Atlas Goes With Passengers

[IFLy4Free]

Saw a memo put out by World Airways that beginning in May 2010 Atlas will be taking over the Houston-Luanda flights for Sonair. Atlas has no comment!

[Ocicat]

There is a great deal on that, and I believe 2 -400 passenger aircraft are set up for this.

[Po Boy]

Anyone able to post this memo?

[flite idol]

"Encouraged by the increasing passenger and cargo loads, and fueled by increased oil exploration and production, Sonangol wanted to expand the scope of the Houston Express concept and purchased two ex-ANA B-747-400 aircraft towards that end."

And
"We recently learned, however, that SonAir selected Atlas Air, and we were informed that one of the key reasons for this decision was Atlas Air’s willingness to operate the program with integrated cockpit and cabin crews. As this program is operated under the DOT’s private charter rules, SonAir will eventually need to file for DOT approval."


Disclaimer: Copy paste of a copy paste from another board. Cannot verify origins but said to be from World.

[Flightmech]

I heard this also. I believe a couple of ex ANA -400 airframes are in the picture.

[Fr8Dog]

L-38
"It was known that J Erickson was over in Jo-berg last month, working on the deal prior to him going to the Paris air show.

Furloughed Atlas FE's to be employed as galley hags? "

Jeff Erickson?? He has not worked for AAWH for over two years now!!

Seems you are WRONG for a change!!!!!!!!!!!!

FR8

[L-38]

My bad, Mr FR8 . . . it should have read that both B Flynn and J Dietrich were over there negotiating on behalf of AAWW last month

. . . (I just gotta quit posting after evening cocktails :uhoh:) . .

[Sleeping Freight Dog]

I wonder what the Atlas crews will have to say when it comes out that
Sonair wants to put its own pilots in the planes as well.
Here is a link from the DOT that has some very interesting information:
Regulations.gov (http://www.regulations.gov/fdmspublic/component/main?main=DocumentDetail&o=09000064809f30b6)

[BELOWMINS]

Sounds like Stansted with Africans. Here we go again.
Luanda base anyone?

[jetjock6]

If they have their own planes and want to use their own pilots then why do they need Atlas?

[WhaleDriver]

I'm going to jump in on this and we'll see where the dust settles.

First, after reading the documents linked above, both sides are probably full of half truths. Maybe just a bit of sore grapes on Worlds part.

I'm willing to bet Sonair is going to do it for a lot less than World and have a lot more control. I assume World is making money on this operation, by up charging on FA's that make a lot more than Angolans FA's will, and a premium on the MD-11 lease, plus a markup on the pilots, maintenance and insurance.

Sonair will get two 747-400's that will have 0% stops in route, carry more, and if as good as Polar is doing, over 98% reliability, with a lot cheaper FA's, and a decrease in all other costs because of no markups.

As far as the integrated cockpit crew, we'll see. This is a lot different than World's situation and Atlas has made no public comments on the matter. I assume they have spoken to the union? The planes will not belong to Atlas. So the two planes will be added to the planes Atlas already operates. So this will be a gain to Atlas, whereas World letting an Angolan pilot on your planes would be at a loss in World pilot positions. Atlas doesn't have a FA union contract, so no issues there.

I see this as a plus for both Sonair and Atlas. Atlas gets into Pax operations, gaining experience for the time required prior to hauling Pax for the military, and recalling some furloughed pilots. Sonair will gain by running it for less than World was charging, gaining in the capability's of the 747, and more control.

As is the normal progression of things, at some point in the future, Sonair will probably be in a position to do the operation without Atlas as well.

[anothercargopilot]

jetjock6 said: "If they have their own planes and want to use their own pilots then why do they need Atlas?"

Although a private charter, Sonair essentially operates as a scheduled carrier with this new Houston Express service they are proposing. They (an African company) are seeking to take a much greater role (read: more profits) in the operation. However, as an airline they are unable to gain certification to operate in the US (they cannot operate in the E.U. either).

