Business Services Industry
New Route Developments at Viva/RegionsAir
Business Wire, Oct 13, 2005
SMYRNA, Tenn. -- Viva International, Inc. (VIVI.OB) announced today that in conjunction with its decision to acquire RegionsAir that it will be providing a fleet of SAAB 340 aircraft to RegionsAir for use in providing service under recently awarded new Essential Air Service routes. The company will provide additional details of the acquisition of the aircraft and terms thereof soon.
By order dated September 9, 2005, the US Department of Transportation (DOT) selected RegionsAir to provide subsidized Essential Air Service to Parkersburg, Morgantown and Clarksburg/Fairmont, West Virginia for a two year period, establishing a combined subsidy rate of $1,051,333 per year for service to Cincinnati utilizing SAAB 340 aircraft.
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Fred Breeden, Executive Vice President and Chief Financial Officer of RegionsAir, Inc., commented, "We are pleased with the DOT's decision to select RegionsAir for the new West Virginia routes. This moves our operation into cabin class service and will add approximately $6 million annually in gross passenger revenues to our Company. We are anxious to place the SAAB 340's into usage and anticipate an orderly transition."
As previously announced on October 7, 2005, Viva has issued an irrevocable letter of intent to acquire RegionsAir. In existence since 1996, Tennessee based RegionsAir is a privately held air carrier providing regional commuter air service to cities in Missouri, Iowa, Illinois, Indiana, Kentucky and Tennessee. RegionsAir DOT filings report gross operating revenues approximately $24 million for the year ended December 31, 2004. RegionsAir operates some of its routes as "American Connection" in a number of markets under an operational agreement with American Airlines (NSYE:AMR).
About Viva International
Viva International, Inc. ("VIVA") is a publicly traded aviation holding company (VIVI.OB) in the business of developing and/or acquiring aviation related entities with beneficial air service certificates and economic rights, collectively referred to as "VIVA." The Company's strategy is to capitalize on centralized operational infrastructure and combined resource allocation of our internal holdings to service routes in "niche" markets domestically and internationally. Viva's group of companies provides high quality products and services to the air travel industry with a heavy emphasis on the Caribbean market. RegionsAir, Inc., under a recently executed Irrevocable Letter of Intent - Acquisition Agreement, is VIVA's primary operator located domestically in Smyrna (Nashville), Tennessee. In addition, the Company has operations in the Caribbean located in San Juan, Puerto Rico and Santo Domingo, Dominican Republic under Eastern Caribbean Air ("ECAIR") and Viva Air Dominicana, S.A. ("Viva Air"), respectively. The Company's corporate headquarter is located in Traverse City, Michigan.
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("the Exchange Act"), and as such, may involve risks and uncertainties. Forward-looking statements which are based upon certain assumptions and describe future plans, strategies and expectations, are generally identifiable by the use of words as "believe", "expect", "intend", "anticipate", "project", or other similar expressions. These forward-looking statements relate to, among other things, future performance, and perceived opportunities in the market and statements regarding the Company's mission and vision. The Company's actual results, performance and achievements may differ materially from the results, performance, and achievements expressed or implied in such forward-looking statements. Further information on potential factors that could affect Viva International, Inc. is found in the Company's Form 10-K and other documents filed with the U. S. Securities and Exchange Commission.
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