Auxer (VIVA) to Acquire Wide Body Aircraft

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Art2Gecko

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Apr 1, 2003
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Auxer to Acquire Wide Body Aircraft
Monday April 14, 11:22 am ET


TRAVERSE CITY, Mich.--(BUSINESS WIRE)--April 14, 2003--THE AUXER GROUP, INC. (OTCBB: AXGI - News) announced today it has signed a Letter of Intent and to purchase, One (1) Lockheed L1011-385-50 wide-body passenger aircraft (Mfg. Serial Numbers 193C-1066 current registry 3D-NEG), 2 spare Rolls Royce RB211 engines and associated spares from TRISTAR CAPITAL LLC of Carson City, Nevada.
This is the first of 3 planned wide-body aircraft planned for acquisition by Auxer.

This L1011 aircraft was formerly operated by Trans World Airlines ("TWA") and has recently undergone a heavy maintenance work package, strip and repaint, avionics upgrades and interior reconfiguration/modifications to seat 300 (28 in Business Class and 272 in Economy Class) at HAMILTON AEROSPACE TECHNOLOGIES in Tucson, Arizona. The work included updates to the avionics, fresh custom paint, and recertification of all safety and over water equipment and interior refurbishment. The maintenance work package and revitalization of the aircraft took TRISTAR CAPITAL LLC about 120 days.

The subject L1011 is a DASH 50 with a 450,000-pound in the gross take off weight that give the aircraft about 7 hours.

Robert J. Scott, Auxer's President and CEO stated, "This aircraft acquisition is planned for our Viva subsidiary and indicates that our business plan is requiring larger aircraft and seating capacity. We also intended to have this aircraft operated and managed by Tropical International Airways of St. Kitts and Nevis.

Forward-looking statements in this news release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve statements involve risks and uncertainties, including, without limitation, continued acceptance of the company's products, compensation, competition, new products, and technological changes, intellectual property rights and other risks.



--------------------------------------------------------------------------------
Contact:
The Auxer Group, Inc.
Robert J. Scott, 231/943-4343
Fax: 231/943-3492


http://biz.yahoo.com/bw/030414/145589_1.html


Anybody know "Tropical International Airways"??
 
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Porfio_Rubirosa

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Apr 26, 2002
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Airline or Museum?

L10-11?!?! Will they be running an airline or an aviation museum?!?!

Then again, if the cost of jet fuel falls by 50%, the acquisition will look brilliant. Yea, that'll happen real soon.
 
carlos

carlos

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May 29, 2002
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I have to agree with Porfio on this one.

I mean, I know they buy this plane at a much cheaper rate than buying a new one but eventually it will catch up to you.

Fuel costs is gonna kill them.
 
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Porfio_Rubirosa

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Apr 26, 2002
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The ironic thing is that there are plenty of planes sitting around doing nothing right now as a result of the economy and airline bankruptcies, including A-300s, 757s and 767s, all of which are more fuel efficient and have lower maintenance costs than a circa 1970 L1011. Heck, if you want to lease a 757, GE Capital will give it to you today for less than the ongoing cost of their depreciation - just to cut their losses.
 
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GRS

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Jan 2, 2002
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no comments

I think this is Pan Am IV

Oh wait, this is Viva....

Hummm....Who wants to bet on how long they will survive, if they EVER get off the ground..
 
carlos

carlos

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thier whole business philosophy is out of the ordinary.

I mean just look back and see how they constantly change what they want to do. It makes me wonder how do they find these honchos come up with these strategies.

Maybe they know something we don't.


It is interesting what you mentioned about leasing these unused planes. Why out of all planes did they choose the Lockheed? it just does not make sense

I know it is going to hold 300 pax but still.....oh man.
 
G

GRS

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Jan 2, 2002
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300 pax

You are going to have 300 angry pax when the L 1011 gets delayed because of mechanical reasons. Have you ever heard of an airline called Chile Inter? They used to fly 1011's to Punta Cana on Charter Basis.. I used to call it flight from hell! They had always a mechanic on board, the APU never worked, etc.

Yes, they could have bought it for 500,000 dollars, but look at the history of the airplane, is price goes first than safety? What routes are going to be used by this airplanes? I doesn't sound convincing!
 
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Stanley Joaqu?n

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Jan 1, 2002
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yes Tropical international is a St Kitts airlines in the east caribbean.

no confunce Tropical Airways D Haiti. this is part of SAP GROUP.
 
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Latino2002

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Jan 1, 2002
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L10-11...The Tristart.....lol

We used to call it tri-tanic...also very dificult to find Parts for this aircradt....at Jetbase they use to make they own parts for this type of Aircraft
 
A

avionics

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Jan 24, 2003
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L-1011

Is Air Transat (Montreal) still flying the L-1011 for their Vacation Packages? I believe they were very profitable doing this...
 
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GRS

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Jan 2, 2002
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Yes

They are still flying that airplane...Is the airplane profitable? I don't know.
 
G

GRS

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no, they don't

They use the aircraft for normal operations, and it has been scheduled to fly for the whole season. It is not a backup aircraft as you say. Look at their itineraries.
 
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latinaviation

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Even if they can operate it with lower costs, it's not comparable to make a comparison between ATA and Air Transat to Viva. Viva hasn't even begun operations and they have no experience operating the L-1011. This could significantly increase their costs well about their planned 10 cent ASM pattern.

AA, CO, US all have higher costs; however, how often do they take a mechanical? And, they have a network to spread those costs over. Viva take a major mechanical cancelation or an engine replacement and that will burden their cost structure. Moreover, they'll only have selected routes to spread these out of period costs, routes that might be in turn affected because of the aircraft outage.

Separately, the company they purchased their L-1011 from is related to a company in Miami that's involved in Northeast Airlines of Swaziland (www.neairlines.com). Just a side bar.
 
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