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The Wall Street Transcript Publishes Airline Stocks Report in

                         ING Barings
              Global Transportation & Logistics Conference Issue

NEW YORK, March 21 /PRNewswire/ -- Three leading analysts and sixteen members of top management examine the Global Transportation & Logistics sectors in this special 72-page ING Barings Global Transportation & Logistics Conference Issue available at or by calling The Wall Street Transcript (212-952-7433).

In a vital review of this sector for investors and industry professionals, this 72-page issue features:

1) Airline Stocks -- In an in-depth Analyst Interview (4,800 words) Raymond Neidl, Director and Equity Research Analyst at ING Barings, discusses performance of airline stocks in 1999, the major concerns for the industry in 2000, niche company stocks and offers specific stock recommendations.

Neidl comments on the performance of airline stocks in 1999: "In 1999 airline stocks began getting softer a little bit earlier than usual, in late April, because the airlines started bringing on a lot of new capacity for the summer season."

Neidl declares, "Southwest (NYSE: LUV) thinks it will exceed 25% in 2000. As automation grows, it will create big economies of scale for the airlines. Eventually the airlines are not only going to use the carrot, but they're going to introduce the stick. Delta (NYSE: DAL) tried that already; it didn't work, but there are ways that it can be introduced where you'll see airlines increasingly putting penalties on people who don't use the Internet or a Web site for e-tickets."

Neidl remarks on the move of many airlines to make coach seating more comfortable, "It will reduce capacity in the industry when American gets all the seats reconfigured. They're going to eliminate 7,200 seats from their fleet, equaling about 6.4% of their seats. Basically American (NYSE: AMR) was planning on growing their ASMs this year by about 3%. I think this is a positive for the industry. Now, American was reacting to a program that United (NYSE: UAL) had put in, where they were increasing the seating pitch in the front of their coach section, and trying to assign their frequent fliers and their full-fare passengers to that. American decided not to go that route because it would be just too complicated, and would result in hurt feelings if one coach passenger was given more space and another coach passenger less."

Neidl states, "I just changed my recommendation to a strong buy on AMR, because they will be spinning Sabre (NYSE: TSG) off in March. And right now I think buying AMR stock would be a cheap way of buying Sabre stock for its future growth potential."

Neidl continues, "I still have a strong buy on Alaska (NYSE: ALK) pretty much for the same reason I have a strong buy on Southwest Airlines. These are two, you might say, niche carriers, but they're good-sized niche carriers, particularly Southwest. So I think that airports all over the country are clamoring for the service, and the only limits on their growth right now are how fast they can obtain and integrate new aircraft into their fleet."

Neidl also states, "American Airlines just initiated a marketing agreement. They can't do a code share because of a scope clause in their pilots' contract that does not permit domestic code sharing. Both Northwest Airlines (Nasdaq: NWAC) and Continental (NYSE: CAL) are also flowing traffic across the Alaska Air system."

Speaking about small carriers, Neidl cites Amtran (Nasdaq: AMTR), which "is a high-growth situation because they've got a basic franchise with their charter business, which is how the carrier started, and with their military business. This is a low-margin business, but it tends to be a more stable type of business for them because it's on contract. Amtran has a niche in Indianapolis, where they started out, and particularly at Midway Airport in Chicago."

Neidl adds, "Basically Kitty Hawk (Nasdaq: KTTY) was a small freight carrier operating B727s, very well run with lots of good controls. Overnight they quadrupled their size by buying American International Airways, an airline that was growing rapidly and had a good franchise but didn't have adequate management controls, financial budgeting, or forecasting. Kitty Hawk has had to bring on new management that is broader-based, has had to restructure the company, has had to restructure the fleet, has had to do a lot of things to get this big, undermanaged company in shape. I think it's shaping up now."

"Atlas (NYSE: CGO), on the other hand, is a strong ACMI company. They supply the plane, the crew, the insurance, and they do the maintenance, and a third party contracts out for their services. Atlas Air is a true growth story. It appears it can continue to grow, and we're looking for growth of 20% plus a year," Neidl says.

This 72-page ING Barings Issue also features:

2) Outlook for Transportation -- In an in-depth Analyst Interview (4,800 words), Douglas Rockel, Managing Director with ING Barings, discusses the impact of e-commerce on air freight companies, the express overnight package market and the progress achieved by the railroad industry with their mergers.

3) Maritime Stocks -- In an in-depth Analyst Interview (4,700 words), Stephen Gengaro, Vice President and Equity Research Analyst covering the Maritime and Oil Services Industries at ING Barings discusses the impact of rising fuel costs, aging fleets and the ramifications of the Erika oil spill.

4) CEO Interviews. Members of top management from sixteen Global Transportation & Logistics firms examine the outlook for their firm and the sector. Firms interviewed:

American Freightways, America West Holdings, Atlas Air, Celadon Group, Delta Air Lines, Frontier Airlines, Kansas City Southern Railway, Kirby Corporation, Kitty Hawk, Inc., Marine Transport Corporation, OMI Corporation, Southwest Airlines, Stolt-Nielsen, S.A.,, Teekay Shipping, United Shipping & Technology.

To obtain a copy of this insightful 72-page issue call 212-952-7433 or see http://www/twst/com/info71.htm.

The Wall Street Transcript is a premier weekly investment publication interviewing market professionals for serious investors for over 36 years. Available at TWST Online provides more than 1400 free Interview excerpts. For recent recommendations by analysts and money managers visit

Do a free search of the TWST Archives at

The Wall Street Transcript does not endorse the views of any interviewee nor does it make stock recommendations.

SOURCE The Wall Street Transcript

    -0-                             03/21/2000
    /CONTACT:  Peter McLaughlin of The Wall Street Transcript, 212-952-7433/
    /Web site:

CO:  Wall Street Transcript
ST:  Connecticut

-0- Mar/21/2000   11:17
EOS   (PRN)    Mar/21/2000    11:17       85
-0- (PRN) Mar/21/2000   11:32

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