Air Atlanta Icelandic
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Air Atlanta Icelandic
The following announcement was posted on the website of OMX (Nordic Stock Exchange operator who runs Iceland's bourse) yesterday. Looks like everyone's favourite wet-lessor is on the market.
"Hf. Eimskipafélags Íslands Board of Directors has decided to assign Hannes Hilmarsson CEO Air Atlanta Icelandic and ABN Amro Bank to undertake a strategic review of Eimskip's aviation related assets, including to find potential buyers for 100% of the shares in Air Atlanta hf. Projections for the current financial year estimate that 20% of Hf. Eimskipafélags Íslands turnover will be from Air Atlanta Icelandic. The review is expected to be finalised within the next
couple of months. "
Any AAI bods want to pass comment?
"Hf. Eimskipafélags Íslands Board of Directors has decided to assign Hannes Hilmarsson CEO Air Atlanta Icelandic and ABN Amro Bank to undertake a strategic review of Eimskip's aviation related assets, including to find potential buyers for 100% of the shares in Air Atlanta hf. Projections for the current financial year estimate that 20% of Hf. Eimskipafélags Íslands turnover will be from Air Atlanta Icelandic. The review is expected to be finalised within the next
couple of months. "
Any AAI bods want to pass comment?
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Who cares..
yeap,iam sure AAI is for sale for the right money.
The new owners are starting to realize that the hole 400project is very costly and not attractive to the market,(misstake),and contracts are not so easy to sign anymore,due to bad reputation in the market( a lot of aog,bad on time performance,sloppyness to compl,and be attractive to the market).
Now,,,who is gonna buy?
The new owners are starting to realize that the hole 400project is very costly and not attractive to the market,(misstake),and contracts are not so easy to sign anymore,due to bad reputation in the market( a lot of aog,bad on time performance,sloppyness to compl,and be attractive to the market).
Now,,,who is gonna buy?
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Ever hear the one about the Russian Billionaire's young son? It's coming up to his 10th birthday so the oligarch says to him "What do you want son? I'll buy you anything you like".
The kid thinks for a second then says "Well Dad, I'd really like a cowboy outfit". So the Dad buys him Air Atlanta.
The kid thinks for a second then says "Well Dad, I'd really like a cowboy outfit". So the Dad buys him Air Atlanta.
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My viewpoint
There always seem to be people who want to bitterly complain and tear down their job and their employer. Especially on PPRUNE.
I fly for Ar Atlanta and have previously worked for several similar companies. Here are my observations.
There is a good opportunity here for a qualified buyer.
First, we have a high level of experience and competence in the cockpits here. There are a lot of low timers in the right seat but by and large, they are eager, attentive and learn fast. Our Captains and FE's are the best - period.
Our maintenance is better than the other operators I have worked for, and by a large margin. These classic 747s are old and tired so problems will happen and frequently. "Bang for the buck," though, the classic 747 is still the best freight carrier around. ALL operators of the classic 747 have delays and problems due to the age of these great old airplanes. But the on time performance and quality of maintenance at Air Atlanta is better than most - in my experience.
Air Atlanta suffers from inefficiencies, particularly in regard to travel and utilization of the work force. This stems from several problems (two separate workforces and under staffing of crew) but can be solved by a strong management team. With air freight expanding so much there is a good opportunity here for a buyer.
As far as the negative comments, you can judge the accuracy of the opinions by the maturity of the comments.
I stand by for the inevitable mudslinging and personal attacks sure to be directed at me for this post but I stand by my opinions. There is a good opportunity here.
I fly for Ar Atlanta and have previously worked for several similar companies. Here are my observations.
There is a good opportunity here for a qualified buyer.
First, we have a high level of experience and competence in the cockpits here. There are a lot of low timers in the right seat but by and large, they are eager, attentive and learn fast. Our Captains and FE's are the best - period.
