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SAO PAULO, Brazil (AP) -- Viacao Aerea Sao Paulo, Brazil's fourth-largest airline, is planning to renovate and reduce the size of its fleet next year because of a decline in demand for flights.
The debt-laden company is in talks with Boeing Co. and Airbus about negotiating new aircraft leases for next year, a Vasp spokesman said Tuesday. The fleet of 32 planes would be reduced, and older jets would be replaced by newer models.
Demand for flights on Brazilian carriers tumbled after the Sept. 11 attacks, and the companies also saw their costs skyrocket after Brazil's currency fell 35 percent against the dollar last year.
Vasp has also been hurt by competition from Brazilian discount carrier Gol, which is modeled after U.S.-based Southwest Airlines. Gol's market share jumped to 19 percent in September from 17 percent at the beginning of the year, while Vasp's slipped to 12 percent from nearly 14 percent.
The debt-laden company is in talks with Boeing Co. and Airbus about negotiating new aircraft leases for next year, a Vasp spokesman said Tuesday. The fleet of 32 planes would be reduced, and older jets would be replaced by newer models.
Demand for flights on Brazilian carriers tumbled after the Sept. 11 attacks, and the companies also saw their costs skyrocket after Brazil's currency fell 35 percent against the dollar last year.
Vasp has also been hurt by competition from Brazilian discount carrier Gol, which is modeled after U.S.-based Southwest Airlines. Gol's market share jumped to 19 percent in September from 17 percent at the beginning of the year, while Vasp's slipped to 12 percent from nearly 14 percent.