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Three Wire - A Journal of Naval Aviation (www.threewiremagazine.com) coming this fall!

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Republic Airways Completes Purchase of Embraer 170 Aircraft and Slot Assets from US Airways Group

Indianapolis September 22, 2005 - Republic Airways Holdings Inc. announced today the purchase of certain Embraer regional jet aircraft and slot assets from US Airways Group. The net purchase price for the transaction completed today was approximately $90 million. These purchases are part of a multi-part agreement with US Airways that was announced in March 2005.

A summary of the transaction, as well as future transactions under the US Airways agreement, follows:

Slots Transaction

Republic purchased 113 commuter slots at Ronald Reagan Washington National Airport and 24 commuter slots at New York LaGuardia Airport. The purchase price for all of the slots was $51.6 million. The slots will be leased back to US Airways and will continue to be operated by US Airways Express carriers.

Aircraft Transactions

Republic purchased 10 Embraer 170 aircraft owned by US Airways for a net purchase price of $38.2 million. Republic also assumes debt totaling $168.7 million. These 10 aircraft will initially be leased back to US Airways until they are transferred to Republic Airlines under a recently executed, 10-year Jet Services Agreement. In addition to these aircraft, Republic will assume the leases of 15 Embraer 170 aircraft, which will also be operated by its Republic Airline subsidiary.

The transition of all 25 aircraft is expected to be complete by September 2006. Republic Airlines currently operates three Embraer 170 aircraft on behalf of US Airways.

Other Assets

Republic also plans to purchase other Embraer 170 assets from US Airways including a flight simulator and spare parts. The purchase of these assets is expected to be completed in the next few weeks.

The total purchase price for all assets under the US Airways agreement is approximately $100 million.

Bell Helicopter Sponsors Top Fuel Dragster

Fort Worth TX September 22, 2005 - Hundreds of Bell Helicopter employees lined up Wednesday afternoon, Sept. 21, to view first hand the Menards/MTS Top Fuel Dragster, which was on display at the company's main headquarters in Fort Worth. Bell Helicopter, a Textron company, is an associate sponsor on the car for this weekend's 20th annual NHRA Fall Nationals at the Texas Motorplex in Ennis. The car features the Bell logo, golden wings with "Fly Smart, Fly Bell" on the leading edge canard.

The 2,250-pound car, built on a 2005 Brad Hadman 300-inch Top Fuel chassis, has a 500 cubic-in. TFX engine capable of more than 7,000 horsepower. The vehicle is fueled with a 85% mix of Nitromethane and 15% methanol.

Bell employees were fascinated with the dragster and genuinely appreciated its 320 mph top speed capability. But speed is no stranger for Bell products. Bell owns the world's speed record for a helicopter with a specially modified UH-I capable of more than 300 mph. Bell, in partnership with Boeing is producing the V-22 tiltrotor, the world's fastest production vertical lift aircraft. In addition Bell is developing the BA609 tiltrotor which is the world's fastest commercially available vertical lift aircraft.

The highlight of the day for Bell employees was the chance to meet and get autographs from the driver of the Menards/MTS dragster, former NHRA Super Comp champion "Fast Jack" Beckman. The 39-year-old Beckman will be making his first appearance this weekend at the legendary Texas Motorplex as a professional racer.

Commercial Aerospace Capital Announces Purchase of Two Boeing 737 Series Aircraft

Canfield OH September 22, 2005 - Commercial Aerospace Capital Corporation, an operating subsidiary of Alliance Continental Holdings Group, Inc. has announced that it has acquired loan certificates with a par value in excess $21 million dollars secured by two Boeing 737 series aircraft on lease to a foreign air carrier. CACC acquired the aircraft notes through a negotiated private transaction.

John C. Green Managing Director / CEO, noted, "CACC is pleased to assist in aiding the liquidation that has allowed the former U.S. operator to exhaust various debt instruments within its bankruptcy restructuring, while CACC has simultaneously provided its foreign airline clientele, newer aircraft that have remained in service, until the time transition from operator to CACC.