Our maintenance is better than the other operators I have worked for, and by a large margin. These classic 747s are old and tired so problems will happen and frequently. "Bang for the buck," though, the classic 747 is still the best freight carrier around. ALL operators of the classic 747 have delays and problems due to the age of these great old airplanes. But the on time performance and quality of maintenance at Air Atlanta is better than most - in my experience.
Air Atlanta suffers from inefficiencies, particularly in regard to travel and utilization of the work force. This stems from several problems (two separate workforces and under staffing of crew) but can be solved by a strong management team. With air freight expanding so much there is a good opportunity here for a buyer.
As far as the negative comments, you can judge the accuracy of the opinions by the maturity of the comments.
I stand by for the inevitable mudslinging and personal attacks sure to be directed at me for this post but I stand by my opinions. There is a good opportunity here.
Last edited by Flying Guy; 28th May 2007 at 11:09. Reason: spelling
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Hello Flying Guy. I don't think anyone who's actually worked for Air Atlanta would deny that there are a lot of good people working their cans off for the company, and even that these people constitute the majority of the workforce. However there are real issues in the management that come close to ruining it for everyone concerned.
As for the opportunity to buy Air Atlanta, I think you have to look closely at what's actually for sale.
1. Mostly leased aircraft. What is actually on the Air Atlanta balance sheet?
2. Contracts that are fixed term (with renewals and a bouyant market, yes, but also in a highly competitive market)
3. Several years of poor (and declining) financial performance
4. A largely contracted workforce, most of whom are looking for an opportunity to find a better job in that bouyant market
5. A disproportionately high training spend reflecting the very high churn of crew (have they ever done a cost-benefit analysis of the way they treat their crew?)
6. A major compliance worry in the shape of Airborne Personnel, a shell company of supposedly unknown ownership which exists solely to protect Air Atlanta Icelandic from taking any responsibility for their workforce.
Airborne isn't for sale of course (someone would have to admit to owning it), but any buyer would be advised to do thorough due diligence on them since buying Air Atlanta would mean entering into a major business relationship with them.
I have tremendous nostalgia for the time I spend with the company. I worry that whoever buys it something of the spirit that made it fun will be lost but on the upside the people that work there might get the kind of job security and consideration they deserve.
If the company is merged into another people will probably lose their jobs but I would hope that the closer to the front line you are, the more secure you'll be. After all Air Atlanta was never famous for having excess crew, just excess management!
As for the opportunity to buy Air Atlanta, I think you have to look closely at what's actually for sale.
1. Mostly leased aircraft. What is actually on the Air Atlanta balance sheet?
2. Contracts that are fixed term (with renewals and a bouyant market, yes, but also in a highly competitive market)
3. Several years of poor (and declining) financial performance
4. A largely contracted workforce, most of whom are looking for an opportunity to find a better job in that bouyant market
5. A disproportionately high training spend reflecting the very high churn of crew (have they ever done a cost-benefit analysis of the way they treat their crew?)
6. A major compliance worry in the shape of Airborne Personnel, a shell company of supposedly unknown ownership which exists solely to protect Air Atlanta Icelandic from taking any responsibility for their workforce.
Airborne isn't for sale of course (someone would have to admit to owning it), but any buyer would be advised to do thorough due diligence on them since buying Air Atlanta would mean entering into a major business relationship with them.
I have tremendous nostalgia for the time I spend with the company. I worry that whoever buys it something of the spirit that made it fun will be lost but on the upside the people that work there might get the kind of job security and consideration they deserve.
If the company is merged into another people will probably lose their jobs but I would hope that the closer to the front line you are, the more secure you'll be. After all Air Atlanta was never famous for having excess crew, just excess management!
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Thanks for an intelligent reply
Yes, Vs1711, you are right on target. Never-the-less, I think there is a good opportunity here considering the fact that air cargo is forecast to expand at an exponential rate over the next decade. This is particularly true of the Asian sector.
