Wednesday, September 25, 2002

World Airways gets $120 million contract

Peachtree City's World Airways, Inc. announced that the Air Force's Air Mobility Command has approved its airlift contract for 2003, and World Airways' contract is valued at $120 million.

This includes fixed flying valued at $75 million, as well as long-term expansion flying at $37 million and cargo flying at $8 million.

This year's contract is comprised of three distinct categories of flying: the passenger scheduled charter service, military force rotations and annual exercises, and cargo. The AMC contract for FY 2003 begins Oct. 1.

Last year's contract was valued at $175 million, which included $112 million of fixed flying, $60 million of long-term expansion flying, and $3 million of cargo flying.

According to the company, the differences in the composition of the teaming arrangements, aircraft used to support the contract and a smaller long-term expansion budget, led to the difference in the contract value for World Airways between FY 2002 and 2003.

According to Hollis L. Harris, World Airways' chairman and CEO, "We remain a committed and enthusiastic member of the Air Mobility Command support team, and we believe there is excellent potential for us to add a large amount of shorter notice expansion flying to the upcoming year's contract."

For this year's contract, World Airways has added approximately $70 million of additional ad-hoc expansion flying to its base long-term expansion value.

For FY 2003, the company anticipates significant ad-hoc flying for AMC due to the current and expected increase in airlift requirements for U.S. military operations around the world.

Harris concluded, "Our long-term relationship and outstanding record of support for the Air Force will position us well for expansion flying. I am confident that we will exceed our revenue forecast for this year, and we are continuing to build momentum in our marketing efforts to win additional new business with a growing base of customers."

Utilizing a well-maintained fleet of international range, wide-body aircraft, World Airways has an enviable record of safety, reliability and customer service spanning 54 years.

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