Established by U. K. automobile-leasing magnate Nick Stolberg at London (LCY) in early December 1995 to operate close-in scheduled passenger frequencies to Schiphol Airport in the Netherlands. Capt. Ray Johnson is named managing director and plans are announced to launch flights in February, four times a day. It is also noted that services to Copenhagen, Vienna, Innsbruck, and Salzburg will follow.
Beginning on May 1, 1996, business-class travelers may undertake luxury flights to Amsterdam aboard a single British Aerospace BAe 146200 leased from USAir. A total of 44 weekly frequencies are offered.
In August, Air U. K., Ltd. introduces a cheaper business-class service between the two points. Passengers flock to the less-expensive frequencies of World’s rival, putting the new entrant into a fiscal tailspin. Plans to take delivery of a second USAir BAe 146-200 and the initiation of a new route to Copenhagen are put on hold.
On October 1, the BAe 146-200 is impounded at London (LCY) for nonpayment of landing fees. Without flight equipment, World goes into liquidation on October 10. USAir pays the landing fees to regain its BAe and Air U. K., Ltd. honors tickets held by passengers for World.
In November, the Turkish all-cargo Star Airways (Star Hava Yol-lari, A. O.) purchases the British start-up passenger carrier from music entrepreneur Stolberg. A spokesman for World suggests that the grounded airline will soon return to scheduled service. Executives at both airlines are apparently unaware that an airline owned by a nonEuropean company cannot be based in the U. K.
World has the distinction of being the first casualty in a U. K. fare war that will soon engulf other low-cost carriers, such as easyJet Airlines, Ltd., and majors like British Airways, Ltd. (2) and KLM (Royal Dutch Airlines, N. V.).
WORLD AIRWAYS: 13873 Park Center Road, Suite 400, Herndon, Virginia 22071, United States; Phone (703) 834-9200; Fax (703) 8349212; Http://www. worldair. com; Code WO; Year Founded 1948. World is incorporated as a “large irregular” carrier under Delaware laws by founder Benjamin Pepper at Oakland, California, on March 29, 1948. It supposedly begins operations between the Marine Air Terminal at New York (LGA) and San Juan, Puerto Rico, with the 3 former British Overseas Airways Corporation (BOAC) Boeing 314 flying boats Bristol, Berwick, and Bangor purchased for $50,000 total. Occasional charters are flown to the Foynes in Ireland. Later in the year, the B-314 Anzac Clipper is purchased from American International Airways. Unable to achieve viability, Pepper halts operations at the end of December.
In January 1949, the Berkoviche Steamship Company acquires World Airways from Pepper and leasing a Curtiss C-46 Commando from the War Assets Administration, reopens the San Juan service. An additional Commando is acquired for spare parts. At this time the three former British flying boats are sold for scrap and the Anzac Clipper passes into private hands at Baltimore, only to be destroyed in a storm two years later.
In a January-February 1995 letter to the editor of Airliners, Mike Hardy of Rustington, England, will demonstrate that the often-repeated account of World flying boat service is largely a legend.
In July 1950, Edward J. Daly, the son of a Chicago fireman, employing, according to another myth, $50,000 in poker winnings, purchases 81% controlling interest in World while also assuming its $250,000 debt. To cut overhead costs, company headquarters are transferred from New York (LGA) to Teterboro Airport, New Jersey. C-46 charters to and from Puerto Rico continue for the remainder of the year.
A Douglas DC-4 is leased from Braniff International Airways in 1951, but before it can be placed into service, it must be repaired following a gears-up landing accident at Brownsville, Texas. Meanwhile, a contract is won from the government, the company’s first, to undertake supply runs on behalf of the DEW Line construction project in Canada. The Commando provides this airlift support while Daly seeks a second DC-4 to replace the terminated Braniff lease. An ex-military C-54 is purchased, but it must first be repaired and brought up to civil DC-4 standard.
Two DC-4s join the fleet in 1952-1954, replacing the C-46s. During these three years, the carrier’s charter service is maintained and the contract service with the U. S. Military Air Transport Service (MATS) grows in volume. Daly is awarded an “on-call” contract, which entails the extension of flights to Frankfurt, Casablanca, Guam, and Oriental destinations. An interim CAB supplemental certificate is granted to World on December 15, 1955.
Chairman Daly makes headlines in 1956 by personally flying refugees from Europe to the U. S. following the Hungarian Revolt. Under contract, World’s DC-4s make 14 transatlantic refugee flights to Vienna. Late in the year, company headquarters are moved from Teterboro to Oakland, California. On December 16, the company is given a MATS contract to open a daily interisland service between Tokyo, Manila, Okinawa, and Taiwan.
A DC-6A joins the fleet in 1957, at which time the company is marketed as “The World’s Largest Charter Airline.” Chairman Daly now receives an “on-call” contract from the government to operate services as needed to any major destination in the Pacific. Operations continue apace in 1958-1959.
World Airways begins buying up American Airlines’ surplus Douglas DC-6A Airfreighter fleet in February 1960. Seven units will be received by August. Meanwhile, the company receives a LOGAIR transcontinental military charter contract on June 15.
Flight 830, an MATS-chartered DC-6A/B with 8 crew and 86 passengers fails its climb from Agana, Guam, on September 18 and makes a forced landing (80 dead).
In January 1961, three Lockheed L-1049H Super Constellations are leased from California Eastern Aviation, along with one formerly operated by Transocean Air Lines (TAL). The final AA DC-6A, the former Airfreighter Boston, is delivered on April 7, followed by an exResort Airlines L-1049H on May 3. Another DC-6A is purchased from Northwest Airlines on July 1 while a second L-1049H is purchased from the Argentine airline Transcontinental, S. A.
Having earned $5.5 million in profits over the previous two years, in May 1962, World becomes the first supplemental to order jetliners, the long-range Boeing 707-373C. The order is made largely at the insistence of the USAF.
All four of the L-1649A Starliners previously operated by Deutsche Lufthansa, A. G. are chartered, two each in July and two in October.
Meanwhile, two L-1049H Super Constellations are chartered from KLM (Royal Dutch Airlines, N. V.). The three jetliners, the first convertible B-707s built, join the fleet early in 1963. In September, the three California Eastern Aviation L-1049Hs are passed to Slick Airways.
The first of the new cargo planes enters service in July, completing transpacific MATS flights. Also in July, two L-1049H Super Constellations are chartered to The Flying Tiger Line.
One of the Stratoliners makes civil aviation history on August 20 when it flies the first commercial nonstop service between the U. S. and Japan; the flight from Oakland to Tokyo requires 9 hrs. 52 min. Another B-707-373C is delivered on September 26.
By the middle 1960s, World Airways is the most successful and largest of all 13 American supplemental air carriers.
