ASA HOLDINGS TO STANDARDIZE JET FLEET; To Return Five BAe 146-200 Aircraft and Take Second Quarter Charge Announces New CRJ Service Plans.ATLANTA--(BUSINESS WIRE)--June 19, 1997--ASA Holdings, Inc. (NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). :ASAI ASAI Advertising Standards Authority for Ireland ASAI American Society of Architectural Illustrators ASAI Adjunct Switch Application Interface ASAI Average Service Availability Index ASAI African Sky Art Institute ASAI Aortic Stenosis and Aortic Insufficiency ) announced today that it plans to standardize its jet aircraft fleet using the Bombardier 50-passenger CRJ CRJ Canadair Regional Jet CRJ Chiropractic Research Journal CRJ Commission for Racial Justice CRJ Cylinder Reduction Jumper aircraft. As a result, ASA Asa (ā`sə), in the Bible, king of Judah, son and successor of Abijah. He was a good king, zealous in his extirpation of idols. When Baasha of Israel took Ramah (a few miles N of Jerusalem), Asa bought the help of Benhadad of Damascus and plans to exercise its option to return five BAe 146-200 aircraft to Jet Acceptance Corporation. ASA anticipates it will incur a one-time charge during the second quarter of approximately $2.6 million for expenses related to the return of the BAe 146. The Company also announced that it will expand service with the CRJ aircraft with new flights from Atlanta to Cleveland during the fourth quarter of 1997. In addition, new CRJ round-trip service will be introduced to New York's John F. Kennedy International Airport
John F. Kennedy International Airport (IATA: JFK, ICAO: KJFK, FAA LID: JFK from Cleveland. ASA also announced that it expects to incur a second quarter charge of $3.1 million associated with the finalization of its Stock Appreciation Rights (SARs) program and adoption of a Non-Qualified Stock Option Non-qualified stock options are stock options which do not qualify for the special treatment accorded to incentive stock options. Incentive stock options are only available for employees and other restrictions apply for them. plan that became effective May 21, 1997. The Non-Qualified Stock Option plan was approved at the Company's annual meeting on May 21,1997, the effective date of the new plan. The Company said it will not incur additional SARs charges in the future. Outlook for 1998 The Company expects its earnings for the second quarter ending June 30, 1997, to be below analysts' estimates due to the anticipated one-time charges related to the BAe 146 and SARs and in the range of analysts' estimates for the remainder of 1997. The airline anticipates that the return of the BAe 146 will reduce its projected ASM (1) (Association for Systems Management) An international membership organization based in Cleveland, Ohio. Founded in 1947 and disbanded in 1996, it sponsored conferences in all phases of administrative systems and management. growth during 1998 from 26% to 13%. However, the Company expects that the rationalization of its fleet and the operating efficiencies of the CRJ will support analysts' estimates for 1998. ASA to Standardize Jet Fleet - Return BAe 146 Aircraft In January 1997, ASA announced its plans to acquire 30 CRJ aircraft with options for an additional 60 aircraft. The purchase is the largest single Canadair Jet order to date with an estimated value of $600 million. ASA is scheduled to begin taking deliveries of the 50-passenger CRJ in August 1997 at the rate of one aircraft per month. ASA plans to exercise its option to return five BAe 146 aircraft to Jet Acceptance Corporation. The aircraft will be returned during the fourth quarter of 1997 and the first quarter of 1998, according to Ronald V. Sapp, senior vice president of the Atlanta-based airline. "The return of the BAe 146 will correspond with the beginning of our CRJ program and the subsequent delivery of 30 Regional Jet aircraft," Sapp said. "We are excited about the growth prospects and profit potential offered by the CRJ. We have enjoyed financial success with the 88-seat BAe 146 since introducing service with the aircraft in December 1995. However, we believe the combination of 30, 50 and 66-seat aircraft is the ideal fleet-mix for our company, customers and shareholders in the years ahead," Sapp commented. Announces New CRJ Service Plans The airline also announced that it will initiate new service between Atlanta, Georgia, and Cleveland, Ohio, with the 50-passenger CRJ aircraft on November 1, 1997. Concurrently, the airline will begin service from Cleveland to New York's John F. Kennedy International Airport. ASA Holdings, Inc. operates Atlantic Southeast Airlines For the defunct low-fare airline, see . Atlantic Southeast Airlines (ASA) is a fully certificated American airline based in Atlanta, Georgia, USA flying to 144 destinations as a Delta Connection carrier. It is a wholly owned subsidiary of SkyWest, Inc. , Inc., Atlanta's largest regional air carrier, and offers service to 22 cities from a second hub in Dallas, Texas. ASA's stock is traded on the Nasdaq Stock Market's National Market under the symbol ASAI. With the exception of historical factual information, the statements made in this press release constitute forward-looking statements, contain the words "believes," "anticipates," "expects," and words of similar import based upon current expectations and are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Such forward-looking statements involve certain assumptions, risks and uncertainties that could cause actual results to differ materially from those included in or contemplated by the statements. These assumptions, risks and uncertainties include, but are not limited to, those discussed or indicated in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the period ended December 31, 1996, under the heading "`Safe Harbor' Statement under the private Securities Litigation Reform Act of 1995," and in all documents filed by the Company with the Securities and Exchange Commission. The Company disclaims any obligation to update any forward-looking statements as a result of developments occurring after the issuance of this press release. CONTACT: ASA Holdings Inc., Atlanta Ronald V. Sapp, 404/766-1400 INDUSTRY KEYWORD: TRAVEL/AIRLINES REPEATS: New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212-752-9600 or 800-221-2462; Boston 617-236-4266 or |
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