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Viva to Seek Interim Operating Agreement With RegionsAir

Posted on: Monday, 10 October 2005, 09:00 CDT

Viva International, Inc. (VIVI.OB) announced today that pursuant to its plans to acquire RegionsAir as previously announced on October 7, 2005, that it will seek an interim operating agreement allowing Viva to integrate its Caribbean air service operations with RegionsAir in advance of closing.

Established in 1996, RegionsAir, formerly Corporate Airlines, Inc. is a regional air carrier that provides commuter air service to small-and-medium sized communities in the Southeast and Midwest. RegionsAir operates turboprop commuters as "American Connection" in a number of markets under an operational agreement with American Airlines (NSYE:AMR).

Robert Scott, Chairman of Viva, commented, "Viva and RegionsAir by their mutual consents have decided to accelerate the operational focus of RegionsAir to transition its operations into the Caribbean to become the operator for Viva Air Dominicana, S.A. Both parties are anxious to begin working together and it is only natural that we will seek an interim operating agreement to commence our involvement in daily air operations. Under our proposal and interim operating agreement, RegionsAir would continue to operate as they have and all personnel would continue their present roles and responsibilities. As we have previously stated, we are pleased to be able to bring Regions into the Viva family of companies and look forward to the dynamics and synergies of this new relationship. We expect to be able to formally announce execution of an interim operating agreement within days."

RegionsAir provides air service to (11) area cities in Missouri, Iowa, Illinois, Indiana, Kentucky and Tennessee from hubs in St. Louis and Nashville in conjunction with an air service restoration program subsidized by the federal government. The Federal program is referred to as Essential Air Services and provides for financial guarantees and support for certain flights and routes making the Company self-sustaining while offering a solid platform for Viva's beneficial Caribbean markets. An explanation of the Essential Air Service Program is described below.

Essential Air Service

In 1978, when the Airline Deregulation Act (ADA) was enacted, 746 communities in the United States and its territories were listed on air carrier certificates issued under section 401 of the Federal Aviation Act of 1958. Before deregulation, air carriers' operating certificates for most of these communities required carriers to schedule and provide two daily round trips at each point on their certificates.

During the pre-ADA debates, the prospect of allowing carriers to terminate scheduled service without prior Government approval raised concern that communities with relatively lower traffic levels would lose service entirely as carriers shifted their operations to larger, potentially more lucrative markets. To address this concern, Congress added section 419 to the Federal Aviation Act, which established the Essential Air Service program, which today is administered by the Department of Transportation (DOT), to ensure that smaller communities would retain a link to the national air transportation system, with Federal subsidy where necessary..

Under this program, the Department determines the minimum level of service required at each eligible community by specifying a hub through which the community is linked to the national network, a minimum number of round trips and available seats that must be provided to that hub, certain characteristics of the aircraft to be used, and the maximum permissible number of intermediate stops to the hub.

About Viva International

Viva International, Inc. ("VIVA") is a publicly traded holding entity (VIVI.OB) that specializes in acquisition and development of undervalued commercial airlines and aviation outsourcing companies, collectively referred to as "VIVA." The Company's strategy is to develop a network of airline operations and subsidiary partners to collaborate in maintaining route structures in "niche" markets domestically and internationally. Viva's group of companies provides high quality products and services to the air travel industry with a heavy emphasis on the Caribbean market. VIVA is headquartered in Traverse City, Michigan, including airline operations in Smyrna (Nashville), Tennessee, Santo Domingo, Dominican Republic and San Juan, Puerto Rico.

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 Commission.

Source: Business Wire

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