Airline employment in 1964 totals 516 and the fleet includes 10 aircraft. During February and March, two L-1649A Starliners, acquired earlier on lease from Deutsche Lufthansa, A. G., are passed to the South African independent Trek Airways (Pty.), Ltd., while one goes to Air Venturers and the fourth is returned to Germany. An L-1049H previously flown by Resort Airlines, is chartered on May 4 to The Flying Tiger Line. Simultaneously, an L-1049H is chartered to Alaska Airlines. Late in the year, Daly’s carrier becomes the first to inaugurate service with convertible B-727-173QCs.
Enplanements during the 12 months total 72,806 and revenues are $25,904,000.
The workforce in 1965 is level. Introduction of the new Boeings continues. Plans are unveiled for the construction of a new headquarters at Oakland. On May 27, President Daly personally pays $152,500 to help reimburse 2,000 victims of a bankrupt travel agency that had booked tours via the carrier; he also arranges for free airlift back to New York for 1,200 travelers stranded in Miami and Hawaii.
On August 22, World reports the initiation of two nonstop flights between the U. S. East Coast and Honolulu, the first such service by a non-scheduled airline.
A total of 110,794 passengers are originated. Revenues are $33,341,274 and expenses are $20,479,768. The net profit is $6.9 million, or 46% of all net income earned by U. S. supplemental carriers.
On April 5, 1966, World becomes one of 10 supplementals to receive permanent CAB certification; simultaneously, it also receives authority to fly transatlantic jet charters. Thirteen days after the CAB makes that award, CEO Daly’s airline becomes a public corporation, with an initial offering of 975,000 shares of common stock. At month’s end, the two L-1049Hs leased to The Flying Tiger Line in 1963 are sold to that freighting giant.
On June 30, Daly takes delivery positions for three Boeing Model 2707 SSTs; none will ever be delivered. Permission is received on September 30 to provide group transport to markets in South America and the Pacific. The company begins participation in the transpacific airlift to Vietnam.
Enplanements are 227,000. Revenues for the year total $40,074,796. Profits are $21,346,228 (operating) and $9,380,377 (net).
When the flight deck personnel of the L-1049H, with 4 crew and 28 passengers and chartered to Alaska Airlines fails to put the landing gear down, the Super Constellation makes a belly landing at Kotzebue on April 17, 1967; there are no fatalities, but the aircraft must be written off.
Mr. Daly requests CAB permission on April 26 to offer low-fare scheduled transcontinental service, but is turned down. World becomes the first airline to receive the USAF Zero Defects Award. Construction is started at Oakland upon a new headquarters and hangar complex; the $11-million facility will be known as the Air Center and International Headquarters.
At midyear, World, the nation’s largest supplemental carrier, becomes the first in its classification to be listed on the Pacific Coast and New York Stock Exchanges.
The fleet now comprises 20 aircraft: 9 B-707-373Cs, 5 DC-6A/Bs, and 6 B-727-173QCs, including 9 jet freighters received since spring.
Charter boardings increase to 350,948 and 91.19 million freight ton-miles are flown. The year’s revenues are $70,272,371. Net income jumps in both operating ($21,346,228) and net ($14,464,338) categories.
Beginning in July 1968, World provides rest and recuperation (R and R) flights for U. S. troops in Vietnam, flying them to Japan or Australia. It also earns the contract to fly Stars and Stripes, the military newspaper, to Saigon from Japan, where it is printed. The carrier leases a DC-9-55F on December 1 for a two-year period from Trans Caribbean Airlines.
During the next three years, the carrier’s heroic flights into war-torn South Vietnam gain public notice. Flying servicemen, food, and supplies into that nation and Cambodia provide the grist for media focus.
The workforce is now 1,355. A total of 543,000 charter passengers and 91.36 million freight ton-miles are flown during the year. Revenues accelerate to $84,292,000, but profits fall, both operating ($19,067,828) and net ($7,538,547).
The workforce in 1969 is increased to 1,300 and 545,000 charter passengers are flown. The nation’s largest supplemental carrier has revenues of $87,707,963 and enjoys huge profits: $11,647,304 (operating) and $4,729,759 (net).
Increased fuel costs, inflation, and Vietnamization bring a 1970 downturn. The year begins with several administrative changes, including the appointment of Howell M. Estes as executive vice president and the election of new board member actor Fess Parker. On February 25, the carrier joins with British Grand Hotels to offer British tourists a new group charter plan for a roundtrip to New York and a six-night hotel stay for $213.
A strike by pilots, navigators, flight engineers, and flight attendants affiliated with the Teamsters Union, which begins on May 15, limits flights to those that can be made by supervisory pilots. After contracting with members of the Texas Intercollegiate Student Association for six charter flights to Europe, World is unable to carry them out as scheduled because of the continuing job action.
On June 5, the carrier seeks to transfer these groups to KLM (Royal Dutch Airlines, N. V.), but this move is rejected by the CAB, which also challenges the “charter worthiness” of the student association. Having carried out its legal obligation to make alternate arrangements, even though they fail, the company can do nothing further until the strike is settled, by mutual agreement, on July 4.
The order for Boeing 747s is cancelled in favor of a request for three DC-8-63Fs. In September, a B-707-373C is leased to Pakistan International Airways Corporation (PIA).
A special Homecoming Fare is introduced in December, in cooperation with the United Service Organizations (USO), and allows a serviceman to fly roundtrip from Saigon to Oakland for just $350.
Passenger boardings decline 36.6% to 345,000. Forty-seven new employees are hired during the year. Income falls to $58,268,387 and despite an operating profit of $1,144,550, a net $970,030 must be absorbed.
During the 1970s, World’s fleet is gradually expanded. The three Douglas DC-8-63CFs are the first to arrive, beginning in March 1971. During the year, the company also undertakes an eight-year contract to provide scheduled services on behalf of the Republic of Mali. From a base at Bamako, flights are undertaken employing three B-727-173s provided under lease. The Homecoming Fare program ends in December. Enplanements ascend to 375,326.
The workforce in 1972 totals 1,694. Norton Lilly & Company becomes the carrier’s U. S. general cargo sales representative, while a major marketing agreement is signed with the Greyhound Lines for the promotion of worldwide air charter tours, inclusive and otherwise. Orders are placed for three B-747-273Cs and World takes delivery of three more DC-8-63CFs.
Passenger boardings for the nation’s largest supplemental carrier increase 35.4% to 581,000, but freight traffic is down by 26%. Income is $63.66 million and expenses are $63.40 million. Consequently, profits are made: $256,000 (operating) and $5.57 million (net), the latter best in the nonscheduled industry.
