First Atlas Air, now it's Polar. Who's next?
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First Atlas Air, now it's Polar. Who's next?
Wednesday May 16, 5:52 pm Eastern Time
Press Release
Polar Air Cargo Responds to Economic Downturn
LONG BEACH, Calif.--(BUSINESS WIRE)--May 16, 2001--Polar Air Cargo announced that it is implementing cost reductions across the business in response to weak market conditions around the world.
As part of this action, the company is reducing personnel by approximately 10 percent. The reduction-in-force includes a furlough of approximately 24 crewmembers.
"We firmly believe that the economy and the air cargo market will improve. However, in order to respond to the economic downturn, it has become necessary to make personnel and other cost reduction changes for the long-term benefit of the company,'' said Eric M. Dull, chief executive officer.
Polar has sustained a 24-month period of continuous growth in personnel. Today's action is a pre-emptive measure by Polar to right size the business to address the current reduction in air cargo demand.
Polar Air Cargo provides a critical link in the international logistics chain by connecting centers of commerce in Asia, Europe, Australia, New Zealand and the Americas with frequent scheduled B747 freighter services.
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Contact:
Polar Air Cargo, Long Beach
Kristine Leathers, 562/528-7317
Press Release
Polar Air Cargo Responds to Economic Downturn
LONG BEACH, Calif.--(BUSINESS WIRE)--May 16, 2001--Polar Air Cargo announced that it is implementing cost reductions across the business in response to weak market conditions around the world.
As part of this action, the company is reducing personnel by approximately 10 percent. The reduction-in-force includes a furlough of approximately 24 crewmembers.
"We firmly believe that the economy and the air cargo market will improve. However, in order to respond to the economic downturn, it has become necessary to make personnel and other cost reduction changes for the long-term benefit of the company,'' said Eric M. Dull, chief executive officer.
Polar has sustained a 24-month period of continuous growth in personnel. Today's action is a pre-emptive measure by Polar to right size the business to address the current reduction in air cargo demand.
Polar Air Cargo provides a critical link in the international logistics chain by connecting centers of commerce in Asia, Europe, Australia, New Zealand and the Americas with frequent scheduled B747 freighter services.
--------------------------------------------------------------------------------
Contact:
Polar Air Cargo, Long Beach
Kristine Leathers, 562/528-7317
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It appears the freight world is in a complete downturn right now. Hope it turns around soon, there are lots of good people hitting the streets. I've seen two articles on the Polar furlough. One stated that they were furloughing 24 crewmembers and the other stated they were furloughing 24 crews. Anyone know the real story and are they expecting more?
[This message has been edited by fr8box (edited 17 May 2001).]
[This message has been edited by fr8box (edited 17 May 2001).]
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Atlas Air lays off 105
tlas Air Inc. is laying off 105 crew members in response to weakening demand for its aircraft.
The move follows the cargo airline's decision in April to take back two 747 freighters that it had leased to Aerofloral, a financially troubled Miami-based carrier specializing in the Latin American flower trade.
"We were getting vibes that they (Aerofloral) were on the brink. We did not want to have our aircraft where we could not get access if Aerofloral filed for bankruptcy," Fred L. deLeeuw, Atlas's vice president for corporate finance, told a logistics conference May 12. Had that happened, Atlas feared that the freighters might be tied up in a court proceeding. Atlas is trying to place the aircraft with other carriers but has not yet been able to do so, he said.
Atlas, based in Purchase, N.Y., had added staff in anticipation of a significant increase in flying this year, but it no longer expects that to occur.
"We believe it is in the best interest of the company and long-term interest of our employees and shareholders that we act decisively in the face of the current economic downturn," said Richard Shuyler, Atlas's chief executive. "While we hope to see a strengthening in demand as we go into the second half of this year, it is only prudent to take those measures necessary to ensure that we are best-positioned to deal effectively with any prolonged economic weakness."
Shuyler added that Atlas is reviewing all areas of the company's cost structure and that it will take "any necessary additional actions to ensure we remain cost efficient."
Atlas operates a fleet of 37 freighters - all 747s - giving it by far the world's largest fleet of 747 freighters. Besides the two that were formally dedicated to Aerofloral, Atlas also has four that are currently undergoing heavy maintenance and three that it keeps in reserve in order to supply its clients in case of emergency.
Atlas has been enjoying record profits, and in the first quarter earned $14.4 million, excluding the effects of a change in accounting practices, up from $12 million in the same period last year.
