Cargo 360 Merger?
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Stay tuned
Most of the pilots at C360 are on the fence about it. They don't yet know if Southern Air is taking over, or if C360 is taking over Southern Air. Hell, they can't say for sure that it's Southern Air that this Merger/Acquisition is partnered with, but good money is on Southern Air. I think Southern is taking over C360; lock, stock and barrel.
I'm sure there will be an announcement soon.
I'm sure there will be an announcement soon.
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I heard there are two 747-400s as well, getting cargo doors put on. Question is, will Southern diversify the flleet if the merger goes through? How will the seniority lists get merged?
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Southern has been around a lot longer, has 3 times as many aircraft and a "In house" union. My money is this will be a "Southern Air Show" all the way. What I don't understand is Southern uses GE power only, now with this merger they will inherit 3 pratt powered acft, plus 2 -400's so maybe this will keep C360 a seperate entity within Southern. But at any rate, I think it will be a Southern show ran by Southern management and the poor C360 guys who can't even get their management to set up a 401K, will end up at the bottom.
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Whaledog is right!
This is a very good opportunity for BOTH groups to combine what they like better on both sides of the fence and achieve a BETTER working contract.
I hope the Southern Air guys will help us achieve this.
There is nothing the management team (The Neff's) would like better than to see fighting amongst the two pilot groups. One just has to look at the Atlas/Polar merger to see how it should NOT be done.
I know the C360 guys will be fighting to raise the par, I hope the SA in house Union will work with us to achieve our goals. Everyone will benefit.
Let's not squabble about the seniority list!
I hope the Southern Air guys will help us achieve this.
There is nothing the management team (The Neff's) would like better than to see fighting amongst the two pilot groups. One just has to look at the Atlas/Polar merger to see how it should NOT be done.
I know the C360 guys will be fighting to raise the par, I hope the SA in house Union will work with us to achieve our goals. Everyone will benefit.
Let's not squabble about the seniority list!
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Cargo360 funding...expect the salaries to be 'adjusted' to Cargo360 levels, whether the SouthernAir guys like it or not.
How do I know?
Inside info just passed along by Cargo360 management types, whom I know quite well.
We shall see....
How do I know?
Inside info just passed along by Cargo360 management types, whom I know quite well.
We shall see....
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Compared to SA, Cargo360 is better paying for the first three years, but Cargo360 has no pay scale, no pay increases as there was talk of profit sharing.
So to say SA will adjust there pay scale to Cargo360's pay (No pay scale) doesn't make sense. Maybe they will adjust there pay for the first three years to make it coincide with Cargo 360 pay? But then the C360 guys will not see any pay increase for at least 2 years. That ship will not float.
I think the only way to be fair to all would be to make SA's first year pay equal to C360's pay and then pay increases every year. But I'm sure the "Neff's" will do everything they can to make this as miserable and intolerable as possible so no one wants to work there.
So to say SA will adjust there pay scale to Cargo360's pay (No pay scale) doesn't make sense. Maybe they will adjust there pay for the first three years to make it coincide with Cargo 360 pay? But then the C360 guys will not see any pay increase for at least 2 years. That ship will not float.
I think the only way to be fair to all would be to make SA's first year pay equal to C360's pay and then pay increases every year. But I'm sure the "Neff's" will do everything they can to make this as miserable and intolerable as possible so no one wants to work there.
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The only thing Ive seen at 360 is first year at $110-CPT. and $68-FO. What happens the next two years if there is a three year payscale? Or do you make these figures for three years and then a raise? SA payscale goes up about 5% next year across the board...
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Please see below and/or attached for exciting news!!!
Bill
From: Judy Ackley
Sent: Thursday, July 26, 2007 5:05 PM
To: Airdomain
Subject: Corporate Announcement
Please find below a message from our CEO, Jim Neff.
To All Employees:
When I founded Southern Air Inc. in 1999, my goal was to create a world class cargo airline with a fresh approach, built on the high quality standards of the old Southern Air Transport without the high costs which brought about its demise. Eight years later, I feel that we have achieved this original goal, as we are now the undisputed leader in offering low cost, high quality cargo ACMI services to customers worldwide. We have assembled a group of blue chip airline customers that is the envy of every other ACMI operator in the world, and these customers appreciate our unmatched service responsiveness, flexibility, and low prices.
What makes Southern’s accomplishments so impressive is the fact that we have grown to 10 B747 freighter aircraft without the aid of outside investors. This is no small feat, and one that has not often been duplicated in the world of aviation. Because of our strong track record, we have been approached by several excellent outside investors who offered to partner with us. Over the last six months, I have worked hard to evaluate which of these would be our best partner—someone who would give us the ability to continue to grow and add newer models to our fleet, while still allowing us to operate the airline in the successful manner of the past. I am very pleased to tell you that we have found such a partner in the form of Oak Hill Capital Partners, a leading private equity firm with strong ties to the aviation industry.