Employment in 1973 is reduced by 62 workers. The company becomes the first charter airline to acquire wide-body aircraft when two nose-loading Boeing 747-273Cs join the fleet in May; they immediately enter service flying transatlantic military passenger charters. Three more DC-8-63CFs are also welcomed over the next eight months. The same year a new $12-million company headquarters and maintenance facility, the World Air Center, is occupied at the Oakland base.
The maintenance subsidiary now offers itself as a major contract airframe engineering, overhaul, and modification operation available to the entire industry.
Operationally, World now also initially participates, in support of Islamic world carriers, in transporting Muslims from Indonesia, Algeria, and Niger on their Hadj pilgrimage. Within 20 years, Daly’s airline will have provided more pilgrim airlift to the Islamic Holy Land than any other.
Charters are undertaken and maintained on behalf of both Malaysian Airlines, Ltd. and Garuda Indonesian Airlines.
En route from Travis AFB, California, to Yokohama, Japan, and Clark AFB in the Philippines on September 8, Flight 802, a MAC-chartered DC-8-63CF with a six-man crew, crashes into Mount Dutton, near King Cove, during its landing approach to Cold Bay airstrip in Alaska; there are no survivors.
In the fall, one of the B-747-273Cs is changed to all-cargo configuration and undertakes 12 missions to the Pacific for MAC.
The number of charter passengers increases by 46% to 848,000 while freight traffic rises 51.6%. These traffic figures temporarily reduce Daly’s company to second place among American supplementals. Still, industry-best revenues of $81.17 million are generated. Expenses, led by fuel prices, swell to $91.52 million, leaving an operating loss of $10.35 million. A million-dollar net profit is, however, realized.
The workforce of the world’s largest charter carrier in 1974 reaches 1,017. The company wet-leases its DC-8-63CFs to Garuda Indonesian Airways and Air Algerie, S. A., which operate them on Muslim Hadj pilgrimage flights to Saudi Arabia.
In addition, World begins to participate in two projects organized by Holiday Inn in Jordan. A third B-747-273 is received, and is then wet-leased to Korean Airlines/Korean Air (KAL). The World Air Center’s maintenance staff undertakes a contract to modify USAF KC-10 tankers.
Due largely to economic factors (as well as the end of the Indochina war), charter traffic is down. Boardings fall 17.3% to 700,000 and cargo declines a huge 47.7%, with much of the freight loss coming from concluded MAC business. Despite an 8.5% rise in revenues to $84.51 million, expenses (led by fuel costs) jump to $91.74 million. An operating loss of $7.22 million is suffered, but thanks to the sale of the First Western Bank, net income actually rises $20 million dollars to $21.23 million.
The workforce in 1975 grows to 1,500. As the situation in southeast Asia deteriorates in the spring, World steps up its missions to and from that area. Between February 15 and 26, World aircraft operate an average of six roundtrip DC-8-63CF ammunition and military supply flights per day from Saigon’s Tan San Nhut AFB to Phnom Penh. Chairman Daly himself pleads with authorities to allow foodstuffs to be taken to the starving people of the Cambodian capital. Beginning on February 27, the company is able to undertake a rice airlift to provide humanitarian relief.
On March 29, when North Vietnamese forces begin to envelop South Vietnam’s second city, Da Nang, the U. S. government contracts with World to provide 20 roundtrip B-727-173C evacuation flights. After the first three, the contract is cancelled by the U. S. Embassy due to the worsening situation. Ignoring Department of State wishes, Daly enlists his crews to fly a mission into Da Nang Airport, under siege by the North Vietnamese and Vietcong, to evacuate civilian women and children.
Only one plane lands, because upon touching down it is rushed by thousands of people. Pushing people off with his pistol, Daly and fellow crew members are able to lift off successfully, even as “friendly” troops begin to fire on them. With people in every corner, including cargo holds and wheel wells, the “Last Flight from Da Nang” returns to Saigon with 368 “passengers.” Of these, 60 are in the cargo pits, 8 are in the wheel wells, and the remainder are in the cabin, but only 11 turn out to be women or children.
Chairman Daly now makes international news when he airlifts Vietnamese orphans, in what was to become known as the “Baby Lift,” from Saigon to Oakland. Returning to Oakland, Daly’s final flight from Vietnam brings in 218 war refugees, of whom 57 are orphans for which the World official takes personal responsibility. The U. S. Immigration and Naturalization service attempts to fine World $218,000 for his effort, but media and public outcries lead to a cancellation of the charge.
The company withdraws from Indochina after the fall of Saigon at the end of April. Chairman Daly receives the Aero Club’s annual achievement award on June 25.
On the year, passenger boardings fall 20.8% to 554,184; however, freight is up by 16.42% to 36.84 million FTKs. On revenues of $94.64 million, expenses are $91.09 million and the operating profit is $3.54 million. Although down from the previous year, a net profit is earned, $7.47 million.
The number of employees is reduced by 5.1% in 1976 to 1,144. World signs a management and support contract with Yemenia (Yemen Airways Corporation) and provides three chartered B-727-173s. Company aircraft ferry a 28-unit motel from the U. S. to Dubai in late February.
A charter jetliner is grounded for 36 hours in Jackson, Mississippi, on May 31 by irate passengers, led by Hinds County Circuit Court Judge Francis Bowling, who are inconvenienced by delays in London and Bangor, Maine, as the result of the company’s ongoing labor problems. Judge Bowling obtains a writ of attachment against the plane, which requires a day and a half for World to remove.
Customer bookings fall 35% to 358,466; however, cargo skyrockets 107.4% to 71.2 million FTKs. On revenues of $70.23 million, expenses are $79.54 million. This unhappy imbalance results in an operating loss of $9.31 million. Other diversified activities, however, salvage the year financially and produce an overall $2.17-million net gain.
By 1977, the carrier employs 1,400 workers and operates a fleet comprising 1 B-747-273C, 5 DC-8-63CFs, 2 DC-10-30CFs, 3 B-727-173Cs, 1 B-707-373C, and 1 CV-440. Orders remain outstanding for 1 B-747-100F and 4 DC-10-30CFs.
Early in the year, permission is received from the CAB for the initiation of service to Canada and Mexico. The regulatory body also holds expedited hearings on an application for scheduled U. S. transcontinental flights.
Enplanements total 496,000 and a total of 11.4 million FTKs are operated.
Airline employment is increased 8.8% in 1978 to 1,740 and on February 9 a former Continental Airlines B-747-124SF is acquired. Most of the year is taken up with planning to meet Ed Daly’s decade-old desire for scheduled service, which becomes possible following President Carter’s signing of the Airline Deregulation Act on October 14. On November 13, the carrier agrees with Jetsave to a 3-year, $60-million travel program centered on low-cost vacation flights between the U. S. and U. K.
Customer bookings jump 37.6% to 794,000. Freight, on the other hand, is down a whopping 78.4% to 6.39 million FTKs.
