been director of investor relations prior to his appointment= , was chosen because of his involvement in ongoing negotiations with credit= ors, said Luiz Carlos Vaini of the airline's board of directors.<P>Vaini sa= id Guedes was only named acting president because of the uncertain situatio= n of the airline.<P>"I'm acting president until I'm not acting anymore," sa= id Guedes at a news conference to announce his appointment.<P>Reports have = put the airline's debt load at around $900 million. Guedes, however, said t= he company's actual debt was closer to $700 million, with about $50 million= coming due before the end of the year.<P>Since Nov. 11, Varig has had to p= ay federally-run oil company Petrobras for its airplane fuel on a daily bas= is and will have to begin paying airport fees to Brazil's airport authority= on a daily basis beginning next Monday.<P>On Tuesday, Standard & Poor'= s cut the airline's debt rating, citing fears the company could be forced t= o reduce or suspend operations in bankruptcy proceedings.<P>Last week, the = Ruben Berta Foundation, which represents employees and has a controlling st= ake in the airline, rejected then-president Armin Lore's plan to postpone a= $118 million debt payment until Nov. 30 while Varig developed a restructur= ing plan involving an infusion of fresh capital.<P>Lore, a former central b= ank director, responded by resigning.<P>Guedes said his first move would be= to try to renegotiate the terms of Varig's debt with an array of creditors= .<P>He said much would depend on the position of Brazil's National Developm= ent Bank, expected next week, regarding what it wants the airline to do in = order to obtain help.<P>The airline is looking to the bank for an injection= of capital of between $300 million to $400 million, Guedes said.<P>Guedes = acknowledged that one possible condition of the bank's support would be for= the foundation to reduce its position to become a minority stake holder.<P= >According to Guedes, consultants studying the airline said it remained a v= iable company. He added their report would determine whether the airline wo= uld shut down any of its routes or lay off any of its 16,000 employees.<P>B= ut industry analysts remained skeptical that Guedes' appointment would hera= ld significant change.<P>"They've said this before and all that happens is = a change in leaders. They have to be serious about restructuring if they wa= nt a Brazilian airline to be the continent's leader," said Michael Miller, = president of the Orlando-based Miller Air Group.<P>Guedes is Varig's fourth= leader in three years.<P>Miller said the airline will have to make tough c= hoices, among them dropping historically unprofitable international routes = that lend the company much of its prestige<P>Varig has been hit hard by the= drop in international travel that followed the Sept. 11 attacks, the world= wide economic slump and a steep decline in the value of the Brazilian curre= ncy, the real.<P>Varig has more than 100 planes that fly to 110 Brazilian c= ities, and to 27 destinations in 18 other countries. Although it is private= ly owned, it is the country's flagship carrier and a source of deep nationa= l pride.