Atlas board fire top dogs
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Burst?....as in busted?
Reported today that Atlas has missed a few aircraft lease payments AND is negotiating with owners on deferring/reducing others, altho revenue has increased, mainly because of the Polar buyout.
Also an on-going SEC investigation has now been upgraded to the next level.
Where there is smoke....fire somes follows....
Also an on-going SEC investigation has now been upgraded to the next level.
Where there is smoke....fire somes follows....
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As 411A posted
I hear Atlas is returning some of the crafts to their lessors. One being a B472.
Eddited to include found press link:
http://abcnews.go.com/wire/Business/...30228_493.html
Eddited to include found press link:
http://abcnews.go.com/wire/Business/...30228_493.html
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FYI
Atlas faces SEC investigation & renegotiates leases
Brendan Sobie, Washington DC (28Feb03, 18:43 GMT, 654 words)
The US Securities and Exchange Commission (SEC) has started formal investigations of the parent of Atlas Air and Polar Air Cargo as it drafts restated financials and tries to renegotiate aircraft lease payments.
Atlas Air Worldwide Holdings, which has not reported financials since the second quarter of 2002, today provided revenue figures for the fourth quarter. The carrier also revealed today it has negotiated with Boeing a three-year deferral on the delivery of its one remaining 747-400 on order from October 2003 to September 2006. This aircraft was previously deferred from early 2003 to late 2003 as part of an earlier deal with Boeing that included the on-time delivery of two new 747-400s in 2002.
Atlas also reports that it “has begun negotiating with some of its aircraft lessors to reduce or defer operating lease payments relating to five Boeing 747-200 and one Boeing 747-300 aircraft”. The carrier has already missed lease payments on these six aircraft.
It also stopped paying the lease on a sixth 747-200, prompting the lessor to send Atlas a lease termination notice. Atlas is complying with the notice and is in the process of returning the aircraft.
The return of this aircraft will give Atlas Air Worldwide Holdings an all-747 fleet of 50 aircraft, but the company has dry leased four of these aircraft to other carriers because its fleet size exceeds current demand. Of the 46 aircraft in revenue service, 31 are operated by the company’s Atlas Air subsidiary and 15 by its Polar Air Cargo subsidiary.
The two carriers combined generated $414 million of revenues in the fourth quarter of 2002, a 46% increase over the fourth quarter of 2001. This increase was driven partly by the addition of Polar, which Atlas acquired in November 2001, in the 2002 financials. Atlas says it also benefited in the fourth quarter from strong charter demand as a result of the military build-up in the Middle East and labor disruptions at US west coast maritime ports.
In fact, charter revenues more than doubled from $75 million to $153 million. However, revenues from Atlas’ core wet lease operation dropped by 68% to $84.5 million. Revenues from scheduled services increased from $37 million to $140 million, but this was mostly driven by the Polar acquisition. Polar operates a mix of scheduled, wet lease and charter services. Atlas has traditionally focused on wet lease services, but has expanded its charter operation over the last two years to offset plummeting demand for wet leases.
“Although Atlas’s traditional [wet lease] market is still depressed, we have adapted to today’s market by shifting our operations towards maximizing military and commercial charter opportunities,” says Atlas chief executive officer Richard Shuyler. “Military charter demand has continued into the first quarter of 2003, and our fleet remains at near capacity operation as a result.”
Atlas first revealed in October it had discovered an accounting error and would have to restate its earnings for 2001 and the first half of 2002. The SEC immediately began an informal investigation and Atlas today reported that a formalized investigation is now underway. As part of this investigation, Atlas is providing the SEC with documents. The carrier says it is “cooperating fully” with the SEC.
The company also has had to delay reporting any results from the second half of 2002 until it finishes drafting new financial reports for 2001 and the first half of 2002. The delay in reporting these results has forced Atlas to default on debt from banks that required as part of covenants the timely reporting of financials. Atlas earlier this year secured a waiver from these covenants that give Atlas until 31 March to comply. But the carrier today reveals: “It is likely that the company will also have to seek additional waivers to extend the requirement for providing financial statements beyond such date.”
