VarigLog grounds its fleet.

Brazil-based all-cargo carrier VarigLog grounded its fleet and placed a note on the home page of its website informing employees that it had suspended operations. Yesterday, the carrier updated the note saying that while it was temporarily suspending employee contracts it hoped to resume operation “as soon as possible.”

Varig Logistica began operation in 2000 as a wholly-owned subsidiary of Brazilian carrier Varig. It was purchased in 2005 by the Volo do Brasil consortium (with the backing of US-based private equity firm MatlinPatterson) in 2005, and changed hands once again in 2009 when Germán Efromovich’s Synergy Group bought control.

But as of the first week of February, Varig Log’s fleet is on the ground. It is not a large fleet – just one 757-200PCF (25597) and two 737-400Fs (25063, 25595) – but given the seeming strength of Brazil’s economy, it comes as something of a shock. At this point no details of the grounding have been published, but the farewell note to employees on the Varig Log website implies that a restructuring may be possible. In the meantime, the ultimate fate of the three parked aircraft (all leased from Aviation Capital Group.) is unknown.

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