ATLAS buys POLAR
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Floridaboy--
Look to the past to see what ALPA will do....remember Eastern Airlines and how ALPA screwed those guys?
Do not expect miracles to happen in LGB anytime soon. Believe that Hunter58 has hit the nail on the head. Take the time to read it through, a very insightful post.
Look to the past to see what ALPA will do....remember Eastern Airlines and how ALPA screwed those guys?
Do not expect miracles to happen in LGB anytime soon. Believe that Hunter58 has hit the nail on the head. Take the time to read it through, a very insightful post.
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Florida Boy,
You had better believe Atlas has no plans in keeping all the Polar folks employed. They have only one goal and that's to get their hands on as many 747-400s as they possibly can and the Polar routes to Japan. Polar's 100s and 200s are mostly, if not all, powered by Pratt and Whitney. Atlas is all GE powered and so are the Polar 400s. Engine standardization is a big deal with growing fleets. If there ever becomes a need for a classic, you can bet your last dollar it will be one of the Atlas classics that are parked in the desert right now. Polar 100s and most of the 200s are heading for the scrap pile. Unfortunately, to Atlas, they are worth more as parts than as a freighter.
Yea, it sucks. It's gonna' be a real bad deal for the Polar folks and they ARE going to be played against the Atlas crews in their negotiations. The biggest loser in this whole fiasco will be the Polar classic operators.
You had better believe Atlas has no plans in keeping all the Polar folks employed. They have only one goal and that's to get their hands on as many 747-400s as they possibly can and the Polar routes to Japan. Polar's 100s and 200s are mostly, if not all, powered by Pratt and Whitney. Atlas is all GE powered and so are the Polar 400s. Engine standardization is a big deal with growing fleets. If there ever becomes a need for a classic, you can bet your last dollar it will be one of the Atlas classics that are parked in the desert right now. Polar 100s and most of the 200s are heading for the scrap pile. Unfortunately, to Atlas, they are worth more as parts than as a freighter.
Yea, it sucks. It's gonna' be a real bad deal for the Polar folks and they ARE going to be played against the Atlas crews in their negotiations. The biggest loser in this whole fiasco will be the Polar classic operators.
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Floridaboy is absolutely on the right track. The end of Polar is near. ALPA miracles don't exist. I've been with 5 closing airlines now and the writing on the wall is the same, contract or not. The DOT will allow Atlas to run Polar for awhile to protects the Japan slots and then watch everything dissappear down the road. The Japan markets are dry and yields are terrible, and will probably be a few years before their attractive again. If not United,UPS,Fedex,NW,etc. would be knocking on GE's door with counter offers. $60 Mil is a trickle to these carriers and they would not be sitting still if they thought Japan was an investment. Actually when you think about it. These guys just might be waiting for the demise of both carriers. Then they can pick up the Japan routes for nothing. Atlas is dying with it's ACMI charters. The yields for the size of aircraft don't warrant future contracts. Atlas is treading water and the risk of operating Polar with it's current yields could catapult the two into nonexistence. I wish I could be optimistic, but the only help we will get will come from ALPA in a benefit package for furlough pilots and the N.Y. Unemployment Phone number. It is a shame, but as GE would tell ya business is business. Good Luck to all you Polar and Atlas guys. Enjoyed flying with you all.
[ 15 July 2001: Message edited by: Machup ]
[ 15 July 2001: Message edited by: Machup ]
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In regard to Floridaboy's staement "Our ALPA contract has a scope clause in it that prevents Polar from selling the company if it results in a reduction of crews."
Section 1, Para.B2
Interpretation please from any lawyerly types.
[ 16 July 2001: Message edited by: DharmaBum ]
Section 1, Para.B2
The Company shall not directly or indirectly sell, lease or otherwise transfer any aircraft owned, leased or operated by the Company to any airline which is owned, controlled or operated by the Company or by Polar Air Cargo Holdings, Inc. if such sale, lease or transfer will directly cause a reductio in force, unless the flying of such aircraft by such airline is performed by Crewmembers on the Polar Air Cargo Crewmembers System Seniority List in accordance with this Agreement.