Oak Hill, which is based a few miles from our Norwalk operation in nearby Stamford, CT, has developed a diverse portfolio of aviation investments, including a parts supplier to Boeing, a leasing company that currently has six B777Fs on order, and a smaller ACMI cargo airline, Cargo 360, which operates three B747 Classic freighters for Korean Air.
Under the terms of our agreement, which we signed last week, Cargo 360 will ultimately be merged into Southern Air. The combined company will operate under the Southern Air Holdings Inc. name and will be headquartered at our existing Connecticut facilities. I will remain as CEO of the combined company, with Brian Neff, currently our CFO, promoted to President. We will also remain as significant equity owners. There will be no change as far as any of SAI’s headquarters or field personnel are concerned. With respect to our crewmembers, we are working on a merger of seniority lists based on hire date. It is my understanding that this method results in a straightforward combined list, especially since Cargo 360 currently operates at approximately the same routes and utilization as we do. As a result, no SAI crewmember status will be affected. Bottom line, the only consequence to Southern Air and all its employees is that we will be able to benefit from Oak Hill’s resources, access to capital, and commitment to aviation, resulting in a larger and stronger company. As long as we continue to work together as a team and keep our focus on operational excellence and fiscal discipline, we will always be successful.
Please join me in welcoming Oak Hill Capital Partners and Cargo 360.
Onwards and upwards!
Very best regards,
Jim Neff
CEO
Southern Air
Attachment: Public Press Release
Bill
From: Judy Ackley
Sent: Thursday, July 26, 2007 5:05 PM
To: Airdomain
Subject: Corporate Announcement
Please find below a message from our CEO, Jim Neff.
To All Employees:
When I founded Southern Air Inc. in 1999, my goal was to create a world class cargo airline with a fresh approach, built on the high quality standards of the old Southern Air Transport without the high costs which brought about its demise. Eight years later, I feel that we have achieved this original goal, as we are now the undisputed leader in offering low cost, high quality cargo ACMI services to customers worldwide. We have assembled a group of blue chip airline customers that is the envy of every other ACMI operator in the world, and these customers appreciate our unmatched service responsiveness, flexibility, and low prices.
What makes Southern’s accomplishments so impressive is the fact that we have grown to 10 B747 freighter aircraft without the aid of outside investors. This is no small feat, and one that has not often been duplicated in the world of aviation. Because of our strong track record, we have been approached by several excellent outside investors who offered to partner with us. Over the last six months, I have worked hard to evaluate which of these would be our best partner—someone who would give us the ability to continue to grow and add newer models to our fleet, while still allowing us to operate the airline in the successful manner of the past. I am very pleased to tell you that we have found such a partner in the form of Oak Hill Capital Partners, a leading private equity firm with strong ties to the aviation industry.
Oak Hill, which is based a few miles from our Norwalk operation in nearby Stamford, CT, has developed a diverse portfolio of aviation investments, including a parts supplier to Boeing, a leasing company that currently has six B777Fs on order, and a smaller ACMI cargo airline, Cargo 360, which operates three B747 Classic freighters for Korean Air.
Under the terms of our agreement, which we signed last week, Cargo 360 will ultimately be merged into Southern Air. The combined company will operate under the Southern Air Holdings Inc. name and will be headquartered at our existing Connecticut facilities. I will remain as CEO of the combined company, with Brian Neff, currently our CFO, promoted to President. We will also remain as significant equity owners. There will be no change as far as any of SAI’s headquarters or field personnel are concerned. With respect to our crewmembers, we are working on a merger of seniority lists based on hire date. It is my understanding that this method results in a straightforward combined list, especially since Cargo 360 currently operates at approximately the same routes and utilization as we do. As a result, no SAI crewmember status will be affected. Bottom line, the only consequence to Southern Air and all its employees is that we will be able to benefit from Oak Hill’s resources, access to capital, and commitment to aviation, resulting in a larger and stronger company. As long as we continue to work together as a team and keep our focus on operational excellence and fiscal discipline, we will always be successful.
Please join me in welcoming Oak Hill Capital Partners and Cargo 360.
Onwards and upwards!
Very best regards,
Jim Neff
CEO
Southern Air
Attachment: Public Press Release
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They will be hiring a lot - out of the 70 Cargo 360 pilots/FEs, I bet only 20 (or less) will stay on and transition to Southern. Cargo 360 hired a lot of high qualification, college educated pilots - UPS/Delta (and others) are hiring them quickly.
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Is that why we are seeing so many Delta pilots showing up overseas and the stories they tell as why they left Delta must be all wrong!
Lost retirement, alpa etc.
