WORLD AIRWAYS TO REDUCE OPERATING COSTS

WORLD AIRWAYS TO REDUCE OPERATING COSTS       Due to current global economic circumstances, World Airways plans to decrease expenses by parking three planes and reducing head count. The company estimates that it will reduce its staff by 250 by no later than Jan. 1, 2002.
   “In this environment of great uncertainty, we believe our most prudent course of action is to take immediate steps to address the issue of lower-than-expected demand and the resulting overcapacity in our fleet,” said Hollis L. Harris, chairman and CEO of World Airways. “We believe that reducing our fleet and cutting associated costs is essential to position the company for profitability and long-term success.”
   Harris noted that the company currently is operating five more planes than it had during the third quarter of last year. As a result, the company said, operating expenses have risen without a significant revenue increase, outside of the Air Mobility Command contract. In addition, the slowdown in passenger travel may result in some carriers and World customers deciding to cut back service requirements in the months ahead.
   The company also announced today that it would not pursue bids to provide seasonal passenger airlift services for the 2002 Hadj pilgrimage, due to the potential risk to World Airways employees. World Airways has provided airlift services for the Hadj pilgrimage since 1974, and has operated in various cities in several countries including Indonesia, Saudi Arabia and Malaysia.
   “We had estimated that the Hadj airlift services for the coming spring could have generated approximately $25 million in revenues for 2002,” Harris said. “This is a major operational consequence of the events of September 11, but we are not willing to put our flight crews at risk given the various security considerations.”
   “We believe that the steps we are taking now are absolutely necessary, in order to allow us to weather the downturn,” Harris said.