[ 16 July 2001: Message edited by: DharmaBum ]
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Seems to me that this clause prevents Polar management from doing exactly what Atlas is trying to do. Buy a company (or start a company..... AACS,GSS), then transfer all the assets and flying away from the union pilots. Unfortunatley the Atlas vs Polar deal is another fish entirely. What it should do is prevent Atlas once they are the owners, from transfering the Polar aircraft and routes to AACS or GSS.
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The way I read it, this clause stops a subsidiary of Polar Air Cargo from creating a lower cost operation using their aircraft which would cause a reduction in flying at Polar. I don't think it protects them from being bought out by another entity.
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I could be dead wrong but the way I read this scope clause, nothing is said about chopping or bone yards. If tranfer from Polar to Atlas is not validated then that clause is useless. The remaining aircraft will then be flown by Polar crews in senoirity, all 3-400's and MAYBE up to 3or 4 200"s. MAYBE!! 
Bad Scope.
Bad Scope.
Freight God
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GlueBall
you're partially right, the shipper does not care at all. But the forwarder, broker, integrator, wholesaler, airline; the, by Atlas definition, customer of ACMI services, they DO care! If you do ACMI, you do ACMI, but you don't compete against your customers. Ask Kallitta/Kitty Hawk, they can tell you how hard it suddently gets once you betrayed your customers.
you're partially right, the shipper does not care at all. But the forwarder, broker, integrator, wholesaler, airline; the, by Atlas definition, customer of ACMI services, they DO care! If you do ACMI, you do ACMI, but you don't compete against your customers. Ask Kallitta/Kitty Hawk, they can tell you how hard it suddently gets once you betrayed your customers.
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It seems similar to the Continental pilots absorbing the Express pilots. Good plan until Express was sold in revenge with a convenient contract.
That might be the precursor to Comair, once they are back in the seats at full staffing.
The American reality is quickly becoming the modernized 'golden rule, "He who CONTROLS the gold makes the rules." An old Lorenzoism.
The pilots at either company are goingt to be faced with, "You guys figure out who works the cheapest, so we'll know who to train."
At one point, Southern Air bought that simulator outfit out of Newark, I don't know who has the ownership now. Whoever it is will probably get the training contract for the surviving company.
In any case, GE did themselves a big favor. Keep an eye on the resulting freight contracts.
That might be the precursor to Comair, once they are back in the seats at full staffing.
The American reality is quickly becoming the modernized 'golden rule, "He who CONTROLS the gold makes the rules." An old Lorenzoism.
The pilots at either company are goingt to be faced with, "You guys figure out who works the cheapest, so we'll know who to train."
At one point, Southern Air bought that simulator outfit out of Newark, I don't know who has the ownership now. Whoever it is will probably get the training contract for the surviving company.
In any case, GE did themselves a big favor. Keep an eye on the resulting freight contracts.
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I read an article in a recent cargo journal that suggested Atlas may place their recently retired 200s on the Polar certificate. They feel they can junk the Polar 100s and Pratt powered 200s and become more viable in their market with the move.
I'm more than positive this isn't going to sit well with the Atlas crews currently threatening a strike. Another low move and payback by Atlas management?
I'm more than positive this isn't going to sit well with the Atlas crews currently threatening a strike. Another low move and payback by Atlas management?
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Drifter
Nice thought, but I doubt it. The Simulator outfit you're talking about was Simuflight, bought by Southern Air in 1997/1998 or so and sold a year or so later to .....GE! At that time Simuflight did not have a 747 sim.
Atlas currently owns two sim's (a -200 and a -400) and I think has an option on another -200.
Nice thought, but I doubt it. The Simulator outfit you're talking about was Simuflight, bought by Southern Air in 1997/1998 or so and sold a year or so later to .....GE! At that time Simuflight did not have a 747 sim.
Atlas currently owns two sim's (a -200 and a -400) and I think has an option on another -200.
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S&P review their size up of Atlas Air
Standard & Poor's has revised its outlook on Atlas Air Worldwide Holdings Inc. to negative from stable. (7/18/2001)
The action follows Atlas's July 12 announcement that it plans to acquire Polar Air Cargo Inc. for $84 million and assume the leases on some of Polar's 747 freighter aircraft.
