Established in 1996, RegionsAir, is a regional air carrier that
provides commuter air service to small-and-medium sized communities
Southeast and Midwest. RegionsAir operates their fleet of
commuter aircraft as "American Connection" in a number of markets
under an operational agreement with American Airlines (NSYE: AMR).
Yes that American Airlines.
For the fiscal year ended December 31, 2004, RegionsAir posted
operating revenue of approximately $24 million .
So with this acquisition VIVI now has revenues
of over $24 million but the share price has not caught up with
actual value. VIVI has been trading the past 6 months between
$.11 and $.16 with almost no revenues giving it a market cap range
of a paltry $4.95 million to $7.2 million. So if VIVI was worth that
with no revenues what is it worth now over $24 million in revenues?
Let's take a look at some other low cost air carriers.
Market Cap *
So if we valued VIVI with the same metrics as these other
airlines then VIVI's market cap (share price X shares outstanding)
should be somewhere in the range of $33 million - $41.5 million.
Which would give us a share price in the range of $62-$.92 and that
is a gain of 300% to 450% above Friday's close. This announcement
came so quickly it has caught the public off guard giving us a great
opportunity. This looks to be one time where the little guy (you and
us) can have the opportunity to get in on the ground floor.
Look at the chart below and tell me which company has the best
chance of making a huge move to the upside?
New Developments at Viva/RegionsAir
Smyrna (Nashville), Tennessee, October 13, 2005 - Viva
International, Inc. (VIVI.OB) announced today that in conjunction
with its decision to acquire RegionsAir that it will be providing a
fleet of SAAB 340 aircraft to RegionsAir for use in providing
service under recently awarded new Essential Air Service routes. The
company will provide additional details of the acquisition of the
aircraft and terms thereof soon.
By order dated September 9, 2005, the US Department of
Transportation (DOT) selected RegionsAir to provide subsidized
Essential Air Service to Parkersburg, Morgantown and
Clarksburg/Fairmont, West Virginia for a two year period,
establishing a combined subsidy rate of $1,051,333 per year for
service to Cincinnati utilizing SAAB 340 aircraft.
Fred Breeden, Executive Vice President and Chief Financial Officer
of RegionsAir, Inc., commented, "We are pleased with the DOTs
decision to select RegionsAir for the new West Virginia routes. This
moves our operation into cabin class service and will add
approximately $6 million annually in gross passenger revenues to our
Company. We are anxious to place the SAAB 340s into usage and
anticipate an orderly transition."
As previously announced on October 7, 2005, Viva has issued an
irrevocable letter of intent to acquire RegionsAir. In existence
since 1996, Tennessee based RegionsAir is a privately held air
carrier providing regional commuter air service to cities in
Missouri, Iowa, Illinois, Indiana, Kentucky and Tennessee.
RegionsAir DOT filings report gross operating revenues approximately
$24 million for the year ended December 31, 2004. RegionsAir
operates some of its routes as "American Connection" in a number of
markets under an operational agreement with American Airlines (NSYE:AMR).
About Viva International
Viva International, Inc. ("VIVA") is a publicly traded aviation
holding company (VIVI.OB) in the business of developing and/or
acquiring aviation related entities with beneficial air service
certificates and economic rights, collectively referred to as
"VIVA." The Companys strategy is to capitalize on centralized
operational infrastructure and combined resource allocation of our
internal holdings to service routes in "niche" markets domestically
and internationally. Vivas group of companies provides high quality
products and services to the air travel industry with a heavy
emphasis on the Caribbean market. RegionsAir, Inc., under a recently
executed Irrevocable Letter of Intent Acquisition Agreement, is
VIVAs primary operator located domestically in Smyrna (Nashville),
Tennessee. In addition, the Company has operations in the Caribbean
located in San Juan, Puerto Rico and Santo Domingo, Dominican
Republic under Eastern Caribbean Air ("ECAIR") and Viva Air
Dominicana, S.A. ("Viva Air"), respectively. The Companys corporate
headquarter is located in Traverse City, Michigan.
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
Viva International, Inc. @ (231) 932-7490 or Pier S. Bjorklund @