So why Atlas? Very long history of operation of 747-400 aircraft. Established FAA aprroved maintenance and parts program. 747-400 scheduling and dispatch operations in place. American company with FAA licensed and 747-400 type rated pilots, loadmasters and mechanics on the property. In place 747-400 training program with 2 sims. No flight attendants so NO union to dictate how the F/A force is staffed/paid.

These 2 Sonair owned planes are N registered. What US company is going to properly maintain and operate these planes in accordance with US regs? Atlas, World, Kalitta, Evergreen, United, NWA......who else? United, NWA and World all have flight attendants (UNION) so that is a no go. Kalitta and Evergreen have a limited track record operating the -400 and are either companies interested or really able to take on this job?

As we see, World and Sonair are unable to agree so who is left?

As for Angolans in the cockpit, Atlas Air is free to hire whomever they please as long as they have a FAA license, right-to-work and meet the FAA minimum qualifications to operate the aircraft. New hires will be placed on the bottom of the Teamsters seniority pilot list by their date of hire. Oh yeah, better recall those furloughees first.

If you are going to hire a targeted group, you better be careful what you wish for because preferential hiring tends to have uninteneded consequences. :eek:

For the rest of the specifics I agree with Whaledriver.

AnotherCP

[MarkerInbound]

Angola doesn't even show up on the list of countries on the International Safety Assessment Program. If the country's CAA doesn't meet ICAO standards, no airline from that country is allowed to start ops into the US. If the country meets the standards and then drops below them, the current level of operations are allowed to continue under "heightened FAA surveillance."

Probably why they've been using World and are turning to Atlas.

[413X3]

They need to hide under an Atlas cert because Sonair is banned in the EU

[nitty-gritty]

Not any different than what World was doing. Doing ACMI for another offshore carrier that could not operate into the U.S. under part 129. The reason for the dispute is not clear, but World appears to be disputing on the U.S. side to either keep Sonair tied to them or they may actually attempt to start their own flights. Kind of doubt the latter though.

I did the same thing flying for a U.S. carrier that did ACMI for a Central American carrier that did not qualify to operate into the U.S. in the past. As a matter of fact, we did it for a couple of different carriers using their FA's (after receiving our carriers training), our U.S. pilots, U.S. airline certificate and A/C. Even leased a couple of their A/C and put it on our certificate and MX program.

[IFLy4Free]

I have the entire World Memo but need to figure out how to post it. Flight Attendants from Angola will more than likely be paid around $500 per month....Atlas is not willing to talk to any aviation reporters about this..... all they have to say is "no comment"

[IFLy4Free]

To: All World Airways Employees

From: Larry Montford

Date: July 17, 2009

RE: Infoline Update


Welcome to this month’s edition of Infoline. There have been a number of questions recently regarding how our company is doing in the midst of the economic turmoil that is occurring around the globe. Almost every day we get another dose of humbling news that adversely impacts the way most companies now have to conduct their businesses. Many have re-shaped themselves while others have simply ceased to exist. Nearly everyone has been affected one way or another.

I am aware of certain rumors circulating regarding World’s financial condition and the overall state of the airline. From an operations perspective, I am pleased to say that we have rebounded from a difficult month and are beginning to deliver improved results. It is absolutely imperative that we all focus on doing our best to ensure that this positive trend continues. Operational performance - operational excellence - is the one thing that each of us has power over, where each of us can contribute directly to the well-being of our company. So, while it is true that some things are beyond our control, this much of our destiny at least is in our own hands.

We have continued to wrestle with the unprecedented decline in air freight markets and the impact this has had on World. This decline and the resulting pressure on revenues has not yet abated. How long this trend will continue is anybody’s guess. Recent economic indicators have been mixed at best and the only thing the financial experts seem able to agree on is that no one really knows for certain how long this global financial crisis will last.