For someone who wants to make a direct entry into the air cargo business, here is a company that is an ongoing concern with contracts in place and an existing income stream. This short circuits two years worth of start up hassle for a new operator. And trying to find cargo 747 aircraft over the next couple of years will become more and more difficult. We already have a fleet, albeit leased.
The key, as I think we both agree, is a good and efficient management team. All the infrastructure to fly and maintain the aircraft is already in place at Air Atlanta. There is new management already put in place over the last few months but I don't know if they have had a chance to make the required changes.
Anyway, it is nice to read a post like yours.
For someone who wants to make a direct entry into the air cargo business, here is a company that is an ongoing concern with contracts in place and an existing income stream. This short circuits two years worth of start up hassle for a new operator. And trying to find cargo 747 aircraft over the next couple of years will become more and more difficult. We already have a fleet, albeit leased.
The key, as I think we both agree, is a good and efficient management team. All the infrastructure to fly and maintain the aircraft is already in place at Air Atlanta. There is new management already put in place over the last few months but I don't know if they have had a chance to make the required changes.
Anyway, it is nice to read a post like yours.
Last edited by Flying Guy; 28th May 2007 at 11:00. Reason: paragraph spacing
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Hi Flying Guy. No disrespect intended. I've had dealings with AAI crew and never had cause to accuse them of any lack of professionalism (based on my own experience, there are plenty of unsubstantiated anecdotes of course but I'll go on what I know). Of course crew are only half the story, right?
"Jesters do oft prove prophets" - William Shakespeare, King Lear.
"Jesters do oft prove prophets" - William Shakespeare, King Lear.
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Air Atlanta has been sold
Air Atlanta has been sold - and bought by the same people.
Company now split into two: airline / aircraft leasing
New beginning - We've seen nothing yet
Not good news for crews - not good at all
Company now split into two: airline / aircraft leasing
New beginning - We've seen nothing yet
Not good news for crews - not good at all
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By 744
Air Atlanta has been sold - and bought by the same people.
Company now split into two: airline / aircraft leasing
New beginning - We've seen nothing yet
Not good news for crews - not good at all
How quick do you expect things to change? Overnight?
Now why is this change of ownership exactly bad news for the crews? I would really like to understand the logic and motives behid that statement. I amnot saying this could not be bad news but could it not be good news? Or is that out of teh equation?
Air Atlanta has been sold - and bought by the same people.
Company now split into two: airline / aircraft leasing
New beginning - We've seen nothing yet
Not good news for crews - not good at all
How quick do you expect things to change? Overnight?
Now why is this change of ownership exactly bad news for the crews? I would really like to understand the logic and motives behid that statement. I amnot saying this could not be bad news but could it not be good news? Or is that out of teh equation?
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Press Release
Eimskip has reached an agreement for the sale of the majority of its shares in the airline Air Atlanta. The total value of shares in the company is approximately EUR 44 million, or approximately ISK 3.9 billion. Concurrently, Air Atlanta has been divided into two companies: an aircraft operating company under the name of Air Atlanta and an aircraft leasing company under the name of Northern Lights Leasing (NLL), which has acquired the Air Atlanta fleet of aircraft, consisting of 13 widebody jet aircraft. Eimskip has sold its entire shareholding in Air Atlanta and has, moreover, sold 51% of its shareholding in the holding company NLL.
A company owned by the management of Air Atlanta, under the leadership of Hannes Hilmarsson, CEO, and Geir Valur Ágústsson, VP of Finance, has purchased all the shares in the management company Air Atlanta.
The company Artic Partners has purchased a 51% shareholding in the company Northern Lights Leasing. Arctic Partners also owns Avion Aircraft Trading. Arctic Partners is owned by Hafthór Hafsteinsson and Icelandic and overseas investors.
On 25 May 2007, the Board of Directors of HF Eimskipafélags Íslands announced its intention to sell Air Atlanta. The Board planned to complete the sales process before the end of the current operating year. These plans have now been successfully brought to fruition. After the sale, Eimskip has fully withdrawn from aircraft operation. The management plans to focus on the core activities of the company, namely freight transportation and the operation of refrigerator and freezer storage. Eimskip has grown extremely rapidly and has increased its scope of activities by a factor of ten over the past three years. The company currently has a 13% market share on a global level in this field.
