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non sched
26th Apr 2004, 10:32
It's finances on the mend and new contracts in the hopper, World Airways is looking at adding 747-400 freighters as early as next year.

"We are just trying to sew up new [wet-lease cargo] contracts," said Joe Fralick, World vice president for cargo. "We're in talks with carriers. We just hope the worldwide cargo market truly upturns. All indications point to a positive upturn."

The 747s would be in addition to the five freighters in World's fleet - three MD-11s and two DC-10s.

"These [747] freighters will be in high demand, but there will still be a strong demand for the MD-11," said Fralick. He added that it is "premature" to discuss particulars of the airline's interest in 747-400s, for which it will not have use until late 2005 "at the earliest."

"We won't be ordering a huge number of 747s initially. We'll grow the number as we need more," he said.

The fleet plans come as the Atlanta-based leasing and charter specialist appears to be in a financial recovery and is going through a leadership transition. Chairman and Chief Executive Officer Hollis Harris retired at the start of this month and President and Chief Operating Officer Randy Martinez stepped up to the CEO role. Ronald Fogleman, a retired U.S. Air Force general, became non-executive chairman of the board.

Martinez takes the helm of an operator showing financial stability after several tough years. World reported a $15.3 million net profit last year after eking out a $2 million profit in 2002 and the revenue of $475 million was up 24 percent from the year before, helped by greater U.S. military traffic.

But the commercial airline side has also seen some signs of life recently. World announced a one-year, $19 million contract in February with EVA Airways for an MD-11 freighter from Taiwan to Los Angeles and Chicago.

Of more immediate concern to the airline are stalled labor negotiations: World's pilots, represented by the Teamsters union, recently voted down a tentative agreement for a contract extension. The agreement would have extended through January 2007 a contract that expired at the end of last year.

;)

Taikonaut
26th Apr 2004, 18:39
If I was working for World I'd start looking for a new job now. 747-400 Freighters!? At $150 mil a pop imagine the lease payments. Ink on Atlas/Polar Ch.11 form hasn't even dried yet. What are they thinking?? Boxes don't care what kind of airplane they are in.

non sched
26th Apr 2004, 18:45
It doesn't say so in the article but these aren't production line models like Atlas's. These will be converted pax planes. Conversion on these starts this year and they will be available next year at considerably less than 150 million. My guess is somewhere between 30 and 50 million.

Boxes may not care what plane they are in but shippers do. There's a preference for the 747 because of the greater pallet height among other reasons.;)

411A
26th Apr 2004, 21:45
Hollis did not quit without a reason...:ugh:

GlueBall
27th Apr 2004, 00:35
Ed Daly had operated two 74s in the mid 70s, but wisely scaled back to the DC-10s in the 80s.

service monkey
27th Apr 2004, 20:33
Hollis' contract was up-plus he'd probably rather play golf- he's at least 71 now. Rumor has it, he'll go back to Delta and bail them out.
And we're all holding our breath on those 74's.

non sched
27th Apr 2004, 21:39
411A

That's a cryptic statement. Why do you think Harris quit?:suspect:

Taikonaut
27th Apr 2004, 21:43
Non-sched,

No doubt the 74 is the best for the job but -400? So the boxes arrive 2 hours late for the tech stop across the Pacific with the Classics but you can always under bid folks with heavy monthly payments. Even 30 - 50 mil. is a lot for a non-sched operator when you can have a decent Classic for about 10 mil.

non sched
27th Apr 2004, 21:49
Taikonaut

The MD-11 already has the range and payload of the classic. No need to take on an old plane with mx problems when you already have MD-11's in that market. The one advantage the classic has is the ability to put in a taller pallet. That's an advantage if you're going to bulk out before you gross out. The -400's World "may" be getting will be converted pax planes so they will be quite a bit cheaper than those flown by Atlas. :ok:

Zoner
28th Apr 2004, 01:59
Just a couple of points to consider:

1)AMC will only use MD-11 freighters as a last resort due to bulk considerations. That’s why you see B-747’s on the AMC ramps. They do like MD-11s for pax work.

2)It is a buyer’s market for B-747’s. (all models) If Atlas \ Polar continues to downsize it will remain a buyer’s market.

3)Evergreen and World have been bidding partners for a long time and have done well due to fleet differences. Perhaps World wants more of the B-747 share now that Evergreen is starting to move toward the supertanker?

4)Over the years I’ve seen companies make statements like this when in labor negotiations. It’s called dangling the carrot here in the states. If I were at World I would be hopeful that what the company says is true, but also wondering how much of it is aimed at getting me to ratify that contract. The World guys certainly deserve anything they can get. Good Luck.

turbynetrip
28th Apr 2004, 05:40
non sched:

One thing the classic 200F's can do the MD can't; We brought to Goteborg a couple years back a sailboat mast that was 170 feet long, in addtion to a lot of pallets...The nose load door IS a plus.

Lufthansa loved it, pull right up to their warehouse in JFK, pallets fly out the front!

No other Western civil birds are capable of that, but yes, the MD is a fine freighter as well. I sure liked flying on them as a deadheader.

TT

411A
28th Apr 2004, 06:40
non sched,

Hollis is a smart cookie, and does not want to be associated with a company that just might be in deep doggie do-do soon.

From what I found out yesterday, the do-do might be rather deep.

Could be wrong of course, but don't think so.
Time will tell.

GlueBall
28th Apr 2004, 12:22
says: "One thing the classic 200F's can do the MD can't; We brought to Goteborg a couple years back a sailboat mast that was 170 feet long, in addtion to a lot of pallets...The nose load door IS a plus.... No other civil Western birds are capable of that...."

Ever heard how such a long "tube" was loaded aboard the stretch DC-8 (187') in earlier days? The center windshield was removed and the tube was inserted through the cockpit. :ooh:

non sched
28th Apr 2004, 12:58
411A

I ask a question and I get another vague innuendo. Kind of like the oracle at Delphi. I don't suppose you could give a straight answer? :confused:

411A
28th Apr 2004, 15:20
non sched,
Sorry, can not. Am personally bound by the terms of a confidentiality agreement, at the present time.

I may well be reading into the situation an unlikely scenario, but stranger things have happened before.:oh: