Wednesday, Sept. 21, 2005 | ||
Bad Links? | World Airways renews contract for 2006 with Air Mobility CommandWorld Airways, a wholly owned subsidiary of World Air Holdings, Inc. (Nasdaq: WLDA), has renewed its contract with the U.S. Air Force Air Mobility Command (AMC) to continue providing fixed and expansion passenger flying for fiscal year 2006, which begins Oct. 1, 2005, and ends Sept. 30, 2006. The total estimated contract value for the entire Alliance Contractor Team, which includes World Airways, increased 22 percent for FY 2006 compared to FY 2005. World remains the primary wide-body passenger carrier for the Alliance Team. Although World's fixed passenger contract for FY 2006 is valued at $54 million compared to $94 million for the prior fiscal year, expansion flying has contributed a much higher percentage of total military revenues for World over the past several years. For the first nine months of the FY 2005 contract, World has received $260 million in revenues from expansion flying, and the company expects expansion demand to remain strong through the final quarter of the 2005 fiscal year as well as through FY 2006. "We're pleased that our Alliance Contractor Team received a higher award than last year, with the estimated team value increasing from $998 million to $1.22 billion," said Randy Martinez, chief executive officer of World Air Holdings. "Based on public announcements from the U.S. Air Force in 2004 regarding planned reductions in Patriot Express service, we knew our fixed passenger flying would be lower than in FY 2005, but at the same time, expansion demand has remained high. We continue to expect expansion flying to represent a much larger part of World's total military revenues." World's military revenues, including both fixed and expansion flying, grew from approximately $333 million in the contract's FY 2003 to $374 million in FY 2004. World has generated $337 million in military revenues for the first nine months of the FY 2005 contract, and expects an estimated $99 to $104 million for the quarter ending Sept. 30, 2005. That estimate was included in World Air Holdings' previously announced third-quarter consolidated guidance for military revenues. "Our fleet plan for the FY 2006 contract should ensure passenger capacity similar to last year's level," said Martinez. "World Airways has served the U.S. military continuously for more than 50 years and continues to be the leading carrier of military personnel and dependents." World Airways, a wholly owned subsidiary of World Air Holdings, Inc., is a U.S.-certificated air carrier providing customized transportation services for major international passenger and cargo carriers, the United States military, international freight forwarders and international leisure tour operators. Founded in 1948, World operates a fleet of 17 wide-body aircraft to meet the specialized needs of its customers. For information, visit www.worldairways.com. World Air Holdings, Inc., based in Peachtree City, has three wholly owned subsidiaries: World Airways, Inc., North American Airlines, Inc., and World Risk Solutions, Ltd. For information, visit www.worldairholdings.com. |
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