PRESIDENTIAL AIRWAYS

A brief Historial Timeline 1988-1989

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