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[Gene-discuss] VIVI Receives DOT Approval


From: SmallCap News
Subject: [Gene-discuss] VIVI Receives DOT Approval
Date: Wed, 30 Mar 2005 18:57:44 -0500
Date: Wed, 30 Mar 2005 18:57:44 -0500

Viva International has been embarking on a monumental task for quite some time and with today’s PR now it appears that they are on the verge of achieving their intended goal.

As you all know here certainly hasn't been a shortage of fans as shares of the company hit a high of $0.76 per share on some serious volume before settling down in the $0.20-$0.40 range. In the very near future perhaps in less than a month, the company's inaugural flight may be taking place.

VIVI announced today that they have received DOT (Department of Transportation) approval for Eastern Caribbean Air Corporation (EC AIR), Vivi’s wholly owned subsidiary (Press Release Below).

Also announced this week television commercials for Viva International are on schedule to hit Bloomberg Television, Cable & Satellite Network between April 4th and April 15th. Approximately 70 to 80 air time spots are planned. We imagine these commercials are being done because flights will be available for sale very soon. Shares of VIVI closed the day at $0.28? per share on above average volume

Looking at the chart there is major support at the 200 day moving average (DMA) of $0.17 per share. On the resistance side there appears to be little in the way of the stock all the way to the $0.38-$0.40 level.

VIVA’S SUBSIDARY RECEIVES DOT APPROVAL

Miami, FL. --- (BUSINESS WIRE) --- March 31, 2005 --- Viva International, Inc. (OTCBB: VIVI) announced today that Eastern Caribbean Air Corporation (EC AIR), its wholly owned subsidiary, has received DOT approval to operate.

In February 2005, Viva incorporated EC AIR and subsequently acquired/merged with Cool Tours, Inc. d/b/a San Juan Aviation, a FAR Part 135 Charter Air Carrier in San Juan, Puerto Rico.

To further Viva’s Puerto Rican operation, EC AIR, after the acquisition date, accelerated the process of filing the appropriate documentation with the DOT for approval to fly under the name EC AIR. The approval from the DOT allows EC AIR to begin operations immediately as Cool Tours, Inc. d/b/a Eastern Caribbean Air using its trade name EC AIR.

Pier Bjorklund, a project consultant for Viva stated, “Our primary purpose for acquiring Cool Tours, Inc. was to be able to provide air service for local Puerto Rican demands while obtaining a means of offering operational support to our Dominican operations through Viva Air Dominicana, S.A. The integration process, although an exhaustive effort, is proceeding as planned. We feel that the Puerto Rican market has the potential to be our largest source of passengers for traffic to and from the Dominican Republic as well as for movement throughout the Caribbean. While pleased with the DOT approval allowing charter service under the EC AIR, we will continue our diligent efforts to advance our ability and the value of our licensing and economic rights by continuing our application to seek the ability to offer scheduled charter operations”.
Over the past 20 years, the majors have been characterized by mergers and acquisitions. Like so many other industries, it has quickly evolved into major "fish" in a "small" pond. Initially, smaller players gave way to competition and consolidation. However, since the tragic days of 9/11/2001, the majors have experienced "seriously" diminishing air travelers and have found themselves in a harder position to compete in the marketplace. In addition, smaller "specialty" or "niche" participants such as Southwest Airlines (LUV) and JetBlue (JBLU) have had major success offering "low cost" more "customer service" oriented traveling experience.

As a result, two specialty segments, "priceniche" and "route niche", have been exploited by new entrants to the market. The "price niche" focuses on charging less while the "route niche" centers on providing either the only service between two given points or else a superior, more convenient, and less costly alternative between two heavily traveled destinations. In today's marketplace, "price" positioning, by itself, is no longer a sufficient concept on which to build an airline. Since deregulation, the flying public has been inundated with low fares and in today's market such prices have become an expectation, not a promise. Thus, the true market segment opportunities have become a combination of service mixed with price and route selection. The most critical decision, therefore, to predicate airline market value and success has become that of choosing the service mix and price in conjunction with the length of route.

Viva International believes that their research has clearly demonstrated there is room in their target markets for both a long and short haul carrier that efficiently serves specific routes by leveraging new technologies and employing only route appropriate aircraft. VIVA plans to utilize these openings in the market as the centers of a profitable strategy for ticket sales, aircraft acquisition, and route development.


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