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-   -   GSS contract with BA terminated (https://www.pprune.org/freight-dogs/532134-gss-contract-ba-terminated.html)

TopBunk 17th Jan 2014 14:25

GSS contract with BA terminated
 
Have just read elsewhere that BA are terminating their contract with GSS for the 3 B748 aircraft with effect from end March. The aircraft will return to Atlas.

Airclues 17th Jan 2014 14:49

BALPA | GSS PILOTS FEAR LOSS OF BRITISH JOBS & EXPORTS AFTER IAG ENDS UK CARGO FLIGHT CONTRACT

Ct.Yankee 17th Jan 2014 15:05

Looks like the three Dash 8's are coming home to Atlas Air?


Business Wire

PURCHASE, N.Y.--(BUSINESS WIRE)-- Atlas Air Worldwide Holdings, Inc. (Nasdaq:AAWW), a leading global provider of outsourced aircraft and aviation operating solutions, today said that it intends to pursue new ACMI (aircraft, crew, maintenance and insurance) placement opportunities for three 747-8 Freighter aircraft currently operated for British Airways plc by Atlas Air Worldwides 49%-owned UK subsidiary, Global Supply Systems Limited (GSS).

The action follows notice from British Airways, a unit of International Consolidated Airlines Group, S.A., regarding British Airways strategic decision to exit dedicated cargo-freighter service and to return the aircraft to GSS in April 2014 pursuant to the terms of the existing ACMI agreement between the parties.

Effective with the termination of the agreement, the three 747-8Fs will be redelivered to the company by GSS. Through GSS, the company also will receive contractual early termination fees from British Airways.

We deeply appreciate our long relationship with British Airways and its cargo affiliate, IAG Cargo, said William J. Flynn, President and Chief Executive Officer, Atlas Air Worldwide (AAWW). We are very proud to have served them over the past 18 years, including the last 12 years through GSS.

We are also focused on the continued development of our business. We are an innovative provider of outsourced aircraft and aviation operating solutions to the global aviation industry. And we will deploy these freighters in profitable revenue operations once redelivered to us, taking advantage of their superior fuel efficiency, range, capacity and loading capabilities. We believe these qualities create a compelling value proposition for our customers.

About Atlas Air Worldwide:

Atlas Air Worldwide is the parent company of Atlas Air, Inc. (Atlas) and Titan Aviation Leasing (Titan), and is the majority shareholder of Polar Air Cargo Worldwide, Inc. (Polar). Atlas Air Worldwide also maintains a 49% interest in Global Supply Systems Limited (GSS). Through Atlas and Polar, Atlas Air Worldwide operates the worlds largest fleet of Boeing 747 freighter aircraft.

Atlas, Titan and Polar offer a range of outsourced aircraft and aviation operating services that include ACMI service in which customers receive an aircraft, crew, maintenance and insurance on a long-term basis; CMI service, for customers that provide their own aircraft; express network and scheduled air cargo service; military cargo and passenger charters; commercial cargo and passenger charters; and dry leasing of aircraft and engines.

Atlas Air Worldwides press releases, SEC (SCUR) filings and other information can be accessed through the Companys home

Burnie5204 17th Jan 2014 15:42

So is this an end to BA World Cargo entirely or just their B748F operation?

ETOPS 17th Jan 2014 16:17


So is this an end to BA World Cargo entirely or just their B748F operation?
BA World Cargo and Iberia Cargo were joined together in 2011 to form IAG Cargo. Much of their business is "underfloor" with the constituent airlines but the STN based 748 operation was a significant part.

No doubt a sharp accountant reckoned it would be cheaper to outsource again.........

Flightmech 17th Jan 2014 16:30

GSS contract with BA terminated
 
Sad news. Most of the ground staff are a great bunch. I hope they find employment elsewhere very soon

Cliff Secord 17th Jan 2014 16:45

What awful news. I had the great pleasure of meeting some folk at GSS once and thought what a nice company and people they were. My thoughts are with all the staff. I like everyone here hope for some last minute good news.

Will we have any independent airlines left in the UK at this rate? What a sad state the British airline industry is in. It is very sad.

Sleeping Freight Dog 17th Jan 2014 16:49

As a follow up to this, Qatar Cargo has signed on to operate 5 B777F a week from London to Hong Kong on behalf of IAG

Qatar to operate freighters on behalf of IAG Cargo | Air Cargo World

newscaster 17th Jan 2014 16:53

What happens to GSS now?