In response to these realities, a number of air carriers have recently announced painful measures to tighten their belts (such as fleet reductions, capacity decreases, deferrals of new aircraft deliveries, reduced capital spending, layoffs, etc.). World is not immune. We do have a viable “go forward” plan to ensure our survival. This plan is not etched in stone, as we must retain the flexibility to react to rapid market changes. We have taken certain actions to implement our plan and we’ve been forced to make some difficult decisions. Regrettably, more action may be needed and we will be challenged. As stated earlier, declining revenue is a major concern and the outlook for the remainder of the year is not encouraging. That reality forces us to aggressively manage costs so they are in proper alignment with the operation. This will lead to further adjustments to our plan in a number of areas. We will begin announcing some of these within a few days.

As we work through these difficult financial times, we must always remember that we are a service company. Ours is a very competitive environment and to survive we must maintain a competitive edge. I am certain other COOs are telling their team members the exact same thing. And there is no mystery to any of this. The formula is well-known. The companies that exceed the expectations of their customers through hard work, pride and dedication will be the ones that not only survive the coming months and years but thrive. Our task is to ensure World is one of those.

Current Operations
For the month of June, World Airways operated 749 departures, with an overall controllable on-time performance of 84.6% against a goal of 90%. Our completion factor was 98.6%. Our AMC mission performance during this period ended at 86.7%. The three-month rolling on-time percentage for AMC stood at 88.8%. For the month, World recorded a total of 15 AMC mission delays out of 112 mission originations.

Controllable on-time performance for our other key customers during June was at 91% for Etihad, 84% for Lufthansa, 73% for Sonair, 94% for Arrow Air Cargo, 86% for ANA Aviation Ltd, and 100% for Lufthansa Cargo Charters.

Performance across this very important sector was basically flat from the previous month and below goal for the most part. As previously noted, there has been improvement in the first half of July.

Here is a snapshot of June’s results, with brief explanations regarding the performance targets. The penalty column is intentionally blank.



Many of you have asked for more information regarding the recent decision by Sonair to end their contractual relationship with World in May of next year. I asked Bob DuBois, a member of our Marketing department, to provide a summary as our guest contributor for this month.

Thanks for all you do each day.

Robert DuBois, Director Passenger Sales
We continue to receive many enquiries from our flight crews and other employees regarding the SonAir contract. I would like to take this opportunity to provide some additional background information that I hope addresses some of your questions.

SonAir has been one of our key commercial passenger customers for more than eight years. As a matter of fact, World Airways was instrumental in the initial development and evolution of what is now known as the Houston Express. The Houston Express was and continues to be one of the most unique air service operations in support of a single industry.

Sonangol is the government-owned national petroleum company of Angola, and as such, is the key agency responsible for maintaining, developing, and exploiting Angola's vast petroleum resources. Sonangol is also the parent company of SonAir, an Angolan government entity involved in the transportation of oil industry employees to the various oil fields and rigs throughout the country. That these services should also ultimately extend to the United States was inevitable due to the U.S. petroleum industry's significant role in Angolan oil production. This necessary American link led to the creation of the Houston Express.

The success of the Houston Express was not immediate, and the initial years proved to be challenging to SonAir. Once that corner was turned, however, and the service became better known within the industry, the non-stop air service from Houston to Luanda proved to be the travel mode of choice for oil workers wishing to avoid the congestion of Europe's airports as well as the additional travel time.

Encouraged by the increasing passenger and cargo loads, and fueled by increased oil exploration and production, Sonangol wanted to expand the scope of the Houston Express concept and purchased two ex-ANA B-747-400 aircraft towards that end.

SonAir itself does not have operating authority between the United States and Angola (only a U.S. flagged carrier can operate the route) and SonAir, for its own reasons, decided to invite a number of U.S. carriers, including World, to submit proposals to operate its newly acquired B-747 aircraft on the Houston-Luanda route.

World submitted what we believe was a very competitive bid because we were very interested in continuing our relationship with SonAir. We recently learned, however, that SonAir selected Atlas Air, and we were informed that one of the key reasons for this decision was Atlas Air’s willingness to operate the program with integrated cockpit and cabin crews. As this program is operated under the DOT’s private charter rules, SonAir will eventually need to file for DOT approval. World has preempted this filing with its own application to operate scheduled service into Angola, which would dispense with the need for a private charter service between Angola and the United States. How this will all play out in the end is unclear.

