<PAGE>
Rule 424B(3) Prospectus Supplement
Registration #33-83048
SUPPLEMENT
TO
PROSPECTUS DATED JULY 17, 1995
AS PREVIOUSLY SUPPLEMENTED BY
PROSPECTUS SUPPLEMENT DATED OCTOBER 19, 1995
VALUJET, INC. AS SUCCESSOR TO
VALUJET AIRLINES, INC.
RECENT DEVELOPMENTS
On May 11, 1996, ValuJet Flight 592 from Miami to Atlanta crashed in the
Florida Everglades. There were no survivors among the 110 people aboard,
including 105 customers and five flight crew members. The crash, following a
number of incidents and heightened FAA scrutiny, resulted in extensive media
coverage calling into question the safety of low-fare airlines in general and
the Company in particular, despite the fact that the cause of the crash has not
yet been definitively determined. In response to the accident, the FAA
conducted an extraordinary review of the Company's operations, including an FAA
inspection of each aircraft before departure, the review of the maintenance
history of each aircraft and the presence of an FAA inspector onboard each
Company aircraft at least once per week. The intensive inspection process and
the redoubling of the Company's focus on safety resulted in many flight delays
and cancellations. In response to these circumstances, the Company reduced its
schedule by more than 40% between May 19, 1996 and June 17, 1996, by reducing
service to its markets without eliminating service to any market. In addition,
the Company retained The Spectrum Group and named James B. Davis (General USAF-
Ret.) as its "safety czar" to conduct a thorough inspection of the Company's
maintenance and safety policies and procedures.
On June 17, 1996, the Company entered into a consent order with the FAA
under which: (i) the Company agreed to suspend operations until such time as the
Company is able to satisfy the FAA as to various safety concerns identified by
the FAA as a result of its intensive inspections of the Company's operations,
(ii) the FAA agreed to work with the Company in order to reestablish operations
with up to 15 aircraft, and (iii) the Company is to pay $2 million to the FAA to
compensate it for the costs of the special inspections conducted. In order to
reduce costs while the Company prepares its plan to restore service, the Company
has furloughed more than 90% of its personnel.
Other consequences of the accident, ensuing media coverage and shutdown of
operations include:
1. The Company is unable to predict with certainty when the Company will
be able to resume service or the level of service that will be offered at that
time.
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2. The expansion of the Company's operations will likely be subject to
FAA approval for an indefinite period of time.
3. The Company expects that its traffic after resumption of service will
be less than experienced prior to suspension of operations. The Company is
unable to predict how significantly the accident and shutdown will affect load
factors after the Company resumes operations or the length of time load factors
will be impacted.
4. The Company has sought to defer acceptance of certain aircraft
presently under contract and the Company may lease out or sell some of its
aircraft.
5. The Company has refunded fares paid by customers affected by the
Company's changing schedules and cancellations and by those who otherwise chose
to change their travel plans.
6. After resumption of service, the Company's cost per ASM will likely
increase to some extent to reflect the cost of any additional maintenance or
safety procedures adopted by the Company and lower aircraft utilization levels.
7. The Company may reduce its workforce permanently if the FAA, safety
concerns or lack of customer acceptance extends the period prior to the Company
reestablishing prior levels of service.
8. The aircraft destroyed was insured for $4.0 million which is in excess
of its book value. The Company carries $750 million of liability insurance.
Although the Company believes that such insurance will be sufficient to cover
all claims arising from the accident, there can be no assurance that the
aggregate of all claims will not exceed such insurance limits.
In light of these factors, persons investing in the securities of the
Company should be apprised of the following additional risk factors:
1. There can be no assurance that the Company will be able to recover
sufficient customer acceptance in order to regain profitability.
2. Even if the Company regains profitability, the Company may have
permanently lost a certain amount of customer support which could decrease the
Company's profitability indefinitely.
3. The Company will likely face further losses of customer support as a
result of the shutdown of its operations in addition to the costs incurred
during the period operations have been affected.
4. If the National Transportation Safety Board (NTSB) were to determine
that the Company's maintenance procedures or aging aircraft contributed to the
cause of the accident, such determination could also have a substantial adverse
effect on the Company's future operations.
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5. The occurrence of one or more subsequent incidents or accidents by
ValuJet's aircraft would likely have a substantial adverse effect on the
Company's future operations.
