Alas Aviation Demonstrates Corporacion Ygnus Air S.A. ("Cygnus") Historic 3 Year Operating Cash Flow From Contracts Exceeds $23

 Alas Aviation Demonstrates Corporacion Ygnus Air S.A. ("Cygnus") Historic 3
         Year Operating Cash Flow From Contracts Exceeds $23 Million

PR Newswire

SNELLVILLE, Ga., Sept. 4, 2013

SNELLVILLE, Ga., Sept. 4, 2013 /PRNewswire/ --Alas Aviation Corp., (OTCQB:
ALAS), a niche operator of air cargo and related ground service operators
through its operating subsidiary Corporacion Ygnus Air, S.A. ("Cygnus"), today
announced that Cygnus, the subject of a share exchange agreement between Air
Transport Group ("ATG"), Arnold Leonora and Alas Aviation ("ALAS"), would have
generated over $23 million in adjusted EBITDA for calendar years 2010 through
2012 had it not incurred over $18 million in certain non-recurring costs, and
forecasts over $6 million in EBITDA from ongoing contracts for calendar year
2013. Cygnus incurred over $18 million in costs for idled and inoperative
aircraft under former ownership between 2010 to 2013 which Alas believes were
fully preventable and distort the true profitability of its core service
contracts.

(Logo: http://photos.prnewswire.com/prnh/20130904/CL73788LOGO )

Acquired by Arnold Leonora and his ATG in early 2013, Cygnus' former owners
experienced challenges with the air cargo company based in Madrid, Spain
resulting from poorly structured client service contracts which allowed for
easy, quick and inexpensive service contract termination by clients and
unusual maintenance difficulties with a McDonnell Douglas DC-8 financed
through Banesto and placed into service on Wet Lease contract with Iberia
Airlines in 2009.

Cygnus' air cargo business depends on procuring (generally under capital or
operating leases) and operating cargo aircraft in the service of larger cargo
operators, particularly Iberia Airlines and TNT Express. The DC-8 experienced
unusual maintenance problems forcing its withdrawal from service (and ending
its ability to generate revenue) but not eliminating Cygnus' financial
obligations to Banesto causing losses of more than $4.6 million from 2010 to
2013. Leonora and his Alas team believe Cygnus would never have incurred
these losses with properly structured contracts and proper preventive
maintenance programs.

Cygnus suffered even greater preventable losses on two Boeing 767 aircraft
leased from Guggenheim Aviation Partners placed into service under a Wet Lease
contract with TNT in 2011which was canceled after only four months of
service. Over $14.2 million in lease payments, maintenance and penalty costs
were paid by Cygnus from 2011 to 2013 while these planes sat idle generating
little or no revenue before being returned to Guggenheim.

After segregating out the above costs, adjusted Cygnus EBITDA from ongoing
ordinary operations (unaudited) was $9.2 million for 2010, $6.8 million for
2011, $7 million for 2012 and is forecast for 2013 at $6.8 million.

Also, Grupo ACS subsidiary Imesapi S.A., Cygnus' former majority shareholder,
granted Leonora and ATG a 90 day extension, to October 31, 2013, to complete
the refinancing of Cygnus debt which is a key component of Leonora's
acquisition of the business. In what Alas believes is a strong show of support
for their vision and operating plan for the company, Imesapi S.A. also
provided Cygnus with a $500,000 bridge credit facility for use during the
refinancing period.

"We believe the combination of stronger contracts with customers and the
ability to quickly redeploy off-contract aircraft should keep any aircraft
from ever sitting idle while still subject to lease payment obligations," said
Arnold Leonora, CEO of Alas Aviation Corp. "Moreover, the recent allocation by
Imesapi S.A., of $500,000 to Alas in support of our recent acquisition of
Cygnus, along with the extension on the deadline to complete the refinancing
of the old Cygnus debt granted to us through October, 31, 2013, we believe,
are both significant demonstrations of their belief in the promising future of
Cygnus and Alas together. We remain steadfast in our determination to close
the transaction out of escrow within the revised time frame," he continued.

About ALAS Aviation Corporation
ALAS Aviation Corp. (ALAS) is a niche operator of air cargo and related ground
service operators through its sole operating subsidiary Corporacion Ygnus Air,
S.A. ("Cygnus"). Cygnus operates two Boeing 757-200 cargo jets under Wet Lease
(Aircraft Crew Maintenance Insurance or "ACMI") contracts with Iberia
Airlines and TNT Express out of Madrid, Spain and Liege, Belgium. ALAS seeks
to maximize shareholder value through organic growth and strategic
acquisitions both regionally and globally.

Safe Harbor Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, and such forward-looking
statements are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. You are cautioned that such
statements are subject to a multitude of risks and uncertainties that could
cause future circumstances, events or results to differ materially from those
projected in the forward-looking statements as a result of various factors and
other risks, including those set forth in the Company's current reports filed
with the Securities and Exchange Commission. You should consider these factors
in evaluating the forward-looking statements included herein, and not place
undue reliance on such statements. The forward-looking statements in this
release are made as of the date hereof and the Company undertakes no
obligation to update such statements.

Contact Information
Investor Relations:
Scott Gordon
President
CorProminence LLC
377 Oak Street
Concourse 2
Garden City, NY 11530
631 703 4900 (Mobile)
516 222 2560 (Office)
scottg@corprominence.com
www.corprominence.com

Corporate:
Alas Aviation Corporation
4002 Highway 78
Suite 530-324
Snellville, GA 30039
telephone: +1 (404) 891-1118
E-mail Alas: info@flywithalas.com
Website: www.flywithalas.com

SOURCE Alas Aviation Corporation

Website: http://www.flywithalas.com
 
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