World's current MD-11 contract with SonAir is scheduled to operate until May 30, 2010, and while we are greatly disappointed by SonAir’s decision, we will continue to provide the same quality service and product that are associated with the Houston Express.

[Po Boy]

Thanks for the post!

[nitty-gritty]

One way I can see the integrating the cockpit with Angolan crews is to open a Luandan base for F/O's and or Captains at Atlas. Most US Atlas guys would not be interested in bidding that including the furloughed guys. The company could then hire off the streets whom ever they want. Those new hires would still be on the Atlas seniority list and contract though. That would be in compliance with the union contract. It would not be a repeat of the AABO/AACS union busting attempt episode.

The next question would be one of visa's to work into the U.S. for those foreign hired guys. If they just go in and out of Luanda-Houston they would probably be OK. If they try to use them within the U.S. they would have a problem.

[bpp]

The problem I see with the above scenario is performance. World's performance was 70+%. Hiring new captains and f/o's, basing them in Luanda, could impact Atlas' performance.
bpp

[Intruder]

AFAIK, World does not need to base anyone over there. Crews fly Houston-Luanda, stay with the airplane, and bring it back. An overseas base would cost more and likely be a political and security nightmare.

[nitty-gritty]

Not arguing what would make the most sense operationally, just stating how the company may try using Angolan pilots if the deal is predicated on using them and how it could be worked under the current Atlas union contract. They could just open Luanda as a F/O only base and I seriously doubt anyone in the U.S. would be interested in bidding over there including furloughed guys. Logistics of the heavy crewing could still be done in a similar way as Intruder mentioned. The F/O's get traded out on a different end to comply with the Angolan employment thing of the contract. Not very efficient I grant but if it gets the contract I can see Atlas doing it without a second thought.

[Dutch74]

I can't see it. There is no way you can integrate Angolan Pilots into your cockpit. They would have to have some "Super Seniority" because they could only fly the Angolan route, special rights when furloughing, etc. But not only is there the Seniority issue but having foreign workers occupying positions that should be positioned by American Pilots is going to be a show stopper by your Local.

[zerozero]

I don't know anything, ok?

But I *think* there might be a question about semantics here.

We recently learned, however, that SonAir selected Atlas Air, and we were informed that one of the key reasons for this decision was Atlas Air’s willingness to operate the program with integrated cockpit and cabin crews.

The statement in bold could be read two different ways.

1) Flight deck crew members are "integrated"--or mixed--as well as cabin crews.

Or...

2) Atlas flight deck crews working with Angolan flight attendants.

I'm no linguist (and apparently neither is the original writer of the memo), but I think #2 is what was meant.

To put a finer point on it: World already has their own cabin crews so it's logical they would have more resistance in that "dept".

But for Atlas, it's easier to "integrate" THEIR cabin crews with OUR flight deck crews.

Just my opinion.
:8

[Intruder]

That would certainly be the "glass half full" interpretation. However, it doesn't quite support the idea of Sonair evolving this into their own operation in a couple years...

Maybe we'll know May 31 or June 1...

[zerozero]

Right.

Besides, it's smarter to prepare for the worst and hope for the best.

As they say, watch what they DO not what they SAY.

:ok:

[WhaleDriver]

Where did you hear the number "6"?

[Fr8Dog]

Be VERYcareful what you post on this subject! Read the last part of your email. This is a PUBLIC internet site!

:=

And by the way it is 2 a/c not 6 and your January date is also questionable!

FR8

[WhaleDriver]

PURCHASE, N.Y.--(BUSINESS WIRE)--Atlas Air Worldwide Holdings, Inc. (AAWW) (Nasdaq: AAWW - News), a leading provider of global outsourced aircraft services, announced today that its Atlas Air unit has been selected to operate an outsourced premium passenger private charter service for the U.S.-Africa Energy Association (USAEA). The Agreement to operate the charter was reached with SonAir - Serviço Aéreo, S.A. (SonAir), acting as agent for the USAEA.

