2 Right-O-Way Executives Leave After Buyout Fails : Air freight: The president and chief financial officer have resigned from Tustin firm, which has been sold to an industry veteran.

Two top executives have resigned from Right-O-Way Transportation Inc. after a failed attempt to buy the company from its Canadian-based parent, Day & Ross Inc., a company spokesman said Monday.

Meanwhile, Eugene F. Hayes, a 35-year veteran of the air freight business who owns the Port Group in Jamaica, N.Y., bought the company from Day & Ross, which has owned Right-O-Way since 1987. Terms were not disclosed.

Right-O-Way President Alex Milovic and Chief Financial Officer Adrian Hex, among the officials who attempted to buy the company, left after their deal fell through two weeks ago in an apparent disagreement over control of certain assets, said company spokesman Shura Bary. Chief Operating Officer Ron Hewison, who was also part of the management buyout, remains with Right-O-Way.

No one has yet been selected to replace Milovic and Hex, according to the company. Executives would not comment on the sale beyond a press release they sent out recently.

In a similar situation earlier this year, management of rival Burlington Air Express failed in their attempt to buy out the company. The two top executives and six other top managers subsequently lost their jobs.

At Right-O-Way, Hayes said in a statement, the company “will continue to focus on the highest quality transportation services for its customer base in addition to expanding our domestic and international network.”

Right-O-Way, which has about $60 million in annual sales and 300 employees, will remain in Tustin, Hayes’ statement said. In addition, the company and its subsidiaries, including America’s Carriers, Right-O-Way Ocean Transport International Inc., Right-O-Way Trucking Inc. and One-Hour Delivery, will retain their names, he said.

Right-O-Way “is highly respected in the freight forwarding industry and we wish to build further on its recognition,” Hayes said.

Overall, the air cargo industry has been in a slump because of fierce competition and the recession. Because of this, industry analysts have said that it is prime time to buy an air freight company because prices are lower.

Right-O-Way was founded in 1959 and has grown to become a major domestic and international freight carrier. The company competes against other mid-sized firms in the air-freight business, transporting large-volume merchandise such as clothes, computers and electronic equipment. Right-O-Way does not own aircraft, but acts sort of like a travel agent and buys cargo space on other carriers. The company ranks second or third in sales among freight firms that do not own aircraft, according to Cargo Facts, an industry newsletter in Seattle.

Times staff writer Cristina Lee contributed to this report.