The employee population is increased by 49.4% in 1979 to 2,600. Initial $99.99 scheduled, nonstop operations commence between Newark and Baltimore to Oakland and Los Angeles on April 11. The first U. S.-U. K. flight under the Jetsave contract is undertaken three days later. During the year and into the next, a fleet of four convertible McDonnell Douglas DC-10-30CFs is acquired.
Scheduled operations are suspended in June following the crash of an American Airlines DC-10 at Chicago. Although the wide-bodies are later available for return to duty, only passenger charters are operated, sporadically, for the remainder of the year due to a 132-day transport workers strike.
The company reports, on December 12, that its 1,300 pilots, flight attendants, and mechanics have ended a 4-month job action.
As a result of the strike, however, overall passenger boardings decline 18% to 651,000 and freight traffic plunges by 89.7% to 656,000 FTKs. Although a $4.25-million operating loss is suffered, there is a net gain of $11.38 million, the last profit to be shown.
Following a profitable performance, World Airways suffers a fiscal setback in 1980. Transcontinental service is restarted in February and a route to Hawaii is added. California to Honolulu service is expanded by two flights per day on April 15 because of the heavy demand generated by a special discount fare of $69.99. New York to London standby fares are cut on July 30 by up to 50%.
Although these services cause enplanements to climb to 1,164,840, revenues for the newly reclassified “national” carrier cannot keep pace with costs. Expenses skyrocket 79.98% to $229.37 million against an operating income of $200.6 million, a boost of 62.84%. The company is therefore forced to absorb an operating loss of $28.7 million and a net loss of $28.2 million.
An annual relationship begins with MAS (Malaysian Airlines System) in March 1981 as Hadj pilgrimage flights to Saudi Arabia are flown on behalf of the Southeast Asian carrier. U. S. West Coast service to London and Frankfurt via Baltimore (BWI) is launched on a scheduled basis beginning in May,
Tragedy strikes on September 20 when, during Flight 32 from Baltimore (BWI) to London (LGW), flight attendant Karen Williams is crushed to death in the crew elevator of her DC-10-30CF.
Overall passenger traffic rises 42.9% as 2.03 million passengers are transported and 90.04 million FTKs are operated. Despite this success and a six-month International Commission on Migration Asian refugee transport contract, financial losses, some associated with the slowdown caused by the PATCO air traffic controllers’ strike, continue.
Indeed, Chairman/President Daly seeks union concessions and demands the government re-regulate the airlines as a net loss of $20.228 million is posted.
The fiscal situation does not improve in 1982 as the recession deepens.
While landing at Boston on January 23 after a flight from Newark, Flight 30H, a DC-10-30CF with 12 crew and 200 passengers, is unable to stop. The wide-body is steered off the side of the runway to avoid a pier and slides into shallow water, where, at a point 250 ft. past the end of the runway, the nose section separates (two dead). A salvage crew lifts the aircraft from its resting place eight days later.
Bomb threats, later proved false, result in the evacuation of 500—600 people on 2 DC-10-30CFs at Baltimore (BWI) on September 8.
Passenger bookings for the 1,700-employee carrier fall 19% to
1,651,000 as cargo plunges by 47.3% to 47.47 million FTKs. The ledgers continue to be written in red ink. Revenues fall 21.29% to $269.88 million and costs jump to $282.45 million. The operating loss is $12.57 million and a $43.77-million net loss is suffered.
In 1983, World Airways opens a nonstop Newark-Oakland route, as well as one from Newark to Frankfurt. Comedian George Burns becomes the company’s “official spokesman.” The debt is reorganized and a number of creditors are paid off with preferred stock.
Passenger boardings drop 26.8% to 1,237,000 and freight is down by
1.9% to $53.97 million FTKs. Costs of $269.6 million and less than operating income of $274.4 million and thus a turnaround operating profit of $4.8 million is claimed. Unhappily, a $29.38-million net loss is suffered.
Airline employment stands at 2,400 in 1984 and the fleet now includes 2 B-747-273Cs, 1 B-747-124SF, 8 DC-10-30CFs, and 2 DC-10-10s.
Chairman Daly dies on January 21 at the age of 6.
On February 18, a DC-10-10 comes within five miles of two USAF KC-135 tanker planes in flight over Topeka, Kansas, before the civilian pilot changes course.
Former Western Airlines Vice President Donald Beck is named president in April and immediately finishes a major recapitalization effort.
The company now changes its focus from charter to scheduled operations and records a passenger traffic increase of 30% as 1,604,000 customers are flown. Freight, meanwhile, balloons by 81.2% to 97.83 million FTKs. On the financial side, revenues, helped along by the national recovery, rise 17.7% to $322.9 million, as costs climb only 16.1% to $313.09 million. The operating profit of $9.78 million represents a significant turnaround and hope is seen in the net loss of $17.97 million, an improvement over 1983.
As 1985 dawns, the 2,200-employee World continues to provide both charter and low-cost scheduled air service to Saudi Arabia; from Hawaii to the U. S. West Coast; across America via Oakland, Los Angeles, Kansas City, and Baltimore (BWI), to Newark (EWK); and on to London and Frankfurt. The company constantly upgrades its scheduled service to a point where charter traffic totals only 19% of enplanements. The fleet now comprises 8 DC-10-30CFs, 2 DC-10-10s, 1 B-747-124SF, and 2 B-747-273Cs. In April, Jerrold Scoutt Jr. becomes board chairman and in June President Arthur Hutton becomes CEO.
While taxiing at Newark on July 18, a DC-10-10 nearly collides with a PEOPLExpress B-727-227; more than 200 people are jostled, but none are injured. Late in the year, four DC-10-30CFs are leased to United Airlines in exchange for the charter of four DC-10-10s, better suited to its needs. To sweeten the arrangement, United pays an additional $30 million and retires World’s Dash-30 debt. The aircraft will be delivered to World later on in a new color scheme, complete with a new company logo.
Passenger boardings dip 3.2% to 1,568,000 and revenues jump 12% to $360.23 million. Costs rise 11.5% to $347.14 million and the operating gain is up to $13.08 million. An unhappy $9.47-million net loss is suffered, a 50% improvement over the previous year.
With its scheduled services continuing to be a significant drain on resources, the company’s board, including chief stockholder June Daly, votes in summer 1986 to discontinue scheduled flights and, after making CEO Arthur Hutton vice chairman, seeks new leadership. The B-747-124SF is sold to AVIANCA Colombian Airlines (Aerovias Nacionales de Colombia, S. A.) in July.