As a result of the sale, the company’s debts will decrease by EUR 210 million. Correspondingly, the company’s equity ratio will increase from 29% to 32%. All figures are based on Eimskip’s balance sheet from 31 July 2007, the most recent interim report issued by the company. The interim statement shows that the total assets of Eimskip amount to EUR 1,954 million, as compared to EUR 1,735 million in the previous interim statement. The sale of Air Atlanta will have an insignificant effect on the operation of Eimskip.
Baldur Gudnason, President and CEO of Eimskip:
Eimskip’s policy has been to dispose of its aviation related assets. We presented this strategy at the company’s presentation for shareholders and market participants on 20 June this summer, and now we see the completion of this work. This is quite a substantial milestone. We have managed to considerably reduce the debts of the company and, as a result, will be able to concentrate even further on the core activities of the company.
This transaction means that the company Air Atlanta is divided into two companies, one responsible for the fleet of aircraft and the other responsible for the operation of the aircraft. Eimskip will continue to have a 49% shareholding in the company owning the aircraft, although we plan to withdraw from that company in the future.
Hafthór Hafsteinsson, principal owner of Arctic Partners:
“The aircraft trading and leasing market is at a historical peak, and as a result there are plenty of opportunities to profitably lease and sell the aircraft that will not be used in Atlanta projects following the down-sizing of the company. Arctic Partners is a strong backer, with a 51% shareholding in Northern Lights Leasing, as opposed to Eimskip’s 49% shareholding. The company has acquired considerable experience and gained an excellent reputation on the aircraft trading market through its ownership of Avion Aircraft Trading, a company that has purchased and sold 35 widebody jet aircraft at reasonable profit over the past two years. These two companies, Northern Lights Leasing and Avion Aircraft Trading, will co-operate closely and become very strong companies on the aircraft trading market”.
Hannes Hilmarsson, CEO of Air Atlanta:
“Air Atlanta is a well-known international airline that has gone through substantial and expensive restructuring over the past few years. A considerable challenge awaits us in turning the operation around. It is our ambition to develop a robust and profitable airline on the well-established foundations on which the company is based”.
Further information: Baldur Gudnason, President and CEO of Eimskip, phone no. 525 7202
Hafthór Hafsteinsson, principal owner of Arctic Partners, phone no. 895 7707
Hannes Hilmarsson, CEO of Air Atlanta, phone no. 895 3364
About Air Atlanta
Air Atlanta is the largest ACMI Airline that leases both cargo and passenger aircraft in the world. The company operates a total of 20 aircraft that are leased for longer or shorter periods to other airlines.
About Eimskip
Eimskip offers its customers comprehensive transportation solutions by sea, air and land, with particular emphasis on temperature-controlled transportation and storage. Eimskip operates in approximately 280 locations in over 30 countries. The company operates 50 vessels, 25 aircraft, 2,000 trucks and trailers and approximately 180 cold stores. Employees number approximately 14,500.
A company owned by the management of Air Atlanta, under the leadership of Hannes Hilmarsson, CEO, and Geir Valur Ágústsson, VP of Finance, has purchased all the shares in the management company Air Atlanta.
The company Artic Partners has purchased a 51% shareholding in the company Northern Lights Leasing. Arctic Partners also owns Avion Aircraft Trading. Arctic Partners is owned by Hafthór Hafsteinsson and Icelandic and overseas investors.
On 25 May 2007, the Board of Directors of HF Eimskipafélags Íslands announced its intention to sell Air Atlanta. The Board planned to complete the sales process before the end of the current operating year. These plans have now been successfully brought to fruition. After the sale, Eimskip has fully withdrawn from aircraft operation. The management plans to focus on the core activities of the company, namely freight transportation and the operation of refrigerator and freezer storage. Eimskip has grown extremely rapidly and has increased its scope of activities by a factor of ten over the past three years. The company currently has a 13% market share on a global level in this field.
