Atlas Goes With Passengers
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Atlas Goes With Passengers
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!
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"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.
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.
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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
"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
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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
) . .
. . . (I just gotta quit posting after evening cocktails
) . .
Last edited by L-38; 23rd Jul 2009 at 17:19.
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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
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
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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.
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.
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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.
For the rest of the specifics I agree with Whaledriver.
AnotherCP
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.
For the rest of the specifics I agree with Whaledriver.
AnotherCP
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.
Probably why they've been using World and are turning to Atlas.
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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.
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.
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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"
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World Memo
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.
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.
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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.
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.
Last edited by nitty-gritty; 25th Jul 2009 at 16:25.
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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
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