ROANOKE TIMES
Copyright (c) 1996, Roanoke Times
DATE: Tuesday, October 1, 1996 TAG: 9610010068
SECTION: BUSINESS PAGE: B-8 EDITION: METRO
DATELINE: ON BOARD VALUJET FLIGHT NO. 6
SOURCE: Bloomberg Business News
CONCOURSE C in Hartsfield Atlanta Airport was filled with the sound of jazz and colorful balloons.
ValuJet Inc. resumed service Monday, on a flight marked by pomp, the requisite on-board trivia question and a jazz band playing ``Happy Days Are Here Again.''
It may be a while before happy days truly are back at the discount airline, which faces increased competition and continued scrutiny from federal regulators in the wake of a fatal May crash and subsequent shutdown.
Amid the balloons and the politicians and the blaring music, there's little question who ValuJet's biggest nemesis is: Delta Air Lines Inc., whose jets sandwiched ValuJet Flight No. 6 Monday afternoon on the runway at Hartsfield Atlanta International Airport.
Delta launches its own discount airline this week. Called Delta Express, the airline matched ValuJet's initial fare offerings of $19 for trips servicing Florida.
``They cannot make money at $19,'' ValuJet President Lewis Jordan said.
Of course, ValuJet, which is raising its fares on Thursday, can't either.
Still, after spending the last three months awaiting approval to fly, ValuJet's outlook is brighter.
The low-fare airline said flight bookings are at record levels as it offers service to three Florida cities, Atlanta, and Washington, D.C.
And, more good news could come this week, when ValuJet is expected to announce an agreement to sell eight of its planes, four MD-80s and four DC-9-21s, according to Robert Priddy, ValuJet's chairman.
That would help the airline replenish its cash reserves, which stood at $254 million before the crash but are estimated at less than $175 million now.
Shares of ValuJet rose 61/4 cents to $12.061/4 on volume of 5.06 million shares, more than four times the three-month daily average.
Before Flight No. 6 took off, ValuJet entertained passengers and employees with the red-coated Bourbon Street Jazz Band as well as coffee and doughnuts. The festive atmosphere in Concourse C was a stark contrast to the silence that followed the airline's shutdown.
Jordan walked up and down the concourse like a skilled politician, shaking hands and hugging employees. Every move was recorded by news photographers and reporters, a group Jordan has criticized in the past for giving the airline a negative image.
ValuJet highlighted an Atlanta man who sent Jordan a $200 check after the shutdown to buy a seat when ValuJet restarted. Jordan gave him the check back today.
``Now that I got the check back, I need to invest it in ValuJet stock,'' said a beaming Buddy Heath.
Heath might want to heed the advice of analysts who said that ValuJet isn't likely to report a profit for the next several quarters.
Flight No. 6 took off about 30 minutes late, which wouldn't have surprised veteran ValuJet customers; the airline often had delayed flights before the crash.
Passenger John Covin waited on hold for 30 minutes to book the flight to Washington. Before the plane took off, he sat away from the festivities, holding boarding pass number 23.
ValuJet will need a lot of passengers like Covin if it hopes to make its second try at being an airline a success.
``I hadn't flown since they had the incident last May,'' Covin said. ``But I decided to give it another chance.''
LENGTH: Medium: 70 linesby CNB