Atlas will operate the charter service with two newly customized Boeing 747-400 aircraft provided by SonAir’s parent company, which are being reconfigured into largely business and executive class configuration. The charter service, which has become known as the “Houston Express,” includes three dedicated weekly non-stop flights between Houston and Luanda, Angola. While it is not open to the public, it provides USAEA members with a premium non-stop transportation link to support complex long-term projects in the West African energy sector.

The parties have structured the long-term commercial arrangement in a manner consistent with the outsourcing business model under which Atlas Air typically operates. Under that model, Atlas Air receives contractually determined revenues for the operation of the aircraft, with the customer assuming responsibility for passenger revenue and certain direct costs, including fuel.

“Atlas Air, Inc. is proud and honored to have been selected to operate these newly customized Boeing 747-400 passenger aircraft,” said William J. Flynn, President & CEO, Atlas Air Worldwide Holdings, Inc. “Our dedication to our customers and record of reliability and operational excellence as the largest Boeing 747-400 freighter provider in the world have set the stage for this next and important step for our company into outsourced, charter passenger service. We look forward to working closely and cooperatively with SonAir to make the Houston Express a world-class service.”

SonAir is a wholly owned subsidiary of Sonangol Group, the multinational energy company of Angola and a member of the USAEA. USAEA’s members include many of the leading U.S. energy companies involved in the exploration and development of petroleum resources in West Africa.

About Atlas Air Worldwide Holdings, Inc.:

AAWW is the parent company of Atlas Air, Inc. (Atlas) and Titan Aviation Leasing Limited (Titan), and is the majority shareholder of Polar Air Cargo Worldwide, Inc. (Polar). Through Atlas and Polar, AAWW operates the world’s largest fleet of Boeing 747 freighter aircraft.

Atlas, Titan and Polar offer a range of services that include ACMI aircraft leasing – in which customers receive a dedicated aircraft, crew, maintenance and insurance on a long-term lease basis – express network and scheduled air cargo service, military charters, commercial cargo charters, and dry leasing of aircraft and engines.

AAWW’s press releases, SEC filings and other information can be accessed through the Company’s home page, Atlas Air Worldwide Holdings (http://www.atlasair.com).

[L-38]

And what after this . . . the hajj?

[Intruder]

Passengers on the new tanker, followed by World's current AMC passenger charter service for the Air Force.

[413X3]

If the Hajj makes money, then from a business perspective you have to try it. Cargo revenues down, diversify to please shareholders.

[Sleeping Freight Dog]

Actually, doing AMC and Hajj charters would actually bring in some $$$$
in a period when cargo revenues are severely down. Once the PAX B744s get
on the certificate, its only a matter of allocating the resources. I see the
first plane left the desert the other day. Heard through the grapevine its
supposed to be on property in December with a very generous seating layout,
only 184 seats. Should make for a very nice flight, lots of room to stretch out for the SLF.

[Intruder]

a very generous seating layout,
only 184 seats. Should make for a very nice flight, lots of room to stretch out for the SLF.
Not a normal hadjj layout...

[Sleeping Freight Dog]

No, not for Hajj. That is the config for the SONAIR flights. If it was Hajj, you
would be looking at probably 584

[L-38]

Cargo/pax - Sooner or later, any revenue port in a financial world storm for AAWW. . . . . Actually, Wall Street now reports that AAWW's cash position is good all things considered.

[L-38]

"Atlas Air Worldwide Holdings had a spectacular third quarter, showing a 181% jump in profits despite a 45% decline in revenue from a year ago in a report released Oct. 26." . . . . WTF??

Air Freight Companies: Cleared for Takeoff? - BusinessWeek (http://us.rd.yahoo.com/finance/editorial/xbizwk/SIG=12edsi680/*http%3A//www.businessweek.com/investor/content/oct2009/pi20091026_297490.htm?campaign_id=yhoo)

[Intruder]

They fully implemented the DHL schedule in Q4 (late Oct) last year, so this is the last full quarter of comparisons with the perennially money-losing Polar "Scheduled Service." Fuel exposure is significantly reduced and significant revenue from DHL is guaranteed.