As a result of the sale, the company’s debts will decrease by EUR 210 million. Correspondingly, the company’s equity ratio will increase from 29% to 32%. All figures are based on Eimskip’s balance sheet from 31 July 2007, the most recent interim report issued by the company. The interim statement shows that the total assets of Eimskip amount to EUR 1,954 million, as compared to EUR 1,735 million in the previous interim statement. The sale of Air Atlanta will have an insignificant effect on the operation of Eimskip.
Baldur Gudnason, President and CEO of Eimskip:
Eimskip’s policy has been to dispose of its aviation related assets. We presented this strategy at the company’s presentation for shareholders and market participants on 20 June this summer, and now we see the completion of this work. This is quite a substantial milestone. We have managed to considerably reduce the debts of the company and, as a result, will be able to concentrate even further on the core activities of the company.
This transaction means that the company Air Atlanta is divided into two companies, one responsible for the fleet of aircraft and the other responsible for the operation of the aircraft. Eimskip will continue to have a 49% shareholding in the company owning the aircraft, although we plan to withdraw from that company in the future.
Hafthór Hafsteinsson, principal owner of Arctic Partners:
“The aircraft trading and leasing market is at a historical peak, and as a result there are plenty of opportunities to profitably lease and sell the aircraft that will not be used in Atlanta projects following the down-sizing of the company. Arctic Partners is a strong backer, with a 51% shareholding in Northern Lights Leasing, as opposed to Eimskip’s 49% shareholding. The company has acquired considerable experience and gained an excellent reputation on the aircraft trading market through its ownership of Avion Aircraft Trading, a company that has purchased and sold 35 widebody jet aircraft at reasonable profit over the past two years. These two companies, Northern Lights Leasing and Avion Aircraft Trading, will co-operate closely and become very strong companies on the aircraft trading market”.
Hannes Hilmarsson, CEO of Air Atlanta:
“Air Atlanta is a well-known international airline that has gone through substantial and expensive restructuring over the past few years. A considerable challenge awaits us in turning the operation around. It is our ambition to develop a robust and profitable airline on the well-established foundations on which the company is based”.
Further information: Baldur Gudnason, President and CEO of Eimskip, phone no. 525 7202
Hafthór Hafsteinsson, principal owner of Arctic Partners, phone no. 895 7707
Hannes Hilmarsson, CEO of Air Atlanta, phone no. 895 3364
About Air Atlanta
Air Atlanta is the largest ACMI Airline that leases both cargo and passenger aircraft in the world. The company operates a total of 20 aircraft that are leased for longer or shorter periods to other airlines.
About Eimskip
Eimskip offers its customers comprehensive transportation solutions by sea, air and land, with particular emphasis on temperature-controlled transportation and storage. Eimskip operates in approximately 280 locations in over 30 countries. The company operates 50 vessels, 25 aircraft, 2,000 trucks and trailers and approximately 180 cold stores. Employees number approximately 14,500.
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Sold ?!
Sounds like pure finance joggling to me. Why should that have any consequences for their crews ?
Nothing will ever change at AAI - Love this statement though:
Hannes Hilmarsson, CEO of Air Atlanta:
“Air Atlanta is a well-known international airline that has gone through substantial and expensive restructuring over the past few years. A considerable challenge awaits us in turning the operation around. It is our ambition to develop a robust and profitable airline on the well-established foundations on which the company is based”.
Nothing will ever change at AAI - Love this statement though:
Hannes Hilmarsson, CEO of Air Atlanta:
“Air Atlanta is a well-known international airline that has gone through substantial and expensive restructuring over the past few years. A considerable challenge awaits us in turning the operation around. It is our ambition to develop a robust and profitable airline on the well-established foundations on which the company is based”.
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Seems to me the same thing happened with XL leisure group that has been bought by its management (MBO).
