Air Transport World

Raking in the big bucks. (regional airlines are making more money than major airlines and their executives are being paid more) (Industry Overview)

While the major airlines wallow in red ink, some regional carriers are doing very well. And, so are their executives.

Want specifics? The U.S. major airlines posted a $793 million net loss for the second quarter. Conversely, some U.S. regional carriers are Posting near-record profits. While one group nee4s a tourniquet, the other deserves medal.

The most able U.S. regional airline today: Connection Atlantic southeast Airlines (ASA), an Atlanta-based carrier that has had a string of profitable quarters. For 1991, ASA posted a record 31,.5 million profit. For the quarter ended June 30, it posted net income of $9.73 million on revenues of $57.55 million.

Another Delta Connection, Comair, saw 1991 earnings climb to $12.4 million. For this year's first quarter, it reported net income of $2.4 million. Big brother Delta's net loss for 1991 was $239.5 million. It lost $180.2 million in the second quarter on $2.8 billion in revenues.

ASA also can boast a record of sorts in executive compensation among regional airlines. Cash compensation for its co-founder and president, George Pickett, and Senior VP-Sales John Beiser for 1991 amounted to $315,000 and $307,000, respectively, which is 26% more than they earned in 1989, according to the airline's latest proxy statement. Their income also included stock options of $871,500 and

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