Press release from Frontier Flying Service's Web Site
HOTH INC. ANNOUNCES AGREEMENT TO ACQUIRE ERA AVIATION, INC. Anchorage, Alaska February 17, 2009 FOR IMMEDIATE RELEASE - HoTH, Inc., an Alaska corporation owned by John Hajdukovich, Mike Hageland and James Tweto, and the parent holding company for Frontier Flying Service, Inc. and Hageland Aviation Services, Inc. today announced an agreement to acquire 100 percent of the common stock of Era Aviation, Inc. Era’s airline operation will become part of HoTH’s air group holdings, which currently do business under the name Frontier Alaska.
Bob Hajdukovich, the chief executive officer of HoTH, will become the chief executive officer of Era upon completion of the acquisition, currently expected to occur on Feb. 27, 2009. Bob will be tasked with integrating Era’s operations with current Frontier Alaska operations.
“This deal not only complements what we already do, but allows for upside growth of our Part 121 operations while strengthening our connectivity to rural communities, which is so important to us,” Hajdukovich said.
“Era operations will allow us to right size the aircraft to our markets. Era has an excellent safety record and culture that will complement our strategic goals of developing a statewide network of professional airlines that set the standard for safe operations.”
Era’s largest aircraft is the 37-seat Bombardier Dash 8. Frontier Flying Service and Hageland operate aircraft ranging from the five-seat Cessna 207 to the 19-seat Beech 1900C. The combined HoTH air group will employ approximately 700 people while transporting over 600,000 passengers, 5,000,000 pounds of freight and 24,000,000 pounds of mail. Expected annual revenue of the combined group will exceed $100 million. Era’s current Chief Executive Officer, W. Stephen Jackson said “The acquisition of Era is a very intelligent business decision for HoTH and will enable the combined entities to provide ever higher levels of safety and service to customers along with greater financial stability for employees”.
Hoth’s acquisition of Era will promote the development of a long-lasting intrastate regional airline that serves major hubs as well as many smaller rural communities. The Frontier Alaska-Era combination will also benefit Alaska consumers by providing broader access to mainline operations by virtue of Era’s codesharing partnership with Seattle-based Alaska Airlines, Inc. Frontier Alaska and Era are participating regional carriers in the Alaska Airlines Mileage Plan frequent flyer program, allowing members to earn and redeem Mileage Plan miles on certain intra-Alaska flights.