Atlas Air Worldwide Holdings, Inc. on November 17 announced that the transition to bring operations of Southern Air, Inc. under a Single Operating Certificate (SOC) with Atlas Air, Inc. is now complete.
With the addition of Southern Air, Atlas Air was able to add 777 and 737 aircraft operating platforms, resulting in a more diversified company offering customers access to a wider range of aircraft, a broader array of services, greater scale and an expanded global footprint.
Southern Air was established on March 5, 1999, by James Neff from the assets of original Southern Air Transport (SAT) and commenced operations in November 1999.
Atlas Air Worldwide is now composed of three companies.
Atlas Air Worldwide Holdings, Inc. has announced that its Atlas Air, Inc. subsidiary has completed a new joint collective bargaining agreement (JCBA) for its Atlas Air and Southern Air pilots, who are represented by the International Brotherhood of Teamsters (IBT).
The five-year JCBA is one of the last major steps in completing Atlas Air’s merger with Southern Air, which it acquired in 2016.
The JCBA was achieved through a contractual merger process, which included negotiations followed by binding arbitration to resolve remaining open items. Under this new long-term agreement, Atlas Air and Southern Air pilots will receive higher pay and enhanced benefits as part of the overall competitive package.
Pay increases will be effective in October, with the remaining terms and conditions to be implemented in the coming months in collaboration with the union. Once the new terms, conditions and timing of implementation are fully assessed, the company will provide an updated outlook.
On April 1, Southern Air (2nd) (Anchorage) will return to Miami and will begin weekly all-cargo service from Miami International Airport to Hong Kong via Anchorage. The new scheduled freighter flights will be served by Boeing 777F aircraft.
Hong Kong is MIA’s fourth-leading trade market in Asia, responsible for more than $500 million in freight annually. In 2017, MIA’s trade with the entire Asia world region was valued at $7.8billion – a 16-percent increase from $6.7 billion in 2016.
Southern Air, a wholly owned subsidiary of Atlas Air Worldwide, Inc., will become the sixth airline at MIA with all-cargo service from Asia, joining: Asiana Airlines (Seoul); Cathay Pacific (Hong Kong); China Airlines (Taipei); Korean Air (Seoul); and Polar Air (Seoul).
Copyright Photo: Southern Air (2nd)-DHL Boeing 777-FZB N714SA (msn 37988) PAE (Nick Dean). Image: 908115.
Atlas Air Worldwide Holdings, Inc. has announced the acquisition of two Boeing 777F Freighters from LATAM Airlines.
Both 777 aircraft will operate in ACMI (aircraft, crew, maintenance and insurance) service for DHL Express through Atlas’ Southern Air subsidiary, with the first starting service this month and the second expected to begin service at the end of the second quarter of 2018.
The first of the two aircraft was previously operated on a CMI (crew, maintenance and insurance) basis for DHL Express by Southern Air. The second aircraft will increase the number of 777 freighters owned or operated by the company to 12.
The expected financial and operating impacts of the two 777 freighters in 2018 were incorporated in the company’s earnings growth framework announced on February 22, 2018. As indicated, the company anticipates that its full-year 2018 adjusted net income will grow by a mid-twenty-percent level compared with 2017.
Copyright Photo: Southern Air (2nd)-DHL Boeing 777-FZB N775SA (msn 37987) ANC (Michael B. Ing). Image: 920329.
Atlas Air, Inc. and Polar Air Cargo Worldwide, Inc., subsidiaries of Atlas Air Worldwide Holdings, have learned that their request for a preliminary injunction against the International Brotherhood of Teamsters, the International Brotherhood of Teamsters, Airline Division, and Local Union No. 1224 has been granted.
The decision by the U.S. District Court for the District of Columbia requires the IBT to meet its obligations under the Railway Labor Act and stop its illegal and intentional work slowdown.
In granting the Company’s request, the Court further ordered the IBT to take affirmative action to prevent and to refrain from continuing any form of interference with the Company’s operations or any other concerted refusal to perform normal pilot operations consistent with the status quo, in violation of the RLA.
The Company continues to negotiate with the IBT for a joint contract for Atlas and Southern Air crewmembers in connection with the pending merger. The Company remains committed to completing the bargaining process in a timely manner and in the best interests of all parties.
Copyright Photo: Atlas Air is operating for Amazon’s Prime Air. Prime Air (Atlas Air) Boeing 767-306 ER (F) N1321A (msn 27957) ONT (Michael B. Ing). Image: 939323.
Southern Air Holdings, Inc. (SAHI) has completed a debt-to-equity exchange that eliminates all of the company’s long-term debt, enabling SAHI to significantly enhance its strategic position and growth plans.
The consensual secured debt-to-preferred equity exchange satisfies approximately $90 million in senior secured term debt by issuing to its former term lenders a new class of preferred stock and warrants. The newly issued preferred stock is non-voting and non-convertible, and provides for an annual stated yield accruing in kind (not in cash), and a liquidation preference over common shares. The exchange transaction was approved by the United States Department of Transportation and by 100% of the participating term loan lenders. In addition to the debt-for-preferred equity exchange, SAHI’s lenders agreed to renew and increase to $20 million a working capital line of credit in favor of various SAHI affiliates.