Atlas says it has begun negotiations with its lenders to try to secure such waivers.
Atlas faces SEC investigation & renegotiates leases
Brendan Sobie, Washington DC (28Feb03, 18:43 GMT, 654 words)
The US Securities and Exchange Commission (SEC) has started formal investigations of the parent of Atlas Air and Polar Air Cargo as it drafts restated financials and tries to renegotiate aircraft lease payments.
Atlas Air Worldwide Holdings, which has not reported financials since the second quarter of 2002, today provided revenue figures for the fourth quarter. The carrier also revealed today it has negotiated with Boeing a three-year deferral on the delivery of its one remaining 747-400 on order from October 2003 to September 2006. This aircraft was previously deferred from early 2003 to late 2003 as part of an earlier deal with Boeing that included the on-time delivery of two new 747-400s in 2002.
Atlas also reports that it “has begun negotiating with some of its aircraft lessors to reduce or defer operating lease payments relating to five Boeing 747-200 and one Boeing 747-300 aircraft”. The carrier has already missed lease payments on these six aircraft.
It also stopped paying the lease on a sixth 747-200, prompting the lessor to send Atlas a lease termination notice. Atlas is complying with the notice and is in the process of returning the aircraft.
The return of this aircraft will give Atlas Air Worldwide Holdings an all-747 fleet of 50 aircraft, but the company has dry leased four of these aircraft to other carriers because its fleet size exceeds current demand. Of the 46 aircraft in revenue service, 31 are operated by the company’s Atlas Air subsidiary and 15 by its Polar Air Cargo subsidiary.
The two carriers combined generated $414 million of revenues in the fourth quarter of 2002, a 46% increase over the fourth quarter of 2001. This increase was driven partly by the addition of Polar, which Atlas acquired in November 2001, in the 2002 financials. Atlas says it also benefited in the fourth quarter from strong charter demand as a result of the military build-up in the Middle East and labor disruptions at US west coast maritime ports.
In fact, charter revenues more than doubled from $75 million to $153 million. However, revenues from Atlas’ core wet lease operation dropped by 68% to $84.5 million. Revenues from scheduled services increased from $37 million to $140 million, but this was mostly driven by the Polar acquisition. Polar operates a mix of scheduled, wet lease and charter services. Atlas has traditionally focused on wet lease services, but has expanded its charter operation over the last two years to offset plummeting demand for wet leases.
“Although Atlas’s traditional [wet lease] market is still depressed, we have adapted to today’s market by shifting our operations towards maximizing military and commercial charter opportunities,” says Atlas chief executive officer Richard Shuyler. “Military charter demand has continued into the first quarter of 2003, and our fleet remains at near capacity operation as a result.”
Atlas first revealed in October it had discovered an accounting error and would have to restate its earnings for 2001 and the first half of 2002. The SEC immediately began an informal investigation and Atlas today reported that a formalized investigation is now underway. As part of this investigation, Atlas is providing the SEC with documents. The carrier says it is “cooperating fully” with the SEC.
The company also has had to delay reporting any results from the second half of 2002 until it finishes drafting new financial reports for 2001 and the first half of 2002. The delay in reporting these results has forced Atlas to default on debt from banks that required as part of covenants the timely reporting of financials. Atlas earlier this year secured a waiver from these covenants that give Atlas until 31 March to comply. But the carrier today reveals: “It is likely that the company will also have to seek additional waivers to extend the requirement for providing financial statements beyond such date.”
Atlas says it has begun negotiations with its lenders to try to secure such waivers.
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Yes, Atlas are exposed by virtue of
1) providing outsourced services, and
2) having contractual commitments to expand their capacity at a difficult time for the World Economy.
But look at the stakeholders in whose interest it is for the carrier to keep flying - Boeing, the lessors, and the customers.
My guess is that these players will continue to back Atlas. The formula is fundamentally sound, and they have shown their ability to manage their business better than most.
PS: Still not sure whether the responses on this thread have actually got anything to do with millionAIR's opening question. Were you actually trying to tell us that your road atlas had burst? If so, I sympathize, and suggest you buy a spiral-bound one next time.
1) providing outsourced services, and
2) having contractual commitments to expand their capacity at a difficult time for the World Economy.
But look at the stakeholders in whose interest it is for the carrier to keep flying - Boeing, the lessors, and the customers.
My guess is that these players will continue to back Atlas. The formula is fundamentally sound, and they have shown their ability to manage their business better than most.
PS: Still not sure whether the responses on this thread have actually got anything to do with millionAIR's opening question. Were you actually trying to tell us that your road atlas had burst? If so, I sympathize, and suggest you buy a spiral-bound one next time.
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Just heard that Rick Shuyler (CEO) Stan Wraight (SV-P Sales) have 'left the company'.
Anybody know of other casualties?
CS
Anybody know of other casualties?
CS
Last edited by cargosales; 7th Mar 2003 at 14:37.
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Atlas Press Release
The following is a press release from Atlas Air's Headquarters in Purchase, NY. Rumor is that the terminations were so widespread, only the major ones were listed.
Press Release Source: Atlas Air Worldwide Holdings
Atlas Air Worldwide Holdings Announces Management Changes
Thursday March 6, 7:52 pm ET
PURCHASE, N.Y.--(BUSINESS WIRE)--March 6, 2003--Atlas Air Worldwide Holdings today announced it has replaced chief executive officer Richard Shuyler with John Blue, who served as the President of Atlas Air, Inc. from the company's inception in 1992 through 1995, and who is currently a Director of the Company.
Blue will serve as CEO on an interim basis; a search for a new CEO has begun. Shuyler had been CEO of both Atlas Air, Inc. and Atlas Air Worldwide Holdings since the death of the company's founder in January 2001. Shuyler has also resigned as Director of the company and its subsidiaries.
In addition, Jeffrey H. Erickson, who has been serving as acting President of Atlas Air Worldwide Holdings, has become President of the holding company and has joined the Company's Board of Directors.
The Company also announced, effective today, the departure of the following senior officers: Thomas G. Scott, senior vice president and general counsel; Fred L. deLeeuw, senior vice president of strategic planning; and Stanley G. Wraight, senior vice president of marketing and commercial strategy. John W. Dietrich, currently deputy general counsel, will become acting general counsel. Wake Smith will assume responsibility for strategic planning. Atlas Air's sales and marketing department will continue to be led by Robert van de Weg; Polar Air Cargo's sales and marketing department will continue to be led by Ron Lane.
"This leadership change is an extremely difficult measure to take, but it is necessary at this time," Erickson said. "Rick Shuyler led Atlas through the most challenging chapter of the company's history, taking over the leadership of the company in early 2001, just as the U.S. economy was heading into the worst recession the aviation industry has ever seen. We wish him the best in his future endeavors."
Atlas Air Worldwide Holdings, Inc.("the Company") is the parent company of Atlas Air, Inc. and of Polar Air Cargo, Inc. Atlas Air offers its customers a complete line of freighter services, specializing in ACMI (Aircraft, Crew, Maintenance, and Insurance) contracts, utilizing its fleet of B747 aircraft. Polar's fleet of Boeing 747 freighter aircraft specializes in time-definite, cost-effective, airport-to-airport scheduled airfreight service.
Press Release Source: Atlas Air Worldwide Holdings
Atlas Air Worldwide Holdings Announces Management Changes
Thursday March 6, 7:52 pm ET
PURCHASE, N.Y.--(BUSINESS WIRE)--March 6, 2003--Atlas Air Worldwide Holdings today announced it has replaced chief executive officer Richard Shuyler with John Blue, who served as the President of Atlas Air, Inc. from the company's inception in 1992 through 1995, and who is currently a Director of the Company.