"We intend to continue with similarly structured debt & equity transactions, offering liquidity, with the underlying assets being leased to other air carriers domestic and abroad."

The company has already solidified negotiations to acquire one remaining 747-400 from the same liquidation proceeding, and three additional 737s for placement outside of the U.S.

DOT Preparing for Hurricane Rita with Equipment, Personnel and Vehicles

Washington September 22, 2005 - Mobile air traffic control equipment, technical personnel, trucks, busses, airplanes and ocean-going vessels are now in place to support the massive federal, state and local effort to prepare for Hurricane Rita, U.S. Secretary of Transportation Norman Y. Mineta announced today.

"We are working hand in hand with federal, state and local officials to make sure they have every available transportation asset in place to get people out, supplies in and key facilities back up and running in areas where Hurricane Rita is expected to make landfall," Secretary Mineta said.

Secretary Mineta noted that the U.S. Department of Transportation is taking the following steps to support Federal Emergency Management Agency and the states of Texas and Louisiana as they prepare for Hurricane Rita. The Secretary noted that additional resources will be provided as requested by the states:

Aircraft and Air Traffic Control

• Securing aircraft to evacuate Texas residents, as well as Hurricane Katrina evacuees, by air from Houston to Ft. Smith and from Corpus Christi and Beaumont to Smyrna, Tennessee.

• Putting six MD-80 aircraft on standby in Baton Rouge, Louisiana to support another airlift out of Louisiana if needed.

• Pre-positioning mobile communications and navigational equipment along with technical personnel in Austin, Texas and Baton Rouge to deploy after the storm passes to restore basic air traffic control services.

• Maintaining a small staff at Houston aviation facilities to reactivate key equipment as soon as possible after the storm leaves the area.

Buses

• Providing over 650 buses in response to requests from Texas and Louisiana officials to help to support evacuation efforts.

• Working with transit agencies across the country to identify additional buses that can be acquired and deployed to support evacuations in Texas and Louisiana as needed.

Trucks and Supplies

• Delivering one tanker of diesel fuel, six trucks of tarps, five trucks of plastic sheeting, two trailers filled with cots, one trailer filled with tents and one filled with sleeping bags to FEMA staging areas in Texas. These deliveries are in addition to supplies already provided to the region as part of the Hurricane Katrina response.

• Putting ten trucks on standby at Ft. Sam Houston in San Antonio to move additional supplies as needed.
• Suspending rules limiting hours of service for truck drivers in the affected region so emergency and repair crews will be able to work as needed to support evacuation, recovery and repair operations.

Trains and Equipment

• Working with railroad operators, the Association of American Railroads and the American Short Line and Regional Railroad Association to identify hazmat cars in Texas and Louisiana and evacuate cars as needed.

• Maintaining an expedited process for issuing waivers to allow rail operators to clear damaged equipment in order to resume operations after the Hurricane passes through the region.

Ports and Shipping

• Staging personnel with expertise in repairing port infrastructure in New Orleans to deploy as needed to support repair efforts.

• Maintaining twelve Ready Reserve Vessels in New Orleans (4); Port Sulphur, Louisiana (1); Houston (2); Orange, Texas (3); and Beaumont (2) so they will be available to provide power, equipment and housing for workers in the aftermath of Hurricane Rita.

In addition, personnel from the Department of Transportation are working with state and local officials to assess transportation infrastructure in the regions likely to be affected by Hurricane Rita. These teams are beginning to develop plans to quickly repair and rebuild roads, bridges, ports, pipelines and airports should they be damaged by Hurricane Rita, Mineta noted.

The Coalition for Luggage Security Responds to Secret Government Plan

New York September 22, 2005 - The Coalition for Luggage Security today responded to a series of articles published in the New York Times concerning the government's secret plan to bolster transportation systems outside of the airlines.

