Problems continue to plague Atlas Air, Inc., as Tuesday the company announced plans to take underutilized aircraft out of service and reduce its staff.
Citing the current global economic downturn and decline in air cargo demand, the company announced that it would reduce its ground-based workforce by 200 and decrease its fleet by "up to six aircraft," the company said in a statement. It will also take a non-cash charge of $40 million to $50 million "to cover severance, account reserves and other non-recurring items," it said.
"Not only are our customers no longer flying at levels that exceed guaranteed minimums, but many are having difficulty even achieving those minimums. As a result, the operational and maintenance spare aircraft in our fleet that would normally be used to generate excess flying are sitting largely idle," said Atlas CEO Richard Shuyler.
zeny kastelein
20th Jun 2001, 15:16
A peaceful place, or so it looks from space.
A closer look reveals the human race...Full of hope, full of grace, unless we are talking about the decision makers at Atlas Air. These maggots need to be kicked repeatedly in the pills. They give raises to the marketing department while our customer base dwindles to a precious few. What is up with that?? A 20 million first quarter profit and these bangybottoms panic and start throwing people out on the street except for the ones in the 'circle of gold', those who have ingratiated themselves with their line of b-------. I defy anyone to explain how a department that is supposed
to drum up business is promoted at a time
when an airline is mothballing 6 aircraft at
a time in the great Southwestern deserts.
'In my mind's eye my thoughts light fires
in your cities.' GRRRRRRRRRRRRRRRRRRRRRRR!!!!
Beaver Driver
20th Jun 2001, 18:25
In addition to the 107 pilots furloughed, 200 ground staffers are on the streets today without a paycheck so that our 5.3 million dollar a year CEO, and our 1.4 million dollar a year VP of OPS (the ones who said "you don't need a union, WE'LL take care of you!") can preserve the profit margin and their personal wealth! READ THE NEWS. ATLAS IS NOT LOSING MONEY! 307 jobs were sacrificed because Atlas cares more about its balance sheet than about its employees. These guys are laughing all the way to the bank while still trying to convince us that the pilots greed will be the downfall of this company.
This company needs to realize that its greatest asset is not the dream of a recently deceased immigrant, or its fleet of 747 freighters, but rather the loyalty, hard work, integrity and skills of all of its employees. As long as they continue to spend 3/4 of a million a year on new VPs to skim the cream from the top rather than investing in the transportation system and the people that are the foundation of this enterprise, we will not prosper. Atlas stock closed at $16.77 yesterday, the lowest in over a year, and it continues to drop today,down to $14.00 at one point. Hm....25% in two days do you suppose the investors are sending a message?
Here are some facts:
1. In over eight years in operation, Atlas has NEVER increased crew salaries. I wonder how many talented individuals we have lost because of this.
2. Atlas has reported record- shattering profits, and been acclaimed as the most profitable and most financially stable airline in the world for 13 consecutive quarters. During NONE of those 13 quarters did Atlas management feel the need to increase compensation for their work force and share the benefits of a booming economy with its employees, the people on whose backs they had built the worlds third largest air carrier. Atlas managers reserved all the profits and bonuses for the investors and high-salaried managers at the top.
4. Now we get a minor blip in the economy, and where will the burden of decreased revenues fall? Have Atlas managers taken any cuts in salaries? Have they paid back those bonuses?? The very people who were refused a share of the good times are the ones who will pay for the bad times! 307 working families will not have an Atlas paycheck next month so that Atlas' precious bottom line doesn't suffer any red ink!!!
Northwest Airlines reported it expects a net loss of $50 million to $75 million this quarter, citing U.S. economic weakness and high fuel prices. I haven’t seen any announcements of Northwest furloughs or layoffs. AMR, parent American, of the world's largest airline, said on Monday it expects to post a greater than expected $100 million second-quarter loss, and last week Delta, the No. 3 U.S. air carrier, warned it would post a loss of $140 million to $160 million, yet no layoffs or furloughs for any of them. Now here is Atlas, still making a profit, and laying off employees and furloughing pilots. This is Lorenzo economics at its best.
Former Southwest Airlines CEO has this to say about furloughs and layoffs:
“The one thing that would disturb me most to see after I'm no longer CEO is layoffs at Southwest. Nothing kills your company's culture like layoffs. Nobody has ever been furloughed here, and that is unprecedented in the airline industry... We could have furloughed at various times and been more profitable, but I always thought that was shortsighted. You want to show your people that you value them and you're not going to hurt them just to get a little more money in the short term. Not furloughing people breeds loyalty. It breeds a sense of trust. So in bad times you take care of them, and in good times they're thinking, perhaps, 'We've never lost jobs. That's a pretty good reason to stick around'."
It’s time for Atlas managers to make a choice.
[This message has been edited by Beaver Driver (edited 20 June 2001).]
clamdigger
20th Jun 2001, 19:43
when i get furloughed i'll hitch hike to dr. jack eastmans house and ask if my family and i can share his westport ct., 7 bedroom,(with indoor swimming pool) house. why it's only him and his $60K a year atlas secretary girlfriend living there...or maybe i'll ask l.c. if she has room or can help the 307 +...say, what does the dr. do anyway to justify his salary?