Atlas confirms 49% purchase of Global Supply Systems
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Atlas confirms 49% purchase of Global Supply Systems
Reuters reports:
"Atlas Air Inc has acquired 49 percent of a new UK-based cargo airline, Global Supply Systems Ltd, and British Airways World Cargo will be its first customer, an Atlas spokeswoman said Thursday. Terms of the transaction were not disclosed.
John Porter, a UK businessman, will own 51 percent of the airline and the U.S-based, Atlas Air the remaining 49 percent, said Vicki Foster, an Atlas spokeswoman.
Initially, the company will provide ACMI leases - aircraft, crew, maintenance and insurance - of Boeing 747 freighters to airlines in the UK, Foster said.
The new airline's initial customer will be British Airways, which will wet-lease two 747-400s under a multi-year agreement.
Atlas will transfer its two existing wet-lease (which cover aircraft, crew, maintenance and insurance) contracts with BA to the new airline, Global Supply Systems Limited.
Global plans to dry lease its first two 747-400 aircraft from Atlas.
Global plans to begin operations out of London's Stansted Airport in autumn 2001, Foster said.
Porter will provide the venture with start-up equity and his expertise. Atlas will add its start-up equity and its operating and commercial expertise, Foster said.
"Atlas Air has a history of anticipating market trends, and we believe that the demand for low-cost heavy airfreight capacity in the UK will continue to grow,'' Richard Shuyler, Atlas' chief executive officer, said in a statement.
The investment positions Atlas to capitalize on the UK growth "while adapting to the changing regulatory environment in the UK,'' Shuyler said.
Atlas, based in Purchase, New York, operates 37 747 freighters, making it the world's largest operator of 747 freighter aircraft.
Atlas is the third-largest operator of freighter aircraft in the world, behind FedEx and United Parcel Service."
"Atlas Air Inc has acquired 49 percent of a new UK-based cargo airline, Global Supply Systems Ltd, and British Airways World Cargo will be its first customer, an Atlas spokeswoman said Thursday. Terms of the transaction were not disclosed.
John Porter, a UK businessman, will own 51 percent of the airline and the U.S-based, Atlas Air the remaining 49 percent, said Vicki Foster, an Atlas spokeswoman.
Initially, the company will provide ACMI leases - aircraft, crew, maintenance and insurance - of Boeing 747 freighters to airlines in the UK, Foster said.
The new airline's initial customer will be British Airways, which will wet-lease two 747-400s under a multi-year agreement.
Atlas will transfer its two existing wet-lease (which cover aircraft, crew, maintenance and insurance) contracts with BA to the new airline, Global Supply Systems Limited.
Global plans to dry lease its first two 747-400 aircraft from Atlas.
Global plans to begin operations out of London's Stansted Airport in autumn 2001, Foster said.
Porter will provide the venture with start-up equity and his expertise. Atlas will add its start-up equity and its operating and commercial expertise, Foster said.
"Atlas Air has a history of anticipating market trends, and we believe that the demand for low-cost heavy airfreight capacity in the UK will continue to grow,'' Richard Shuyler, Atlas' chief executive officer, said in a statement.
The investment positions Atlas to capitalize on the UK growth "while adapting to the changing regulatory environment in the UK,'' Shuyler said.
Atlas, based in Purchase, New York, operates 37 747 freighters, making it the world's largest operator of 747 freighter aircraft.
Atlas is the third-largest operator of freighter aircraft in the world, behind FedEx and United Parcel Service."
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well aacs boys....still in "the dark"?. looks like atlas is outsourcing your jobs too! and all this from aamt just to break up the alpa drive...is it really worth it? for two aircraft...at the expense of so many people? mc's wish, to never sign a union contract, will be realized, at the cost of so many crew and their jobs.....for a stinking ba contract...!!! go figure....and it won't stop there....martinaire next...then..the world!!!!!!!
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Clamdigger
I think you have the wrong idea about GSS replacing AACS. The GSS crews will fly the G registered aircraft, while the AACS crews will still fly the N registered aircraft on contracts all over the world to include the Martinaire contract. AACS will continue to grow and the crews will be "based" all over the world as their personal contracts allows.
Also, you missed the “dry lease” comment in the press release. You all have said that MC was a smart guy and I think he was too. If he in fact said that he would never sign a contract with a union, then I think he was smart enough to figure a way not to. If I were a mainline guy, I’d be asking myself if unionizing was worth the price of losing my job.......
