This is probably old news but I just spotted it on the wire. Looks like AirNet is scrambling to find new contracts - both check-carrying and otherwise. Abrupt management changes and fighting shareholder groups are never good signs... At least the TNT contract is positive. Anyone hear anything else? I hope things turn out ok for everyone involved. Read below:
AirNet charter business loses contracts
Wednesday June 22, 2:01 pm ET
AirNet Systems Inc.'s passenger charter business has lost three executives and three airplanes.
The Jetride charter business lost the contract to manage three airplanes for their owners, according to documents filed Tuesday with the Securities and Exchange Commission.
The planes were part of Jetride's passenger charter fleet. They brought in about $2.7 million in revenue in 2004 and $2.6 million in the first quarter, and AirNet (NYSE:ANS - News) is identifying cost savings to offset the lost revenue. AirNet reported $49.9 million in revenue overall in the first quarter ended March 31.
The Columbus-based air shipping company also disclosed the resignation of Robert L. Austin, senior vice president for Jetride Services, as well as two other unnamed executives. Wynn Peterson, AirNet's vice president for strategic planning and analysis, took over Austin's duties.
AirNet has been working to reposition itself after a recent federal law cut into its core business. AirNet was founded to transport bank documents, but the law now allows banks to transmit electronic images of checks. It has lost several large contracts, and in May AirNet put itself up for sale.
AirNet has expanded into other forms of cargo, such as passenger charters and medical shipments. Amsterdam-based TNT Express, a worldwide network that ships clinical samples, chose AirNet as its exclusive U.S. partner in May.
Impatient with the progress, four separate groups of AirNet shareholders hope to get their own representatives elected to AirNet's board of directors to force a change in management. The investor groups object most strongly to the passenger charter business, which they say cannot be profitable.
AirNet charter business loses contracts
Wednesday June 22, 2:01 pm ET
AirNet Systems Inc.'s passenger charter business has lost three executives and three airplanes.
The Jetride charter business lost the contract to manage three airplanes for their owners, according to documents filed Tuesday with the Securities and Exchange Commission.
The planes were part of Jetride's passenger charter fleet. They brought in about $2.7 million in revenue in 2004 and $2.6 million in the first quarter, and AirNet (NYSE:ANS - News) is identifying cost savings to offset the lost revenue. AirNet reported $49.9 million in revenue overall in the first quarter ended March 31.
The Columbus-based air shipping company also disclosed the resignation of Robert L. Austin, senior vice president for Jetride Services, as well as two other unnamed executives. Wynn Peterson, AirNet's vice president for strategic planning and analysis, took over Austin's duties.
AirNet has been working to reposition itself after a recent federal law cut into its core business. AirNet was founded to transport bank documents, but the law now allows banks to transmit electronic images of checks. It has lost several large contracts, and in May AirNet put itself up for sale.
AirNet has expanded into other forms of cargo, such as passenger charters and medical shipments. Amsterdam-based TNT Express, a worldwide network that ships clinical samples, chose AirNet as its exclusive U.S. partner in May.
Impatient with the progress, four separate groups of AirNet shareholders hope to get their own representatives elected to AirNet's board of directors to force a change in management. The investor groups object most strongly to the passenger charter business, which they say cannot be profitable.