Dont know, just what they tell us here.
Lost retirement, alpa etc.
Dont know, just what they tell us here.
Last edited by Earl; 13th Aug 2007 at 14:26.
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Earl
- 3500 of us at Delta (out of 10,000) retired early to get half of our pension out of the company's hands before they flushed the rest through the bankruptcy process. I would say that half that 3500 is still in the business - somewhere! 40 or so early retirees went to Cargo 360 which was founded by four former Delta guys. The cockpit atmosphere here is a class act, the aircraft are well maintained, and have common cockpits - very unusual for a third level cargo carrier. C360 will now become part of the "Southern Air culture" with different maintenance and scheduling practices, and many of the 40 will leave for other opportunities.
You are correct - we seem to be showing up everywhere around the world - From KE, EK, JAL, NetJets, etc. I hope we are making positive contributions to our industry everywhere we go.
- 3500 of us at Delta (out of 10,000) retired early to get half of our pension out of the company's hands before they flushed the rest through the bankruptcy process. I would say that half that 3500 is still in the business - somewhere! 40 or so early retirees went to Cargo 360 which was founded by four former Delta guys. The cockpit atmosphere here is a class act, the aircraft are well maintained, and have common cockpits - very unusual for a third level cargo carrier. C360 will now become part of the "Southern Air culture" with different maintenance and scheduling practices, and many of the 40 will leave for other opportunities.
You are correct - we seem to be showing up everywhere around the world - From KE, EK, JAL, NetJets, etc. I hope we are making positive contributions to our industry everywhere we go.
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Unintended messages......
Flyer,
I dare say that your last post may seem to lack a level of humility that I and many others learned with our first flying job. But for the grace of God, go I. We all bring something to the party. But what we bring is not the party. We should all hope that we can contribute, but also try to appreciate the contribution of others.
Kindest regards.
I dare say that your last post may seem to lack a level of humility that I and many others learned with our first flying job. But for the grace of God, go I. We all bring something to the party. But what we bring is not the party. We should all hope that we can contribute, but also try to appreciate the contribution of others.
Kindest regards.
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Thanks for your comments FEL1011 Guy -
As I said - I hope all of us retired Delta guys "are making positive contributions to our industry". Sorry that wasn't humble enough for you.
I, too, remember my first flying job - flying off of carriers on dark stormy nights over North Vietnam getting my ass shot off. That was very humbling! I'm just glad I was able to work a year at Cargo 360 instead of at one of the other "third level" cargo carriers in the US. Cargo 360 has been a pleasant place to work.
As I said - I hope all of us retired Delta guys "are making positive contributions to our industry". Sorry that wasn't humble enough for you.
I, too, remember my first flying job - flying off of carriers on dark stormy nights over North Vietnam getting my ass shot off. That was very humbling! I'm just glad I was able to work a year at Cargo 360 instead of at one of the other "third level" cargo carriers in the US. Cargo 360 has been a pleasant place to work.
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Hitlist said:
QUOTE: The party is over, and Elvis has left the building.
Oak Hill the main investor of C360 has chosen to cut the deal with SAI for excellent reasons.
Anybody who cares about facts, can check the C360 filings with the DOT and the C360 ineptness is crystal clear.
After all C360 was the latest edition and the least 747 experienced of all the "third level" USA cargo outfits but, apparently the most arrogant, that rapidly succeded in only washing out of the party.
Never mind what the facts really are, just get the bags packed ex-DL boys for the ego trip to nowhere. END QUOTE.
OK, I'll bite. Where the hell did this come from. So if Cargo360 is so inept, tell all what specifically. Never mind what the facts really are??? What are you referring to here? Can you be specific?
If you're going to sling mud, give specifics. Don't generalize....
"Ahhh, Never mind what the facts are, Bart Simpson is apparently the most arrogant pig around. Just look at the ahhh, SEC filings!"
Laughable.
QUOTE: The party is over, and Elvis has left the building.
Oak Hill the main investor of C360 has chosen to cut the deal with SAI for excellent reasons.
Anybody who cares about facts, can check the C360 filings with the DOT and the C360 ineptness is crystal clear.
After all C360 was the latest edition and the least 747 experienced of all the "third level" USA cargo outfits but, apparently the most arrogant, that rapidly succeded in only washing out of the party.
Never mind what the facts really are, just get the bags packed ex-DL boys for the ego trip to nowhere. END QUOTE.
OK, I'll bite. Where the hell did this come from. So if Cargo360 is so inept, tell all what specifically. Never mind what the facts really are??? What are you referring to here? Can you be specific?
If you're going to sling mud, give specifics. Don't generalize....
"Ahhh, Never mind what the facts are, Bart Simpson is apparently the most arrogant pig around. Just look at the ahhh, SEC filings!"
Laughable.