Alaska Air to Buy
Horizon SharesAlaska Air Group Inc. and Horizon Air Industries Inc. announced an agreement under which Alaska Air will buy for cash all outstanding Horizon Air common shares for $9.50 a share and all outstanding preferred shares for $12.34 a share. Total equity value of the all-cash transaction is expected to be about $68 million. The terms of the agreement were approved by both boards.
In connection with the agreement, Horizon granted Alaska Air Group an option to buy up to 2.5 million authorized but unissued shares of Horizon common at $9.50 a share, the companies said. Milton G. Kuolt II, Horizon's principal shareholder, agreed to sell his shares, which represent about 50 percent of the outstanding common stock, to Alaska Air at $9.50 a share.
The acquisition is contingent on approval by the Department of Transportation. The companies said they will request an expedited review from the DOT.
Air France Begins
NEW YORK - Air France began delivering the first of some 314 tons - over 250,000 bottles - of 1986 Beaujolais Nouveau to wine importers around the United States.
Shipments are being carried aboard the airline's scheduled 747 passenger and all-cargo flights and, in one case, on a 747 freighter chartered to fly
from the French city of Bordeaux to Chicago's O'Hare International Airport.
Nippon Cargo Seeks
Nod on Charter Service
WASHINGTON - Nippon Cargo Airlines Co. Ltd. asked the U.S. Transportation Department for authority to provide charter service for property and mail between the United States and Japan.
The all-cargo carrier now provides nine scheduled round-trip flights a week between Tokyo, San Francisco and New York city.
Comments on the petition are due Dec. 12, the department said.
Federal Express Orders
New DC-10 Tri-jet
LONG BEACH, Calif. - Federal Express Corp. ordered a new DC-10 tri-jet from McDonnell Douglas for delivery in the fall of 1987. The new aircraft, similar to other long-range DC-10-30 freighters operated by Memphis, Tenn.-based Federal, will increase the air express company's total DC-10 fleet to 23.
PHOENIX, Ariz. - StatesWest Airlines said it acquired Golden State Airlines Inc., which operates one-plane, commuter airline service between Los Angeles International Airport and John Wayne Airport in Orange County, Calif. Terms were not disclosed.
Pan Am Plans Offering
To Replenish Capital
NEW YORK - Pan American World Airways said it filed a registration statement with the Securities and Exchange Commission for a proposed public offering of $50 million secured equipment certificates due 1991 and $100 million of secured equipment certificates due 1998.
The certificates are expected to be secured by certain Boeing 747 and 727 aircraft and additional engines owned by Pan Am, the company said.
The airline said the exact terms of the offering will be determined shortly before the offering.
Pan Am said net proceeds for the sale of the secured certificates will replenish Pan Am's working capital, be used for general corporate purposes, including capital expenditures, and may ultimately be used in connection with the introduction of Airbus equipment in 1987.
American Will Open
NC Hub on June 15
DALLAS - The new American Airlines hub in Raleigh/Durham, N.C., will open on June 15, 1987 and by next September will be offering 137 flights a day to 53 designations, the airline said.
A new 15-gate, $60 million passenger terminal to house the hub is under construction at Raleigh/Durham Airport and will be completed in time for the June 1987 inaugural, the company said.
The airline's total investment to develop the hub will be about $120 million, the company said.