Richard A. Altomare, Founder and Chairman of the Coalition for Luggage Security and CEO of Universal Express, Inc. (OTCBB: USXP) comments, "If we keep the transportation security debate closed, we risk limiting the creativity that would result from an open discussion of ideas. The rush to put into place airline security after 911 has resulted in a huge growth in government personnel and expenditures along commonly accepted process and procedures that do not solve the root problems. We need new ideas, and public debate will go a long way in producing them."

"We call on the administration and legislative bodies to view our white paper entitled 'More Safety, Less Hassle for American Travelers: A Private Sector Solution for the Airline Industry,' where the Coalition has expanded in detail on a solution Even though the document concentrates on the airline industry, the economics provided shows how savings can be directed to other mass transit sectors," said Harvey Abelson, Coalition Director.

Kitty Hawk Cargo Introduces Enhanced Service in San Diego

Dallas September 22, 2005 - Kitty Hawk Cargo, a division of Kitty Hawk, Inc. announced the enhancement of its cargo network to include scheduled airfreight service to San Diego. The service provides expedited express service through Kitty Hawk Cargo's already highly reliable, mission-critical airfreight network.

"Kitty Hawk is excited to be able to offer an overnight solution to our customers in the San Diego and Phoenix markets," said Kitty Hawk Cargo's Vice President and Chief Operating Officer, Toby Skaar. "We believe that our customers will appreciate our enhanced service, which will provide them a competitive option from anywhere within our current network to San Diego by the next business day."

The San Diego market has been serviced through Kitty Hawk's ground network with connections to Los Angeles. The overnight air service from San Diego through Phoenix began August 29, 2005. To accommodate customer demand, Kitty Hawk offers later cutoff times and earlier availability in the West Coast markets. Kitty Hawk's B737-300SF quiet and highly fuel-efficient airliner will operate its San Diego daily air service Tuesday through Saturday. Kitty Hawk's late cutoff in San Diego is 5:30 p.m., Monday through Friday and 8:00 p.m., Monday through Friday, in Phoenix.

Agreement Shenyang Aircraft Corporation and Stork Aerospace for joined development and manufacturing of aerostructures

Naarden Netherlands September 22, 2005 - Today at the Beijing Aviation Expo the Chinese aircraft manufacturer Shenyang Aircraft Corporation (a subsidiary of AVIC-I) and Dutch Stork Aerospace have signed a Heads of Agreement for collaboration in the development and manufacturing of aerostructures for commercial aircraft.

Shenyang Aircraft Corporation (SAC) provides leading capabilities in tool design and fabrication, machining, assembly and composite production. Stork Fokker AESP, a Stork Aerospace company, provides leading capabilities in program management, structure design and engineering, composite (thermoplastics) and metal bonding. By sharing these mutually complementary capabilities both companies expect new opportunities by delivering an excelling price/quality ratio and extension of production capacity. Also the established position of both companies in different markets and businesses are a key element to this collaboration.

SAC and Stork Fokker AESP will form project teams with having members from both companies participating closely on the managerial and technical tasks. SAC and Fokker have had a relation going back to the 1930's, being the first companies joining forces between Europe and China in the aerospace industry.

"Under the leadership of AVIC-I, SAC endeavors to meet and exceed customer expectations and improve customer satisfaction by exploring ways to continuously improve its performance. The collaboration between SAC and Stork Fokker has placed the parties in a better position to fulfill the commitments to our customers," says Mr Li Fangyong, Chairman and President of Shenyang Aircraft Corporation under AVIC-I.

Mr Henk Valk - Executive Vice President of Stork Fokker AESP - says: "We have identified Shenyang Aircraft Corporation as the perfect partner to Stork. Both parties have complimentary capabilities thereby offering the potential for creating value."

Shenyang Aircraft Corporation (China), one of the key aircraft manufacturers under AVIC-I in China, supplies commercial aircraft components to aircraft integrators in Europe and North America. SAC is one of the major Chinese forces in the industrial cooperation between AVIC-I and the world's leading aircraft integrators.

