Atlas Air in Chapter 11 Bankruptcy

[GlueBall]

Reuters: Atlas Air files for Chapter 11 protection. Friday, January 30, 7:10 pm ET
NEW YORK, Jan 30 (Reuters) - Atlas Air Worldwide Holdings Inc. (Other OTC:AAWH.PK - News) filed for Chapter 11 bankruptcy protection and received commitments for $50 million worth of loans, the cargo carrier said on Friday.
The Purchase, New York-based company, which filed for bankruptcy in Florida, said it would continue operations while it develops a plan of reorganization. It received debtor-in-possession and exit financing from CIT Group Inc. (NYSE:CIT - News) and Ableco Finance LLC, an affiliate of Cerberus Capital Management L.P.
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[joetommy]

I wonder if this was the prepackaged deal that they mentioned in a previous press release...

[jetjackel]

Sounds like the "suits" finally bled the company out.

[GlueBall]

"Atlas Air in Bankrupcty, Continues Normal Operations.
Atlas Air Worldwide Holdings, the world's largest operator of 747 freighters through its Atlas Air and Polar Air Cargo airlines, filed for Chapter 11 bankruptcy protection.

"Atlas President and Chief Operating Officer Jeffrey Erickson said air cargo operations around the world were continuing normally and that the carrier had arranged for $50 million in debtor-in-possession financing in hopes of a quick restructuring and exit from bankruptcy. But the filing in a Miami court Jan. 30 capped two years of turmoil in which the carrier has seen its core "wet lease" outsourced freighter business deteriorate, its finances crumble and its senior leadership all but completely turn over.

"Atlas said it has reached agreements in principle with major secured creditors and lenders and according to published reports the airline hopes to reorganize out of bankruptcy by May.

"Erickson said Atlas will reduce its fleet of 51 747 freighters as it reorganizes its finances and cuts costs.

"Atlas estimates that it lost $71.6 million last year on $1.38 billion in revenue. It listed $934.5 million in total debt and $497.3 million in current assets.

"The filing, Erickson said, is part of a financial restructuring the airline undertook in March 2003 "to respond more effectively to changes in the air cargo marketplace, reducing operating costs, reducing the size of our fleet to match demand and reducing our leading and secured borrowing costs to better mirror current market conditions."

"Atlas has been in an accelerating downward slide since the death of founder and Chairman Michael Chowdry in early 2001.

"Chowdry had sharply ramped up the airline's capacity just before his death but the airline's market for outsourced freighter operations on behalf of commercial air carriers - called ACMI for the aircraft, crew, maintenance and insurance costs that Atlas covers - has fallen far from the heights it reached in the 1990s. The international air cargo market has seen virtually no growth since 2000 and Atlas' former customers increasingly want to operate their own planes.

"Atlas has been held together by revenue from military charters and from Polar, the forwarder-focused international 747 operator that Atlas rescued when Polar was near demise several years ago."

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[kc747]

Is management's lips moving? YES! When their lips are moving, are they in fact lying? YES!! This totally incompetent and greedy management team is in the process of destroying the 2 cargo certificates that could very well have dominated the world of long haul heavylift. Thank you Atlas Air Worldwide Holding, Inc.!!!!

[Taikonaut]

How will this play out for the AACS guys (both ex-Mainline and the non US pilots) in England?
:confused:

[HEAVYWHALE]

:mad: How will this play out for the AACS guys (both ex-Mainline and the non US pilots) in England?
:mad:


Well, since the company just agreed that all upgrade positions will now go to the Mainline ALPA guys, the FO's have NO chance for upgrade. (which is the way is should be in my opinion). No more super seniority for the AACS boys, I'd say that it doesn't look well. Since AACS was created as a way to get around Union Labor and any amount of money to be spent was ok with MGMT, now that the creditors are getting a look at the books and seeing where the money is going, I would say, it's safe to say, bye bye AACS. And by the way, the song and dance that R. Roland gave MGMT to increase the STN base is going to be shot full of holls and will not look the same rosy flower garden in six months. Mark my words.:ouch:

[74world]

Hi Heavywhale,

First, thanks to the letter of agreement that ALPA and management signed couple of years ago, the company can do what ever they want with AACS and mainline.

