Polar Air Cargo, 30 days out from possible strike.

[KeroseneSnorter]

You should be "paid" less because of B. Fell. And because your membership accepted the last contract extension and pay raise rather than negotiate with AAWW at the same time as Atlas. We could have had better QOL and you could have had better pay if you hadn't sold out last time.


Speaking of Bob F., what's that idiot doing up in ANC. I'm hearing stories of dirty tricks and intimidation. Hasn't this guy done enough damage to your union? It sure looks like he's still running the show.

You do realize that this is 2005 right?

I would say that you are probably mgmt. No one else has anything to gain from the position that you are taking. You are trying to take something that happened in the past and use it to drive a wedge in between the Polar and Atlas pilot groups.

My guess is that you did not expect the two groups to be working together and now that they are, you (mgmt) are at a loss on how play them against each other.

Looks to me like Polar and Atlas are standing together right now....and will continue to do so next year when the Atlas contract is due.

Funny thing about sibling rivalry, the two will fight among themselves endlessly until some bully (mgmt.) tries to start a fight and pick on one of them, then they will band together against the common foe.

I guess you do not have any brothers huh 300? If you did you would know exactly what I am talking about.

Polar may be gone as you say, but it will cost the Atlas mgmt dearly in revenue and image. Firing all the new hires a month before any strike ever happened let their true colors shine. The school yard bully couldn't do anything to the kids in his own class, instead he had to pick on the ones that had nothing to do with, or any vote in the fight.

Yep real class act that crowd is.

 

[V1andgo]

-300
I am sorry you feel cheated by the last contract neg. you had at Atlas. For your heart rate and health do yourself a favour and let the past rest. I really don't understand why you are so fired-up about what happens to the Polar guys and girls and their strike. Somehow your posts seem to be full of jealousy, that they have the strength and unity to pull-off a strike in the present economic environement.
Since we are talking economics and strategy, and you believe to have a keen understanding about the business, I encourage you to read the following article in the latest Air Cargo World magazine. http://www.aircargoworld.com/features/0905_3.htm
The title of the piece is "Connecting Capacity, Globally", in it the problem of uneven cargo flow is addressed. May I remind you, very sucessful carriers in Europe and Asia have no Military contracts and still make money in this market environment while facing the same high fuel costs. Shocking that profitabilty in the airline industry is a matter of planning rather than labor prostitution. Also, ACMI, Altas's core business, is done on scheduled cargo runs that yield profits for the contracting airlines and operators that have the necessary skills in airline management. To top it all, most of the players that fly most of their freight on their own aircraft have much higher labor costs i.e. CargoLux, Lufthansa, KLM, and MartinAir.
Furthermore, if Polar goes away would you not upgrade? So what is it to you, if these folks go out of business? However, with this Clueless in Purchase management, the longterm future for anyone at AAWH is in jeopardy---- I understand. So, better warm up the resume!!!

 

[Jolly]

Ah the truth comes out 747-300.

You say: "You should be "paid" less because of B."

So all your writings have just been a smoke screen for your desire to hurt the Polar pilots. That pretty much tells us all we need to know about you. It is pretty sad to think someone can live such a bitter existence. You have my pity.

 

[Whale Rider]

You know what Mr.-300? You need to be more like Paul!

 

[b747dogg]

All this assumes of course that there is a Polar left, if not, then Atlas is in bad shape. With the loss of the scheduled service and associated revenue should Polar shut down, Atlas loses a huge percentage of their income. Just looking at the sec filings it appears that most (50+%...some say as high as 69%) of the companies total revenue comes from the 12 airplanes on the Polar side.

Please enlighten me on where in the sec filings it states Polar makes 50% to 69% of the companies total revenue. That is a load of crap. Why post crap you make up, stick to the facts, they are bad enough. ACMI makes money, planes are paid for whether they are moving or not. Get a clue!!! Enjoy!

 

[heilhaavir]

-300, you say <<You are not the lowest paid 747 operators!>> and you add <<You have the lowest number of duty days available to the company of any airline in your category (like Atlas, Kalitta, Tradewinds, Southern, Evergreen or Focus). When you consider the number of days worked to earn "guarantee", then your pay seems well above most other carriers in your category. When you do a comparison, look at number of days worked versus monthly earnings and not just the hourly rate>>. You are absolutely correct And why would that stop anybody from asking more ROFLMAO!

As I've already told you before,they can shut the place down anytime they want, really doesn't bother me. Why E&C even made an offer at all is aboslutely amazing, especially with the lack of PO's profitability. And you call this "management"?

Let's continue with your alledged hear say <<Speaking of Bob F., what's that idiot doing up in ANC. I'm hearing stories of dirty tricks and intimidation>> Really? You know that for a fact? You've seen/heard that yourself? So tell us, what exactly did he do?