Stork Aerospace (The Netherlands) develops and produces advanced components and systems for the aviation and aerospace industry, and supplies integrated services and products to aircraft owners and operators. The group achieved a turnover of €495 million in 2004 with 3,182 employees out of the total Stork turnover of €1.82 billion.

Iceland's Avion Group Orders Boeing 777 Freighters

Seattle September 22, 2005 - Boeing and Avion Group signed final agreements for the purchase of four Boeing 777 Freighters at the Cargo Facts Symposium today. The new cargo planes will be operated by Avion Group's subsidiary, wet-lease operator Air Atlanta Icelandic.

Air Atlanta Icelandic is the world's largest ACMI (aircraft, crew, maintenance and insurance) service provider, offering tailor-made solutions to other carriers, both in the passenger and cargo industry.

The four 777 Freighters, with purchase rights for two additional 777Fs, will provide additional capacity for a number of the world's top carriers. The first 777 Freighter to Air Atlanta Icelandic is scheduled for delivery beginning in February 2009.

Additionally, Avion Group and Boeing are in serious negotiations to convert three Air Atlanta Icelandic 747-400 passenger airplanes into 747-400 BCF (Boeing Converted Freighter) models.

The combined value of the four 777 Freighters and the three 747-400 BCFs at Boeing list prices is approximately $1 billion.

"This agreement represents yet another chapter in the overall Air Atlanta Icelandic fleet renewal plan. We look to the 777 Freighter to provide a new dimension in our ability to serve our customers," said Magnus Thorsteinsson, chairman of Avion Group. "The 777 has an outstanding reputation for capability, reliability and efficiency, and the 777 Freighter will provide a good complement to the 747 Freighters that many of our customers already operate."

Avion Group is the second customer to finalize an order for the 777 Freighter, which was launched with an order by Air France in May 2005. With this order, Air Atlanta Icelandic will join the 777 Freighter launch team.

"We are thrilled that The Avion Group and Air Atlanta Icelandic are joining the 777 Freighter family," said Marlin Dailey, vice president, Sales -- Boeing Commercial Airplanes. "The opportunity to have the 777 Freighter in service with an ACMI carrier like Air Atlanta Icelandic will demonstrate to the world its versatility to serve a variety of cargo markets, as well as its superior performance."

The 777 Freighter, based on the technologically advanced 777-200LR passenger airplane, will be capable of flying 4,965 nautical miles (9,195 kilometers) with a full payload and market-preferred cargo load density. The 777 Freighter will fly farther than any other freighter and provides more capacity than any other twin-engine freighter. With a maximum takeoff weight of 766,000 pounds (347,450 kilograms), the 777 Freighter will have a revenue payload capability of 229,000 pounds (103 metric tons).

The 777 Freighter will deliver value to the world's cargo operators, featuring the lowest trip cost of any large freighter and excellent tonne-kilometer economics. The 777 family has proven itself to be the leader in delivering twin-engine efficiency to the marketplace with lower fuel consumption, maintenance costs and operating costs.

The 777 Freighter will be powered exclusively by the world's most powerful commercial jet engine, General Electric's GE90-110B1 and will meet QC2 noise standards for maximum accessibility to noise-sensitive airports.

The 777 Freighter complements the Boeing 747 Freighter family, which is the air-cargo industry's standard. Both the 777 and 747 Freighters accommodate 10-foot-high (3.1-meter) pallets, providing operators with maximum flexibility.

The 747-400 BCF has positions for 30 cargo pallets on the main deck -- comparable volume to that of a new 747-400 Freighter. It is also capable of seating up to 19 people, an option found on no other converted freighter.

Boeing freighters of all models comprise more than 90 percent of the total worldwide freighter lift. Boeing forecasts that large widebody freighters (65 metric tons and above in capacity) will comprise 31 percent of the market by 2023.

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