STOCK SPLIT
The Company paid a 2-for-1 stock split in the form of a 100% stock dividend
on November 21, 1995 to stockholders of record on November 6, 1995. As a
result, the number of shares registered for resale under the Prospectus has been
increased by the number of shares paid as a stock dividend with respect to the
previously registered, but unsold shares.
SELLING STOCKHOLDERS
The table below sets forth information with respect to the number of shares
of Common Stock registered for sale in this offering on behalf of the Selling
Stockholders as of the date of this Prospectus Supplement. The number of shares
indicated is based on certain information in the Company's records and does not
include the number of shares previously sold by the Selling Stockholders in this
offering. The Selling Stockholders may own additional shares of Common Stock in
the Company which is not reflected in the table below. The number of shares of
Common Stock to be sold by a Selling Stockholder in the offering is not within
the control of or known by the Company. There is and has been no material
relationship during the Company's history between the Company or any affiliate
of the Company with any Selling Stockholder except as footnoted in the Selling
Stockholder table of the Prospectus. No Selling Stockholder owns of record more
than 1% of the Company's outstanding stock unless indicated otherwise in the
footnotes to the Selling Stockholder table of the Prospectus.
Number of Shares
Registered for Sale
As of Date of
Selling Stockholder Prospectus Supplement
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<TABLE>
<CAPTION>
<S> <C>
Abrams, Michael........................................ -0-
Acks, Michael and Shannon.............................. 240,000
Adams, John............................................ 200,000
Allee, Mitchell........................................ -0-
Allen, Neal............................................ 15,000
Amherst College........................................ -0-
Andalman, Alan......................................... -0-
A. G. Andrikopoulos Resources, Inc..................... -0-
Arnell Business Forms, Inc.
Money Purchase Pension Plan....................... 20,124
Noel K. Atkinson and Eulalia G. Atkinson
Living Trust...................................... -0-
Ayer, Diane............................................ 200
Bailey, Gordon......................................... 14,750
</TABLE>
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<TABLE>
<S> <C>
Number of Shares
Registered for Sale
As of Date of
Selling Stockholder Prospectus Supplement
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Bailey, Rodney......................................... 20,000
Barry, William and Candace Sousa....................... 21,500
Bartkowski, James (individual and custodian accounts).. 18,400
Beider, Jack........................................... -0-
Benson, Ken and Pat.................................... 800
Berger, Karl........................................... -0-
Bernton, J. Tashof..................................... -0-
Blue, John S........................................... -0-
Bock, Daniel........................................... -0-
Bodensteiner, Thomas................................... 4,500
Boos, Mary............................................. 10,000
Booth, Ronald (individual and IRA accounts)............ -0-
Boster, Gary........................................... -0-
Boys and Girls Club.................................... -0-
Brass, Marna........................................... 200
Brictson, David........................................ 14,830
Broda, Dolores......................................... 1,000
Bruggeman, William and Ruth............................ -0-
Burstein, Fred (IRA account)........................... -0-
Cardwell, F. Lane...................................... 23,648
Care Providers of Minnesota Foundation................. -0-
Chenoweth, Dean B...................................... 600
Chenoweth, Eric........................................ 200
Chenoweth, Joan........................................ 200
Chillington Corporation NV............................. -0-
Christ United Methodist Church......................... 2,000
Church of Holy Comforter............................... -0-
Church of Saint Thomas Aquinas......................... -0-
Colonial Church of Edina............................... -0-
Columbia River Properties.............................. -0-
Congregation Beth Israel............................... -0-
Connor, George......................................... -0-
Cooper, Connie......................................... 200
Cretin Derham-Hall..................................... -0-
Cunningham, Kenneth.................................... 12,500
Daniel, Donald......................................... 10,000
Danielson, Scott....................................... 64,000
Desert Hills Presbyterian Church....................... 6,000
Dessell, Eugene and Judith............................. -0-
Dixon, T. James........................................ 20,000
</TABLE>
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<TABLE>
<S> <C>
Number of Shares
Registered for Sale
As of Date of
Selling Stockholder Prospectus Supplement
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Dixson, Inc............................................ -0-
DMS Direct Marketing Services, Inc..................... -0-
Dondelinger, Robert S.................................. 40,000
Downs, Richard......................................... 44,000
Ed Brancamp Ministries................................. -0-
Eickoff, L.B........................................... 12,000
