Struggling Reno Air discontinues Atlanta service

Tuesday, May 26, 1998 | 9:36 a.m.

"We do not have a lot going right at the moment ... We still occupy a very precarious position," Joseph O'Gorman acknowledged at the meeting Friday at the Reno Hilton.

At the same time, he announced the elimination of Reno Air's nonstop service between Reno and Atlanta beginning July 7.

Since assuming his post in February, O'Gorman has cut service to four other cities and slashed the workforce by 15 percent in an effort to help restore profitability.

Also at Friday's meeting, O'Gorman did not rule out a sale of the struggling airline, saying he would do what's best for shareholders.

He said he's also talking with several carriers, including Raleigh-Durham, N.C.-based Midway Airlines, about possible alliances that could broaden Reno Air's appeal.

The low-fare, Reno-based carrier reported first-quarter losses of $8.6 million and 1997 losses of $12.3 million, its first money-losing year since 1994. It began service in 1992.

It faces what O'Gorman calls "troublesome" competition when Shuttle by United enters Reno Air's key San Jose, Calif., hub on Sept. 9.