The following is provided for the benefit of the 100 or so, crewmembers recently "raped" by AAI.
Enjoy, and remember your days at AAI fondly..............
It remains a mystery however how Hannes could possibly think the quote from Hotel California is a compliment???????????
Subject: CEO Letter 2nd of February 2009
Date: Mon, 2 Feb 2009 12:32:12 -0000
From: "Hannes Hilmarsson" <[email protected]>
To: "Air Atlanta Everyone" <[email protected]>
Dear Colleagues;
I would like to give you a brief update of recent developments. In the beginning of December, I informed you about an Action Plan that we put in place, in order to protect jobs and survive the economy storm that is sweeping around the world. Following is an overview and update on the key
Focus Points in our Action Plan:
1. Increased Revenues / Utilization / Yields
Under the current circumstances, then our Project situation is solid. The
main activities in recent weeks are the following;
- We managed to extend the Wet Lease contract for TF-ATI and TF-ATJ (Boeing 47-300 passenger aircraft) with Saudia for 1 year, from 1st of January 2009 - 31 December 2009.
- We managed to extend the Wet Lease contract for TF-AMK until 15th of October, and we expect to start operating the Angola -China route by the
end of February / beginning of March.
- We took decision to exit Luxembourg, and close down all fixed cost there, but we evaluated ongoing operation there as a major risk in view of low yields and no monthly minimum guarantee. With the recent downturn in the Cargo market, then I believe this decision was 100% correct, although it is always controversial feeling to exit a long term customer relationship. However, we have enjoyed a very good relationship with Cargolux, and we hope to be back there one day.
- The contract for TF-ELE (Airbus 300-600)expired 31st December 2008, and we are in the process of returning the Aircraft to Maximus. It was known from the beginning that this contract would only be temporary while Maximus was building up their own AOC, but Air Atlanta managed this aircraft for a fixed management fee for Maximus. We enjoyed a very good cooperation with Maximus, and this aircraft proved to be very valuable for AAI as an backup Aircraft, for example during the 5 months period where TF-ELW was out of service in the beginning of 2008 due to the incident in Paris.
- We are in the process of returning TF-ARJ (Boeing 747-200 freighter)to owner, but This aircraft has been replaced with TF-AMD which was on contract in Luxembourg, and will operate on the MAS Kargo contract.
- We are in the process of repositioning TF-ARP (Boeing 747-200 freighter) which was on dry lease with Tesis in Russia, but this aircraft will replace TF-AMC (Boeing 747-200 freighter) on the Saudia contract by the end of February, but TF-AMC will most likely be scrapped.
With these developments, then we have 15 Aircraft in operation from 1st of February, including one backup aircraft (TF-ARH Boeing 747-200 freighter) that we will place in saudia. With the recent economy downturn, then this situation is actually very respectful, but we are seeing drastic cut in capacity all around us, with number of Airlines and competitors struggling and parking aircraft. With a very tight situation on hand, it is a key for us to be able to run a smooth operation for our customers during the next 6 months, at the same time we are actively trying to find new business where our key focus remains on the Boeing 747-400 aircraft. With the current economy Development, then we can expect our project situation to remain status quo for the coming months, but nevertheless, then we remain optimistic that the hard work of our sales department will bring us new contracts sooner than can be expected.
2. Cost Cutting and improved efficiency
We have implemented numerous cost saving measures in recent weeks, with the key objective to protect our cash flow. Main activities include:
- Reduce Staff at Head Office by 25%
- Revise Salary Contracts at Head Office
- Reduce/Cancel various Employee Benefits
- Reduce Office Space in Head Office (2nd floor out)
- Renegotiate various Administration cost
- Reduce Contract Crews
- Revise Salary Contracts of Contractors Boldface added for emphasis
- Agreement with FÍA on various exceptions from union contract to save cost. NOTE here: Icelandic crews have NOT had their pay cut as advertised to the rest of you !!!That is truly "Pulling Together"
In addition, then we have numerous ongoing projects in the company, in order to improve our efficiency. These efforts include engine review, restructuring of the Saudia line maintenance bases, restructuring of our spare part business and ongoing efforts in our Flight Operation department to maximize utilization.
3. Renegotation / Returns of Aircraft
Last, but not least, then we have entered into negotiations with few of our lessors, in order to reduce potential return cost of Aircraft due in 2009. In short, then we have met the understanding of majority of our lessors, and we are optimistic that we will complete renegotiation of TF-AMD, TF-AMC, TF-ATI and TF-ATJ in the coming weeks.
With all the measures we have p ut in place, then I remain optimistic that we will "weather the storm" and be able to survive these unusual circumstances. It is understood and respected that many of our decisions in recent weeks have been controversial and affected most of you in some way. However, then I feel most of you have understood the serious challenge we are up against, and the importance of the wide spread activities we have implemented in order to survive this difficult period, and protect the job of majority of our employees. With a respectful project outlook, solid customers and wide-spread cost saving efforts in place, then we have a case for turning things around during 2009; however the situation remains very tight for the coming weeks, and we simply can´t afford any slip ups or incidents in our operation.
I would also like to mention the human factor during all this turmoil. It has been very encouraging to see majority of our staff respond to the challenges and wide spread cost cutting measures in a positive way. It's during times like this where moral and team work is critical, and I have sensed a great team work and fighting spirits among AAI employees during the past few weeks. I am also grateful for the various feedback that I have received from all corners of the company, where people are stepping forward, shouldering additional responsibility and suggesting various improvements.
With so many of our colleagues leaving us under the circumstances, then I would like to conclude by quoting a colleague of ours that sent me a very encouraging farewell letter:
"They say Air Atlanta is like the Hotel California. You can check out, but you can never leave".
That pretty much sums it up. Let's keep up the fighting spirit, and thanks for your ongoing contribution and efforts.
Best Regards
HANNES
Hannes Hilmarsson
President & CEO
Hlíðasmári 3
201 Kópavogur
ICELAND
Tel: +3...
Fax: +354 458 4201
Email: [email protected]
Please note that this e-mail and its attachments are intended for the named addressee only and may contain information that is confidential and privileged. If you have by coincidence or mistake or without specific authorization received this e-mail and its attachments we request that you notify us immediately that you have received them in error, uphold strict confidentiality and neither read, copy, nor otherwise make use of their content in any way.
I am hereby notifying AAI that I am still receiving emails 14 months after I left the company..... my email will remain a secret til you can find it yourself....