 

[KeroseneSnorter]

Please enlighten me on where in the sec filings it states Polar makes 50% to 69% of the companies total revenue. That is a load of crap. Why post crap you make up, stick to the facts, they are bad enough. ACMI makes money, planes are paid for whether they are moving or not. Get a clue!!! Enjoy!

10Q filing dated 7-08-05 Figures rounded to nearest million

Scheduled service (Polar) 117 million
ACMI (Atlas) 63 million
AMC (military, Both Atlas and Polar) 52 Million
Charter (both again) 9 million'
other 8 million

Total revenue July 28th to sept 30 2004 251 million

Polar scheduled service accounts for 46.8% of total revenue for the period. Add in their share of charter and AMC and you have the 50 to 69% (no way to tell the exact number from AMC and charter)

10k report dated 7-6-05

Scheduled service (polar) accounted for 45.3% of total revenue in 2004
(does not account for their share of AMC and charter)

 

[B747-300]

You guys have lost your grip on reality! You think that anyone who disagrees with your position must be management. A long period of unemployment might help you see things more clearly.

The simplistic revenue comparisons aren't going to cut it either. It is expected that Polar would have higher revenue, as they have to PAY FOR THE FUEL they use. Atlas has lower revenue, but the fuel costs are borne by the customer.

The two groups working together??? What a laugh. Taking pictures of Atlas crews reporting for duty is the fastest way possible to alienate the few guys who did support you.

 

[KeroseneSnorter]

You guys have lost your grip on reality! You think that anyone who disagrees with your position must be management. A long period of unemployment might help you see things more clearly.

The simplistic revenue comparisons aren't going to cut it either. It is expected that Polar would have higher revenue, as they have to PAY FOR THE FUEL they use. Atlas has lower revenue, but the fuel costs are borne by the customer.

The two groups working together??? What a laugh. Taking pictures of Atlas crews reporting for duty is the fastest way possible to alienate the few guys who did support you.

Revenue is revenue, past that the numbers can be made to show profit and loss however they want. Fact is that Polar accounts for at least half of the total money coming in to the company and doing it with only 12 airplanes. Atlas air world wide can hardly dismiss the loss of nearly 120 million dollars every quarter from scheduled service. Sure Polar pays for their fuel, but Atlas pays 31% more hourly to their pilot group, a group that numbers some 350 or so more pilots than the Polar side does. That alone wipes out a large percentage of Polars fuel bill difference. 12 airplanes with Polar paint are bringing in much more than the 30 or so with Atlas paint. Not an easily dismissed number.

As to the working together, heard from my buddy on the line yesterday, seems there were numerous Atlas pilots walking the line with them on their day off. Looks like co-operation to me. Not to mention the guys removing the Polar cargo from their airplanes.

 

[B747-300]

Revenue doesn't mean much if your expenses are greater than what you take in.

This is what you should be focusing on:

"The reallocation of capacity out of Scheduled Service and into ACMI operations had a beneficial impact on direct operating expenses during the quarter, including ground handling, landing and overfly fees. Total fuel consumption declined by approximately 13%, reflecting a roughly 13% reduction in non-ACMI block hours. The reduction in consumption was more than offset by a 44% increase in average fuel prices. The net impact was a 25% increase in fuel expense."

"We expect to continue to optimize capacity allocations among our service types."

WAKE UP!!

 

[KeroseneSnorter]

Revenue doesn't mean much if your expenses are greater than what you take in.

This is what you should be focusing on:

"The reallocation of capacity out of Scheduled Service and into ACMI operations had a beneficial impact on direct operating expenses during the quarter, including ground handling, landing and overfly fees. Total fuel consumption declined by approximately 13%, reflecting a roughly 13% reduction in non-ACMI block hours. The reduction in consumption was more than offset by a 44% increase in average fuel prices. The net impact was a 25% increase in fuel expense."

"We expect to continue to optimize capacity allocations among our service types."

WAKE UP!!

Just got done jogging here so these numbers are VERY rough figures done while trying to not drip sweat on the keyboad!!

Taking the quarter revenue numbers and looking at A/C numbers using only the ACMI and Scheduled data, leaving out Military and charter.

Polar 12 airplanes brought in roughly 9.75 million per airplane for the quarter.
Atlas's 30 birds brought it roughly 2.1 million per airplane for the same time.

Leaving out the difference in crew costs and total crew numbers (Hourly, and diff in total pilots on the list that makes Atlas costs higher) that leaves us with a difference of 7.65 million that each Polar bird made more than a corresponding Atlas bird. Now either that fuel is costing Polar 7+ million a quarter PER AIRPLANE, or AAWWH is playing with the numbers to show Polars "loss".

Given that there are 2184 hours per quarter and at an average fuel burn of 3500 Gal an hour that would mean that the Polar birds flew 1092 hours per airplane at 2 bucks a gallon to burn up the 7.65 mil difference. That means 12 hours a day, EVERY day for the entire quarter. Given that this is very unlikely due to maint. and other factors. Especially since we are not factoring in Military and Charter flights that Polar does. Also fuel last year was only around 1.80 to 1.90 a gallon, this year they have been adding fuel surcharges to the freight.

