CLE757 From United States of America, joined Apr 2005, 1067 posts, RR: 0 Posted (5 years 5 months 6 days 3 hours ago) and read 2676 times:
Gulfstream International Airlines Announces Aircraft Sales, Capacity Adjustments and New Cleveland Flying
Wednesday July 2, 3:30 pm ET
FT. LAUDERDALE, Fla., July 2, 2008 (PRIME NEWSWIRE) -- Gulfstream International Airlines, Inc. (the ''Airline''), a subsidiary of Gulfstream International Group, Inc. (''Gulfstream'') (AMEX:GIA - News), today announced plans to reduce capacity within its Florida-based route system as well as add new flights from Cleveland to several markets operated under the Department of Transportation's Essential Air Service program.
The capacity reductions will come as a result of implementing Gulfstream's previously-announced plan to sell the Airline's eight (8) EMB-120 30-passenger aircraft. The Airline expects to complete the sale of seven (7) of the aircraft by August 15, 2008, pursuant to an Aircraft Purchase and Sale Agreement entered into on June 26, 2008. The Airline is in the process of negotiating a sale of the eighth aircraft and anticipates its sale in the near future. The Airline expects to have all EMB-120's out of service by August 1, 2008. The sale of the fleet of EMB-120 aircraft is expected to result in the elimination of approximately $7.3 million of long-term debt and improve Gulfstream's cash position by approximately $4.0 million.
David Hackett, President and Chief Executive Officer of Gulfstream, explained that the capacity reductions are being driven primarily by the unprecedented increase in fuel costs. Mr. Hackett stated, ''In order to survive this very difficult environment, our plans are based upon operating only in those markets and at frequencies that we believe can provide for sustained profitability with oil prices exceeding $140 per barrel. In addition, we believe that concentrating on a single fleet type, the Beechcraft 1900D regional airliner, will improve our overall operating efficiency and lower costs.''
In conjunction with reduced capacity in its Florida-based route system, Gulfstream is announcing the addition of several new routes from Continental Airlines' hub in Cleveland, Ohio. Effective September 3, 2008, the Airline will inaugurate service from Cleveland to DuBois, Pennsylvania; Franklin/Oil City, Pennsylvania; and Greenbrier/Lewisburg/White Sulphur Springs, West Virginia. These flights will be available for sale effective July 12, 2008. Additionally, the Airline will add service from Cleveland to Bradford, Pennsylvania and Jamestown, New York, effective October 1, 2008. These flights will be available for sale effective July 26, 2008.
All of the new routes will be flown under the Airline's ''Continental Connection'' affiliation with Continental Airlines. Under this arrangement, the Airline coordinates pricing and schedules with Continental Airlines. The Airline's passengers enjoy a seamless travel experience as through ticketing and baggage transfer is offered. The Airline's passengers may participate in the Continental OnePass Frequent Flyer program and may book their flights and select their seats via Continental's website, http://www.Continental.com.
''Gulfstream is delighted to bring Continental Connection service to the communities of DuBois, Franklin, Lewisburg, Bradford and Jamestown. We are tremendously excited to expand our relationship with Continental Airlines from its Cleveland hub. We look forward to expanding our base of operation outside of Florida and the Bahamas. We believe that all of these communities will benefit from our convenient and reliable service,'' said Mr. Hackett.
About Gulfstream International Group, Inc.
Gulfstream International Group, Inc. is a holding company that operates two independent subsidiaries: Gulfstream International Airlines, Inc. and Gulfstream Training Academy, Inc. (the ''Academy''). Gulfstream International Airlines, Inc. is a Fort Lauderdale, Florida-based commercial airline currently operating more than 200 scheduled flights per day, serving eleven destinations in Florida and ten destinations in the Bahamas. The Academy provides flight training services to licensed commercial pilots. For more information on the company, visit the company's website at http://www.gulfstreamair.com.
Special Note Regarding Forward-Looking Statements
In addition to historical information, this release contains forward-looking statements. Gulfstream may, from time-to-time, make written or oral forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to, among other things: our business strategy; our value proposition; the market opportunity for our services, including expected demand for our services; information regarding the replacement, deployment, acquisition and financing of certain numbers and types of aircraft, and projected expenses associated therewith; costs of compliance with FAA regulations, Department of Homeland Security regulations and other rules and acts of Congress; the ability to pass taxes, fuel costs, inflation, and various expense to our customers; certain projected financial obligations; our estimates regarding our capital requirements; and any of our other plans, objectives, expectations and intentions contained in this release that are not historical facts.