After Presidential Airways purchases the charter operator Key Airlines (2) in July, the latter’s president, T. Coleman Andrews III, is named president/CEO of World on August 25. In September, the carrier closes down all of its scheduled services, which account for the bulk of operations, and in an unprecedented success, World exits its scheduled experiment in an orderly fashion. In excess of 100,000 booked passengers are transferred to other airlines with minimal disruption and fiscal loss.
Additionally, 1,500 employees are laid off, the DC-8s are sold, and the leased B-727s and DC-10s are returned to lessors, the latter going back to United Airlines along with the new paint scheme and logo. The company successfully attempts to move into profitability, with a $1-million fourth-quarter net gain showing the way.
Passenger boardings plunge 25.5%, as expected, to 1,368,000 and freight traffic is level at 115.8 million FTKs. Although exact financial figures are not made available, losses are reported as $49 million (operating) and $28 million (net).
In late winter 1987, stockholders approve the creation of a new holding company, WorldCorp. On March 1, the 1,300-employee charter operator Key Airlines (2) is acquired from Presidential Airways for $18 million and becomes a wholly owned WorldCorp subsidiary, which will be operated separately from World.
The carrier’s four DC-10-30CFs are sold and leased back and a B-747-273C is sold to Evergreen International Airlines in May. These aircraft transactions reduce long-term debt to $23 million. Meanwhile, in order to be closer to the headquarters of the U. S. military, its chief customer, World moves its own headquarters cross-country to Washington, D. C. (lAD).
Effective on June 23, World Airways officially becomes the principal subsidiary of WorldCorp through the exchange of one common share of stock in the old airline for one in the new holding concern. The new subsidiary World Airways Cargo is created on October 5.
Customer bookings fall a dramatic 60.3% to 543,000 as the company works only charters and purposefully shrinks itself by two-thirds. Cargo is also down, by 13.4%, to 118.13 million FTKs. Revenues also decline, dropping 56.7% to $101.2 million. Expenses are, however, held low and a $14.9-million operating profit is generated, along with a net profit of $7.8 million.
Airline employment is cut by 50% in 1988 to 650 and the fleet now includes 4 leased DC-10-30CFs and 8 B-727-173Cs.
Once again exclusively a charter operator, the airline boosts its en-planements by 2.5% to 454,000. Freight traffic recovers, rising a welcome 63.2% to 110.92 million FTKs. The airline’s profits total $22.4 million (operating) and $22.9 million (net). WorldCorp as a whole reports revenues of $167.5 million, up 17%, and net earnings of $11.8 million.
The employee population increases 30.2% in 1989 to 479 and the fleet is increased by the addition of 3 DC-10-10s.
Customer bookings balloon 60.2% to 729,329 and cargo skyrockets 182.1% to 334.57 million FTKs. Revenues move upward 37.5% to $173.6 million and these produce gains of $27.79 million (operating) and $31.4 million (net).
The fleet in 1990 includes the 3 new DC-10-10s and 5 DC-10-30CFs. Following the UN’s decision to oppose Iraq’s August 2 invasion of Kuwait, World begins to transport U. S. servicemen and women to the Persian Gulf in support of Operation Desert Shield. Despite its new-won military contract, the carrier actually suffers a downturn in traffic.
Passenger boardings fall 29.2% to 516,000 and freight is off by 33.3%, to 223.31 million FTKs. Revenues, however, advance by 40.34% to $243.68 million and stay ahead of costs, which rise 54.54% to $225.4 million. Still, operating income falls to $16.98 million and net income is down to $10.67 million.
A fourth DC-10-10 joins the fleet in 1991 as the 725-employee company continues to fly in support of the UN Persian Gulf commitment, now labeled Operation Desert Storm.
Despite this activity and the introduction of a new color scheme in the fall, the pioneer supplemental suffers a bad traffic year as customer bookings decline another 6.8% to 481,000 and cargo is off by 23.7% to 170.32 million FTKs.
Still, profits are made. Revenues drop 6.5% to $226.59 million, expenses fall 6.23% to $211.34 million, and an operating profit of $15.24 million is generated. Net profit doubles to $20.48 million. Parent WorldCorp is also profitable, earning an operating profit of $13.4 million and net gain of $10.4 million.
The fleet in 1992 includes 5 DC-10-30CFs and 4 DC-10-10s. In April, British Aerospace plc Executive Vice President Russell L. Ray Jr. is elected to the board of directors. Ray had been the last president/CEO of Pan American World Airways (1).
During the summer, World flies U. S. Olympic athletes to Barcelona. A contract is signed with Japan Air Lines Company, Ltd. (2) on October 9 under which the carrier’s new subsidiary, World Flight Crew Services, will provide the Japanese megacarrier with pilot training for three years at a fee of $16 million per annum.
The following week, a letter of intent is signed to sell the Key Airlines (2) subsidiary to Savannah, Georgia-based Savannah Aviation Group for $7.25 million. At the same time, the company elects to take leases on 10, later 11, MD-11s with which to replace the DC-10s.
In the fall, the company participates in the Bosnian relief effort and in December is called to assist in Operation Restore Hope in Mogadishu, Somalia.
Passenger boardings decline 35.6% to 410,000 and freight is off by 49.8% to 85.54 million FTKs. Revenues fall 11.6% to $200.28 million, expenses drop 7.7% to $194.98 million, and operational income slides 2/3 to $5.28 million. Net gain tailspins to $6.44 million. Finances at parent WorldCorp slip, even after Key Airlines (2) is sold in the fall. Revenues descend 28.5% to $200.4 million, but costs are higher and force losses of $5.29 million (operating) and $6.44 million (net).
The payroll is increased by 24% in 1993 to 598 as President Charles Pollard’s carrier continues to fly missions in support of Bosnian relief and Operation Restore Hope. On March 30, World takes delivery of the first 4, in passenger configuration, of an 11-aircraft order for McDonnell Douglas MD-11s; an order is outstanding for an MD-11F. Civil scheduled passenger operations are resumed on April 1 and in addition, plans are made to offer scheduled round-the-world all-cargo services from the east coast to Europe, the Orient, and to the West Coast.
On May 1, three MD-11s are wet-leased to Garuda Indonesia for Hadj flights to Saudi Arabia and the fleet now comprises 6 DC-10-30CFs, 2 DC-10-30s, and 6 MD-11s. William F. Gorog is named chairman on May 15, succeeding W. Jerold Scoutt Jr., who retires, but remains a director.
On August 2, World is one of seven carriers to win an Air Force contract to provide long - and short-range international airlift services under the Civil Reserve Air Fleet program; the pact is valued at $94 million.
Malaysia Helicopter Services, Sqn. Bhn., a subsidiary of the telecommunications company Technology Resources Industry Berhard, which also controls Malaysia Airlines, Ltd. (MAS), purchases a 24.9% stake in the airline during November for $27.4 million. Added publicity is obtained this year when a company DC-10-30 appears at the end of the Kim Basinger and Val Kilmer adventure film The Real McCoy.