ALPA has agreed to give the guys in AACS "super seniority", have them upgraded before anyone in mainline, also agreed that if they were any furlough management did not have to furlough the guys in AACS but could furlough mainline first, bloody great isn't it!!!!!!!!

Now, regarding the last furlough, R.Roland felt that it would be fair to "share the pain" of mainline so he did agree initially to furlough 16 guys from AACS, but couple of weeks before the furlough things changed, he & management and good old ALPA decided to keep the 16 guys from AACS and to make mainile happy to give them the 28 capt positions that were created in Europe......

That meant that mainline HAD to furlough 16 more guys from THEIR seniority list!!!
Now how would you fell if you were one of those 16 ALPA crewmembers getting furlough after paying your dues (2%)????

For info, the STN base has double, ALL mainline crewmembers are at the bottom of the AACS seniority list, to be politicaly correct the 28 capts position will be given to mainline BUT for the next upgrades (if any) they will ALL be given to AACS.

Have a nice day....:ok:

[HEAVYWHALE]

747world,

What you have said makes no sense. Why would they double STN base and then furlough guys from AACS? Grow the base and shrink it at the same time?

Also, how do you figure that some 16 guys were furloughed from Mainline because of the agreement struck with ALPA? Were you informed that they were going to furlough some 110 pilots from Mainline and then possibly hire off the street to STN AGAIN!?

ALPA and MGMT agreed that wasn't cost effective and also agreed to a letter of agreement that states all Captain positions in the future will be offered to Mainline ALPA guys first. The only way an existing AACS FO will upgrade now is if every ALPA guy passes on it. And I don't see that happening. If I were an AACS FO 1. I would be so mad I couldn't see straight and 2. I'd find another job, unless you enjoy being a professional FO.

Mainline ALPA guys, even the FO's are being displaced to STN base. There will never be another new hire at AACS and their will never be another FO upgrade from the AACS ranks. I'm sorry that Atlas Management has baited you guys and then screwed you so hard. Stand by for more; because word is that the R. Roland song and dance has some major holes in it that you can drive a 747 through. So, as I said before, what you see now is going to be totally different in six months.

I hope for your sakes the EU job market is better than the American one.
:ok:

[74world]

Hi Heavywhale,

My friend you seems very upset......and I think you should be with your MEC!

Mark my word, the guys that were forced to tranfer to STN are getting s***** big time, but you will see for yourself.

I don't think that you fully understand what I've tried to explain to you regarding the 16 guys "deal".

Basically as you know Atlas came out with a number of crewmembers to be furlough, don't quote me on the exact number but it was going to be around 140 (FEs and Pilots), if you want I can go on our web site later and give you the exact number....

As you probably know ALL furlough was going to be from mainline, the union of course did not agree but there is nothing they could do about it! (refer to my previous reply to you above)

Here we are now in Feb 04, NO ONE in AACS has lost their jobs (thank you Richard), the furlough has come, our base has double, 93 mainlines pilots will be at the bottom of OUR seniority list as of March 1st.
28 capts positions have been created, and I said for this time AND THIS TIME ONLY, the letter of agreement has been bypass.

R.Rolland felt that it would not be propper to promote anyone in AACS when guys are getting downgraded (about 30) and furlough in mainline.......what do you think, makes sense?

You seems to know a bit about Atlas, please tell me what happened to the bases in Miami, LA and JFK???????
They've shinked haven't they???

The only ones that were expanded were ANC ans STN!!!!
Why? because they are financially viable, not because Atlas loves us!!!!!!

Regarding now your comments, I'm sorry but you are wrong one more:

1- the next upgrades in STN will be as per the seniority list (AACS then ALPA).

2- AACS can not employ of the street anymore UNLESS the is a requirement for it, ie: no one from mainline comes to take the position.

For info we nearly had to employ of the street this month because not enough mainline guys were tranfered, since then the list was corrected and a further 15 were added to our list.

In resume: life is bloody great in AACS, the salary also is pretty good compare to a lot of companies and even compare to mainline Atlas, we are here to stay!

