Category Archives: Southern Air (2nd)

Southern Air’s Chapter 11 reorganization plan approved by the bankruptcy court

Southern Air Holdings, Inc. (Southern Air 2nd) (Cincinnati) has announced that it has received confirmation of its “pre-arranged” Plan of Reorganization (Plan) from the U.S. Bankruptcy Court in Wilmington, Delaware, which has been overseeing the Company’s Chapter 11 proceedings following its voluntary filing on September 28, 2012. The Plan received substantial support from key secured creditors as well as unsecured creditors. The confirmation clears the way for Southern Air to emerge from its court-supervised financial restructuring as expected, within the next few weeks.

Daniel J. McHugh, Southern Air CEO, said, “We are very pleased to receive court approval of our Plan of Reorganization and hope to exit Chapter 11 in just a matter of weeks. This was a critical part of our overall transformation. We have used this process to dramatically change and improve our capital structure, substantially reduce our debt and other legacy costs, strengthen our balance sheet, and enhance our competitiveness with new financial flexibility.

“We will emerge as a well capitalized carrier delivering safe, high quality air cargo services. As part of our strategic transformation, we have realigned our operations and capabilities and transitioned to a modern, fuel-efficient fleet of 777s and 747-400s serving global customers. Our operations and corporate activities are now in Northern Kentucky (the Cincinnati airport) near our largest hub of activity where we are even better able to satisfy the needs of our customers and grow our business for the long term to benefit our business partners and employees for years to come.

“It is thanks to the hard work and dedication of the Southern Air team and the support of our lenders and business partners that we have been able to move through this process successfully, fulfilling customer requirements as scheduled and providing high quality air cargo services without interruption. As a result of our transformation, Southern Air is better positioned for the future both financially and operationally to grow profitably as an air cargo industry leader,” concluded McHugh.

Copyright Photo: Michael B. Ing. Southern Air is now concentrating its future around the more fuel efficient Boeing 747-400 and the 777 and its growing relationship with DHL. Boeing 747-4F6 (F) N469AC (msn 27602) is pictured on final approach to Los Angeles International Airport.

Southern Air:

Southern Air is moving to Cincinnati, retires its last Boeing 747-200F freighter

Southern Air (2nd) is moving its corporate headquarters from Norwalk, CT to Cincinnati/Northern Kentucky International Airport (CVG) located in Covington, KY as part of its Chapter 11 reorganization. DHL, its largest customer, has a hub at CVG. As we previously reported, Southern Air and its holding company, Southern Air Holdings, Inc., filed for Chapter 11 bankruptcy protection and reorganization on September 28, 2012.

Read the full report from the kypost.com: CLICK HERE

In other news, Southern Air retired its last Boeing 747-200F freighter (N783SA) on January 5, 2013 as reported by ch-aviation.

Copyright Photo: Ton Jochems. Boeing 747-281F N783SA (msn 23919) is pictured on the ramp at Frankfurt prior to the retirement.

Southern Air:

Southern Air files for Chapter 11 bankruptcy protection and reorganization

Southern Air, Inc. (2nd) and the holding company, Southern Air Holdings, Inc., today (September 28) filed for Chapter 11 bankruptcy protection and reorganization.

The company issued the following statement:

To position the company for future growth and success, Southern Air has been taking steps in response to the economic challenges and extreme industry changes that have impacted the international freight market, including major cutbacks in spending by the U.S. Department of Defense. At the same time, we have been making good progress in transitioning to a modern, fuel-efficient fleet of 777s and 747-400s serving global customers. The next component of our transformation is the restructuring of our corporate debt and other costs associated with our acquisition in 2007. With an improved balance sheet, Southern Air will have a greater capacity to move forward as a global air cargo industry leader on a financially stronger and more competitive foundation for the long term.

In order to implement this financial restructuring, Southern Air Holdings, Inc., including Southern Air Inc., filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on September 28, 2012 with the support of a majority of our key financial stakeholders. We will work with them to finalize, obtain court approval for, and implement a plan of reorganization as quickly as possible.

We have also filed a proposed plan of reorganization that has the support of a majority of our key financial stakeholders and provides for the continuation of our business in the normal course. We are working to complete the debt restructuring as quickly and efficiently as possible.

Southern Air remains open for business as usual, and fully expects to continue normal business operations, fulfilling all customer requirements as scheduled and providing uninterrupted high quality air cargo services.

Southern Air:

Southern Air takes delivery of its four Boeing 777F freighter

Southern Air (2nd) (Anchorage) today took delivery of its fourth new Boeing 777-FZB (N777SA, msn 37989).