Customer bookings for the year inch up 0.4% to 482,000, but cargo slides 6% to 216.64 million FTKs. Revenues rise only to $201.52 million, while expenses jump 7% to $208.84 million. As a result, the operating loss worsens to $7.32 million. The net loss grows to $9.04 million.
Airline employment is increased by 25.4% in 1994 to 750. Part of the traffic rights to South Africa granted to USAfrica Airways are sought from the DOT; they are not received and planned scheduled frequencies to Johannesburg cannot begin. On June 2, the DOT proposes reducing the number of El Al Israel Airlines, Ltd. flights between New York and Tel Aviv in retaliation for the Israeli government’s refusal to allow World to start scheduled service over the same route. The proposal does not take effect—and World is not certified for the route by the Israelis.
Malaysia Airlines, Ltd. and Malaysia Helicopter Services, Sqn. Bhn. join with World on June 15 to forge a code-sharing deal under which the three will operate a joint freighter service to Europe and the U. S. using a World MD-11. The tripartite alliance takes effect on June 19 when a weekly service is opened from Kuala Lumpur to Amsterdam via Dubai and a second is started from Kuala Lumpur to Los Angeles via Penang, Taipei, and Anchorage.
Two MD-11 passenger aircraft are chartered for six months to Malaysia Airlines, Ltd. (MAS) in October. Also during the fall, World is finally granted permission to inaugurate scheduled flights to Tel Aviv from New York, beginning in the first quarter of the following year.
An MD-11 is wet-leased to Ghana Airways Corporation in November, while, simultaneously, an MD-11F and two DC-10-30s are also chartered to Malaysia Airlines, Ltd. (MAS). The former aircraft is employed to inaugurate twice-weekly New York to Accra flights for six months on behalf of the renter. Also during the month, over $70 million worth of new one-year military charters are acquired from the U. S. government.
Plans are made to initiate the scheduled Israel service next July. Simultaneously, the company again files for scheduled services to Accra and Johannesburg, seeking to acquire the route authority of defunct US-Africa Airways.
Passenger boardings advance by 4.6% to 294,000 while freight plunges 57.9% to 74.05 million FTKs. Revenues total $203 million, but a $9-million net loss is suffered atop a pretax loss of $5.2 million.
The workforce stands at 838 in 1995, a huge 73.1% increase. In addition to the three aircraft already leased, the company charters a fourth MD-11, an MD-11CF, to Malaysia Airlines, Ltd. (MAS).
Scheduled thrice-weekly MD-11 passenger service begins on July 2 from New York to Tel Aviv, but falls well short of expectations. Meanwhile, federal government shutdowns force cancellations in the carrier’s Brazil-U. S. charter program. A code-sharing agreement is entered into with Continental Airlines that is designed to improve results on the scheduled front.
In mid-September, WorldCorp spins off World Airways, its largest division, into a separate publicly traded company; when news of the impending public offering of World Airways stock gets out, WorldCorp stock prices are pushed to record levels. As part of the arrangement, Chairman Andrews agrees to sell most of his holdings.
Enplanements surge 31.1% to 737,363 and 523.3 million freight FTKs are operated, a gigantic 90.7% growth. Operating income accelerates 43.6% 5 to $$259.48 million as costs move ahead by 34% to just $249.14 million. The previous year’s losses are turned into profits: $10.34 million (operating) and $8.89 million (net). The loss figures are later rewritten and deepened to $15.89 million and $14.14 million, respectively.
The employee population is reduced 8.6% in 1996 to 766. The first two MD-11ERs manufactured are received under lease from their builder during April. They will be wet-leased to Garuda Indonesia for use on that flag carrier’s Hadj flights to Saudi Arabia.
Charles W. Pollard is named CEO at the WorldCorp annual meeting on May 22, succeeding T. Coleman Andrews III, who becomes board chairman. Ahmad M. Khatib is appointed chief operating officer with Vance Fort as executive vice president.
On June 6, a new code-sharing agreement with Continental Airlines takes effect. Not only does World transfer four of its long-haul flights to Newark to connect with Continental’s, but the two offer weekly dualdesignator nonstop flights to Johannesburg, Tel Aviv, Dublin, and Shannon as World inaugurates its new South African service on June 23.
On June 25, a company spokesman announces that World will drop its money-losing European scheduled charter business and will take a $2.7-million charge loss for the second quarter for the discontinued business. The flights in question end on July 31.
On August 1, a $55-million contract is signed with the USAF for the transport of military personnel to U. S. bases in the Far East, Europe, and the Mideast for a year. The award is the 40th consecutive annual contract that the carrier has won from the USAF.
Regularly scheduled passenger service between New York and Johannesburg is halted on August 23, while the route from New York to Tel Aviv is dropped on September 3; the suspensions allow the carrier to focus on its more profitable charter and cargo business. Arrangements are, however, made with Tower Air and Trans World Airlines (TWA) to honor Tel Aviv ticketing and with South African Airways (Pty.), Ltd. to care for Johannesburg passengers holding tickets valid beyond August 23.
In September, the company begins to develop a core, long-term wetleasing strategy that will prove lucrative. Similar to those offered by Atlas Air, these aircraft, crew, maintenance, and insurance (ACMI) contracts provide customers services for a fixed price.
Flight 201, an MD 11 with 14 crew and 268 passengers, runs off the end of runway 11 at Buenos Aires after landing on November 6 and becomes mired in the mud. All occupants deplane through the passenger door using external stairs and no injuries are reported.
By December 31, the carrier is able to claim the honor of having provided more contract airlift services to the U. S. Department of Defense than any other airline.
Passenger boardings (scheduled and nonscheduled) skyrocket 76.9% to 1,304,475 even as cargo plunges 42.7% to 300.08 million FTKs. Revenues jump 27.7% to $309.58 million while expenses accelerate only 27.1% to $287.94 million. Operating gains advance to $21.64 million and a net $18.35-million net profit is posted.
The employee population is cut 2.1% in 1997 to 750. On January 6, the carrier signs a $30 million ACMI agreement with Garuda Indonesia. Under its terms, the company will provide the carrier with flight crews, maintenance, four MD-11s, and two DC-10-30CFs between May and September and perform Hadj flights for Muslim pilgrims to Saudi Arabia.
President/CEO Pollard, who had given notice that he would not return upon the expiration of his contract in December, resigns under board pressure on March 14. Chairman Andrews becomes acting president and heads a search committee for a new CEO. A member of the World Airways board for four years, Russell L. Ray Jr. succeeds President Pollard, initially on an interim basis, on April 4. The post will become permanent before the end of the year.