Ellis, Donald J........................................ 100
Emmerson, Craig and Cynthia............................ -0-
Ernemann, Michael...................................... -0-
Federico, Rick......................................... 25,272
Fleming, Hayden
(joint and custodian accounts).................... 184,400
Fleming, Patrick
(individual and IRA accounts)..................... 40,748
Fleming, Ralph and Roberta............................. 4,000
Ford, Creed III........................................ 39,200
Foreman, James......................................... -0-
Hamilton Investments FBO
Barry G. Frederickson............................ 148
Friedman, Kay.......................................... 200
Fromm, Lorraine........................................ 30,000
Funk, David I.......................................... 1,000
Gagner, Nancy.......................................... 8,500
Gagner, Timothy........................................ -0-
Gallagher/Moritz 1992 Trust............................ 200,000
Gault, Daryl A......................................... 3,000
Genesis Capital Fund, L.P.............................. -0-
Gerbig, Thomas......................................... 62,000
Gilbertson, David...................................... 14,000
Glass, Burl E. III (IRA account)....................... 19,500
Gobar, Brian and Michelle.............................. 500
Goldberg, Robert B..................................... 26,000
Goldstein, Bruce....................................... -0-
Gottleib, Feivel....................................... -0-
Feivel Gottlieb
Defined Benefit Pension Plan...................... -0-
Graham, Cookie (individual and IRA accounts)........... -0-
Graham, Gary........................................... -0-
Graves, Harmon and Nada................................ 26,000
Gray, Russell.......................................... 55,000
</TABLE>
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<TABLE>
<S> <C>
Number of Shares
Registered for Sale
As of Date of
Selling Stockholder Prospectus Supplement
- ------------------- ---------------------
Greenwald, George H.................................... -0-
Gross, Bert M. (IRA account)........................... 5,000
H & K Partners......................................... -0-
Haigh, Bradley......................................... 3,100
Harrison, Betty........................................ 2,600
Harrison, Betty and Charles
Charitable Remainder Trust........................ 9,400
Harrison, M. Ponder.................................... -0-
Hauptman, Bruce........................................ -0-
Haussman Holdings...................................... -0-
Hazel Park Congregational Church....................... -0-
Heller, Melvin (IRA account)........................... 12,000
Hemophilia Society of Colorado......................... -0-
Henderson, Robert F.................................... 12,748
Henkemeyer, Gerome..................................... 10,000
Henry, Teresa and Mitchell............................. 2,200
Hernreich, Robert and Rebecca.......................... -0-
Hersh, Daniel A........................................ -0-
Hersh, John............................................ -0-
Hersh, Joni............................................ -0-
Hersh, Margaret........................................ -0-
Hersh, Matthew......................................... 1,000
Holmberg, Berten....................................... 9,948
Hoppman, Harold........................................ 42,000
Huber, Daniel R........................................ 46,000
Hundley, John M........................................ -0-
Huntington, Bert....................................... -0-
David Hurlin Trust..................................... 600
Eric Hurlin Trust...................................... 600
Hurlin, William........................................ 500
Immokalee Habitat for Humanity......................... -0-
Intergalactic Growth Fund, Inc......................... -0-
JTW Family Limited Partnership......................... 82,000
Jacobson, Allen........................................ 34,000
Jacobson, Allen Jr..................................... -0-
Allen Jacobson Generation Skipping Trust............... 2,000
Barbara Jacobson Trust................................. -0-
Jacobson, Holly........................................ 2,000
Holly Jacobson Generation Skipping Trust............... 2,000
Jacobson, Michael
(individual and IRA accounts)..................... 10,000
Jacobson, Paul......................................... 2,000
</TABLE>
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<TABLE>
<S> <C>
Number of Shares
Registered for Sale
As of Date of
Selling Stockholder Prospectus Supplement
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Paul Jacobson Generation Skipping Trust................ 2,000
Jewish Community Center of St. Paul.................... -0-
Johnson, Gary.......................................... -0-
Johnson, H. Stanley III................................ -0-
Jolly, Frank........................................... 8,000
Jordan, Jennifer....................................... 500
Jordan, Lewis H........................................ 8,000
Joss, Jerome........................................... -0-
Joy Christian Center................................... -0-
Juechter, W.M.......................................... 50,000
Juvenile Diabetes Foundation........................... -0-
Kaefer, Frederick S.................................... -0-
Karnell, Jerrold (trust and IRA accounts).............. -0-
Kasten, William O...................................... 46,000
Kenning, Ray........................................... 32,000
