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Casinos bet on new airline
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July 29, 1998: 6:39 p.m. ET
Harrah's and Rio Hotel put $30M on the table to create new Las Vegas carrier
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NEW YORK (CNNfn) - In efforts to revitalize tapering tourist traffic to Las Vegas, two of the nation's leading casino companies have agreed to bankroll the creation of a new airline - an airline designed to pick up where other carriers leave off.
Harrah's Entertainment Inc. and Rio Hotel & Casinos, each have agreed to invest $15 million to bring 'National' airline to life. Sources say a third financial backer may be announced soon.
The new airline, which will be headed by former America West Chief Executive Mike Conway, will provide long-haul service to Las Vegas for leisure travelers in most major cities along the east coast.
The airline has secured $50 million in start-up capital and will operate with Boeing 757's.
Over the years, many carriers have cut out service to Las Vegas citing a low percentage of business travelers - the industry's most profitable passengers. America West is among them.
At the same time, hoteliers are on a role. The gaming capital of the world is expected to add another 20,000 rooms by the year 2000.
Shares of Harrah's (HET) closed unchanged at 20-11/16 Wednesday on the New York Stock Exchange.
Shares of Rio Hotel & Casino closed up 7/16 at 19-3/16 on the Big Board. 
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