Air Florida Airways Says It's Coming
Company Plans Hub At MidAmerica St. Louis Airport
Belleville, Illinois (January 22, 2003) -- Commercial airline service could be returning to MidAmerica St. Louis Airport this year.
Air Florida Airways Corp., a holding company, intends to make its world headquarters and operational hub at MidAmerica, the company and Tim Cantwell -- the airport's director -- announced Tuesday night at the St. Clair County Finance Committee meeting.
The company plans to offer scheduled passenger airline service, charter flights and cargo freight service using Boeing MD-80, 757 and 767 aircraft. The company intends to begin service at MidAmerica about June 1 and offer service to a number of cities.
Cantwell said he's sure the company has the needed certification to operate passenger airline service.
"They're in the process of acquiring aircraft," said St. Clair County Administrator Dan Maher, adding it isn't clear whether the company intends to operate the airline as Air Florida or use another name.
"It's certainly a reason for optimism," Maher said. "We've met with these folks -- they know how to run an airline, I mean there's no question about that."
The company is not currently operating any airline service.
At the meeting, the Finance Committee approved the issuing of up to $150 million in either taxable or tax-exempt industrial revenue bonds for the company. Terry Beach, St. Clair County's economic development director, said it is possible the company may simply use corporate bonds and not involve the county at all.
The company has to get the bonds and repay them itself. And getting the bonds may not be easy, Maher said.
"You have to go to a very tight money market and convince these people that your business plan will work, that you're going to be able to pay these bonds back," he said. "They're reasonably convinced they've got that lined up already, but it's a tough world out there."
"Our attorneys still have a lot of due diligence to do on their business plan," Beach added.
Cantwell said the company will use the money "to build a headquarters and whatever else their needs are," he said.
Air Florida Airways Corp. has set up a web site, which can be accessed at http://www.airfloridaairways.com. The web site says the company is a 4-year-old aviation holding company now based in New York that intends to provide low-fare service domestically and internationally.
Air Florida previously started operating as a regional airline in 1972, and in 1978 it started operating flights outside Florida. In 1980, the airline started flying international routes, but filed for bankruptcy in 1984. The company was hurt by a crash of a Boeing 737 in Washington, D.C., in 1982.
Information provided by the Belleville News-Democrat
DAVID VAN DEN BERG Article © the Belleville News-Democrat
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