Kidwell, Bradford D.................................... -0-
Kitakis Family Irrevocable Trust....................... 1,200
Kleist, Keith.......................................... -0-
Klouda, James C........................................ 50,000
Kohring, James and Cheryl.............................. 4,000
Krieger, Erik.......................................... 4,000
Kuban, William......................................... 29,000
Labovitz, Albert....................................... 8,000
Labovitz, Steven....................................... 5,000
Lambert, Tim and Teresa................................ 500
Lane, Brandon.......................................... -0-
Lane, James............................................ -0-
Lane, John............................................. 45,000
Larsen, Peter.......................................... 80,000
Lawrence Fund, L.P..................................... -0-
Michael D. Lefebvre HR-10 Trust........................ -0-
Leibovit, Mark (IRA account)........................... -0-
Leibovit, Mark and Alice............................... -0-
Leong, Ronald.......................................... -0-
Levin, Phillip......................................... -0-
Levine, John........................................... -0-
Dorsey & Whitney Master Trust
for John Levine................................... -0-
Levings, Jacqueline and
Steven Johnson.................................... 25,000
Lindyberg, Kenneth..................................... 16,000
</TABLE>
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<TABLE>
<S> <C>
Number of Shares
Registered for Sale
As of Date of
Selling Stockholder Prospectus Supplement
- ------------------- ---------------------
Linney, Douglas........................................ -0-
Linney, Warren......................................... -0-
Robert M. Linsmeyer Trust.............................. -0-
Love, Frank............................................ 25,000
Luoma, Theodore........................................ -0-
Lytle, Robert P........................................ 16,000
Maclellan, Andrew...................................... 16,000
Madsen, Richard........................................ -0-
Maharishi International University..................... 1,000
Mandt, Lyle............................................ 20,000
Marasco, Richard....................................... -0-
Marian Center of St. Paul.............................. -0-
Marshall, Allen W. III................................. 2,000
Matthews, Beverly...................................... 1,500
Matthews, Jerry and Monique............................ 500
Mayberry, Thomas....................................... 26,000
Maywood Covenant Church................................ -0-
McCoy, Timothy (individual and joint accounts)......... 154,124
McDaniel, Dennis and Joyce............................. -0-
McDonald, Gary......................................... -0-
McLaughlin, John....................................... 23,248
Rosalyn M. Meadow, P.C. Pension Plan................... -0-
Meillier, David........................................ 90,000
Mercy Medical Foundation............................... 100
Metropolitan Atlanta Community Foundation.............. -0-
Meyer, Karen........................................... 18,000
Mile High Partners..................................... -0-
Jonathan H. Miller, M.D., P.C.
Pension Trust..................................... 7,000
Miller, Thomas F....................................... -0-
Miller, Thomas and Katherine........................... 48,000
Minnesota Friends of Orphans........................... -0-
Miot, Sanford.......................................... -0-
Mitchell, Emmett
(individual and IRA accounts)..................... -0-
Montgomery Growth Partners L.P......................... -0-
Montgomery Growth Partners II.......................... -0-
Moran, John............................................ 55,000
Morgan, Andrew, Jr..................................... 20,000
Morrow, Carol and James................................ 50,000
Moyle, Bennett I....................................... 40,000
</TABLE>
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<TABLE>
<S> <C>
Number of Shares
Registered for Sale
As of Date of
Selling Stockholder Prospectus Supplement
- ------------------- ---------------------
Ellen Mueller Trust.................................... 8,000
Gerald Mueller Trust................................... 12,400
Mulligan, Susan and Mundhenke, Gary.................... -0-
Myers, John and Luann.................................. 26,000
Nelson, Delano......................................... 40,000
Nelson, John........................................... 58,000
Nelson, Robert......................................... -0-
Netmen Partners........................................ -0-
Nevin, Stephen......................................... 44,000
Nicoloff Properties.................................... 20,000
Nicoloff, Demetre...................................... 20,000
Nosrob................................................. -0-
O'Donnell, Patrick..................................... 60,000
O'Donnell, Thomas...................................... -0-
Olson Family Trust..................................... -0-
Olson, Ronald and Carol................................ -0-
O'Neall, Shirley....................................... 70,000
Ostrom, Raymond........................................ 30,000
Our Lady of Joy Parish................................. -0-
P & T Partners......................................... -0-
Pearson, William L. (IRA account)...................... 21,000
Phillips, Gross & Aaron, P.A...........................
