Atlas Furlough?
 

Latest rumor on the freight ramp last night was that Atlas has furloughed 100 flight crew. Can anybody confirm or dispel this one?

I don't think so
 

I just had coffee with three Atlas pilots last Monday (the 3rd).

One of them is *very* junior.

He said, "No furloughs.......yet."

But Chapter 11 bankruptcy next month, to be sure.

Not another shining example of the USA version of a 'level playing field' in aviation? How many more can we take......:mad:

Atlas has had a very poor business model ever since MC went bye-bye.
Sad but true.

Many potholes ahead....for sure.

I just checked my schedule and it says that I am still working.

Ch 11 filing on Dec. 15th?? :eek:

My mole tells me nil Atlas/Polar merger and Polar maybe heading Ch 11 also? T or F?

The upcoming bankruptcy is for the holding company, Atlas Air Worldwide Holdings. Since AAWH owns Polar, Atlas, and AACS, any bankruptcy would affect all 3 of them.

Since they also own "49% of" GSS, there is a potential outfall there as well. However, the other owner(s) could well keep GSS running relatively unaffected (and maybe even buy out the other 49%...).

Chapter 11 Filing Delayed
 

It's just been announced that the Chapter 11 filing scheduled for 15 December 2003, is now delayed until 01 February 2004.

Atlas
 

You're correct, the company will file Chapter 11 on Feb 1, but ALPA was told on Tuesday that the company will furlough very soon 150 crew members, FO and FE on the Classic as they plan to phase out 7X 200s......

:{

Who did you hear that from 74World? Are they just parking the 7 Classics or getting rid of them?

Pat

Heilhaavir,

The 7 classic, that was told few days ago to the ALPA MEC, regarding the furlough, well that was announced yesterday by the "big boss", 38 FEs and 108 pilots to be furlough very soon....

Cheers

Thanks 74World. Not the kind of news you want to hear just before Xmas....

Pat

:( It's happening at Evergreen as well. Don't know how deep the furloughs will go, but the word from management is a 40% projected reduction in flying in the first quarter.

Evergreen Management has announced a 35% reduction in flight crews. This equates to approximately 42 first officers, 27 flight engineers and 15 captain downgrades. And a Merry Christmas to you too!

ATW Online

Atlas Air pushes back Chapter 11 filing; revises business plan
Dateline: Monday December 15, 2003

Atlas Air Worldwide Holdings deferred the anticipated date of a pre-negotiated Chapter 11 filing from today to Feb. 1 to give the company "sufficient time" to continue discussions with lessors and creditors as it attempts to restructure the terms and conditions of its debt and aircraft leases.

Atlas previously had reached agreements in principle with several of its primary creditors and lessors based upon financial projections set forth in a Securities and Exchange Commission filing in Sept. However, the company's unaudited operating results for the three and nine months ended Sept. 30 were "significantly" below those projections. It said the shortfall was caused by several factors, including lower-than-anticipated military charters, termination of an ACMI contract and higher-than-projected fuel prices.
As a result, Atlas revised its business plan and modified projections of future operating results. Its revised plan, projected through 2007, reflects additional annual operating efficiencies of approximately $28 million in 2004 and $23.2 million in 2005, a reduction in fleet size, a decrease in scheduled service and a further reduction in payments for remaining 747-200/-300s for a two-year period. In addition, the plan calls for maintenance of a minimum post-confirmation cash position, which includes $50 million in debtor-in-possession financing.

Under the new plan, the company expects to post a $71.6 million net loss for 2003 and an $8.5 million loss in 2004. However, it anticipates reporting a net profit of $37 million in 2005, a $61.8 million profit in 2006 and a $79.2 million profit in 2007.

Currently, Atlas is in discussions with its major creditors and lessors in hopes of obtaining their agreement to the payment reductions and deferrals and fleet cuts in the revised business plan. It warned that in the event it is not successful in effecting a pre-negotiated filing, it could be "forced by its creditors into bankruptcy and/or be forced to take other actions, which may include ceasing operations, or selling assets for the benefit of its creditors."

Meanwhile, according to unaudited results released in a filing with the SEC, the company recorded a net loss of $19.8 million in the three months ended Sept. 30. Total operating revenue was $326.2 million and operating expenses were $326.9 million, resulting in an operating loss of $742,000. For the nine months ended Sept. 30, Atlas posted a net loss of $81.1 million. Operating revenue totaled $1 billion while operating expenses were $1.03 billion. As a result, operating loss for the period was $23.4 million. The company did not provide prior-year results.--Loren Farrar

I just got my TERMINATION letter, not a furlough letter.

Basically, it says, "Our business model has changed, yada yada, yada. Please send your ID cards and credit card. Don't call us, and we will probably never call you."