[This message has been edited by Box_Mover (edited 12 April 2001).]
I think you have the wrong idea about GSS replacing AACS. The GSS crews will fly the G registered aircraft, while the AACS crews will still fly the N registered aircraft on contracts all over the world to include the Martinaire contract. AACS will continue to grow and the crews will be "based" all over the world as their personal contracts allows.
Also, you missed the “dry lease” comment in the press release. You all have said that MC was a smart guy and I think he was too. If he in fact said that he would never sign a contract with a union, then I think he was smart enough to figure a way not to. If I were a mainline guy, I’d be asking myself if unionizing was worth the price of losing my job.......
[This message has been edited by Box_Mover (edited 12 April 2001).]
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yep...the battle is worth it....always has been, always will be.....the dry lease thing is a problem...for everyone....the gss birds will now be able to operate into the states...from everywhere....tpe-anc,stn-jfk,mxp-jfk etc etc...aacs crews will have to decide between going over to gss or possibly not being employed when aacs is done away with....sheer greed from the school of lorenzo, as taught to the likes of "shoes", et. al. the "southwest of the cargo industry"....isn't that what mc said so many times long ago....my ass! maybe he should of taken a lesson from herb instead of frank..atlas could of been the best airline to have worked for,the potential is still there...instead, we get this crap! do we really deserve this...?
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What makes anyone think AACS or GSS would not have come into being if Atlas pilots never voted ALPA onto the property? What indications are there that it would not have been accelerated, and the outfall would not have been worse on the mainline Atlas pilots? At least with ALPA, there is a good chance of near-term protection in the form of a Scope clause!
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Intruder
as some of us have tried to explain again and again... AACS (and GSS) have not been founded to break up ALPA representation in Atlas (that is just a sideshow), but to be able to offer ACMI services to BA without any legal chance of rejection by a EU-based carrier. BA is so imporant to Atlas that they worked this way to circumvene the EU regulations. As the company (GSS) is held majorly bu EU-based financial sources, the regs are complied with.
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There's nothing like a three-holer...
as some of us have tried to explain again and again... AACS (and GSS) have not been founded to break up ALPA representation in Atlas (that is just a sideshow), but to be able to offer ACMI services to BA without any legal chance of rejection by a EU-based carrier. BA is so imporant to Atlas that they worked this way to circumvene the EU regulations. As the company (GSS) is held majorly bu EU-based financial sources, the regs are complied with.
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There's nothing like a three-holer...
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Hunter
As some of us who are actually employed by Atlas have been trying to tell YOU for months, there are several facets to the Atlas/AACS and GSS situation. One of their purposes is to provide lift during a strike. The other purpose was to create a rift between our pilot group and also the American and Eurpoean pilots.
The BA contract is, and was not, that important to Atlas. More important was getting a foot in the door with the DETR and EU. Can you say flagging out. I can't believe you guys are going to be taken in again. You were taken in with AACS and now Atlas is going to sucker you in with GSS. PT Barnum was right, there is one born every minute, but a whole country of suckers. Hmmmm...
Can you explain to us how you would think this is in any way going to be a UK controled company? In all actuality we here at Atlas think GSS could be a good thing. It gets us in the door with the EU, and provides us access to all that juicy European flying. Seems to me that if GSS can lease crews from AACS, an American controled company, they can just as easily lease them from mainline. Thanks.
As some of us who are actually employed by Atlas have been trying to tell YOU for months, there are several facets to the Atlas/AACS and GSS situation. One of their purposes is to provide lift during a strike. The other purpose was to create a rift between our pilot group and also the American and Eurpoean pilots.
The BA contract is, and was not, that important to Atlas. More important was getting a foot in the door with the DETR and EU. Can you say flagging out. I can't believe you guys are going to be taken in again. You were taken in with AACS and now Atlas is going to sucker you in with GSS. PT Barnum was right, there is one born every minute, but a whole country of suckers. Hmmmm...
Can you explain to us how you would think this is in any way going to be a UK controled company? In all actuality we here at Atlas think GSS could be a good thing. It gets us in the door with the EU, and provides us access to all that juicy European flying. Seems to me that if GSS can lease crews from AACS, an American controled company, they can just as easily lease them from mainline. Thanks.