Blue will serve as CEO on an interim basis; a search for a new CEO has begun. Shuyler had been CEO of both Atlas Air, Inc. and Atlas Air Worldwide Holdings since the death of the company's founder in January 2001. Shuyler has also resigned as Director of the company and its subsidiaries.
In addition, Jeffrey H. Erickson, who has been serving as acting President of Atlas Air Worldwide Holdings, has become President of the holding company and has joined the Company's Board of Directors.
The Company also announced, effective today, the departure of the following senior officers: Thomas G. Scott, senior vice president and general counsel; Fred L. deLeeuw, senior vice president of strategic planning; and Stanley G. Wraight, senior vice president of marketing and commercial strategy. John W. Dietrich, currently deputy general counsel, will become acting general counsel. Wake Smith will assume responsibility for strategic planning. Atlas Air's sales and marketing department will continue to be led by Robert van de Weg; Polar Air Cargo's sales and marketing department will continue to be led by Ron Lane.
"This leadership change is an extremely difficult measure to take, but it is necessary at this time," Erickson said. "Rick Shuyler led Atlas through the most challenging chapter of the company's history, taking over the leadership of the company in early 2001, just as the U.S. economy was heading into the worst recession the aviation industry has ever seen. We wish him the best in his future endeavors."
Atlas Air Worldwide Holdings, Inc.("the Company") is the parent company of Atlas Air, Inc. and of Polar Air Cargo, Inc. Atlas Air offers its customers a complete line of freighter services, specializing in ACMI (Aircraft, Crew, Maintenance, and Insurance) contracts, utilizing its fleet of B747 aircraft. Polar's fleet of Boeing 747 freighter aircraft specializes in time-definite, cost-effective, airport-to-airport scheduled airfreight service.
One of our FO's left Atlas a few years ago. His salary as 747 Captain was about $65,000 US, about what many truck(lorry)drivers make over here, with probably the same days off per month.
As usual, 'high' labor costs could be the cause.
As usual, 'high' labor costs could be the cause.
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[B]Bankruptcy fears at Atlas Air [/B]
This story posted yesterday in International Freighting Weekly;
"Atlas Air 's future appears in doubt as it struggles to meet a 31 March deadline for re-auditing its 2001 and 2002 figures.
The company, under investigation by the US Securities and Exchange Commission (SEC), has defaulted on lease payments on six B747s and has dismissed CEO Rick Shuyler.
Three other senior executives were also shown the door – Thomas Scott, general counsel, Fred deLeeuw, senior VP of strategic planning, and Stanley Wraight, senior VP of marketing and commercial strategy.
Jeffrey Erickson, who was acting president of Atlas Air Worldwide Holdings, has been named president. Director John Blue, a former president of Atlas, has replaced Shuyler on an interim basis while the search for a new CEO begins.
Profit and loss figures for the fourth quarter of last year are still awaited as part of the reaudit demand. But Atlas has revealed that wet-lease revenue plunged to US$84.5m (€77m), 45% below Q4 2001.
Although military charters and the scheduled services operated by Polar Air Cargo, acquired in late 2001, more than made up the shortfall, the heavily indebted company told the SEC last week that if its lenders made early demands for repayment, "our ongoing viability would be seriously threatened".
Atlas added it may be forced to sell some or all of its assets to survive and has deferred delivery of a B747-400F from October to September 2006.
But a US aviation analyst told IFW he thought a filing for bankruptcy was possible.
Shuyler, who had a previous run-in with the SEC when he was at Continental Airlines, was Atlas's chief financial officer before taking over as CEO when the company's charismatic founder, Michael Chowdry, died in a plane crash in January 2001.
Posted: 17/03/2003
"Atlas Air 's future appears in doubt as it struggles to meet a 31 March deadline for re-auditing its 2001 and 2002 figures.
The company, under investigation by the US Securities and Exchange Commission (SEC), has defaulted on lease payments on six B747s and has dismissed CEO Rick Shuyler.
Three other senior executives were also shown the door – Thomas Scott, general counsel, Fred deLeeuw, senior VP of strategic planning, and Stanley Wraight, senior VP of marketing and commercial strategy.