Polar operates scheduled services, a business described by S&P analysts as riskier than Atlas's leasing activities. "While the net purchase price appears attractive, acquisition of additional aircraft and assumption of more lease obligations during currently weak air freight market conditions, and entry into Polar's higher-fixed-cost, scheduled airport-to-airport heavy freight operations potentially increase credit risk for Atlas," S&P analysts Robert Schulz and Philip Baggaley stated in a report issued Tuesday.
"We remain convinced that this is an astute financial play," said Atlas spokeswoman Rachel Berry. "We are paying a very reasonable price for a debt-free restrucutured Polar Air Cargo with a resized fleet. The reception from the investment community has overall been positive."
In addition, S&P also affirmed its credit ratings of BB-for Atlas Air Worldwide Holdings and Atlas Air Inc., its principal operating unit. Atlas Air's senior unsecured debt has a B rating, while pass-through certificates issued over the past years have ratings ranging from AA to BBB.
The acquisition of Long Beach, Calif.-based Polar, an affiliate of GE Capital Aviation Services Inc., is expected to close during the fourth quarter of this year.
Polar currently operates several models of the large B747 freighter aircraft, but Atlas is expected to reduce this fleet to consist primarily of modern 747-400 freighters. Polar operates scheduled air freight service using attractive route authorities to and from Tokyo's capacity-constrained Narita airport and to other Asian destinations.
Polar also operates some charter flights, but its main business is scheduled freighter service. Its main customers are freight forwarders. In contrast, Atlas leases its aircraft to other carriers, also providing the crew, maintenance and insurance on the planes.
The S&P analysts said the ratings for Atlas reflect its low operating cost structure and profitable, multiyear contracts with international airlines for dedicated air freight transportation, offset by a somewhat concentrated customer base, a competitive industry environment, and high debt levels associated with its ongoing fleet growth.
Standard & Poor's has revised its outlook on Atlas Air Worldwide Holdings Inc. to negative from stable. (7/18/2001)
The action follows Atlas's July 12 announcement that it plans to acquire Polar Air Cargo Inc. for $84 million and assume the leases on some of Polar's 747 freighter aircraft.
Polar operates scheduled services, a business described by S&P analysts as riskier than Atlas's leasing activities. "While the net purchase price appears attractive, acquisition of additional aircraft and assumption of more lease obligations during currently weak air freight market conditions, and entry into Polar's higher-fixed-cost, scheduled airport-to-airport heavy freight operations potentially increase credit risk for Atlas," S&P analysts Robert Schulz and Philip Baggaley stated in a report issued Tuesday.
"We remain convinced that this is an astute financial play," said Atlas spokeswoman Rachel Berry. "We are paying a very reasonable price for a debt-free restrucutured Polar Air Cargo with a resized fleet. The reception from the investment community has overall been positive."
In addition, S&P also affirmed its credit ratings of BB-for Atlas Air Worldwide Holdings and Atlas Air Inc., its principal operating unit. Atlas Air's senior unsecured debt has a B rating, while pass-through certificates issued over the past years have ratings ranging from AA to BBB.
The acquisition of Long Beach, Calif.-based Polar, an affiliate of GE Capital Aviation Services Inc., is expected to close during the fourth quarter of this year.
Polar currently operates several models of the large B747 freighter aircraft, but Atlas is expected to reduce this fleet to consist primarily of modern 747-400 freighters. Polar operates scheduled air freight service using attractive route authorities to and from Tokyo's capacity-constrained Narita airport and to other Asian destinations.
Polar also operates some charter flights, but its main business is scheduled freighter service. Its main customers are freight forwarders. In contrast, Atlas leases its aircraft to other carriers, also providing the crew, maintenance and insurance on the planes.
The S&P analysts said the ratings for Atlas reflect its low operating cost structure and profitable, multiyear contracts with international airlines for dedicated air freight transportation, offset by a somewhat concentrated customer base, a competitive industry environment, and high debt levels associated with its ongoing fleet growth.
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Fleet "rationalization" translates into additional furloughs. Obviously, the -100s will be history, and probably some or all of the P&W engined -200s. How many crews per airplane at Polar?
Welcome to the unemployment line. $275/week for 26 weeks.
Welcome to the unemployment line. $275/week for 26 weeks.