Atlas typically supplies its aircraft, along with crew, maintenance and insurance, on a dedicated basis to individual carriers. Its customers, however, pay for fuel, meaning that Atlas has been immune from the rise in fuel prices over the past year. It also gets paid regardless of whether the aircraft are full or empty. But because of the economic slowdown, it has begun exploring other options.
Speaking at the Bear Stearns Transport and Logistics Conference last week, deLeeuw noted that Atlas has begun offering fractional charters, where two carriers can share the charter. In one case, Atlas charters an aircraft to Malaysian Airlines, which flies from Kuala Lumpur to Seoul. At that point, Korean Air takes some of the space on the aircraft for the flight to the United States.
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Never turn down blow jobs or type ratings
tlas Air Inc. is laying off 105 crew members in response to weakening demand for its aircraft.
The move follows the cargo airline's decision in April to take back two 747 freighters that it had leased to Aerofloral, a financially troubled Miami-based carrier specializing in the Latin American flower trade.
"We were getting vibes that they (Aerofloral) were on the brink. We did not want to have our aircraft where we could not get access if Aerofloral filed for bankruptcy," Fred L. deLeeuw, Atlas's vice president for corporate finance, told a logistics conference May 12. Had that happened, Atlas feared that the freighters might be tied up in a court proceeding. Atlas is trying to place the aircraft with other carriers but has not yet been able to do so, he said.
Atlas, based in Purchase, N.Y., had added staff in anticipation of a significant increase in flying this year, but it no longer expects that to occur.
"We believe it is in the best interest of the company and long-term interest of our employees and shareholders that we act decisively in the face of the current economic downturn," said Richard Shuyler, Atlas's chief executive. "While we hope to see a strengthening in demand as we go into the second half of this year, it is only prudent to take those measures necessary to ensure that we are best-positioned to deal effectively with any prolonged economic weakness."
Shuyler added that Atlas is reviewing all areas of the company's cost structure and that it will take "any necessary additional actions to ensure we remain cost efficient."
Atlas operates a fleet of 37 freighters - all 747s - giving it by far the world's largest fleet of 747 freighters. Besides the two that were formally dedicated to Aerofloral, Atlas also has four that are currently undergoing heavy maintenance and three that it keeps in reserve in order to supply its clients in case of emergency.
Atlas has been enjoying record profits, and in the first quarter earned $14.4 million, excluding the effects of a change in accounting practices, up from $12 million in the same period last year.
Atlas typically supplies its aircraft, along with crew, maintenance and insurance, on a dedicated basis to individual carriers. Its customers, however, pay for fuel, meaning that Atlas has been immune from the rise in fuel prices over the past year. It also gets paid regardless of whether the aircraft are full or empty. But because of the economic slowdown, it has begun exploring other options.
Speaking at the Bear Stearns Transport and Logistics Conference last week, deLeeuw noted that Atlas has begun offering fractional charters, where two carriers can share the charter. In one case, Atlas charters an aircraft to Malaysian Airlines, which flies from Kuala Lumpur to Seoul. At that point, Korean Air takes some of the space on the aircraft for the flight to the United States.
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Never turn down blow jobs or type ratings
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Well, it just goes to show how deeply rooted the lean times have gotten. I got laid off in January (until then, I couldn't even remember the last time I'd heard about somebody getting their pink slip) but I was only contract; I kept thinking, on the way home that day, how desperately grateful I was that I didn't have a spouse and children at home--dependant on my salary.
I knew then that we were in for a tough row to hoe (here, in the States anyway). I reckon we haven't quite bottomed out yet--be grateful you have a job in your chosen profession.
Oh, and, would you like fries with that bit o' homespun wisdom?
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"You did WHAT"?!
I knew then that we were in for a tough row to hoe (here, in the States anyway). I reckon we haven't quite bottomed out yet--be grateful you have a job in your chosen profession.
Oh, and, would you like fries with that bit o' homespun wisdom?
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"You did WHAT"?!
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Just a thought, but don't Atlas and Polar survive almost exclusively as ACMI operators? Seems to me that the bread and butter of ACMI is to carry the surplus freight of the established carriers. When there is a downturn (even slight), there is bound to be less surplus and it seems that ACMI carriers would be the first to go. Even if their costs are less than the carrier who is chartering them, it would be even more expensive to reduce capacity on the mainline and continue to use the ACMI. I suspect that Atlas realised this a while ago when they started to consolidate some of their own freight. I would be curious to see if business is dropping off for the other ACMI carriers and if the trend is greater than for the "conventional" cargo carriers.