I recommend that you apply!!!!

Cheers......

:ok: :E

[Taikonaut]

From what I've read, no matter which way you slice it, AACS is still a Union busting outfit!

Sorry, that's just my feeling and AACS shouldn't have happened in the first place. Everyone knew days like this would happen sooner or later.

I don't work for Atlas (or Polar). Just outside looking in.:rolleyes:

[PolarBubba]

Hi HeavyWhale, its nice to see you attacking aacs again. Once again your aggressions are misplaced!!
I guess your mec hasnt told you about the merger t/a where polar captains will have indefinite seat lock. cheers........:ok:

[WhaleDriver]

PolarBubba,
You need to stop fantisizing. If your refering to the recently FOUND version, signed by the ousted MEC without member ratification, its worthless!:ouch:

All LOA's must be ratified by the members, and it never happened. Looks like the Polar MEC has seen the future, and come to the table to talk about merging the lists in a reasonable manner.

[HEAVYWHALE]

Polarbubba,

1. it isn't an attack, just the truth.

2. you insinuate that aggression should be displaced to something else, where? Perhaps at the Polar guys?

You know... if the Polar guys had not taken that 6mo. extension and pay raise you guys wouldn't be where you are today, but that's hind site.

Perhaps some time taken to educate your selves would produce some facts…

Here are some snips from the Atlas filing that just recently occurred. It makes some interesting reading and provides insight into the creative accounting and basically stealing from Atlas Air, the original and only profitable company.

Page 2 Yet HoldCo appears to have stripped Atlas Air of cash and assets
and provided Atlas Air with nothing in return. In this regard, HoldCo appears
to have received tens of millions of dollars in questionably conveyed,
wrongfully obtained funds from Atlas Air, including the 22.3 million in total assets
listed in its petition. These funds must be returned to Atlas Air for
payment to Atlas Air Creditiors. Moreover, Atlas Air must pursue HoldCo and those
responsible for its actions in connection with Atlas Air's insolvency-related
claims.

Page 4 HoldCo acquired Polar less than 15 monhts ago. Atlas Air assets were
used to enable the acquisition. That acquisition has been a cash drain on
Atlas Air since inception.

Page 4 Polar has not paid for the leased aircraft or management fees since
at least 2002.

Page 5 Atlas air's estate may not be used to benifit Polar's estate. Quite
simply, this would be nothing more than an imprermissible post-petition
transfer of assets from Atlas Air's estae to Polar's estate, at the expense of Atlas
Air Creditors. The fact that Atlas Air and Polar are under common control
makes no difference.

Page 5 ATlas Air's cash must only be used for the benifit of Atlas Air.
Otherwise, to the extent such cash is utilized to prop up the operations of the
other Debtors, especially Polar, the Atlas Air estate will be forced to become
an involuntary lender to Polar.

Aggression toward AACS, nah just let me find R.S. in some dark alley and you will see aggression. Agreed?
:ooh:

[Tex]

Hey HEAVYWHALE,

If you are talking about FO's who should be mad as hell, what about the ones handed a TERMINATION letter, instead of a furlough letter?

All were ALPA members in good standing.

A lot of guys don't plan to ever come back to Atlas. Yet,I, for one, loved working there and would like to have furloughed staus. At least I have the military to fall back on.

Next time I'm in Kuwait, I'll say hello if there is an Atlas Whale there. In the meanwhile, Balad - Baghdad - Kuwait shuttle is doing well. Oooh, save some catering for me if I bump into you in Kuwait. I'll trade you some MRE's.

[Tex]

Just got the word from Vice MEC. LOA for furlough has been approved and signed for the terminated FO's. Yeehaw!

[joetommy]

What is the LOA?

[non sched]

LOA= Letter of Agreement. In this case I suppose an agreement between the company and the union to change the status of the terminated aircrew. If that's so it's good news.:ok:

[joetommy]

Thanks non sched. What are the details of the LOA?

[Tex]

The Letter Of Agreement changes the status of the lees than one year FO's from terminated to furloughed.

I haven't seen it, but I was informed via telephone by the Vice MEC.

This is great relief for me, as I play in the sandbox I can't look for other work.