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"Can you explain to us how you would think this is in any way going to be a UK controled company?" - Well, I'll try - 51% is in my book a controlling interest, as opposed to the 49% held by Atlas.
"Seems to me that if GSS can lease crews from AACS, an American controled (sic) company, they can just as easily lease them from mainline." - I'm sure they would be delighted to entertain an application from someone as experienced as yourself, assuming that is, that you have the requisite licence to operate a UK registered 747-400.
"Seems to me that if GSS can lease crews from AACS, an American controled (sic) company, they can just as easily lease them from mainline." - I'm sure they would be delighted to entertain an application from someone as experienced as yourself, assuming that is, that you have the requisite licence to operate a UK registered 747-400.
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Dry leasing Atlas planes is nothing new:
Meh seem to remember a few years ago, SAS leased a couple of 747-200s, AND they were flown by SAS pilots.
As for the rest of the mess, hope ya guys can sort it out without fighting each other and without having to strike to get a decent contract.
(Althougt I am not holding my breath....
)
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Men, this is no drill...
Meh seem to remember a few years ago, SAS leased a couple of 747-200s, AND they were flown by SAS pilots.
As for the rest of the mess, hope ya guys can sort it out without fighting each other and without having to strike to get a decent contract.
(Althougt I am not holding my breath....
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Men, this is no drill...
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Well, I've been searching for two days and can't find one thing about this "John Porter"! Seems as though Atlas Mgt. has done it again, and found another sucker to bully around!
Someone please tell me how the U.K. courts could be so naive that they think that this "John Porter", a no name in the World Cargo industry, is going to be running the show over at GSS?
Let's see Mr. Porter we (Atlas Air) will take back all our airplanes and take back all of our money unless you do what we say! I think that's about what it will be like if he tries to run his own show.
Atlas and BA are in bed together, making plans for expansion. That's the only reason that Atlas is doing all this for just a two airplane contract. If it weren't they would say kiss off and we'll put our two 400's somewhere else.
If I were BA/BALPA pilots I would be going out of my mind over this. Hello??? To quote Tony Soprano, "Hey, if you guys had any Balls, you'd be over there wit a baseball bat, breaking knee caps!!!!!!!"
ATTENTION ALL BA PILOTS!!!!! You are about to miss out on the huge world cargo expansion. I know that you guys are too good to fly cargo and all, but a command pays the same if you fly boxes or people!!!!!!
Someone please tell me how the U.K. courts could be so naive that they think that this "John Porter", a no name in the World Cargo industry, is going to be running the show over at GSS?
Let's see Mr. Porter we (Atlas Air) will take back all our airplanes and take back all of our money unless you do what we say! I think that's about what it will be like if he tries to run his own show.
Atlas and BA are in bed together, making plans for expansion. That's the only reason that Atlas is doing all this for just a two airplane contract. If it weren't they would say kiss off and we'll put our two 400's somewhere else.
If I were BA/BALPA pilots I would be going out of my mind over this. Hello??? To quote Tony Soprano, "Hey, if you guys had any Balls, you'd be over there wit a baseball bat, breaking knee caps!!!!!!!"
ATTENTION ALL BA PILOTS!!!!! You are about to miss out on the huge world cargo expansion. I know that you guys are too good to fly cargo and all, but a command pays the same if you fly boxes or people!!!!!!
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Beaver
well, so BA and all the other EU flying you lost in the past few weeks is not important? Why did Altas put so much effort into GSS then? Guess with 34 airplanes you have no choice of customers anymore but have to take anybody you can. The competition does not sleep, and if I believe what I hear, your performance has also been better...
Bu I agree with you, GSS could also lease in crews from Mainline (provided they make a JAA conversion of their license, a thing that could be done at the next recurrent). But there the ex-Frank Lorenzo thinking takes in. Why bot screw the crews with AACS?
But believe me, the whole thing started by the DETR saying NO to the initial BA contract. I also learned out of a reliable source that Michal never believed you guys would go Union and that he reated you very well. Sems his perception was slightly wrong...
By the way, as we already discuss ACMI politics here, why on earth does Atlas need the traffic rights to Brazil and did not leave them to Evergreen or Gemini? Leaving the ACMI concept? Same as ex Hong Kong?
