Ramon Lopez/WASHINGTON DC
WORLD AIRWAYS is departing entirely from scheduled-airline operations, having already decided to phase out unprofitable scheduled charter flights to Europe. The US carrier now says that it is terminating scheduled flights from New York to Tel Aviv and Johannesburg.
World Airways will operate the Tel Aviv and Johannesburg routes for 23 August and 3 September: after that, Trans World Airlines, Tower and South African Airways will honour valid World tickets.
The decision was made as the airline reported a second-quarter net loss of $14 million, compared to net earnings of $11 million in the same period a year ago. The company reports a net loss of $22 million through to 30 June, compared to net earnings of $7 million for the first six months of 1995. World's strategy is to concentrate on its wet-lease and US military-charter "core" businesses. Wet leases are in place with Asiana, Malaysia Airlines and Philippine Airlines, and World expects to win more charter work from the Pentagon.
World Corp owns nearly 60% of the airline, and workers may be offered a stake in the air carrier as the parent looks for options to sell out. Malaysian investors hold the remainder of the airline's shares.
Source: Flight International