Burnie5204 17th Jan 2014 18:35

That is a shame. It was always nice to see the BA 748s when they occasionally came in. They always looked much cleaner, more modern and more impressive than the usual 744s we see. Would have been nice to see them on the FIA contract.

Plus it was nice to see BRITISH AIRWAYS down the side of an aircraft, even if it was on a cargo 747, it made a change from the normal and between that and the chartered BA Shuttle to FAO in the summer you could almost imagine what the place would look like with some full service and longhaul operating.

CAO 17th Jan 2014 21:56

New spotting opportunities
 
So now you'll see something new...a Qatari 777F :)

Cliff Secord 17th Jan 2014 21:59

Can't wait

Iver 18th Jan 2014 00:30

Very unfortunate for all involved. I imagine the crews will be well qualified for several opportunities in the Gulf (maybe flying QR 777Fs) or with Virgin on the 400 if they are still hiring. I would expect experience flying the 800F should be valued. On a side note, I have always heard GSS pilots were under-paid. Perhaps it is time to cash-in on that experience...

Good luck to all!

MoJo WoJo 18th Jan 2014 02:34

"Good News" for Atlas Air


Yah, they looked that good because they ARE OWNED by AAWW!

The GSS op was 49% Atlas Air, 51% British Air (Operational Control requirement).

There should be understanding here as that, AAWW gained significant "Foreign Earned US Tax Credits with the British operation! (Corp Tax code within US under review and vy likely to change.)

With conclusion of the flying club at GSS, AAWW will better use the ACs as the EU econ improves and continuing expansion of the US economy.

The 3 GSS 748 assignments was a good equipment transitory plan [top line, bottom line, and as a lender financing tool (200>400>8)] for the AAWW corp.

Risk here is depending upon controlled ongoing expansionary monetary policies and restrained inflation within CH and EU.

Keep in mind: although the 748 has 4 engs (JET A prices are low near term and going lower) it is A VERY ADAPTIVE AC for far more biz models.

The B777F DOES NOT accommodate outsized loads (No Nose Loading). Though it is good for long thin fixed routes, it is not that adaptive.

Good olde UPS could have used all three of these AAWW ACs under contract for this past "Amazon Chaos" Christmas!

It cost UPS dearly with the lack of additional seasonal assigned lift.

Good luck to the BA pilots who worked at GSS and formerly retired BA age 55. The party is over, I guess. Welcome to the real world! The world of an "aged", retired, unemployed old pilots!

Key to all this: be ADAPTIVE, as the mainline crew at Atlas Air have been.

"Cheers!",
MoJo

no sponsor 18th Jan 2014 05:24

A lot of very experienced, very talented, good guys. I hope you all find something soon.

zeddb 18th Jan 2014 10:01

Mojo,

Gloating over the misfortune of others is considered very bad form and has a nasty habit of rebounding and smacking you in the face.

May I respectfully suggest that you check your facts before going into print and confirming what others think of your intellectual status.

GSS is not/was not a "flying club"

GSS employed it's own pilots, who will be on the scrap heap. A small number of BA pilots were seconded to the operation. They have nice jobs and careers to go back to so I would save your "sympathy" for those that deserve it.

Just saying.

Airclues 18th Jan 2014 10:59

I spent five happy years with GSS. They are a great bunch of people who have worked hard to provide an excellent service to BA. I wish them all well for the future.

742 18th Jan 2014 11:13

MoJo WoJo --


That post was in very bad form, especially if you are actually an Atlas employee. And your "understandings" sound like they came from listening to too much bar talk.


My sense is that the majority of people at Atlas understand that this is not good news for any of us. And, since the vast majority of us are not psychopaths, there is no joy in the pain that the GSS employees are going through.


I wish them the best, and hope that they land on their feet.

zeddb 18th Jan 2014 11:37


Will BALPA insist on BA F/O's being able to bid for Qatar 777F commands as they did with GSS (under the BA SCOPE agreement)?
One would hope that BALPA had more pressing priorities with the impending job losses amongst GSS employees than the continued rights of BA pilots to help themselves to other people's commands.

Should they insist on enforcing the scope clause, maybe those wishing to avail themselves of such an opportunity would consider the ongoing popularity of traumatic amputation in that part of the world.

That said, the BA guys I had the pleasure to sit next to over the last few years were gentlemen to a fault (well, most of them) and I hope they enjoy their return to the fold. Their good fortune was exactly that and who amongst us wouldn't have done the same, given the chance. Sayonara chaps, spare a thought for those of us consigned to the dustbin on your way onwards and upwards.

