Victor Meldrew
I dont bloody believe it!
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- Jul 7, 2005
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Go-Jet Airlines Has Been Cleared for Takeoff
Go-Jet Airlines, a start-up carrier based in Bridgeton, has received preliminary approval as a regional jet operator for United Airlines, federal filings show.
The U.S. Transportation Department tentatively concluded that Go-Jet "is fit, willing and able" to operate as a passenger carrier, subject to conditions. The department said it still will give interested parties an opportunity to show cause on why the agency should not make the tentative ruling final.
Go-Jet is a subsidiary of Bridgeton-based Trans States Holdings Inc., a privately held company controlled by Hulas Kanodia and his family. Kanodia also controls Trans States Airlines, which flies smaller planes out of Lambert Field for American Airlines under the AmericanConnection banner, and for US Airways Express and United Express.
Though sister companies, Go-Jet and Trans States will operate under separate management teams.
Go-Jet plans to begin flying for United Express as soon as next month using two 70-seat jets. It has ordered 10 CRJ-700 jets from Montreal-based Bombardier in a deal valued at $317 million. If the regional airline takes another 40 planes on option, the value of the deal would be more than $1.6 billion, Bombardier said in March.
Go-Jet has received $12 million in debt and equity financing from Trans States Holdings, which reported net income of $27.3 million for the 12 months that ended Sept. 30, according to Transportation Department filings.
At that time, the parent company's balance sheet showed cash and cash equivalents worth $30.2 million, total assets of $58.7 million and no current and long-term liabilities, the filings said.
That financial strength is in stark contrast to the struggles of the major airlines, which are losing billions of dollars amid high fuel costs, keen competition and depressed ticket prices.
Go-Jet's general agreement with United is typical for a regional carrier: United will guarantee revenue and reimburse Go-Jet for expenses, such as jet fuel, according to filings with the Transportation Department. United also will take care of scheduling, ticket pricing and seat inventories.
Go-Jet also stands to get a negotiated payment per flight departure and incentives for passenger volumes and customer service, filings show.
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To see more of the St. Louis Post-Dispatch, or to subscribe to the newspaper, go to http://www.stltoday.com.
Source: St. Louis Post-Dispatch
Go-Jet Airlines, a start-up carrier based in Bridgeton, has received preliminary approval as a regional jet operator for United Airlines, federal filings show.
The U.S. Transportation Department tentatively concluded that Go-Jet "is fit, willing and able" to operate as a passenger carrier, subject to conditions. The department said it still will give interested parties an opportunity to show cause on why the agency should not make the tentative ruling final.
Go-Jet is a subsidiary of Bridgeton-based Trans States Holdings Inc., a privately held company controlled by Hulas Kanodia and his family. Kanodia also controls Trans States Airlines, which flies smaller planes out of Lambert Field for American Airlines under the AmericanConnection banner, and for US Airways Express and United Express.
Though sister companies, Go-Jet and Trans States will operate under separate management teams.
Go-Jet plans to begin flying for United Express as soon as next month using two 70-seat jets. It has ordered 10 CRJ-700 jets from Montreal-based Bombardier in a deal valued at $317 million. If the regional airline takes another 40 planes on option, the value of the deal would be more than $1.6 billion, Bombardier said in March.
Go-Jet has received $12 million in debt and equity financing from Trans States Holdings, which reported net income of $27.3 million for the 12 months that ended Sept. 30, according to Transportation Department filings.
At that time, the parent company's balance sheet showed cash and cash equivalents worth $30.2 million, total assets of $58.7 million and no current and long-term liabilities, the filings said.
That financial strength is in stark contrast to the struggles of the major airlines, which are losing billions of dollars amid high fuel costs, keen competition and depressed ticket prices.
Go-Jet's general agreement with United is typical for a regional carrier: United will guarantee revenue and reimburse Go-Jet for expenses, such as jet fuel, according to filings with the Transportation Department. United also will take care of scheduling, ticket pricing and seat inventories.
Go-Jet also stands to get a negotiated payment per flight departure and incentives for passenger volumes and customer service, filings show.
-----
To see more of the St. Louis Post-Dispatch, or to subscribe to the newspaper, go to http://www.stltoday.com.
Source: St. Louis Post-Dispatch
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