PRESIDENTIAL AIRWAYS
A brief Historial Timeline 1986-1987
October 25, 1986 Presidental Airways announced yesterday that it is withdrawing from the New York market and selling its landing and take-off rights at LaGuardia Airport to Eastern Airlines for an undisclosed price. The Reston-based airline operated three flights a day from Washington's Dulles International Airport into LaGuardia. Those flights will end Sunday night.
The sale appears to mark a change in strategy for the year-old airline away from trying to compete with major airlines such as New York Air and United Air Lines, which also use Dulles as a hub, to focusing on other markets and expanding its charter business.
November 5, 1986 Presidential Airways said yesterday that it
has signed a contract for more than $5 million with Club Med Sales Inc. to operate
charters during the winter vacation season. The charters will be operated through
Presidential's subsidiary, Key Airlines
Jan.
12, 1987 Agreement signed to become continental Express
January 16, 1987 The Department of Transportation said yesterday that the proposed sale of Presidential Airways' Dulles terminal to Continental Airlines and an agreement under which Presidential will become a "Continental Express" feeder airline raise questions about competition that may require review "As we understand the agreements between Texas Air and Presidential, Texas Air appears to be acquiring the ability to exert significant influence over Presidential,
February 26, 1987 Presidential Airways said yesterday that
the Department of Transportation has decided not to review Presidential's joint
marketing agreement with Continental Airlines. Last month, the department said
that the marketing agreement, under which Presidential will become a feeder
airline operating as "Continental Express," appeared to raise questions
about competition that might warrant review
February 27, 1987 The Justice Department yesterday gave final
clearance to a joint marketing agreement between Presidential Airways Inc. and
Continental Airlines Inc. Under the agreement, Presidential will provide feeder
service for Continental under the "Continental Express" banner The
Justice Department said it would not challenge the agreement, although Presidential
currently provides nonstop service to six cities from Dulles in competition
with Continental
March 3, 1987 Presidential Airways yesterday announced the
routes it will fly as an adjunct to Continental Airlines, dropping most of the
major cities its serves in favor of smaller cities. Effective March 23, the
airline that once hoped to dominate Dulles International Airport will begin
flying as Continental Express, an independent airline providing feeder service
to the larger carrier.
March 23, 1987 Becomes Continental Express
April 7, 1987 World Airways has signed an agreement to purchase the stock of Key Airlines for $18 million from Presidential Airways, World's chief executive officer, T. Coleman Andrews, said yesterday. Key provides contract flight operations for several military and civilian customers and has a fleet of nine Boeing 727 and 737 aircraft at its bases in Las Vegas and Washington Dulles International Airport.
April 8, 1987; Presidential Airways, in the process of shifting to more short-run service as Continental Jet Express, said yesterday it has renegotiated lease agreements that will allow it to reduce the size of the airplanes it flies The actions by the Washington-based airline follow the sale of 10 of its 11 Boeing 737s by their owner, Clarendon Insurance, to Aviation Sales Co. Inc., a subsidiary of transportation-rental company Ryder System Inc.
May 16, 1987 Presidential Airways, a regional commuter airline
based at Washington Dulles International Airport, yesterday said losses totaled
$40.8 million ($6.30 a share) on revenue of $73.6 million in its first full
year of operation, compared with losses of $9.5 million ($2.67) on revenue of
$6.8 million in 1985. The company began operations in October 1985 For the fourth
quarter, Presidential said it lost $20.3 million ($3.17) on revenue of $19.6
million, compared with losses of $5.3 million (54 cents) on revenue of $6.9
million for the same period last year.
Presidential, a regional airline based at Dulles Airport, said the year-end
results include a nonrecurrent charge taken in the fourth quarter of $6.1 million
relating to restructuring costs. The net loss for the year also includes a $1.4
million loss from discontinued operations of Presidential's charter subsidiary,
Key Airlines Inc. The charter subsidiary was sold to World Airways Inc. for
$18 million.