Employee Profit Sharing Plan...................... -0-
Philpott, Jerome C..................................... -0-
Poirier, Noel.......................................... 29,500
Ponder, Anne........................................... 23,480
Ponder, Bert M. (individual and custodian accounts).... 30,500
Ponder, Elizabeth Dewees............................... 1,480
Ponder, Lawrence....................................... 60,000
Ponder, Lawrence Dumas, Jr............................. 1,480
Lucille E. Post Revocable Living Trust................. -0-
Priddy, Gregory Nathern................................ -0-
Priddy, Lisa Marie..................................... 500
Priddy, Nathern and Janice............................. 50,000
Prince of Peace Catholic Community..................... -0-
Quota Fund............................................. -0-
RJN Enterprises........................................ 15,000
Rathka, Dan C.......................................... 400
Rathka, Randall L...................................... 400
Rathka, Raymond........................................ 158,800
Reichert, Charles...................................... 35,200
</TABLE>
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<TABLE>
<S> <C>
Number of Shares
Registered for Sale
As of Date of
Selling Stockholder Prospectus Supplement
- ------------------- ---------------------
Rice, Glen and Mary.................................... 58,000
Roberts, Stuart O...................................... -0-
Mark Rosenberg, D.O., P.C.
Defined Benefit Pension Plan...................... -0-
Ross School............................................ -0-
Rost, Bonnie........................................... -0-
Henry J. Roth Money Purchase Plan...................... -0-
Rouner Center for Missions and Ministry................ -0-
Sallee, Donald B....................................... 83,000
Schmidt, Donna and Duane Coyle......................... 37,500
Michael L. Schmitz Profit Sharing Plan................. -0-
Schoenbaum, Jeffrey and Susan.......................... 46,000
Fred E. Schueppert Trust............................... -0-
Schulte, Vince......................................... -0-
Schwartz, Sanford (IRA account)........................ -0-
Silverman, Anthony..................................... -0-
Harry & Adeline Silverman Foundation................... -0-
Silverman, Jeffrey
(individual and IRA accounts)..................... 1,000
Silverman, Kay......................................... -0-
Silverman, Michael..................................... -0-
Silverman, William
(individual and IRA accounts)..................... -0-
Simons, William L...................................... 16,000
Slatkin, Reed.......................................... -0-
Slivon, Paul and Noreen................................ -0-
Smith, Gregory
(individual and IRA accounts)..................... -0-
Smith, Sheryl J........................................ 400
Spectrum Capital Corp. Profit Sharing Plan............. 5,000
A. E. Staley III Revocable Trust....................... 8,000
Stern, Deborah......................................... -0-
St. John the Baptist Catholic Church................... -0-
St. Louis Catholic Church.............................. -0-
St. Thomas Aquinas Catholic Church..................... -0-
Southeast YMCA......................................... -0-
Summers, Marc (IRA account)............................ -0-
Temple of Aaron........................................ -0-
Temple Solel........................................... -0-
Thune, Norris.......................................... -0-
Toral, Richard......................................... -0-
The Robert A. Torgerson and Audrey M.
Torgerson Trust................................... 3,900
Trotter, Robert and Lorraine........................... 34,000
</TABLE>
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<TABLE>
<S> <C>
Number of Shares
Registered for Sale
As of Date of
Selling Stockholder Prospectus Supplement
- ------------------- ---------------------
Tug Manufacturing Corporation.......................... 77,500
Turra, Mario and Joann................................. 17,000
United Church of Marco Island.......................... -0-
United Jewish Fund..................................... -0-
University of Colorado Foundation...................... -0-
University of St. Thomas............................... -0-
Upham, Stanley......................................... -0-
Valley Presbyterian Church............................. -0-
Volckman Family Trust.................................. -0-
Wang, Joseph........................................... -0-
Wavell Family Trust.................................... -0-
Weiss, Howard.......................................... 34,000
Wilkes, Daniel......................................... -0-
Williams, Thomas....................................... -0-
Winston School Annual Fund............................. 100
Winter, Lawrence....................................... 25,700
Wong, Daniel and Christina............................. 15,000
Woodco Fund Management................................. -0-
Zousmer, Arnold........................................ 10,000
</TABLE>
This Prospectus Supplement is intended to supplement the Prospectus dated
July 17, 1995 and Prospectus Supplement dated October 19, 1995.
THE DATE OF THIS SUPPLEMENT IS JULY 12, 1996.
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