http://www.bizjournals.com/portland/blog/2013/11/evergreen-airlines-to-lay-off-131.html?page=all
Evergreen Airlines to lay off 131, but is it shutting down?
Luc Willems, via Wikimedia Commons
Evergreen International Airlines on Friday notified the state that it will lay off 131 workers. Delford Smith, CEO of parent company Evergreen International Aviation, denied published reports that the McMinnville-based cargo airline would cease operations on Nov. 29.
Erik Siemers
Managing editor-
Portland Business Journal
Evergreen Airlines Inc. this week notified state officials that it will lay off 131 workers in Oregon, but the company issued conflicting statements on whether the McMinnville-based cargo airline plans to shut down later this month.
The Yamhill Valley News-Register on Thursday reported that employees were informed that the air-cargo transport company will cease operations on Nov. 29.
A document filed Thursday by Evergreen notifying state officials of 131 pending layoffs appears to confirm the news report. The filing included a memo to Evergreen International Airline employees announcing that the company will shut down effective Nov. 30 with the possibility of extending into December.
"EIA will no longer conduct business," stated the document from Monique Gregory, Evergreen's human resources manager. "We appreciate your service, hard work and strong commitment to the Airlines over the years. The loss of our company is very unfortunate; however, we appreciate your continued excellent support during this ending phase."
That, however, conflicts with a statement issued late Friday by Delford Smith, CEO and chairman of the airline's parent company, Evergreen International Aviation, who called reports of the airline's demise false.
"While Evergreen generally does not comment on market rumor or conjecture, rumors that a decision has been made to cease operations at this time are false," Smith said in the statement. "Evergreen remains committed to continuing to address the current business environment with its customers.?
Officials with Evergreen have not responded to requests for clarification.
Smith acknowledged that Evergreen's business has been "adversely impacted" over the past few years from decreased military spending and weak global markets.
"Management has moved to aggressively address these challenges, including through the divestiture of businesses and assets and the significant reduction of secured debt," Smith said. "Evergreen is in discussions with its significant constituencies and is exploring available strategic alternatives with those constituencies."
The 131 layoffs are to begin Nov. 7 and continue throughout the month, according to the documents it filed Thursday in conjunction with the federal Worker Adjustment and Retraining Notification Act.
The airline's financial struggles are well documented. In August, Evergreen pilots that belong to the Air Line Pilots Association questioned whether Evergreen would be able to survive under a debt load thought to be near $280 million. In a move to pay down that debt, the company sold its helicopter division to Erickson Air-Crane in March for $250 million, but it continued to struggle, including missing contribution payments to pilot pension plans.