The new aircraft will be immediately inducted into service for DHL Express on the shipper’s new round-the-world service from Hong Kong to Los Angeles to Leipzig, Germany and back to Hong Kong. The new route reduces shipping time from Asia-Pacific and the U.S. West Coast to one day and extends cargo pick-up times for U.S. suppliers shipping to Europe. Southern Air’s third 777F began flying this route earlier this month, and its first two have flown the Cincinnati-Bahrain-Hong Kong route for DHL since September 2011.

Over the last two years, Southern Air has embarked upon an aggressive transformation from a pure 747-200F cargo airline with an average fleet age of 33 years to a highly reliable, fuel efficient fleet of 777Fs and 747SFs, with plans to introduce several 747-400F factory freighters by 2013. By the end of next year, the Company is targeting an average fleet age of less than 7 years. In total, Southern Air’s fleet currently includes fourteen 777Fs and 747s designed for global long-haul cargo shipments.

The fourth 777F is painted, like the first three, in combined DHL and Southern Air livery.

Hot New Photos Slide Show: CLICK HERE

Southern Air takes delivery of its latest Boeing 777 freighter, will operate N714SA for DHL

Southern Air (2nd) (Anchorage) leased this brand new Boeing 777-FZB freighter registered as N714SA (msn 37988) from Oak Hill Aviation Partners on March 23. The freighter ferried to Los Angeles on the same day to start operating for DHL.

Hot New Photos Slide Show: CLICK HERE

Southern Air Slide Show: CLICK HERE

Southern Air adds its first two converted Boeing 747-400 freighters

Southern Air (2nd) Boeing 747-4F6 (F) N469AC (msn 27602) AMS (Ton Jochems) (new type), originally uploaded by Airliners Gallery.

Southern Air (2nd) (Anchorage) has added its first two converted Boeing 747-400 Special Freighters.

Southern Air Slide Show: CLICK HERE

Southern Air and Centurion Cargo sign ACMI agreement

Southern Air (2nd) Boeing 747-2B5F N708SA (msn 24196) ANC (Michael B. Ing), originally uploaded by Airliners Gallery.

Southern Air (2nd) (Anchorage) through its parent Southern Air Holdings, Inc., (Norwalk, CT) a worldwide provider of ACMI (aircraft, crew, maintenance and insurance) outsourced aircraft announced it has signed a multiple year Boeing 747-200F ACMI agreement with Centurion Air Cargo (Miami). The aircraft began operating for Centurion Air Cargo last month.

Centurion Air Cargo, together with its related party SkyLease Cargo, is the leading cargo carrier out of Miami International Airport and operates a fleet of four McDonnell Douglas MD-11F aircraft, leases an additional six MD-11F’s from SkyLease Cargo and operates scheduled all cargo service to multiple destinations in South America, Central America, Mexico, the Caribbean, Europe and World Wide charters.

Southern Air Slide Show: CLICK HERE

Southern Air to operate for Saudi Arabian

Saudi Arabian Airlines Cargo (Southern Air 2nd) Boeing 747-281F N783SA (msn 23919) AMS (Ton Jochems), originally uploaded by Airliners Gallery.

Southern Air (2nd) (Anchorage) and Saudi Arabian Airlines have signed a definitive agreement under which Southern Air will operate this Boeing 747-200F freighter on behalf of Saudi Airlines Cargo Company Limited on an ACMI basis (aircraft, crew, maintenance and insurance). The aircraft will begin to be operated for Saudi Arabian starting this month.

Southern Air Slide Show: CLICK HERE

Southern Air to lease five Boeing 747-400 Special Freighters

Southern Air (2nd) Boeing 747-3B5 (SF) N749SA (msn 24194) ANC (Michael B. Ing), originally uploaded by Airliners Gallery.

Southern Air (2nd) (Anchorage) is planning to lease five Boeing 747-400 Special Freighters according to this report by Flightglobal. The first two will be delivered this year.

Read the full story:

CLICK HERE

Southern Air to operate three Boeing 747 freighters for MASkargo, then 777Fs

Southern Air (2nd) (Anchorage) and MASkargo (Malaysia Airlines Cargo Sdn Bhd) (Kuala Lumpur) announced that they have entered into a multi-year, multi-aircraft wet lease agreement.

Southern Air initially will provide MASkargo with three Boeing 747 Freighter aircraft along with crew, maintenance and insurance (ACMI). MASkargo also has an option to lease up to five aircraft, which will provide it additional flexibility to meet its customers’ growing demand for additional lift capacity and to develop the ability to service new markets.

This new partnership provides MASkargo the opportunity to expand into our next wave of Southern Air Boeing 777 Freighter deliveries.

The Boeing 747s that Southern Air is delivering to MASkargo will showcase Southern Air’s new livery.

MASkargo (Malaysia Airlines Cargo Sdn Bhd) is the air cargo division of Malaysia Airlines and operates four Boeing 747-200Fs, two 747-400Fs and one Airbus A300-600 freighter.