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Airline Seat Capacity -- Long-Haul --
to Las Vegas Declines in February

NEW YORK--Feb. 23, 1998--Average daily seat capacity to Las Vegas for long-haul airlines continues to decrease in February, according to statistics released by McCarran International Airport on Friday, Bear Stearns notes today.

Average daily seat capacity fell 2.0% this month from January 1998, and 8.8% from February 1997, to 27,587 seats. As Bear Stearns indicated last week upon initiating comprehensive coverage of air service issues in Las Vegas, there will likely be a sufficient number of gates at McCarran to accommodate demand through 2020. But airlines
are increasingly under pressure to reduce service in leisure markets such as Las Vegas, where cheaper fares limit their profitability.

Bear, Stearns believes that a lack of air seat capacity by long-haul carriers, with nonstop flights to the central and eastern U.S., could jeopardize growth in the Las Vegas visitor base sufficient to fill the 20,000 new rooms expected to open on the Strip through the year 2000. More specifically, Bear Stearns believes that service by long-haul airlines with first class seats and nonstop flights to and from major cities could be critical in filling the over 10,000 luxury rooms (priced at $150 and over) planned for the Strip.

Air seat capacity continues to be reduced both by a decrease in the overall number of flights being offered by airlines, and by a reduction in the size of the aircraft used to serve the market.

In a Bear Stearns gaming report issued on the First Call Research Network on February 18 and published on February 19, Bear Stearns stated that Southwest increased Las Vegas flights from 134 flights per day to 138 per day. Executives of McCarran Airport authority agreed with our conclusions.

Bear, Stearns remains encouraged by Southwest's year-over-year expansion in flight service. Still, increased capacity from a short-haul carrier, where neither first-class nor reserved seating are available, will be insufficient to drive RevPAR -- especially given the large number of luxury hotel rooms due to come on line in Las
Vegas over the next several years.

Long-Haul Carriers- Average Daily Seat Capacity: 
McCarran Int'l. Airport, Las Vegas
Airline Average Daily Seats Feb 1998 Average Daily Seats Jan 1998 Averge Daily Seats Feb 1997 % Chg. Feb-98 from Jan-98  % Chg. Feb-98 from Feb-97
America West 10,905  11,258  12,084  -3.14%  -9.76%
United 5,368 5,560 5,491 -3.45% -2.24%
Delta 4,508 4,508 5,013 0.00% -10.07%
Northwest 1,907 1,808 1,656 5.48% 15.16%
Continental 1,684 1,701 2,121 -1.00% -20.60%
American 1,481 1,481 2,144 0.00% -30.92
TWA 966 1,052 984 -8.17% -1.83%
US Airways 768 768 768 0.00% 0.00%
Total / Average 27,587 28,136 30,261 -1.95% -8.84

Source: Bear, Stearns  Co. Inc., McCarran International Airport.

Bear Stearns will continue to monitor the air capacity situation in Las Vegas with the timely analysis and release
of information pertaining to air seat capacity, airline load factors by destination, enplanements, deplanements,
and related statistics.

Bear, Stearns  Co. Inc., a leading worldwide investment banking and securities trading and brokerage firm, is the major subsidiary of The Bear Stearns Companies Inc. (NYSE: BSC). With approximately $14.8 billion in total capital, Bear Stearns serves governments, corporations, institutions, and individuals worldwide. The company's
business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales and trading, provate client services, derivatives, asset management, correspondent clearing, securities lending, and custody services. Headquartered in New York City, the company has approximately 8,700 employees located
in domestic offices in Atlanta, Boston, Chicago, Dallas, Los Angeles, and San Francisco; and an international presence in Beijing, Buenos Aires, Dublin, Geneva, Hong Kong, London, Lugano, Paris, Sao Paulo,
Shanghai, Singapore, and Tokyo.

Jason Ader
Bear Stearns  Co. Inc.
(212) 272-4257
Adam Brecht
(212) 420-8100 ext. 213

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