In late May, an MD-11 is wet-leased to the Belgian low-fare carrier City Bird, S. A. A month later, a DC-10-30CF is wet-leased to VASP Brasilian Airlines (Viacao Aerea Sao Paulo, S. A.) for six months; the aircraft is placed into service on behalf of Brazil’s No. 2 carrier, transporting cargo from various South American destinations to Miami.
After having received a substantial payment from Philippine Airlines (PAL) on July 11, World and PAL resolve a contractual dispute that allows two MD-11s leased to the Asian airline to be placed elsewhere during the third quarter. PAL agrees to operate two other MD-11s currently in its fleet until February 1998.
World’s contract with the USAF is not only renewed on August 6, but increased by 35% to $74 million. Military personnel will continue to be flown to and from the U. S. from bases in Europe, the Far East, and Mideast. It is anticipated that ad hoc awards will again add $15 to $25 million to the value of the contract.
On September 18, the airline repurchases 3.2 million shares of its common stock from parent WorldCorp for $7.65 per share. During the remainder of the month, World repurchases an additional 773,000 shares of its common stock from WorldCorp and other shareholders.
An MD-11 strikes its tail while landing at Montevideo, Uruguay, on October 24, causing it to be out of service for two months.
Also during the month, the carrier completes a private offering of 8% senior subordinated debentures due in 2004. The $50 million raised will be employed to pay down debt, for working capital, and for general purposes.
An MD-11F experiences a hard landing at Montevideo on October 31; although none of the crew is hurt, it will take two months to repair the aircraft and return it to service.
Former Overnite Transportation President/CEO James Douglas is appointed executive vice president/chief financial officer on December 1. On December 30, Aer Lingus Irish Airlines, Ltd. comes to terms with World for the charter of an MD-11 between May and October next. The Irish state line thus makes a change after two years of employing a Caledonian Airways, Ltd. Lockheed L-1011 TriStar on its summer services between Dublin and Newark.
The year’s passenger boardings plunge 42.2% to 294,000, while freight falls 35.2% to 3.8 million. Operating revenues decline 13.2% to $309.41 million, while expenses drop 19.8% to $292.55 million. As a result, the previous year’s operating loss is turned into a $16.85 million operating gain, while the net loss becomes a welcome $11.26-million net profit.
El Al Israel Airlines, Ltd. is the first ACMI lease customer of 1998, agreeing on January 14 to charter an MD-11 for use on summer tourist flights between Tel Aviv and the U. S.
On February 3, a lease is signed with Garuda Indonesia for the operation of six MD-11s for the upcoming Hadj season, from March through early May.
U. S. Secretary of Transportation Rodney E. Slater and Japanese Transport Minister Takao Fujii are the principals for the formal signing of the new U. S.-Japan bilateral air agreement in ceremonies at Washington, D. C. (IAD) on March 14. A preliminary document had been initialed by their representatives on January 30.
The company celebrates its fiftieth birthday on April 6 and two days later, the U. S. signs a new bilateral air agreement with France.
On April 29, effective in mid-May, STAF (Servicios de Transportes Aereos Fueguinos, S. A.) of Argentina wet-leases a McDonnell Douglas MD-11F from World for a three-year period. Painted in STAF colors, the jet freighter will be placed on the Argentine line’s services to the U. S.
To cut costs, the six MD-11s out on lease to Garuda Indonesia for Hadj services are returned by the Jakarta-based flag carrier on May 6. Simultaneously, Garuda announces that it will retain its five DC-10-30s, using them to help cover the capacity lost with the return of the MD-11s.
On May 13, effective in mid-May, an MD-11 is wet-leased to Monarch Airlines, Ltd.
On May 21, World announces the signing of its seventh wet-lease contract since the beginning of the year. In addition to ACMI agreements with Aer Lingus Irish Airlines, Ltd., Air India, Ltd., El Al Israel Airlines, Ltd., Florida Jet, and STAF (Servicios de Transportes Aereos Fueguinos, S. A.), this latest arrangement again calls for delivery of a freighter to VASP Brazilian Airlines (Viacao Aerea Sao Paulo, S. A.).
The wet-lease with Monarch Airlines, Ltd. is simultaneously started. Repainted in modified colors, the aircraft will operate five weekly return flights between Manchester and Orlando and weekly return service between Manchester and Las Vegas, through November 1.
The VASP MD-11F enters service for six months on June 1.
World Chairman Andrews is named the new CEO of South African Airways (Pty.), Ltd. on June 15, effective July 1, succeeding Michael Myburgh. Coleman indicates that he will relinquish his chairmanship and board seat and soon move to Johannesburg, but will retain his 46% stake in World. As the two companies do not plan to do business together, no conflict of interest is anticipated.
Two days later, on June 17, President/CEO Ray is elected to become World’s new chairman.
On July 30, World signs its 43rd consecutive annual contract with the USAF Air Mobility Command. Effective in the next fiscal year that begins in October, the agreement is valued at $86 million.
On September 27, VARIG Brazilian Airlines (Viacao Aerea Rio-Grandense, S. A.) agrees to lease four of the MD-11s returned by Garuda Indonesia. One is delivered immediately, with the other three to sent down once they have undergone a certification check.
A $2-million wet-lease contract is signed with the TACA Group of Central American airlines on October 31. Under its terms, World, beginning on November 1, operates a DC-10-30CF four to six times a week from Miami (MIA) to San Jose, Costa Rica, San Salvador, and San Pedro Sula, Honduras. Flights will continue through the end of the year.
The contract with Aer Lingus Irish Airlines, Ltd. for the wet-leased MD-11 is renewed on November 9. The wide-body will continue its transatlantic passenger services through the holiday season and into January, as well as between May and October 1999.
Led by the New York-based Rothschild Recovery Fund, negotiations are held between the airline’s creditors and the carrier’s management concerning the restructuring of the carrier’s $65 million in outstanding convertible debentures. An agreement is signed on November 16.
On November 19, a $3-million contract is signed with AVIANCA (Aerovias Nacionales de Colombia, S. A.). Under its terms, a wet-leased MD-11 will be operated on AVIANCA’s behalf on daily passenger services from Bogota to New York (JFK) between December 10 and January 17.
During the 12 months, customer bookings jump 24.9% to 368,000. Figures for cargo traffic are not provided. Total revenues for the year decline by 12.4% to $271.14 million, with expenses hitting $274.31 million. There is an operating loss of $3.16 million and a net loss of $11.03 million.
Beginning in mid-February 1999 and continuing through the end of April, World provides a pair of MD-11s each to Air Asia, Sqn. Bhd. and Saudi Arabian Airlines under ACMI contracts to provide roundtrip Hadj services from various points to Mecca. One of the MD-11s had previously been out on contract to Aer Lingus Irish Airlines, Ltd.