[This message has been edited by Gillegan (edited 17 May 2001).]
[This message has been edited by Gillegan (edited 17 May 2001).]
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Unfortunately, this is proof positive of what I have been saying in other threads. Like it or not, the lean times are back with us again and the greed of some pilot groups/unions does nothing except cause the loss of jobs of themselves and others.
Let's hope sanity prevails - it's better to have a job (even if you don't think you're earning as much as you think you should) than to be the (formerly) highest paid person in the unemployment office.
Let's hope sanity prevails - it's better to have a job (even if you don't think you're earning as much as you think you should) than to be the (formerly) highest paid person in the unemployment office.
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DHL has put a new air hub at CVG on hold, the freight dogs are starting to feel the pinch...
"...no layoffs are planned" = time to start looking for a job from my experience <g>.
_____________________________________
Wednesday, May 16, 2001
DHL delays facility
Economy slows airport hub
By James Pilcher
The Cincinnati Enquirer
Citing the economic slowdown, DHL Worldwide Express announced on Tuesday that it was postponing completion of its new $170 million hub operation for 12 months.
Steve White, DHL vice president and general manager of the Cincinnati hub, said the company was not hitting its forecast volumes, forcing it to delay opening the building at the Cincinnati/Northern Kentucky International Airport until June 2003.
“It's all depending on the economy,” Mr. White said. “If it picks up, we may be only looking at three months; and if it doesn't, the delay may be longer.”
DHL, the market leader in international air freight but a minor player in the U.S. overnight market, was planning to triple its package-handling capacity.
DHL Airways, the company's subsidiary airline, is based in Erlanger.
The two companies employ about 1,900 locally — including about 960 full-time workers and pilots.
Mr. White would not disclose the privately owned company's financial figures. But DHL Worldwide Express, based in Brussels, Belgium, with U.S. headquarters in San Francisco, recorded almost $5.6 billion in revenue worldwide in 2000. That's a 21 percent jump from the previous year.
“More likely than not, that revenue growth is declining if not flat,” said Dan Moyer, air freight analyst for Air Cargo Management Group. “And the whole domestic market is really slowing down, and even showing negative growth.”
Mr. White said no layoffs are planned.
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Guvnor,
Apparently, you're too high up and I'm too low down on the corp. food chain to be heard honey.
They know what they know and by God ain't nobody gonna tell 'em any different
(until they're singing the same tune from the unemployment line down the road).
Sing with me now
*Swing low, sweet chariot, comin' for to carry me home....*
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"You did WHAT"?!
Apparently, you're too high up and I'm too low down on the corp. food chain to be heard honey.
They know what they know and by God ain't nobody gonna tell 'em any different
(until they're singing the same tune from the unemployment line down the road).Sing with me now
*Swing low, sweet chariot, comin' for to carry me home....*
------------------
"You did WHAT"?!
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looks like this will be my third "downturn" in the biz.
Unfortunately the good work made by pilot unions in securing top dollar pay scales can and may come tumbling down mighty fast - especially in the US.
Most important thing is to keep ones job - the pay is a bonus now fellahs.
Unfortunately the good work made by pilot unions in securing top dollar pay scales can and may come tumbling down mighty fast - especially in the US.
Most important thing is to keep ones job - the pay is a bonus now fellahs.
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The whole business plan is crock, if they have to resort to kicking out people on such short notice.
They want "flexibility" from you?
Then they should set up a business that has the same "flexibility", without having to destroy their most valuable commodity.
Developping "loyalty to the company" in the workforce and realizing that this is a very important investment for "the bottom line" and the future just doesnīt seem to be too "hip" for some "managers".
Weīre in it for the long-run - Most of them donīt seem to be.
Donīt worry guys.
What goes around, comes around.
Good luck!!
They want "flexibility" from you?
Then they should set up a business that has the same "flexibility", without having to destroy their most valuable commodity.
Developping "loyalty to the company" in the workforce and realizing that this is a very important investment for "the bottom line" and the future just doesnīt seem to be too "hip" for some "managers".
Weīre in it for the long-run - Most of them donīt seem to be.
Donīt worry guys.
What goes around, comes around.
Good luck!!
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Let's put you in their shoes then for sh*ts-n-grins:
You've gotta find a way to stay afloat during the lean times and keep the company alive long enough to keep providing jobs for your most valuable commodity well into the future... to everybody's satisfaction.
Your management does you no favors in the long run by indulging you when the market won't support it; they only reduce their lifespan and end up putting you on the unemployment line anyway.