[747pylot]

I guess with atlas flying the old perennial money losing polar routes,,,,theyre now making money? think its the other way around...

[anothercargopilot]

Oh here we go again. :ugh:

You guys just can't let go can you?

[Intruder]

I guess with atlas flying the old perennial money losing polar routes,,,,theyre now making money? think its the other way around...
AFAIK, those routes are not being flown at all as scheduled service. However, there are occasional, but irregular, charters by various shippers between the same city pairs. That is inevitable with the withdrawal of so much lift from the industry in the past couple years.

[747pylot]

mia-viracopos-santiago-lima-mia,,that was a scheduled polar run,,,if memory serves me right, its a scheduled run for atlas. question, where did polar`s clients go after the dhl transition?

[Intruder]

I suspect all those forwarders simply went to Southern, Kalitta, and others who run the same routes. Well before DHL, much of the former Polar trans-Pacific traffic went to Kalitta via Bettie Ward's contracts with them.

[nitty-gritty]

mia-viracopos-santiago-lima-mia,

Yes, Polar did fly that route for some time under Atlas Air's route authority. In more recent times, with a change in management, the tactic has changed to be more economically driven than just as a tool for management to make a point to the Atlas labor force.

[Transglobal2]

Atlas/Polar is now 95% ACMI and will begin passenger service soon on the Atlas side of house. Possible Atlas/Polar merger in the near future. Atlas/Polar negotiations continue with the Atlas Worlwide holding co.

[Heracles]

A merger of the crew forces,, possible. A merger of the certificates?, Ain't gonna happen..
Try and see it from the outside,, looking in.
-- Heracles

[Transglobal2]

Quite agreed. The FAA moves in mysterious ways!

[Flightmech]

Apparently the first of the Atlas pax -400's for the Sonair operation has been recently been in a new colour scheme at the HAECO facility in HKG?

[nitty-gritty]

Quite agreed. The FAA moves in mysterious ways!

Even among themselves.

The POI's of both have deferred to Washington on the issue and are awaiting it's response. That has probably already been bought and paid for so to speak.

As I understand, the POI's of both certificates want to be the boss of the other or the remaining POI of the combined mess.

The manuals have been merged (for the worse in my opinion). Little more is needed except Washington's approval and the pilot contract merger.

[anothercargopilot]

Flightmech said: "Apparently the first of the Atlas pax -400's for the Sonair operation has been recently been in a new colour scheme at the HAECO facility in HKG?"

Does anyone have pictures of the Atlas pax -400 in Sonair colors?

[Deltabravowhiskey]

It's actually in updated Atlas scheme (Not Sonair) but different colors. I think it compliments the existing Atlas scheme quite well which in my opinion is one of the best paint schemes flying.

[B-HKD]

Here yaaaaaa go!

http://img189.imageshack.us/img189/5418/42529453914bffa19533o.jpg

[anothercargopilot]

Thank you!! There is also supposed to be a N322SG (747-400 owned by Sonair to be operated by Atlas) in HKG as well.

[kikker43]

Hopefully this passenger flying will help to pay for the pending VERY LARGE union assessment:ok:

[WrldWide]

"Hopefully this passenger flying will help to pay for the pending VERY LARGE union assessment"

Not sure how much of a money maker as opposed to a cost coverer this contract will be, but I wish you luck. The last company that tried to rely on the AMC pax market with 747s was Tower.....AMC is going smaller, the total numbers for the short term are higher but the per flight numbers are definitely trending into the sub 300s, hence the growing number of 767s, to replace DC10s, into the market.

[Intruder]

767 tanker + Atlas tanker contract + Atlas pax flying => Atlas AMC Pax flying???

[Deltabravowhiskey]

Intruder you're close but not entirely correct. The rest of the details are not suitable for public consumption (yet).

For the most part Atlas ACMI + Unique aircraft with unique capabilities = wide range customer base and providing services beyond what any other ACMI operator to date can provide.

[Fr8Dog]

Floating around the training center in Miami, 2 ex-JAL 300's for Military PAX charters. And 2 more 200's coming out of the desert.