Iraq boosts profits at World Airways (One Pentagon Contract at a time)

[Tom Yossarian Joad]

http://cbs.marketwatch.com/news/story.asp?guid={D5CEDB08-102E-4FAE-9D8E-0FC58EB6987A}&symb=WLDA&sid=15453&siteid=NYT&dist=NYT&osymb=WLDA

For the eunrepentaneurs,stock junkies and war profiteers among us...

The little-known specialty carrier was the first private U.S. airline to fly into Baghdad after the invasion, delivering $6 million in medical supplies. Its pilots made a similar foray into Kabul, Afghanistan hot on the heels of air strikes aimed at the Taliban.

While traditional U.S. airlines grapple with bankruptcy and mounting losses, 56-year-old World Airways' fortunes kept improving in the past two weeks as it signed a contract worth at least $94 million with the Air Force and a $23 million deal with Lufthansa Cargo Charter.

After losing $43 million from 1999 to 2001, World Airways (WLDA: news, chart, profile) is poised to post a full-year profit for a third consecutive year. "World events have played into our strength," company CEO Randy Martinez said.

As the largest private mover of U.S. troops, World's fleet of 16 wide-body planes is making several trips daily to the Middle East, shuttling U.S. armed forces back to the states and elsewhere, according to Martinez, a retired Air Force Colonel.

Peachtree City, Ga.-based World Airways gets 80 percent of its revenue from the U.S. military. Because of this, the company has dodged the financial bullet of skyrocketing jet fuel prices bringing down other airlines, with the government absorbing about 95 percent of the cost.

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[MaineDem]

1. Hmmmm, I thought World Airways was long defunct

I can't remember how many times I flew out of Logan in Boston and had to taxi by the wreckage of the World Airways plane that went off the end of the runway and broke in two. They left that there for ages.

[Tom Yossarian Joad]

2. Looks like they decided to gamble on the "Gubberment"

How can I get a deal where W will pay for 90% of my fuel costs?

[Neecy]

3. nope

World discontinued their scheduled service in 1986 (and fired most of their employees, including me) but their charter business kept going. Interestingly enough, one of their main sources of business for many years has been taking pilgrims to Saudi Arabia for the Haj.

I'm not surprised by this. World shuttled troops to Vietnam for most of that war, and they've always had good contacts in the Pentagon. I feel bad for their flight crews, many of whom I know. World is putting them right into the line of fire with the Baghdad run in order to make thier huge current profits, and with the current state of the industry, there aren't a lot of other places for those guys to go.