Polar/Atlas @ EINN

[Beaver Driver]

B7

First, ACMI is NEVER a money loser for Atlas as the customer pays for the gas, pays for the block hour whether they use it or not, and ususally has a monthly guarantee that they have to pay for. The customer also pays for crew transportation and lodging as well as all ground handling and overflight expenses. This is the definition of ACMI. Atlas will not sign a contract, whether long or short term, that is not profitable. It is WAY different and a lot less risky than scheduled freight.

Atlas does not have five aircraft dedicated to Polar flying. I have seen the Atlas monthly schedules and there is not that many of them with PO call signs listed, and certainly not five dedicated to Polar flying. Additionally, what Polar flights they do fly are not being paid for by Polar. AAWH pays for Polar's ground services with maintenance and ground handling contractors without re-imbursement.

Are you saying that Atlas should be PAYING to fly Polar cargo? I think you mean that Atlas has not paid Polar for the flying that Polar has done for Atlas. I have to tell you that I think the amount of flying in that direction has been miniscule as Polar's aircraft are mostly fully utilized.

However, just because they are fully utilized does not mean profitable. Polar flys MANY un-profitable routes. And if AAWH is going to survive they will have to dump them (or get a sales department that can actually sell the lift). Witness the recent demise of MNL and PEN (as well as the title of this thread). AAWH revised business plan is driven by the need to ensure that aircraft can meet a minimum revenue threshhold. Many of the routes that Polar has been flying do not meet the minimum threshold to keep in the plan. AAWH will be shrinking the Polar fleet to 11 in 2004 and possibly more as they identify unprofitable routes. With the reduced frequencies in Asia it is obviously necessary to reduce the number of markets Polar serves.

The boys and girls in the head shed don't know what they are doing. The have decided it is more fun to do battle with their employees than make money. They seem to be following the teachings of Sun Tzu and they have succeeded. They have both of their "enemies" at each others throats. This will ultimately cause the demise of both carriers.

As Gordon Bethune points out in his book From Worst to First, the profound turnaround in employee attitude and operations at Continental Airlines took all of one year. Continental rewarded employees for better on-time performance, listened to their ideas about how to improve operations, and, most important, stopped warring with workers and signaled that they were a valued part of the company.

One thought to bear in mind....Have you EVER seen ANY advertising for Polar Air Cargo. They don't know how to sell their lift. Many of their routes are un-profitable or marginally profitable. They either need to cr@p or get off the cr@pper.