A court in Brazil has ordered a USD75m cash infusion into Viacao Aerea Rio-Grandense SA (Varig) from Volo do Brasil, the carrier's new owner, be used to pay the airline's workers.
The money was reportedly the first instalment towards buying the airline. It had originally been set aside by the carrier to pay operating debts, according to reports.
In related news rival airline Tam Linhas Aereas SA (TAM) has informed Brazil's National Civil Aviation Authority that it will stop honouring Varig tickets for international routes, as payment negotiations with Varig have not been resolved, The Associated Press reported.
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