=20 ---------------------------------------------------------------------- This article was sent to you by someone who found it on SFGate. The original article can be found on SFGate.com here: http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2004/10/13/f= inancial1411EDT0142.DTL --------------------------------------------------------------------- Wednesday, October 13, 2004 (AP) Vasp airline forced to make daily payments to use Brazil's airports ALAN CLENDENNING, AP Business Writer (10-13) 11:11 PDT SAO PAULO, Brazil (AP) -- Vasp, Brazil's No. 4 airline, is being forced by the government to make daily cash payments to use the country's airports, authorities said Wednesday. The financially troubled company paid the government 63,000 reals ($23,200) for airport landing and takeoff fees for its Wednesday flights and must continue the daily payments until it presents a long-term debt payment plan, said Federal Airport Authority spokeswoman Juliana Holanda. Vasp already owes 11 million reals ($3.8 million) to the authority, which controls nearly all the airports in Latin America's largest country. The company says it will unveil a debt payment plan before the end of the year. Vasp is currently operating on a six-month "emergency" license granted by the government pending presentation of the plan. The carrier hasn't divulged the amount of its debt, but analysts believe the figure is about 2 billion reals ($714 million). Two Brazilian subsidiaries of General Electric Co. that provide maintenance to Vasp petitioned a local bankruptcy judge last week to declare Vasp insolvent. A court ruling in favor of the GE subsidiaries, owed about $3.2 million (euro2.6 million), could lead to the liquidation of Vasp and distribution of assets to creditors. Vasp has suffered from a drop in passenger demand since 2001. It has also lost market share to no-frills competitor Gol, which has moved into the number three slot among Brazilian airlines. It has also been plagued by labor troubles and an aging fleet. ---------------------------------------------------------------------- Copyright 2004 AP