May
18, 1987 PRESIDENTIAL AIRWAYS INC. 400 West Service Rd.
Washington Dulles International Airport
Washington, D.C. 20041
REVENUE: $73.6 million
LOSS: $40.8 million
LOSS PER SHARE: $6.30
DIVIDEND: None
ASSETS: $68.5 million
STOCKHOLDERS' EQUITY: $59.1 million
RETURN ON EQUITY: NA
EXCHANGE: OTC
EMPLOYES: 840
TOP EXECUTIVES: Harold J. (Hap) Pareti, president and chief executive officer.
FOUNDED: 1985
DESCRIPTION: During 1986, Presidential was a north-south regional carrier based
at Washington Dulles International Airport, flying regularly scheduled flights
under its own name. It also operated Colgan Airways, a commuter carrier, and
Key Airlines Inc., a charter carrier. Since then, Presidential has signed a
marketing agreement with Continental Airlines. It remains an independent company,
but it now operates as Continental Jet Express, providing "feeder"
service to the larger airline.
DEVELOPMENTS: 1986 was Presidential Airways' first full year operating under
its own name as a regularly scheduled airline -- and its last. In February,
Presidential and Continental Airlines announced that Presidential would become
a "feeder" airline for Continental, remaining independent but operating
as Continental Jet Express. The Dulles-based airline also sold its $5 million
midfield terminal to Continental.
During 1986, Presidential struggled to establish itself in the rapidly consolidating
airline industry. The airline had hoped to dominate Washington Dulles International
Airport, where it had established its hub. But United Air Lines and New York
Air also established operations there, setting up operations that eventually
dwarfed Presidential. Presidential tried to adjust by changing its schedule
to serve less competitive markets. It also diversified into the charter business,
buying Key Airlines Inc., which it later sold. In the long run, however, Presidential
decided to survive in a different guise, as an adjunct to Continental
June 17, 1987 British Aerospace said yesterday in London that it has received an order for 10 of its Jetstream 31 turboprop airplanes from Presidential Airways. Terms were not disclosed. The order for the 19-seater aircraft marks the first commitment to the Jetstream 31 by an airline already operating British Aerospace equipment
July 23, 1987 Continental Airlines plans to eliminate nearly
one-third of its flights from Dulles International Airport this fall, leaving
United Air Lines the dominant carrier there.
July
30, 1987 United plans to increase daily departures from Dulles from
85 now to 110 by the end of the year. The airline will add service from Dulles
to between five and 11 new cities on the East Coast. The final selection of
cities has not yet been made, he said.
With the expansion, United will have s total of 131 departures a day from the
Washington area's airports -- Dulles, Washington National and Baltimore-Washington
International. Continental has 106 departures a day from the three airports.
September
11, 1987 Presidential Airways Inc., which ended scheduled service under
its own name earlier this year to become a feeder service for Continental Airlines
at Dulles Airport, hopes to enter into similar arrangements with other airlines
at other airports The two-year-old airline also hopes to provide more feeder
service for Pan American World Airways out of Dulles, the airline's president
and chief executive, Harold J. Pareti, told shareholders yesterday.
As a result of improvements in the airline's operations, Presidential can make
money by filling more than 43 percent of its seats, he said. Since April the
percentage of seats filled -- a statistic known in the airline industry as the
load factor -- has increased, reaching 39.5 percent in July and 40 to 41 percent
in August, he said.
Under the five-year marketing agreement Presidential will provide connecting
passengers to United from the generally smaller markets it serves. Both airlines'
flights will be listed and ticketed under United. The arrangement will provide
coordinated schedules, convenient connections, participation in United's Mileage
Plus program and advance seat selection on United flights for Presidential's
passengers, said John R. Zeeman, executive vice president for marketing and
planning for United.
