Air L.A. signs letter of intent to acquire Conquest Airlines; Transaction Valued at $6 million.LOS ANGELES--(BUSINESS WIRE)--March 13, 1995--Air L.A. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :AILA) Monday announced that it has entered into an agreement to acquire Texas- based Conquest Airlines Conquest Airlines was a small regional airline that operated primarily on routes within Texas from its hub in Austin (at the now closed Robert Mueller Municipal Airport). It ceased operations in the mid 1990s. in a stock transaction valued at $6 million. A letter of intent has been signed between the two companies. The Conquest acquisition would be Los Angeles-based Air L.A.'s second airline acquisition in recent weeks. The company recently acquired the assets of Capitol Airlines based in St. Paul St. Paul as a missionary he fearlessly confronts the “perils of waters, of robbers, in the city, in the wilderness.” [N.T.: II Cor. 11:26] See : Bravery , Minn. Conquest Airlines, which operates the same type of aircraft as Air L.A. -- Fairchild Metroliner turboprops -- serves eight cities in Texas List of cities in Texas, arranged in alphabetical order. : Top - 0–9 A B C D E F G H I J K L M N O P Q R S T U V W X Y Z A
Wayne Schoenfeld, Air L.A. chairman and chief executive officer, said, "Upon the completion of the Conquest Airlines acquisition, which is expected by the end of March 1995, Air L.A. will be offering service to 19 cities with an expanded fleet of 12 Metroliner aircraft. "Our recent acquisition of Capitol Airlines extended Air L.A. operations to St. Paul/Minneapolis, Chicago and Milwaukee in addition to our wide-ranging service in California, Arizona and Northern Mexico." Air L.A.'s Mexico service is conducted under a code-share agreement with Aeromexico. Tim Clarey, Air L.A. president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , said: "The acquisition of Conquest will provide Air L.A. with numerous operational advantages including a highly developed infrastructure, a modern Sabre reservation system and one of the more complete maintenance organizations in the industry. This will provide the opportunity for significant consolidations and cost reductions." Clarey said that it is Air L.A.'s intent to link all three operations into a single system which will maximize the efficiency and utilization of common operating assets Operating Assets Another term for working capital. . Victor Rivas, Conquest president, said: "Conquest has always had a solid core operation. We recently underwent a downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing which eliminated marginal routes and excess aircraft." Rivas states that the combined value of Air L.A. and Conquest Airlines, in all respects, will be greater than the individual units operating autonomously. Air L.A. recently announced that it is in the process of a secondary public offering of common stock under terms of a letter of intent from Spelman & Co. Inc. to do a firm commitment underwriting Firm commitment underwriting An underwriting in which an investment banking firm commits to buy and sell an entire issue of stock and assumes all financial responsibility for any unsold shares. of $7 million-9 million. The funds will be used to finance Air L.A.'s expansion. CONTACT: Air L.A. Wayne Schoenfeld, 310/215-8248 or The Myers Co. Phillip I. Myers, 310/282-2572 |
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