Jeffrey Erickson, who was acting president of Atlas Air Worldwide Holdings, has been named president. Director John Blue, a former president of Atlas, has replaced Shuyler on an interim basis while the search for a new CEO begins.
Profit and loss figures for the fourth quarter of last year are still awaited as part of the reaudit demand. But Atlas has revealed that wet-lease revenue plunged to US$84.5m (€77m), 45% below Q4 2001.
Although military charters and the scheduled services operated by Polar Air Cargo, acquired in late 2001, more than made up the shortfall, the heavily indebted company told the SEC last week that if its lenders made early demands for repayment, "our ongoing viability would be seriously threatened".
Atlas added it may be forced to sell some or all of its assets to survive and has deferred delivery of a B747-400F from October to September 2006.
But a US aviation analyst told IFW he thought a filing for bankruptcy was possible.
Shuyler, who had a previous run-in with the SEC when he was at Continental Airlines, was Atlas's chief financial officer before taking over as CEO when the company's charismatic founder, Michael Chowdry, died in a plane crash in January 2001.
Posted: 17/03/2003
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... and has deferred delivery of a B747-400F from October to September 2006.
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Atlas Air delays filing 10K financial report; cuts jobs
Karen Walker, Washington DC (03Apr03, 00:18 GMT, 252 words)
Cargo carrier Atlas Air has been forced to delay the filing of a required financial report because of the on-going re-audit of financial statements for 2000 and 2001 and has returned one of its Boeing 747Fs to its lessor.
The New-York based company also announced today it is cutting 30% of its ground staff workforce. A spokesman says the jobs cuts will affect 170 people – 65 in New York, 32 in Miami, 28 in other US locations and 45 open positions that will now not be filled. Most of the layoffs take immediate effect.
Atlas says in a statement today that its inability to file its 2002 annual report on form 10-K by the 31 March deadline will create a default under some of its debt and lease obligations.
Atlas announced last week that it was in negotiations with creditors and lessors about restructuring payments.
A single 747F has been returned to its lessor, although Atlas says it is continuing negotiations with the lessor, despite the fact that the lessor has begun legal action against Atlas. The lessor’s identity is not being revealed. The carrier operates an all-747 fleet.
The company’s 2000 and 2001 financial results were originally audited by Arthur Andersen, but were required to be re-audited. Atlas says the delay in the 2002 10-K filing is due primarily to difficulties encountered in obtaining necessary historical records and data to enable the 2000 and 2001 re-audit to be completed.
Atlas says the job cuts should save the company $14 million annually.
Source: Air Transport Intelligence news
Karen Walker, Washington DC (03Apr03, 00:18 GMT, 252 words)
Cargo carrier Atlas Air has been forced to delay the filing of a required financial report because of the on-going re-audit of financial statements for 2000 and 2001 and has returned one of its Boeing 747Fs to its lessor.
The New-York based company also announced today it is cutting 30% of its ground staff workforce. A spokesman says the jobs cuts will affect 170 people – 65 in New York, 32 in Miami, 28 in other US locations and 45 open positions that will now not be filled. Most of the layoffs take immediate effect.
Atlas says in a statement today that its inability to file its 2002 annual report on form 10-K by the 31 March deadline will create a default under some of its debt and lease obligations.
Atlas announced last week that it was in negotiations with creditors and lessors about restructuring payments.
A single 747F has been returned to its lessor, although Atlas says it is continuing negotiations with the lessor, despite the fact that the lessor has begun legal action against Atlas. The lessor’s identity is not being revealed. The carrier operates an all-747 fleet.
The company’s 2000 and 2001 financial results were originally audited by Arthur Andersen, but were required to be re-audited. Atlas says the delay in the 2002 10-K filing is due primarily to difficulties encountered in obtaining necessary historical records and data to enable the 2000 and 2001 re-audit to be completed.
Atlas says the job cuts should save the company $14 million annually.
Source: Air Transport Intelligence news
