http://www.tennessean.com/apps/pbcs.dll/article?AID=2005510080316
Deal for RegionsAir would see it add routes in Caribbean
By BUSH BERNARD
Staff Writer
A Michigan company that offers air service in the Caribbean has agreed to buy Smyrna-based RegionsAir, the companies announced yesterday.
Terms of the deal weren't disclosed, but the airline formerly known as Corporate Airlines would operate as a subsidiary of Viva International Inc., flying routes in the Caribbean in addition to service it provides in the Southeast and Midwest under the American Connection banner.
Officials with both companies could not be reached for comment yesterday.
RegionsAir plans to continue to participate in the Federal Aviation Administration's essential air service program, which subsidizes most routes the airline flies, RegionsAir President Doug Caldwell said in a statement.
"We have the infrastructure in place, including the air carrier certificate, operational experience and the staff necessary to operate all of Viva's routes in the Caribbean in addition to our existing routes," Caldwell said.
Viva has agreed to buy all of the airline's operations, including its planes, maintenance facilities and airport station agreements. The deal is expected to be completed by Nov. 15.
The sale comes during a time of turmoil for the company, which is owned by Lawrenceburg businessmen Antonio Santini and J. Richard Story III. Although the company's federally subsidized routes were renewed in June, the company eliminated daily flights between Nashville and Blountville, Tenn., as well as a flight between Nashville and Atlanta because of high fuel prices and low passenger loads.
A year ago, one of its planes crashed in Kirksville, Mo., killing the crew and 11 passengers. That wreck generated several lawsuits in federal court in Missouri. It remains under federal review. •
Deal for RegionsAir would see it add routes in Caribbean
By BUSH BERNARD
Staff Writer
A Michigan company that offers air service in the Caribbean has agreed to buy Smyrna-based RegionsAir, the companies announced yesterday.
Terms of the deal weren't disclosed, but the airline formerly known as Corporate Airlines would operate as a subsidiary of Viva International Inc., flying routes in the Caribbean in addition to service it provides in the Southeast and Midwest under the American Connection banner.
Officials with both companies could not be reached for comment yesterday.
RegionsAir plans to continue to participate in the Federal Aviation Administration's essential air service program, which subsidizes most routes the airline flies, RegionsAir President Doug Caldwell said in a statement.
"We have the infrastructure in place, including the air carrier certificate, operational experience and the staff necessary to operate all of Viva's routes in the Caribbean in addition to our existing routes," Caldwell said.
Viva has agreed to buy all of the airline's operations, including its planes, maintenance facilities and airport station agreements. The deal is expected to be completed by Nov. 15.
The sale comes during a time of turmoil for the company, which is owned by Lawrenceburg businessmen Antonio Santini and J. Richard Story III. Although the company's federally subsidized routes were renewed in June, the company eliminated daily flights between Nashville and Blountville, Tenn., as well as a flight between Nashville and Atlanta because of high fuel prices and low passenger loads.
A year ago, one of its planes crashed in Kirksville, Mo., killing the crew and 11 passengers. That wreck generated several lawsuits in federal court in Missouri. It remains under federal review. •