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There's nothing like a three-holer...
well, so BA and all the other EU flying you lost in the past few weeks is not important? Why did Altas put so much effort into GSS then? Guess with 34 airplanes you have no choice of customers anymore but have to take anybody you can. The competition does not sleep, and if I believe what I hear, your performance has also been better...
Bu I agree with you, GSS could also lease in crews from Mainline (provided they make a JAA conversion of their license, a thing that could be done at the next recurrent). But there the ex-Frank Lorenzo thinking takes in. Why bot screw the crews with AACS?
But believe me, the whole thing started by the DETR saying NO to the initial BA contract. I also learned out of a reliable source that Michal never believed you guys would go Union and that he reated you very well. Sems his perception was slightly wrong...
By the way, as we already discuss ACMI politics here, why on earth does Atlas need the traffic rights to Brazil and did not leave them to Evergreen or Gemini? Leaving the ACMI concept? Same as ex Hong Kong?
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There's nothing like a three-holer...
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From Fridays Speednews - The mysterious Mr Porter!
Atlas Air, Inc. (NYSE: CGO) announced that it has become a minority
investor in a new United Kingdom-based cargo airline. The new cargo
carrier, to be majority-owned by entrepreneur John Porter, will be
known as Global Supply Systems, Limited (Global). The company will
initially provide ACMI (Aircraft, Crew, Maintenance and Insurance)
leases of Boeing 747 freighter aircraft to airlines in the United
Kingdom and will begin operations out of London's Stansted Airport.
John Porter, a private investor and UK citizen, owns 51 percent of
Global and New York-based Atlas Air has taken a 49 percent interest.
Mr. Porter will provide the venture with not only start-up equity,
but also his entrepreneurial perspective, UK experience and
considerable business acumen. Atlas Air will also provide start-up
equity and its operating and commercial expertise to the enterprise.
"We are delighted to have a businessman of John Porter's caliber
taking both an ownership interest and an active role in this
initiative," said Richard Shuyler, chief executive officer of Atlas
Air. "Atlas Air has a history of anticipating market trends, and we
believe that the demand for low cost heavy airfreight capacity in the
UK will continue to grow. With this investment, we are positioning
ourselves to capitalize on that growth, while adapting to the
changing regulatory environment in the UK"
Global anticipates commencing operations in autumn 2001. Its initial
customer will be British Airways (BA), to whom it will wet lease two
747-400s under a multi-year agreement executed by the companies. At
that time, Atlas Air will convert its ACMI contracts with BA to
Global. Global intends to dry lease its first two 747-400 aircraft
from Atlas Air
Atlas Air, Inc. (NYSE: CGO) announced that it has become a minority
investor in a new United Kingdom-based cargo airline. The new cargo
carrier, to be majority-owned by entrepreneur John Porter, will be
known as Global Supply Systems, Limited (Global). The company will
initially provide ACMI (Aircraft, Crew, Maintenance and Insurance)
leases of Boeing 747 freighter aircraft to airlines in the United
Kingdom and will begin operations out of London's Stansted Airport.
John Porter, a private investor and UK citizen, owns 51 percent of
Global and New York-based Atlas Air has taken a 49 percent interest.
Mr. Porter will provide the venture with not only start-up equity,
but also his entrepreneurial perspective, UK experience and
considerable business acumen. Atlas Air will also provide start-up
equity and its operating and commercial expertise to the enterprise.
"We are delighted to have a businessman of John Porter's caliber
taking both an ownership interest and an active role in this
initiative," said Richard Shuyler, chief executive officer of Atlas
Air. "Atlas Air has a history of anticipating market trends, and we
believe that the demand for low cost heavy airfreight capacity in the
UK will continue to grow. With this investment, we are positioning
ourselves to capitalize on that growth, while adapting to the
changing regulatory environment in the UK"
Global anticipates commencing operations in autumn 2001. Its initial
customer will be British Airways (BA), to whom it will wet lease two
747-400s under a multi-year agreement executed by the companies. At
that time, Atlas Air will convert its ACMI contracts with BA to
Global. Global intends to dry lease its first two 747-400 aircraft
from Atlas Air
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Got the T-Shirt,
Hey man, I don't mean to sound so sarcastic, but.....
Anyone remotely familiar with this situation has already read the press release. Thanks anyway!
