Gemini News

[metrodriver]

The Company will not directly or indirectly sell, lease or otherwise transfer any aircraft owned, leased or operated by the Company to any airline which is owned or operated by the Company

If I read this correctly: the planes cannot be leased or sold to another company that is also owned by Gemini. Right now the planes are leased by Gemini Leasing to Gemini Cargo. I think this is to prevent something that Mesa did with Freedom Air.
However, I do not see a reason why Gemini could not sell the planes to an independent airline. One of our customers wants 5 DC10's that they are unable to find. I would not be surprised if DAS Air would like to have some low time (compared to theirs) aircraft. Maybe Arrow is in the market for some -10's...
I just wished they would be replaced by something newer

 

[canadflyau]

So is Gemini Cargo or Gemini Leasing, or both, in bk?

 

[FlysFred]

I know it's lawyer speak, but the meaning of the text is that the company cannot sell or lease any aircraft owned or operated by the company to any company that would cause a reduction in force...

(when they say to a company owned and operated by the company...it means that the AIRCRAFT owned and operated by the company cannot be leased... NOT that the company is owned by Gemini...

Gemini has not or does not own any sub-companies...)

 

[Classicdriver]

I know it's lawyer speak, but the meaning of the text is that the company cannot sell or lease any aircraft owned or operated by the company to any company that would cause a reduction in force...

(when they say to a company owned and operated by the company...it means that the AIRCRAFT owned and operated by the company cannot be leased... NOT that the company is owned by Gemini...

Gemini has not or does not own any sub-companies...)

You need to reread it. Your reading into it what you want to. It just says the company cannot transfer aircraft to itself thru other company's under the same holding company.

Nothing prevents them, in this paragragh, to dry lease to another company.

 

[GAC11Flyer]

METRODRIVER is correct with regard to section 1, B3 of the contract.

 

[metrodriver]

Canadfly: both are in bk

the tekst in the contract prevents Gemini from setting up a subsidiary with a lot lower crew cost and transferring planes there, Mesa-Fredoom Air, Centurion-Cielos del peru, Arrow-Arrow Panama.
Nothing prevents Gemini from selling or dry leasing the planes (DC10) to anybody who wants them.

Does this make sense? Maybe ,maybe not.
One thing is for sure, if the DC10 part of the house will cease to exist, the operational (overhead) cost of the MD11 side will go up. There is quite a managerial (required by FAA) and support staff needed to operate 4 MD11's that is also needed for the 10 fleet. D/O, CP, Dir of Training, Dir of safety, Dir of MX, crew scheduling, dispatch, HR, finance and so on. Some of these departments can lose a few rank and file employees, but a lot of these positions are mandatory and their cost would only be bourne by 4 MD11's, now by 11 planes. Maybe better to keep the -10's flying.
However, if you can't compete any longer against low(er) cost operations like Cielos or customers don't want to pay the fuel bill any longer maybe it's time to change the business model. Best solution would be to get more MD11's (if Fed X wouldn't get them first) or buy brandnew planes for which there is a demand (777, even some start-up carrier in India bought a bunch over the weekend, 747 market is getting saturated, Cathay is not going to do some conversions that it planned a year ago if that's an indication), and then lease out the -10's.
We'll see

 

[Bigbeerbelly]

Cathay is not going to do some conversions that it planned a year ago if that's an indication

Can you please post a link or supply the source of that information? I have been looking for the past 30 minutes, but cannot find any article or even the Cathay Pacific website that says that. Not saying it's not true, just want to read the article.

Cheers,

BBB

 

[FreightNazi]

Does Gemini own it's MD-11s? If so, don't be surprised to see UPS purchase them. We've been on the prowl for every MD-11 we can get our hands on.

 

[GAC11Flyer]

Freight Nazi how many more do you plan on writing off?

 

[FreightNazi]

Freight Nazi how many more do you plan on writing off?

What do you mean? UPS has never had a hull loss.