MIAMI--(BUSINESS WIRE)--Oct. 7, 2005-- Viva International, Inc. (VIVI.OB) announced today that it has executed an irrevocable Letter of Intent to Purchase the entire air carrier operation of Smyrna (Nashville), Tennessee based RegionsAir, Inc (www.regionsair.com). Established in 1996, RegionsAir, formerly Corporate Airlines, Inc. is a regional air carrier that provides commuter air service to small-and-medium sized communities in the Southeast and Midwest. RegionsAir operates turboprop commuters as "American Connection" in a number of markets under an operational agreement with American Airlines (NSYE:AMR). For the fiscal years ended December 31, 2003 and 2004, RegionsAir posted operating revenues of approximately $24 million for each year. More detailed financial data can be obtained from a review of Regions DOT filings that are available to the public. Robert Scott, Chairman of Viva, commented, "This acquisition provides Viva with a strong internal operational subsidiary that will allow us to expedite our growth plans on a cost-effective and efficient basis. Further, this combination adds experienced aviation management to all of our aviation subsidiaries. We are pleased to welcome RegionsAir and its employees to the Viva family of companies." RegionsAir provides air service to (11) area cities in Missouri, Iowa, Illinois, Indiana, Kentucky and Tennessee from hubs in St. Louis and Nashville in conjunction with an air service restoration program subsidized by the federal government. The Federal program is referred to as Essential Air Services and provides for financial guarantees and support for certain flights and routes making the Company self-sustaining while offering a solid platform for Viva's beneficial Caribbean markets. "We are excited about assisting Viva in bringing turn key operations and capability to their Caribbean marketplace and we believe as Viva does that the opportunities to expand within the Caribbean are excellent, commented Doug Caldwell, President of RegionsAir. 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 and EAS service opportunities. I expect the combination with Viva provides a nice vehicle to bridge Regions air service operations with Viva's sales and marketing efforts." Under the terms and conditions of the LOI, Viva will acquire RegionsAir's entire operations as a wholly owned subsidiary including its air carrier certificate, aircraft, maintenance facilities and airport stations agreements. Viva has already begun the due diligence process and has deployed a team to Nashville to review the books and records of the company to meet a November 15, 2005 completion date. An interview with Viva's spokesman, Pier S. Bjorklund, will be held today at 12:00pm EST on www.ibcradio.com for more information on today's announcement.
About Viva International
Viva International, Inc. ("VIVA") is a publicly traded holding entity (VIVI.OB) that specializes in acquisition and development of undervalued commercial airlines and aviation outsourcing companies, collectively referred to as "VIVA." The Company's strategy is to develop a network of airline operations and subsidiary partners to collaborate in maintaining route structures in "niche" markets and to provide high quality products and services to the air travel industry, focused primarily on the air travel market in the Caribbean. VIVA has established a primary executive office in Traverse City, Michigan, including airline operations headquartered in Santo Domingo, Dominican Republic and San Juan, Puerto Rico. This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended ("the Exchange Act"), and as such, may involve risks and uncertainties. Forward-looking statements which are based upon certain assumptions and describe future plans, strategies and expectations, are generally identifiable by the use of words as "believe", "expect", "intend", "anticipate", "project", or other similar expressions. These forward-looking statements relate to, among other things, future performance, and perceived opportunities in the market and statements regarding the Company's mission and vision. The Company's actual results, performance and achievements may differ materially from the results, performance, and achievements expressed or implied in such forward-looking statements. Further information on potential factors that could affect Viva International, Inc. is found in the Company's Form 10-K and other documents filed with the U. S. Securities and Exchange Commission.
KEYWORD: NORTH AMERICA FLORIDA NEW YORK TENNESSEE UNITED STATES INDUSTRY KEYWORD: TRANSPORT AIR TRAVEL TRANSPORTATION SOURCE: Viva International, Inc.
CONTACT INFORMATION: For Viva International, Inc. Pier S. Bjorklund, 888-336-8482 or Viva International, Inc.
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