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Did Gulfstream hit an air pocket?

images-4.jpegCould the sub-prime crisis in Florida be impacting air travel in the Sunshine state? Perhaps, judging by the revised S-1 that Gulfstream International filed late Friday. Gulfstream International, not to be confused with Gulfstream Aerospace, the General Dynamics (GD) owned company that sells corporate jets, operates a regional jet service in Florida and the Bahamas and also operates the Gulfstream Training Academy. Gulfstream, whose ticker will be GIA on Amex, lost another underwriter on Friday and is now only left with Taglich Brothers, the same company that acquired the company and its training academy last year. Earlier, there were two additional underwriters: Maxim Group and Avondale Partners.

Granted, none of these underwriters are exactly household names. But you do have to wonder what would prompt two to jump ship. Of course, that wasn’t the only change in Friday’s filing. Gulfstream also reduced the size of the offering to 800,000 shares, down from 1 million shares initially and 1.2 million in an amended filing in October. And the price of the IPO came down to $9 a share, from the $10 to $13 range initially talked about. Friday also saw a change in the offering costs to $2.60 a share from the $1.97 noted earlier. All of this means that instead of $8.4 million in proceeds, the company only expects to get $5.1 million, which hardly seems worth the cost of all of these amended filings.

Then again, if ferrying people around Florida doesn’t work, there’s always work for the Defense Department, which isn’t as sensitive to things like people defaulting on their mortgages. As the company notes in its filing, in June 2006, it began a long-term contract with Computer Sciences Corp. (CSC) offering two to three flights daily between West Palm Beach and Andros Island in the Bahamas, which required a special certification from the DoD.