However, the press release is exactly the reason why I am requesting that someone enlighten us as to who John Porter is. The press release doesn't tell us anything about him. He's an entrepreneur, what the hell does that mean??? What has this guy been up to before now? How did he make his money, and what qualifies him to run an airline? I'm a stock holder of CGO (ATLAS) and I want to know who the hell this guy is.
Anyone out there with information on John Porter, other than the obvious press release, please enlighten us all.
Thanks!!!
Hey man, I don't mean to sound so sarcastic, but.....
Anyone remotely familiar with this situation has already read the press release. Thanks anyway!
However, the press release is exactly the reason why I am requesting that someone enlighten us as to who John Porter is. The press release doesn't tell us anything about him. He's an entrepreneur, what the hell does that mean??? What has this guy been up to before now? How did he make his money, and what qualifies him to run an airline? I'm a stock holder of CGO (ATLAS) and I want to know who the hell this guy is.
Anyone out there with information on John Porter, other than the obvious press release, please enlighten us all.
Thanks!!!
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Suspect that GSS is the first shovel of dirt used to bury Atlas mainline guys. And what about AACS, well they will be used to fly the US registered aircraft during the upcomming strike. The handwriting is on the wall. Wonder if Frank L. is in the wings now?
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Even if AACS is used as strike breakers, AACS will only be able to crew 10 or so aircraft at the most. Less, if some of them go to GSS. Even Southern and Polar couldn’t fill the gap. The best thing for both sided to do right now, is to figure out a solution to the mess MC created, expand the fleet and press on.....
The Real
Box_Mover
The Real
Box_Mover
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AACS has become laughable! Latest estimates are that there are only about 40 or so guys left. GSS is going to take 7 capt's from there and 17 F/O's, that leaves about 16 guys to fly 37 aircraft, during the main line strike. Of those guys some will not cross a picket line.
Most of the AACS guys are bailing out rapidly to places like Dragon Air, Atlas can't make good on their training bonds that they made some of the guys sign. Dragon Air has a base in MAN and (I think) is going to open up a base in AMS. This leaves the guys at AACS, for now, to try to cover the two BA 400 A/C and some misc. 200 flying. The bid package, from what I hear, has about two lines on it. And there is absolutely no hiring going on at AACS. As a matter of fact, rumor has it that Mr. Bull has been told that his operation is way over budget and they need to make some serious cut backs.
So, with their attrition, and their labor problems. Mr. Bull is probably wondering what has he gotten himself into. Now the way that I see it, when Atlas Main Line gets it's scope clause, AACS will go away. And GSS will have to lease crews from Main Line. The only requirement will be for the guys who fly the GSS contract to have a JAR endorsement put on their FAA licenses, which can be done in the sim at their next PC check.
With that done, the 51% controlled U.K. company will have their own AOC, be leasing it's G- registered 400's from Atlas, and use "contract" crews from Atlas Air Main Line. Seems as though it would be the best of both worlds for Atlas Management. Settle the labor dispute with the union, and settle the legal dispute with the U.K. government! Wow, wasn't that easy! and Atlas still gets to do what it wanted to do in the first place.......dominate the U.K. long haul flying!!!!!
Most of the AACS guys are bailing out rapidly to places like Dragon Air, Atlas can't make good on their training bonds that they made some of the guys sign. Dragon Air has a base in MAN and (I think) is going to open up a base in AMS. This leaves the guys at AACS, for now, to try to cover the two BA 400 A/C and some misc. 200 flying. The bid package, from what I hear, has about two lines on it. And there is absolutely no hiring going on at AACS. As a matter of fact, rumor has it that Mr. Bull has been told that his operation is way over budget and they need to make some serious cut backs.
So, with their attrition, and their labor problems. Mr. Bull is probably wondering what has he gotten himself into. Now the way that I see it, when Atlas Main Line gets it's scope clause, AACS will go away. And GSS will have to lease crews from Main Line. The only requirement will be for the guys who fly the GSS contract to have a JAR endorsement put on their FAA licenses, which can be done in the sim at their next PC check.
With that done, the 51% controlled U.K. company will have their own AOC, be leasing it's G- registered 400's from Atlas, and use "contract" crews from Atlas Air Main Line. Seems as though it would be the best of both worlds for Atlas Management. Settle the labor dispute with the union, and settle the legal dispute with the U.K. government! Wow, wasn't that easy! and Atlas still gets to do what it wanted to do in the first place.......dominate the U.K. long haul flying!!!!!