It is announced by the airline on April 5 that, upon the retirement of Chairman/President Ray on May 1, the new CEO will be former Continental Airlines, Delta Air Lines, and Air Canada, Ltd. Chair-man/President Hollis L. Harris. Ray will remain on the board.
Former Delta Air Lines and AirTran Airlines executive Andrew Gilbert “Gil” Morgan Jr. is named president/chief operating officer on May 12, effective June 1. New Chairman Harris continues to hold the position of CEO.
For some unknown reason, the two MD-11s employed on Hadj services for Saudi Arabian Airlines are been given the colors and titles of the old Saudia, more than a year after that carrier changed its corporate identity.
Under an agreement signed with Premier Cruises on March 1, World, beginning on May 23 and continuing through October 18, provides weekly MD roundtrips between New York (JFK) and Barcelona for passengers cruising on the holiday ship Rembrandt.
During the week of July 12, a number of initiatives designed to redress the carrier’s failing finances are announced. A pair of DC-10-30s will each be returned to lessors three months earlier than originally scheduled, with one already returned and the second to be gone by month’s end. The two other remaining DC-10s will be retired during the fourth quarter. In addition, lease agreements are being renegotiated for the eight MD-11s. In exchange for a reduction in monthly lease fees, lessors are to be provided warrants for the acquisition of a million shares of World stock at $2.50 a share.
Also during July, a lucrative agreement is signed with Renaissance Cruises to provide exclusive services on its behalf between New York (JFK), Europe, and the Mediterranean. MD-11 Rennaissance flights commence in August from New York (JFK) to Athens and Istanbul.
In exchange for financial considerations and salary reductions of 10%, World, beginning in September, issues common stock to all personnel earning in excess of $25,000.
Officials at Renaissance Cruises are so pleased with their new partner that arrangements are completed on October 8 for a three-year extension of the July contract. For its part, World promises to add the capacity of one aircraft in April and June and expand the Renaissance route network to include visits to Lisbon and Barcelona.
Passenger boardings jump 31.7% to 482,000, while freight traffic falls 15.5% to 16.29 million FTKs.
The carrier’s operating loss totals $10.3 million.
A total of 835 workers are employed at the beginning of 2000, a 4.5% increase over the previous 12 months. Directors and employees now own 43% of the airline’s common stock.
A total of five MD-11s are wet-leased to Garuda Indonesia in February for delivery of thousands of Muslim pilgrims from Borneo and Java to Jeddah during the annual Hadj pilgrimage. The same aircraft will return the faithful in April. World has now carried pilgrims from more Muslim countries to the Islamic Holy Land than any other airline in the world.
With the start of the summer season on March 26, an MD-11 is again chartered to Aer Lingus Irish Airlines, Ltd.; operated under an ACMI contract, it flies from Shannon to New York (JFK) six times a week.
To pick up the slack in Israel-U. S. frequencies caused by the termination of scheduled service by Tower Air, on June 18 El Al Israel Airlines, Ltd. boosts its North American return service from 21 to 33, with 27 of the frequencies operated into either Newark or New York (JFK). Many are operated under contract by World Airways. On June 22, arrangements are completed for the three-year lease of three DC-10-30Fs; deliveries will occur in October and December, plus May 2001.
Beginning on June 23 and continuing until September 11, nonstop twice-weekly MD-11 roundtrips are operated on behalf of Lambda World from New York (JFK) to Athens. Another MD-11 is also dedicated to Lambda customers flying nonstop from New York (JFK) to Tel Aviv or back twice weekly from July 2 through October 30.
World is named 16TH best-managed company among nonstate-owned major-sized airlines in the “2000 Index of Competitiveness” published by Aviation Week and Space Technology on July 10.
While en route from Newark to Tel Aviv on the evening of July 18, El Al Flight 18, an MD-11 operated under contract by World, is forced to divert to Gander when 19-year-old passenger Daniel Neuhaus becomes abusive toward other passengers. He locks himself into a toilet, where his smoking sets off an alarm; the crew and a doctor are unable to successfully calm the youth and rather than face a transatlantic flight with the unruly customer, the pilot puts down in Canada. RCMP board the plane and escort Neuhaus to jail, where he is charged with disorderly conduct and marijuana possession.
On July 20, World announces that it will relocate its corporate headquarters from Herndon, Virginia, to the Peachtree City area outside of Atlanta, Georgia, during the first quarter of 2001.
WorldCorp, Inc. is liquidated on August 17 and the remaining 1.9 million shares in the former holding company are redistributed to its various creditors in lieu of compensation. One creditor sells some 700,000 shares to a group of World directors and managers led by Chairman/ CEO Harris. This gives the Harris group a 45% equity stake and takes World out of bankruptcy.
On September 21, the carrier is awarded an expanded $127-million USAF Air Mobility Command contract to provide military charters in FY2001, beginning on October 1. A letter of intent is signed on September 29 for the acquisition of two more DC-10-30Fs. The next day, it is reported that the carrier has approximately 10,256,000 shares of common stock outstanding.
On October 16, Garuda Indonesia announces that it will lease 15 aircraft for the 2001 Hadj season (February-April), during which it anticipates the transport of 200,000 pilgrims to Mecca. As usual, World Airways is sure to be among the participating ACMI carriers.
On October 31, the board of directors approves a stock buyback of up to a million shares of its outstanding common stock.
A contract is signed with the state-owned Angolan fuel corporation Sonangol on November 10 for the February 2001 initiation of twice-weekly Houston Express return charter service from Houston (IAH) to Luanda, with a refueling stop at Cape Verde. The deal is consummated following the November 8 completion of a trial flight with an MD-11 wearing “Sonair” titles.
ADC-10-30 is chartered from Continental Airlines on November 17 and will be used to fly military charters. The plane arrives wearing full Continental colors with World titles.
Customer bookings during these 12 months drop 5.10% to 457,000. Revenues for the year are a flat $264 million while costs rise 4.5% to $261.9 million. The previous year’s operating loss becomes a $2.1 million gain.
WORLD BRAZILIAN AIR, S. A.: 75 Blvd. Louis Schmidt, Brussels, 1040, Belgium; Phone 32 (2) 735-6737; Fax 32 (2) 734-1481; Code S9; Year Founded 1997. Founded at Rio de Janeiro in 1994, Skyjet Brazil, S. A., a subsidiary of the Belgian charter operator Skyjet, S. A., offers worldwide passenger and inclusive-tour charters with a single Douglas DC-10-30 previously operated by Deutsche Lufthansa, A. G. and a B-707-331C.
Early in 1997, the company is renamed World Brazilian Air and the leased DC-10-30 is repainted in a new blue and white livery.
Skyjet, S. A. is renamed Skyjet European, S. A. on August 1, 1998. The Brazilian contract is maintained.
World History