The process of laying people ** isn't as arbitrary as you may think... I was laid off, and they filled my position with a person that they pay just over one half of what they were paying me to do it.
Moral of the story: Be loyal to your own best interests, and if that requires a little bit of flexibilty on your part--so be it. It's a helluva lot easier for your ego to survive that blow than it is to be out pounding the pavement, with nothing but your dignity to keep you company when you're sorting through the "Sorry pal" letters.
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"You did WHAT"?!
** = off; laying people off.
[This message has been edited by mriya225 (edited 18 May 2001).]
You've gotta find a way to stay afloat during the lean times and keep the company alive long enough to keep providing jobs for your most valuable commodity well into the future... to everybody's satisfaction.
Your management does you no favors in the long run by indulging you when the market won't support it; they only reduce their lifespan and end up putting you on the unemployment line anyway.
The process of laying people ** isn't as arbitrary as you may think... I was laid off, and they filled my position with a person that they pay just over one half of what they were paying me to do it.
Moral of the story: Be loyal to your own best interests, and if that requires a little bit of flexibilty on your part--so be it. It's a helluva lot easier for your ego to survive that blow than it is to be out pounding the pavement, with nothing but your dignity to keep you company when you're sorting through the "Sorry pal" letters.
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"You did WHAT"?!
** = off; laying people off.
[This message has been edited by mriya225 (edited 18 May 2001).]
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Sorry, I donīt quite get that post?
Didnīt want to criticize any of my fellow pilots. (Maybe because of my english I somehow didnīt find the right words...)
From your post, Iīm under the impression, we actually have the same opinion, mryia.
Iīm NOT telling anyone to be "loyal" to his employer.
Iīm telling management to be loyal to their employees, if they want to get the most from them and the company to thrive.
Unfortunately 99% of them think different, I know.
Didnīt want to criticize any of my fellow pilots. (Maybe because of my english I somehow didnīt find the right words...)
From your post, Iīm under the impression, we actually have the same opinion, mryia.
Iīm NOT telling anyone to be "loyal" to his employer.
Iīm telling management to be loyal to their employees, if they want to get the most from them and the company to thrive.
Unfortunately 99% of them think different, I know.
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Nothing at all wrong with your English--if it isn't your native tongue--you're doing brilliantly!!
My point was that it is an over-simplification to assume that just because a company is willing to contract its size, according to what the current market will support; it has no loyalty to its employees.
It's a difficult decision to make, but it may be the only way to ensure long-term viability. Just as your company must be flexible in order to survive; you need to be flexible enough to follow suit... or risk having to look for another job in a depressed market.
My point was that it is an over-simplification to assume that just because a company is willing to contract its size, according to what the current market will support; it has no loyalty to its employees.
It's a difficult decision to make, but it may be the only way to ensure long-term viability. Just as your company must be flexible in order to survive; you need to be flexible enough to follow suit... or risk having to look for another job in a depressed market.
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Thanks. Now I get it.
Youīre right of course.
Itīs just the way the company "contracts its size", where we seem to have slightly different "models".
The approach here in my country (Germany), is to talk to the workers reps/unions as early as possible (thatīs the hard part I know) and work on a plan to "downsize" the spending of cash, while retaining as many jobs as possible.
The result (depending of course on the severity of the negative cashflow) might then be, that the employees will have to live with much less money, but at least keep their jobs and the prospect of returning to profitability as the company does.
All employees have to be flexible in this model, but the outlook for them would not be as extreme, as being laid-off, especially on very short notice.
When things get better, the company has the flexibility to relatively quickly "upsize" production without much disruption of the whole system, also having to raise the payscales again.
All of this theoretical banter doesnīt help any of those furloughed, of course.
Whatever happens, I hope things get better for you quickly!
Youīre right of course.
Itīs just the way the company "contracts its size", where we seem to have slightly different "models".
The approach here in my country (Germany), is to talk to the workers reps/unions as early as possible (thatīs the hard part I know) and work on a plan to "downsize" the spending of cash, while retaining as many jobs as possible.
The result (depending of course on the severity of the negative cashflow) might then be, that the employees will have to live with much less money, but at least keep their jobs and the prospect of returning to profitability as the company does.
All employees have to be flexible in this model, but the outlook for them would not be as extreme, as being laid-off, especially on very short notice.
When things get better, the company has the flexibility to relatively quickly "upsize" production without much disruption of the whole system, also having to raise the payscales again.
All of this theoretical banter doesnīt help any of those furloughed, of course.
Whatever happens, I hope things get better for you quickly!