Presidential eventually will displace another regional carrier, Air Wisconsin,
which has provided feeder service to United at Dulles. Air Wisconsin will concentrate
its activities at Chicago's O'Hare Airport, Zeeman said
January 5, 1988; Presidential Airways Inc., the upstart carrier
that once hoped to dominate Washington Dulles International Airport but then
submerged its identity to become a feeder airline for Continental, said yesterday
it would resume flying under its own name and colors Effective Feb. 6, Presidential
will cease operating as Continental Express but will continue to provide service,
as Presidential, to the cities it now serves, said Harold J. (Hap) Pareti
January 18, 1988 In its current incarnation, Presidential again is flying under
its own colors -- President Harold J. (Hap) Pareti refers to the Earl Scheib
discount car painting chain when he jokes about the frequent paint jobs his
airplanes have had -- and trying to find a new niche that will allow it to prosper.
In the third quarter of 1987, the last period for which figures are available,
Presidential lost $4.8 million, or 65 cents a share. Its stock, which came on
the market at 6 1/8, was trading at the end of 1987 at 3/8, although it has
recently bobbed back up to close to a dollar.
January
20, 1988; Presidential Airways will begin providing connecting service
to United Airlines flights from Washington Dulles International Airport on Feb.
6 under a marketing agreement announced by the two airlines yesterday The agreement
appeared to be a boost for Presidential, which has yet to turn a profit in more
than two years of operation
May 2, 1988
PRESIDENTIAL
AIRWAYS INC. 13873 Park Center Rd. Suite 400
Herndon, Va. 22071
(703) 478-5400
FOUNDED: 1985
FISCAL YEAR: Dec. 31
REVENUE: $66.3 million
LOSS: $33.8 million
LOSS PER SHARE: $4.95
DIVIDEND: None
STOCKHOLDERS' EQUITY: ($24.8 million)
RETURN ON EQUITY: NA
EXCHANGE: OTC
ASSETS: $20.3 million
CHAIRMAN: Harold J. (Hap) Pareti (CEO)
PRESIDENT: Harold J. (Hap) Pareti
EMPLOYEES: 660
DESCRIPTION: Presidential Airways once aspired to become a major carrier using
Dulles International Airport as its base. Since its founding in 1985, however,
the airline has gone through several identity changes as it sought to find its
niche in an airline industry that has rapidly been consolidating. Now the airline
operates a feeder service for United Airlines, flying as United Express. It
has a fleet of eight jetliners and 31 turboprop aircraft and serves 20 cities
in the eastern United States.
DEVELOPMENTS: In January 1987, Presidential announced that it was selling its
midfield terminal at Dulles to Continental Airlines and entering into a marketing
agreement with the larger carrier. For most of the year Presidential flew under
Continental's colors as a Continental Express feeder airline and benefited from
the cash infusion the deal provided. During the course of the year, however,
Continental decided to emphasize its service out of Newark and reduced service
out of Dulles by nearly one-third.
In January 1988, Presidential said the two airlines were ending the feeder arrangement
and that Presidential would resume flying under its own name and colors. Before
that change occurred, however, Presidential and United announced a new feeder
arrangement. Presidential now operates as United Express
August 12, 1988 Its announcement of a $1.3 million second-quarter profit appeared to signal the success of Presidential's most recent effort to carve out a niche in the cutthroat world of airline competition. And it is more than coincidence that the airline's turnaround comes shortly after it began providing service to United Airlines flights from Washington Dulles International Airport, an agreement signed months after Presidential ended a similar deal with Continental Airlines
November 18, 1988 Presidential Airways Inc., a Dulles-based
airline that provides feeder service for United Air Lines, announced plans yesterday
to nearly double the size of its fleet by acquiring 16 50-seat turboprop airplanes
from Boeing Co.'s Canada deHavilland division for nearly $180 million The purchase
of the deHavilland Dash 8-300s is part of a plan to increase the number of Presidential
departures daily from 66 to 164 over the next three years, said President Harold
H. (Hap) Pareti.
Pareti said the purchase will allow Presidential to offer service into small
cities that currently have no service into Dulles.
