* Over $1.25 Million Annually in Recent Cost Efficiencies
* Further Cost Trimming Actions Expected
RENO, Nev., Nov. 13 /PRNewswire/ -- Reno Air, Inc.
(Nasdaq: RENO; PCX), today announced the selection of Corporate Lodging
Consultants to manage its contract for crew hotels at a projected annual
savings of $250,000.
This is the latest move in a sequence of cost-efficiency measures taken by
Reno Air to lower its operating costs. The significant reduction in unit
costs have recently contributed to record earnings.
Earlier this year, Reno Air and Sprint worked cooperatively to reduce Reno
Air's telecommunications charge by $500,000 annually. The company also
consolidated facilities and restructured office service agreements yielding
additional annual savings of $500,000.
"We will continue to reward vendors who share our mutual goal of lowering
costs," said Vice President of Administration, Vicki Bretthauer.
As previously announced, the consolidation of the Reno reservations center
into the Las Vegas reservations center will save the company $1.1 million per
year.
Reno Air's maintenance team expects to reduce engine repair invoices by at
least 3% by re-bidding engine overhaul contracts and other cost reduction
measures. As a result of these measures, the company projects a reduction of
almost 12% in JT8D-219 engine operating costs. "We're managing our
maintenance processes more efficiently, while we continue to maintain the
highest standards of safety," said Reno Air Senior Vice President of
Operations, Bev Grear.
Reno Air will also implement a new computer system in the first quarter of
1999 to optimize inventory provisioning, vendor monitoring, and reliability
analysis.
Reno Air currently serves 16 cities with more than 180 daily scheduled
departures. Customers are offered advance seat assignments in first and coach
class, American Airlines AAdvantage Miles, "EZtrip" ticket-less travel, and
full participation in all major computer reservations systems. Reno Air also
has codeshare agreements with American Eagle, Hawaiian Airlines, Qantas
Airways, Canadian Airlines, and Midwest Express Airlines in early 1999.
SOURCE Reno Air, Inc.
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Related links:
http://www.renoair.com
Company News On-Call:
http://www.prnewswire.com/comp/740075.html or fax,
800-758-5804, ext. 740075
CONTACT:
Joanne Smith, 702-954-5023, or Nancy Raymond,
702-954-5000, ext. 4327, both of Reno Air
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