These statements, in addition to statements made in conjunction with the words ''expect,'' ''anticipate,'' ''intend,'' ''plan,'' ''believe,'' ''seek,'' ''estimate'' and similar expressions, are forward-looking statements. These statements relate to future events or our future financial performance and only reflect management's expectations and estimates. All forward-looking statements included in this release are made as of the date hereof and are based on information available to Gulfstream as of such date. The following is a list of factors, among others, that could cause actual results to differ materially from the forward-looking statements: changes to external competitive, business, budgeting, fuel cost or supply, weather or economic conditions; changes in our relationships with employees or code share partners; availability and cost of funds for financing new aircraft and our ability to profitably manage our existing fleet; adverse reaction and publicity that might result from any accidents; the impact of current or future laws and government investigations and regulations affecting the airline industry and our operations; additional terrorist attacks; and consumer unwillingness to incur greater costs for flights.
Gulfstream assumes no obligation to update any forward-looking statement. Risk factors, cautionary statements and other conditions which could cause actual results to differ from management's current expectations are contained in Gulfstream's filings with the Securities and Exchange Commission, including Part I, Item 1A, ''Risk Factors,'' of our Annual Report on Form 10-K for the Year Ended December 31, 2007.
Gulfstream International Group, Inc.
Robert M. Brown, Chief Financial Officer
(954) 985-1500 (x236)
Mnevans From United States of America, joined Feb 2007, 167 posts, RR: 0 Reply 1, posted (5 years 5 months 6 days 3 hours ago) and read 2649 times:
WOW! I go to Bradford at least 7 or 8 times a year! I can't wait to be able to fly instead of drive! I think these are interesting additions to the CLE route structure. It should be interesting to see how they pan out.
TOLtommy From United States of America, joined Dec 2003, 3246 posts, RR: 4 Reply 5, posted (5 years 5 months 5 days 23 hours ago) and read 2337 times:
Quite a significant move by Gulfstream. Will they keep any ops in south Florida? Quite a different type of flying, dealing with lake effect snow in an Ohio winter. Since the EMB-120 is leaving, that means all of their FA's will be eliminated as well.
USPIT10L From United States of America, joined Mar 2006, 3295 posts, RR: 8 Reply 7, posted (5 years 5 months 5 days 23 hours ago) and read 2295 times:
Quoting Scoobyd75 (Reply 4): Interesting. All these destinations used to be flown out of Pit on Beechcraft for Usairways express. Should be very intriuging how these routs do out of Cleveland. We shall see.
BFD and JHW were previously served by United Express operated by Colgan Air after US Airways Express/Air Midwest pulled out late last year. UA started service in February, I believe.
MasseyBrown From United States of America, joined Dec 2002, 4973 posts, RR: 7 Reply 8, posted (5 years 5 months 5 days 22 hours ago) and read 2217 times:
They have one more route CLE-PKB still being competed. Colgan has offered a more expensive service proposal to IAD, so Gulfstream has a decent shot winning at PKB.
Their CEO gave a hint in a webcast that, once they get their CLE operation going, they may restart some of the shorthauls CO is in the process of cancelling, such as DTW, CVG, TOL, etc. The B1900's are cheaper to operate than Commutair's DH2's.
CLE757 From United States of America, joined Apr 2005, 1067 posts, RR: 0 Reply 10, posted (5 years 5 months 5 days 12 hours ago) and read 2047 times:
Quoting MasseyBrown (Reply 8): Their CEO gave a hint in a webcast that, once they get their CLE operation going, they may restart some of the shorthauls CO is in the process of cancelling, such as DTW, CVG, TOL, etc. The B1900's are cheaper to operate than Commutair's DH2's
That would be a good idea, maybe CO would even bring back some RJ flying too. Like AUS and SAT.
Flyinryan99 From United States of America, joined Feb 2001, 1948 posts, RR: 10 Reply 12, posted (5 years 5 months 5 days 9 hours ago) and read 1869 times:
Quoting MasseyBrown (Reply 8): Their CEO gave a hint in a webcast that, once they get their CLE operation going, they may restart some of the shorthauls CO is in the process of cancelling, such as DTW, CVG, TOL, etc. The B1900's are cheaper to operate than Commutair's DH2's.
To DTW and CVG this would be fine, but why close the "station" down just to reopen it later at TOL? I think it would be better just to downgrade and keep the service going then stop and start it again. Maybe 3rd time is a charm....I would rather take 2 Q400s to EWR but that is a pipe dream.
MasseyBrown From United States of America, joined Dec 2002, 4973 posts, RR: 7 Reply 14, posted (5 years 5 months 5 days 9 hours ago) and read 1810 times:
Quoting Flyinryan99 (Reply 12): To DTW and CVG this would be fine, but why close the "station" down just to reopen it later at TOL?
I have no idea. Perhaps to get a better ground handling contract? I wouldn't see any restarts before summer of 2009 anyway.
TOL might be the least feasible restart in any case. The last time I went to TOL (Bowling Green), I compared times and prices for flyng to TOL, DTW, and CLE from DCA/BWI/IAD. The best deal from the east seemed to be to fly to CLE and drive. Second best seemed to be DTW and drive. Flying to TOL cost more in fare increases than the price of the car rental and I still would have had to rent a car. Not a good story for TOL fans, but TOL fares have to come down; otherwise it'll only be business fliers.