The only difference for the employees is that these kind of managers have only debts and no money to inject in the business in case of.
It's always better to work for a well established group that can suffer a momentary loss of money as banks would grant to provide some money to help for a time.
In the case concerning AA as well as XL the employees have to make the efforts to keep the airline survive and to feed the pockets of managers in case of sucess.
Dont expect too much from this business model!
Why you fellow employees didn't you ask for getting more involved in a leverage buy out with the majority of the stack instead of wondering how your futur could change following this sale.
Maybe the bankers could be more interested by a LBO conducted by staff than by a MBO.
You have got the power into your hands and you dont know that.
I am persuaded that even the Islandic financials could be interessed in such an agrement in the future depending of how they understand things.
In such a system the employee as a shareholder with the majority of the stack all together is subject to more comprehensive efforts in order to keep it survive and the CEO witch has to prove good results has in front of him a board of employees instead of financials having a totaly different way of seeing how work force has to be rewarded...
The only difference for the employees is that these kind of managers have only debts and no money to inject in the business in case of.
It's always better to work for a well established group that can suffer a momentary loss of money as banks would grant to provide some money to help for a time.
In the case concerning AA as well as XL the employees have to make the efforts to keep the airline survive and to feed the pockets of managers in case of sucess.
Dont expect too much from this business model!
Why you fellow employees didn't you ask for getting more involved in a leverage buy out with the majority of the stack instead of wondering how your futur could change following this sale.
Maybe the bankers could be more interested by a LBO conducted by staff than by a MBO.
You have got the power into your hands and you dont know that.
I am persuaded that even the Islandic financials could be interessed in such an agrement in the future depending of how they understand things.
In such a system the employee as a shareholder with the majority of the stack all together is subject to more comprehensive efforts in order to keep it survive and the CEO witch has to prove good results has in front of him a board of employees instead of financials having a totaly different way of seeing how work force has to be rewarded...
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Tight the nut until it breaks,then what..
Nothing new! work harder,earn less...
-Biggest aviation training school,and it´s for free!!!!!
-The turn over is bigger than Mcdonald´s!
-Crew effictivness?,yeahh...cmn!
-we all know what´s the deal,but be aware! there is a lot of jobs out there!
-Biggest aviation training school,and it´s for free!!!!!
-The turn over is bigger than Mcdonald´s!
-Crew effictivness?,yeahh...cmn!
-we all know what´s the deal,but be aware! there is a lot of jobs out there!
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AAI
Flying Guy,
I agree with a few of your points. They do have a dedicated group of crews BUT as long as conditions are not improving drasticly people will move on just after they joined as contractors.
Only the 'old' stay as it is very convinient for them as most of them are on a fairly good pension.
Management sucks and as long as they do not treat people equal more will leave every other day. Remember that contractors have no rights whatsoever
and are treated with no respect by barely qualified office stuff in Iceland.
As long as they have second class employees (called contractors) tension will be high. It's a job for retired guys who do not depend on a regular salary and have no family life.
Flying was still great fun but everything else is a disgrace to aviation industry.
Have you recently checked the $ exchange rates ? Best thing is to leave while there're other jobs.
Best of luck to all of you!
I agree with a few of your points. They do have a dedicated group of crews BUT as long as conditions are not improving drasticly people will move on just after they joined as contractors.
Only the 'old' stay as it is very convinient for them as most of them are on a fairly good pension.
Management sucks and as long as they do not treat people equal more will leave every other day. Remember that contractors have no rights whatsoever
and are treated with no respect by barely qualified office stuff in Iceland.
As long as they have second class employees (called contractors) tension will be high. It's a job for retired guys who do not depend on a regular salary and have no family life.
Flying was still great fun but everything else is a disgrace to aviation industry.
Have you recently checked the $ exchange rates ? Best thing is to leave while there're other jobs.
Best of luck to all of you!
Last edited by MaxBlow; 1st Nov 2007 at 16:49. Reason: fingertrouble