Icelanta 18th Jan 2014 11:51

For what it is worth...

Norwegian is looking for long Haul pilots, both FO, cruise captain and Captain.
Type rating on B787 is not required.

Qatar Airways is taking Captains and FO on B777

Korean Air is taking FO and Captains on B744

China has good options with bases in Europe and the USA.

Let us hope that the EU will finally ban the Cabotage done by Fedex and UPS very soon, as there are several courtcases and investigations running against it. ( and yes, it IS cabotage as they operate within one economic union, which is the basis of cabotage, and not political union)

Flightmech 18th Jan 2014 12:59

GSS contract with BA terminated
 
The FedEx and UPS situation won't change. It's perfectly legal. Atlas will also struggle to find regular income from 3 -8F's too. I'm also curious how Qatar will be able to carry BAWC freight bearing in mind that's why GSS had to be formed in the first place?

Iver 18th Jan 2014 13:16

Great point Icelanta. I forgot about Norwegian Long Haul 787 opening for the GSS crews. Perhaps closer to home if a 787 LGW pilot base is established at some point. The current NLH basing policy is still confusing.

Good luck to all GSS crews. Despite the low pay, I imagine the flying itself was interesting.

Intruder 18th Jan 2014 14:04


Let us hope that the EU will finally ban the Cabotage done by Fedex and UPS very soon, as there are several courtcases and investigations running against it. ( and yes, it IS cabotage as they operate within one economic union, which is the basis of cabotage, and not political union)
I cannot find ANY definition of cabotage that supports your contention. In fact, I found more than one discussion/definition which addresses the EU, and they all address operations within a single member state:

http://www.aerolegalservices.com/Art...ircraft.shtml:

European Union. Cabotage regulations in the European Union are more complex than in Canada. The difficulty results from the European Union’s definition of commercial transportation. In the U.S., the U.S. Customs service defines commercial transportation as transportation “for compensation or hire”. However, the European Union defines “commercial use” as “the use of means of transportation for the transport of persons or of goods for remuneration or in the framework of the economic activity of an enterprise”.

Unfortunately, the European Union definition means that a U.S. registered corporate aircraft operating within the European Union for corporate or other business purposes can be considered to be engaging in commercial use or transportation. As a result, if a corporate aircraft flies into a European Union country, picks up a citizen of that country and then travels on to another destination within that country, it is likely that the second flight would be in violation of the European Union cabotage regulations.
http://www.law-pedia.com/cabotage.htm:

Definition of cabotage
n. Transport services provided in one member state of the EU by a carrier of another state. Article 71 (formerly 75) of the Treaty of Rome provides that the Council of the European Union may lay down proposals in relation to the conditions under which nonresident carriers may operate transport services within a member state.
C 21/2 Official Journal of the European Union (road haulage, but identical concept):

Based on Article 71(1)(b) of the EC Treaty, the Community Regulations (2) give the following definition:
Any non-resident carrier who is a holder of the Community authorisation is entitled to operate, on a temporary basis and without quantitative restrictions, national road haulage services in another Member State, without having a registered office or other establishment in that State.
Also, if it is of such concern to the EU, why hasn't a EU company simply opened up shop and offered the services? Surely all those EU airlines and companies would jump over to another EU company... :confused:

Flightmech 18th Jan 2014 14:13

GSS contract with BA terminated
 
What intruder said.....

JB007 18th Jan 2014 19:19

Also the "airline that can't be named" in AUH is doing massive expansion in 2014! Approx 500 pilots required I heard! It's all on their website!

PFR 18th Jan 2014 20:02

Such sad news - all the best for the future for such a great team of people.
PFR.

Dihaz 18th Jan 2014 20:44

Deal with Qatar will work very easily around the EU/UK rules.

Qatar will commence a B777F schedule to the UK and BAWC/IAGC will buy block space on these flights. In a way, DOH will be BAWC/IAGC's cargo hub...!

Wouldn't be surprised if QR order -8s now...!

On a side note are these QR freighters going to fly into STN?

bvcu 19th Jan 2014 10:39

With Qatar joining 'one world alliance' it was a bit of a no brainer really with them investing in a cargo division with 777F and A330F . Think with just a change to 777F for HKG the fuel savings alone is a no-brainer.Probably as hig a proportion of UK jobs flying for them ! Havent seen any mention of the rest of the jobs going yet , didnt they have a maintrol etc at STN ?

