Astar USA to shut down its DHL operations, layoffs expected
FLORENCE, Ky. - More than 160 people at a Northern Kentucky facility found out Monday that they will be losing their jobs.
Employees at Astar USA in Florence were told during a staff meeting that the company was ending its operations with DHL.
Several employees told 9 News that DHL had a contract with Astar until 2013. However, DHL told the company it was unable to renew their contract.
Astar provides air cargo charter services to domestic and international airports. The company's two largest customers are DHL and the United States Air Force.
Employees say Astar was given a 90-day notice to shut down DHL operations and that all flights provided by the Florence company stopped last week.
John Fredricks has been a pilot with Astar for 25 years, he said he expected some changes, but didn't know the severity until Monday.
"What was surprising was the operation shutting down within a three day, you know we had a three day heads up and then a final word on Friday and last operation ceased Saturday morning," said Fredricks. "It's been great, I got on the right time you know back then, I've been captain on four different aircrafts flew with great crews, very professional organization, we had the best on time performance that DHL had."
Some of the employee said they will be offered severance packages, but those will be based on seniority.
"It's tough, you know, I've been with this company for 12 years and to be let go with no little notice, it's just heartbreaking," said one employee who did not want to be identified.
Fredricks is remaining optimistic because his company is providing him with a severance package so he has a little time to find another job.
"Part of the reason is I've been lucky here and I've been able to put away some money, I have money in the 401 K and they are making right on their obligations at the back end here so there's no immediate need to go out and find a job," Fredricks explained.
Below is a statement released by the company Monday night.
ASTAR USA is a Miami-headquartered company whose work for DHL is ending in accordance with the terms of its contract with DHL. Unfortunately, the end of this contract may result in approximately 200 layoffs in the Cincinnati area over the coming months. ASTAR will continue to provide services to other customers, including the United States Department of Defense.