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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 of 15(d) of the Securities Exchange Act of 1934
DATE OF REPORT: SEPTEMBER 23, 1996
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Commission File No: 0-26432
AIRWAYS CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 59-3315474
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
6280 HAZELTINE NATIONAL DRIVE
ORLANDO, FLORIDA 32822
(407) 859-1579
(Address, including zip code, and telephone number, including area code, of
Registrant's principal executive offices)
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ITEM 5. OTHER EVENTS.
The Company issued a press release on September 23, 1996 regarding its
estimated net loss for the second quarter of fiscal year 1997 ending September
30, 1996, a copy of which is attached here to as Exhibit 99.1
ITEM 7 EXHIBITS
99.1 Press Release dated September 23, 1996
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
AIRWAYS CORPORATION
Date: September 24, 1996
/s/ Mark B. Rinder
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Mark B. Rinder
VICE PRESIDENT - FINANCE,
SECRETARY AND CHIEF FINANCIAL OFFICER
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EXHIBIT INDEX
EXHIBIT NO. EXHIBIT
99.1 Press Release dated September 23, 1996
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[LOGO AIRWAYS
CORPORATION]
FOR IMMEDIATE RELEASE
AirWays Corporation Contact: Mark Rinder - CFO
6280 Hazeltine National Drive Day: 407-859-1579 Ext. 298
Orlando, FL 32822
AIRWAYS REPORTS OUTLOOK FOR SECOND QUARTER NET LOSS
IMPROVING OPERATING RESULTS EXPECTED
THROUGHOUT SECOND HALF OF FISCAL 1997
ORLANDO, FL -- SEPTEMBER 23, 1996 -- AirWays Corporation (Nasdaq
AAIR), parent company of AirTran Airways, today said that consistent with
the Company's previous public statements contained in the first quarter
report, its net loss for the second quarter of fiscal year 1997 ending
September 30 is estimated to exceed current expectations of analysts
following the company and may range between $.40 and $.45 per share.
As anticipated, second quarter operating results have been adversely
affected by significant expenses related to efforts aimed at strengthening
the airline's operational reliability. During the first two months of the
second quarter, the airline also continued to post below-plan passenger
traffic due to the lingering impact of adverse publicity about the
low-fare segment of the airline industry.
Robert D. Swenson, AirTran's President and Chief Executive Officer
since July 10, 1996, said the airline's overall performance strengthened
markedly in September. Through September 19th, the airline's completion
factor improved to 98.5%, while on-time performance rose to 88.0%. At
these levels, the airline's reliability ranks at or near the top of the
U.S. airline industry. Swenson also said that the airline's passenger
load factor for the current month will strengthen significantly from the
September 1995 level, reflecting the resurgence of passenger traffic. He
said the company will continue to invest resources to maintain and
modernize its fleet of ten Boeing 737-200 jet aircraft. Two of its ten
aircraft will be outfitted with hush kits this quarter bringing the total
number of aircraft with hush kits to five. In addition, interior
enhancements are being made on a number of aircraft, and the company is
also significantly expanding its inventory of spare parts to further
enhance its reliability efforts.
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SEPTEMBER 23, 1996
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To further enhance its financial performance, the airline is
realigning portions of its route system that have not met specified
revenue and profit objectives. Orlando service has been suspended to
Dallas, TX and Birmingham, AL, while service to Nashville, TN; Providence,
RI; and Hartford, CT will be withdrawn later this fall. In place of these
markets, service will be started later this calendar year to several
mid-sized cities that lack the convenience of non-stop Orlando flights,
including recently named new markets Chattanooga, TN and Toledo, OH.
Swenson said that due to improvements in operational reliability, the
positive impact of system realignment and continued growth of passenger
traffic, the Company anticipates steadily improving operating results in
the second half of fiscal year 1997. He said a significantly reduced net
loss is expected in the third quarter, which should set the stage for a
return to profitability in the fourth quarter.
The statements in this release which are not historical are forward
looking. The factors cited above and in the Company's Form 8-K filed
September 24, 1996 could cause actual results to differ materially from
those statements.
AirWays Corporation was established in 1994 as a subsidiary of
AirTran Corporation (now Mesaba Holdings, Inc.) and was spun-off as an
independent company in September 1995. The airline currently provides
non-stop Orlando service to 21 cities with 10 Boeing 737-200 aircraft.