March 27, 1989 One winner in the strike against Eastern Air Lines is turning out to be Herndon-based Presidential Airways Inc., which operates as United Express providing feeder traffic for United Airlines at Dulles International Airport. With Eastern out of service in several key Florida and Northeast markets, Presidential is picking up some of the slack Presidential's bookings are heavy, and the airline anticipates filling approximately 60 percent of its seats into April. The airline's break-even load factor is approximately 42 percent
September
7, 1989 Presidential Airways Inc., cash short and struggling to pay
off a backlog of overdue debt, yesterday reported a second-quarter loss of $5
million, compared with a profit of $1 million in the same period last year The
four-year-old airline, which provides connecting service to United Airlines
at Dulles International Airport from smaller markets, has been bumping along
for the past four years, struggling to find a niche in an industry that has
grounded other new carriers
October
4, 1989 Correction: Presidential Airways, clarifying a press release
issued earlier
this week, said that employees and executives are being asked to defer
20 percent and 25 percent of their pay, respectively, for only two pay
periods out of 10 between now and March. (Published 10/6/89
Cash-short Presidential Airways yesterday dismissed three vice presidents, imposed
pay cuts on most of its workers and laid off others as part of a restructuring
plan designed to keep the Dulles-based carrier operating The airline, which
operates as United Express providing feeder service to United Airlines, told
employees reporting to work yesterday that their paychecks would be cut by 20
percent until March 1990, when the deferred pay would be restored. Senior executives
were required to forgo 25 percent of their pay.
October
26, 1989 Officials of Dulles-based Presidential Airways continued a
meeting into the early morning hours today in an attempt to find solutions to
cash flow problems that left unresolved might force the carrier to seek protection
under federal bankruptcy laws The airline, which operates as United Express,
has been a corporate "Perils of Pauline" ever since its creation four
years ago.
October
27, 1989 Presidential Airways filed for protection from its creditors
under federal bankruptcy laws yesterday, conceding defeat in its struggle to
keep up with day-to-day operating costs at the same time it was trying to pay
off a huge backlog of debt The Dulles-based airline, which operates as United
Express and employs more than 700 workers, listed $30 million in assets and
$76.4 million in liabilities in its filing with the U.S. Bankruptcy Court for
the Eastern District of Virginia. But it said it plans to continue operating
most of its scheduled flights.
November
1, 1989 A U.S. bankruptcy court judge yesterday approved an arrangement
under which United Airlines will provide up to $1.7 million in interim financing
to keep Presidential Airways operating through Nov. 7. United, which has a marketing
agreement with the Herndon-based feeder airline, may provide additional funds
after that date, as more detailed projections by Presidential are received
November
8, 1989 A federal bankruptcy court yesterday gave insolvent Presidential
Airways another week to seek additional financial support that would permit
it to keep operating while it seeks a long-term financial solution that would
satisfy its creditors The Dulles-based airline, which provides feeder service
for United Airlines, has been struggling to stay aloft since Oct. 26, when it
filed for protection from creditors under a Chapter 11 bankruptcy proceeding.
U.S. Bankruptcy Judge Martin V.B. Bostetter yesterday allowed Presidential to
continue drawing funding from United until Nov. 15.
November 16, 1989 A U.S. bankruptcy judge yesterday approved
an arrangement under which United Airlines will continue to provide interim
financing to Presidential Airways without the need for weekly courtroom review.
November
31, 1989 British Aerospace Inc. repossessed most of the airline's planes
yesterday morning British Aerospace grounded 10 of the carrier's 13 aircraft
after Presidential -- which filed for protection under Chapter 11 of the federal
bankruptcy code Oct. 26 -- failed to make a $170,000 payment due Tuesday
December
5, 1989 – Remaining 25 fligths cancelled and operations shut
down. The remaining 100 employees were fired