“The completion of this debt-for-equity exchange sets a new stage for growth in our air cargo platforms,” said SAHI and Worldwide CEO Dan McHugh. “Southern Air now has a clean balance sheet and no long term debt. With positive cash flow, we are poised to grow our existing 777 and 737 programs with global logistics leader DHL Express and other global customers, and in view of the closing of our acquisition of 767 carrier Florida West International Airways (Florida West), Worldwide is strengthening and expanding its highly reliable, cost efficient and customer-oriented ACMI, CMI and other air cargo services.”
Worldwide recently announced its plans to acquire Miami-based Florida West, a U.S. all cargo carrier operating 767 aircraft.
McHugh added, “Our lenders’ willingness to convert all of their term debt to preferred equity demonstrates a firm commitment to SAHI’s management vision, strategic positioning and growth plans, and we greatly appreciate their support in this debt conversion process.”
SAHI was advised in the transaction by the investment banking firm Imperial Capital and the law firm Berger Singerman.
Southern Air currently operates four Boeing 777-200 freighters on an around-the-world basis for the leading global express delivery provider DHL. Southern Air also operates five Boeing 737 aircraft for DHL, flying key routes to support DHL’s North American air networks.
All Boeing 747s have been retired.
Copyright Photo: Chris Sands/AirlinersGallery.com. Southern Air now operates five Boeing 737-400 freighters in DHL colors including ex-LOT 737-45D N495SA (msn 27157) at Calgary.
Southern Air Holdings, Inc. has announced that its affiliate, Worldwide Air Logistics Group, Inc., will expand and diversify its ACMI and CMI air cargo service offerings through the acquisition of new fleet platforms, expanded markets and growth of existing operations.
Southern Air Inc., a critical and growing provider of airlift services for DHL Express and other customers, will continue its operations as a subsidiary of Worldwide. Southern Air’s headquarters will remain in Florence, Kentucky.
As part of its efforts to expand service capacity, Worldwide also announced its agreement to acquire Florida West International Airways, Inc., a leading provider of 767-300 ACMI air cargo services. Florida West operates scheduled and charter services, primarily in Latin America, the Caribbean and the U.S. for its primary customer LAN Cargo. Florida West is based in Miami, Florida, where its headquarters will remain. Worldwide’s acquisition of Florida West is subject to regulatory approval.
Southern Air and Florida West will remain separate air carrier operating companies. Each carrier will continue to deliver on a standalone basis the outstanding performance and superior service their customers have grown to expect.
Copyright Photo: Brian McDonough/AirlinersGallery.com. The second Florida West operates Boeing 767-300F freighters. Boeing 767-346F N411LA (msn 35818) departs from Miami International Airport.
Microsoft Word – 737 DHL Express Southern Air Press Release_FINAL
Southern Air (2nd) (Cincinnati) has taken delivery of its first Boeing 737-400F freighter (737-4Q3, N493SA, msn 29487). The former JTA airliner was converted to a freighter by Commercial Jet. The freighter will be operated for DHL.
DHL is adding five Boeing 737-400 aircraft to expand its routes within the Americas as part of a multi-year service agreement with US cargo carrier Southern Air. The five aircraft will be placed into service from April through August.
Current planned routes include flights from Caracas (CCS), Venezuela, to Barbados (BGI) and Trinidad and Tobago (POS) in the Caribbean, as well as from Caracas to Bogota (BOG), Colombia, and Panama (PTY). In the United States, the new aircraft will add flights from the Cincinnati hub (CVG) to several cities along the Northeast and Midwest, including Philadelphia (PHL), Hartford (BDL) and St. Louis (STL).
Southern Air also operates four Boeing 777F freighters for DHL.
Southern Air Holdings, Inc. (Southern Air 2nd) (Cincinnati) announced yesterday (April 15) that it has emerged from Chapter 11, having completed its financial restructuring.
Daniel J. McHugh, Southern Air CEO, said, “We have emerged from this restructuring process with substantially less debt, significantly improved operations and resources, and financial flexibility as a well-capitalized global air cargo carrier. Today, we are well-positioned both financially and operationally to continue to build Southern Air for the long-term benefit of our customers, suppliers, business partners, crewmembers and employees. From our new headquarters at the Cincinnati/Northern Kentucky International Airport, our largest air operating hub, we are even better able to grow profitably, delivering the highest quality services to our customers and meeting and exceeding their air cargo needs.”
Southern Air entered Chapter 11 on September 28, 2012, and emerged from the process on April 15, 2013, after meeting all closing conditions to the Company’s Plan of Reorganization. The Plan was confirmed by the U.S. Bankruptcy Court in Wilmington, Delaware on March 14, 2013.
Copyright Photo: Ton Jochems. Boeing 747-4EVF ER N558CL (msn 35171) prepares to taxi to the runway at Amsterdam.
TNT Express (Hoofddorp), the parent of TNT Airways (Liege), announced today an extensive reorganization plan to go it alone after its takeover by UPS was rejected by the European Commission. The downsizing will result in a loss of 4,000 jobs as it will now concentrate on serving mainly its European routes. The struggling company needs to save approximately $286 million by 2015.
Read the official statement by the company: CLICK HERE
Copyright Photo: Ole Simon. Some of the long-range aircraft are likely to be dropped from the fleet with this downsizing. Operated by Southern Air for TNT Airways, Boeing 777-FHT N778SA (msn 39286) prepares to touch down at Dubai International Airport.