Los Angeles, CA - Monday, June 22, 2009 - This morning Slipstream Airways announced the finalization of a trade deal with Pacific West Airways.  The arrangement involves the trade of Slipstream's fleet of seven Boeing 717-200 aircraft in exchange for four Boeing 767-300ER aircraft.  An undisclosed financial aspect of the deal has also been completed and will be announced to stock holders later this week.

"This is an arrangement that works well for both airlines and complements the growth plan of each very well," stated Slipstream CEO Bobby Allison.  "Because the production line of 717's ceased some time ago, it has always been in our plan to replace these airframes.  While the rest of our specific airframe fleet continues to grow, the 717 fleet has been left behind.  Pacific West on the other hand, has a large and healthy fleet of 717's and this will complement them very well."  Because the 717 is not being produced any more, there are limited options for procuring more, and most major 717 user airlines have to rely on acquiring modest batches from other airlines, as is the case here.

"Slipstream is also benefiting from this deal," Allison continued.  Slipstream is looking to expand its fleet of 767-300ER aircraft for long range domestic and international ops in the 250-seat market.  Additional acquistions directly from Boeing have been hinted, but not publicly discussed.  

Senior Vice President for Operations, Chris Comeau, added "it was never our intention to hold onto the 717's for very long.  But it is quite sad in many way to see them go.  They were part of the start-up of this airline."  Mr. Comeau continued, "our plan is to replace those 717's with 737-500 aircraft.  With our current fleet of the -500 model, this is a definite plus from a maintenance standpoint.  Fleet commonality is what airlines strive for in order to save on maintenance costs, and that is where we are succeeding.  Efficiency is the name of the game in today's airline market."  Slipstream officials noted that this would be their final pull of mothballed 737-500 aircraft, acquired previously from the former version of PWA.  In all, 13 aircraft will be pulled, seven will be for a one-to-one exchange of the 717's on current routes, and an additional 6 to supplement the fleet at each hub.  "This is our last pull from the mothballed aircraft.  The aircraft are in excellent condition, all are manufactured in 1995, unfortunately, we have no more left to pull."

The seven Boeing 717-200 aircraft will be handed over to Pacific West Airways on June 29th and 30th.  The Boeing 737-500's have already undergone modifications some time ago, so there will be minimal work left in order to replace the 717's on current routes.  Slipstream is taking possession of the 767's this week, and after repainting and interior re-design, the aircraft will begins operations in mid-to-late July.

Near the end of the announcement, Mr. Allison hinted that there will be more exciting announcements about the future of the airline later this week and next.  So stay tuned!

The Boeing 717-200 will not be leaving Slipstream Airways all together.  The aircraft will join the airline's heritage fleet.




About Slipstream Virtual Airways
Home officed in Los Angeles, California, Slipstream Airways commenced commercial operations in July 2006 with 3 Boeing 717-200's and 11 Boeing 737-700's.  Slipstream's goal is to give pilots a realistic approach in a virtual world with an operational plan to grow like a real-world airline.  Today Slipstream Airways currently operates hubs in Atlanta, Los Angeles and Chicago, and services 77 destinations across North and South America, Europe, Australia and Asia Pacific with a fleet of 142 Embraer and Boeing aircraft.  Slipstream Global Logistics, a cargo division of Slipstream Airways, serves 36 international destinations with a fleet of four B747-400F, four MD-11F and one MD-11C aircraft.

Questions about the above press release can be directed to: Public.Relations@SlipstreamAirways.com
http://www.slipstreamairways.com