TUCSON, Ariz., Dec. 04, 2003 (PRIMEZONE) -- Renegade Venture (NEV.) Corporation (OTCBB:RDVN) today announced that it signed a renewable general terms agreement with Mesa Airlines (Nasdaq:MESA) with an initial term of one year. This new contract calls for Renegade to provide on-demand routine and non-routine maintenance on regional jet aircraft owned or operated by Mesa Airlines. Mesa is a new customer and this contract is highly significant, because it represents Renegade's entry into the fast-growing and highly profitable regional jet maintenance market.
John Sawyer, Renegade President, stated, "Renegade is a young company, and this contract is a considerable feather in our cap. In fact, it would be difficult to overstate our excitement about this contract. The bottom line is that, in a severely depressed aviation market, we are growing revenues and now expanding our core narrow-body commercial aircraft maintenance business to include commercial regional jet aircraft maintenance. The regional jet segment is adding a completely new revenue stream for us that we expect to be very profitable. We are particularly pleased to be entering into this market segment with a contract from Mesa Airlines, one of the most successful and fastest growing players in what is itself the fastest growing segment of the U.S. airline industry."
Renegade has initiated contract work by servicing an average of five Mesa aircraft per night and anticipates the number of labor hours provided to Mesa to double within 45 days. Thereafter, the maintenance services provided by Renegade to Mesa are expected to continue to increase commensurate with Mesa's expanding fleet maintenance requirements.
Mesa Airlines operates under three liveries (including its own) as well as under code-sharing agreements with America West Express (NYSE:AWA), Frontier JetExpress (Nasdaq:FRNT), United Express and US Air Express. With 151 aircraft operating to 159 cities, Mesa Airlines is one of the fastest growing airlines in the business and is one of the biggest success stories in the regional airline industry.
Mr. Sawyer added that, "We expect this contract to have a significant positive impact on both our top line and bottom line revenues from the 4th quarter 2003 through at least the 3rd quarter 2004. This new contract with Mesa Airlines is open-ended in nature and is expected to grow dramatically. Accordingly, all of us at Renegade are very focused on providing high-quality service to Mesa Airlines and growing this promising new business relationship."
About Renegade Venture
Through its Hamilton Aerospace subsidiary, Renegade provides maintenance, repair and overhaul (MRO) services for large and regional commercial jet aircraft to scheduled and charter airlines and aviation leasing companies. Hamilton Aerospace holds a Federal Aviation Administration (FAA) Part 145 Air Agency Certificate, which allows it to perform such services. Hamilton operates from facilities comprising about 21 acres located at Tucson International Airport. These facilities include hangars, workshops and other buildings. Notable Hamilton customers include Jetran International, United Parcel Service, a Boeing Company joint venture, Goodrich Corporation, DHL Worldwide Express, Pegasus Aviation, Ryan International Air, Space World, Global Peace Initiative and Falcon Air Express.
Renegade's member website is located at www.renegadeventurecorp.com. The Hamilton Aerospace website is located at www.hamaerotech.com.
Except for the historical information presented, the above statements are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 or regulations thereunder. These forward-looking statements are subject to risks and uncertainties, and actual results may differ materially. These risks include the economic health of the airline industry, demand for Hamilton Aerospace's services, competitive pricing pressures, and the availability of necessary financing. In addition, other risks are detailed in Renegade's Form 10-KSB filed on April 15, 2003. These statements speak only as of above date, and Renegade disclaims any intent or obligation to update them.