So where did all that money go? I would say a good portion went to mgmt. and funneled into the Atlas "profits"

Like I said very rough, but if you continue the process it will probably hold constant no matter how detailed you get.

 

[V1andgo]

-300
AAWH has a diversified portfolio and money can and is made in all segments of the cargo business, if it is managed right. The argument that fuel is the determining factor in crew compensation is flawed. How much of a pay cut would be required to compensate for the current oil prizes? Other operator with much higher crew costs fly freight in the same market with high fuel costs, and still make profits. If AAWH wants to shift more of its assets into ACMI so be it. Those are decisions made above our pay grade. So I hope!!!
So what is it to you, when the Polar Crew members are on a strike?
Why do you try so hard to make a business argument about a matter that has nothing to do with you?

 

[KeroseneSnorter]

The thing with using the company numbers to show profit and loss is that there is no way to verify their conclusions.

I would bet if Polar survives to be around for the Atlas negotiations all of the sudden Polar will be making gobs of money and Atlas will be the ones losing it. The company is no fool, they will work the money to show a loss against whoever they need to for negotiating purposes.

Bottom line is that Polar accounts for at least 50% of the revenue using only 12 airplanes, less than half of what the current Atlas fleet is.

Take it a step further and figure in what each airplane is costing (neighborhood of 1 mil. a month for the 400's and 500,000 a month for the 200's) just to keep them on the property and the companies figures start looking more and more suspect. Additionally some of the "Polar" airplanes are leased FROM Atlas, so money that Polar is "paying" really is not going anywhere except into the Atlas "Profit" Also some Polar assets are currently being leased to other companies. Kalitta and Tradewinds operate some of the old Polar 100's. My understanding is that these are leases to them, if so, is the money coming in from the leases shown as Polar income, or Atlas income?

There are so many ways to manipulate the numbers that anything can be shown in 10 different ways to justify the company position. Revenue becomes the one deciding factor that cannot be "worked" to the companies advantage.

 

[CSY Mon]

Tradewinds operate some of the old Polar 100's

Negative, Tradewinds operates only 747-200s, J and Q power.

 

[KeroseneSnorter]

Negative, Tradewinds operates only 747-200s, J and Q power.

Was told that one of the Tradwinds birds was ex Polar, I know they got rid of a few 200's after the buyout, so you may have one of those.

 

[CSY Mon]

Yeah, I think one is ex-Polar..it is also ex-Tower Air...Flew it over there.

N-922FT..I think that is the one.

 

[furloughfodder]

POLAR STRUCK WORK INSTRUCTIONS FOR ATLAS AIR

1. AMC cargo and Hurricane Katrina relief missions ARE NOT struck work.

2. DO NOT CROSS A POLAR PICKET LINE.

3. Operate Atlas Air aircraft only.

4. If you are assigned a flight with a Polar call sign (call the Atlas Air MEC Hotline, 1-800-XXX-XXXX, immediately), it is considered struck work and should not be flown. If you can not reach the MEC via any means, operate the flight and call ASAP at your destination.

5. Upon arrival at the aircraft check for any identifying Polar labels or Polar tags attached to cargo [note: a Polar pallet alone (cookie sheets) does not necessarily constitute Polar cargo]. If you find Polar cargo, request that it be removed. If, you are unable to have this cargo removed, call the Atlas Air MEC hotline immediately. Do not carry Polar cargo.

6. Check the cargo documents onboard the aircraft before departure, review the Air Cargo Manifest and check the “Master Airway Bill” for any evidence that the cargo is consigned to Polar Air Cargo (Polar is assigned Master Airway Bill IATA Code #403). If you find Polar cargo, request that it be removed. If you are unable to have this cargo removed, call the Atlas Air MEC hotline immediately. Do not carry Polar cargo.

If you have any doubts whatsoever, call the Atlas Air MEC Hotline, 1-800-XXX-XXXX, by any means available [cell, landline, HF phone patch (a Stockholm Radio account is established) collect calling etc; you will be reimbursed for any expenses associated with these calls]. If you can not reach the MEC via any means, operate the flight and call ASAP at your destination.

 

[furloughfodder]

I have a funny feeling that #2 in the above post is being ignored by our friend -300.

 

[Xfr8dog]

So Polar has 12 planes and Atlas has 30. How many pilots does each group have?

I was curious the other day (not that this has anything to do with the above post) but anyone have an estimate on how many current and qualified 747 pilots there are in the world? Someone guessed 5000 and that seems about right...


Oh also Kalitta owns all of thier planes outright they do not lease from anyone.

 

[KeroseneSnorter]

So Polar has 12 planes and Atlas has 30. How many pilots does each group have?

Polar is right around 350 prior to the firing of the newbies

Atlas is around 700.