Flightmech 19th Jan 2014 11:28

GSS contract with BA terminated
 
While it's important to keep a customer happy part of the blame has to be with GSS Management for bowing down to BAWC over the years. Enquiries from other carriers had been made to fly their freight during unused maintenance slots in HKG but as soon as "permission" was sought from BAWC they would suddenly come up with a HKG-MAA-HKG carrying a packet of tissues one way and an empty ferry the other! Relationships could have been built with other potential customers over the years but sticking with one has finally bit them in the a**e.

Best foot forward 19th Jan 2014 13:02

Surely BA would be able to absorb the crew from GSS. There must be a recruitment need in the next 6 months, rumour a while back had a lot of retirements pending this year at BA. They have a trained and known commodity available. Why waste it.

Good luck to all involved it is horrible position to be in, to work hard for an employer just to be ditched at the stroke of bean counters pen.

cockygashandlazy 19th Jan 2014 13:24

For those that are familiar with GSS the gravity of this announcement is clear. However, I will make it clear for the others. GSS was established to fly this contract. It is their only contract. This story is being sold as a contract cancellation and GSS are looking for more work. I find it very hard to believe they will succeed in that endeavour before the end of April. This news is potentially the end of GSS and the end of employment for the entire workforce.

There is the hope of the mid-contract cancellation payment sustaining a GSS skeleton crew after the contract ends with the hope of finding more work. However, in a rented office with rented computers and desks, I can only be a realist.

In regards to Qatar; as far as I understand IAG cargo is merely buying space on the existing Qatar route network, albeit with Qatar taking the hit on adding extra rotations to suit IAG, therefore the entire contact has been cancelled and is not continuing. This means no hope of TUPE for the staff (small hope or consolation that it was anyway).

Good luck everyone.

TOWTEAMBASE 19th Jan 2014 13:37

GSS contract with BA terminated
 
If Qatar were to order -8......why not just take the GSS ones from Atlas ?

Flightmech 19th Jan 2014 13:45

GSS contract with BA terminated
 
Why order the -8 when you have the 777? Although I guess BAWC will have to lose some of the oil drilling freight that used to move between IAH and DMM without a nose loading option.

TOWTEAMBASE 19th Jan 2014 17:57

GSS contract with BA terminated
 
And maybe some of the cars and military hardware too

Tay Cough 19th Jan 2014 18:15


Will BALPA insist on BA F/O's being able to bid for Qatar 777F commands as they did with GSS (under the BA SCOPE agreement)?

One would hope that BALPA had more pressing priorities with the impending job losses amongst GSS employees than the continued rights of BA pilots to help themselves to other people's commands.
No. Qatar Airways is a stand alone company and IAG are buying capacity on their freighters.

GSS only ever existed to operate BAWC services and was only formed as a UK subsidiary of Atlas when it was pointed out by the CAA that it was illegal for an N-reg company to carry out UK based work. I think BALPA were quite concerned about US pilots helping themselves to other people's commands. :oh:

My thoughts are with the GSS employees at what must be a very difficult time.

Holer Moler 19th Jan 2014 19:55

My thoughts are also with the GSS Pilots, I wish you all the best in securing future employment.

mark one eyeball 19th Jan 2014 22:19

Piggy in the middle company always going nowhere

MoJo WoJo 20th Jan 2014 06:00

SIMPLE MINDED SYMPATHY!
 
You should look very closely to what I have posted.


I HAVE been there and done that.


My comment is truth.


PERHAPS I should also give sympathy to the AACS operation?


I do not believe you have any skin in the game nor ever will.


Step back from your ludicrous commentary and save others from a sensible career development in aviation or otherwise.


Good luck commentator. (Experienced Professional Pilot?)


I am a retired and have spent 37 years in the system that I post so why do you not listen closely for yourself and the benefit of others? Very very narrow minded.


My 747 (SP,100,200,300, 400, -8) exp alone is greater than 20,000 hrs.


Sympathy? Think about it?


Maybe I should have sympathy for the AACS pilots. Do you know anything about that?


Do you anything about Atlas founder Chowdery words: "This is the job you have chosen."? If no,t please STEP BACK and save the truly career minded from your BS!


My sympathies to you!


You want to help your peers than you should look very very closely to my posts!


CHEERS! Bloke!


Oh, and in any case, ANY aviation job is membership in a FLYING CLUB!


MINE WAS!

mole man 20th Jan 2014 07:11

Good luck to all the Loadmasters if they are also looking for work

Mole Man:ok:

A340Yumyum 20th Jan 2014 12:08

GSS
 
Mojo.

You are a tw@t.


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