Whats the scoop @ Airnet?

[SPilot]

UPS is already talking about getting rid of several small package runs, by downgrading the service level for early small package deliveries (cutting early morning delivery, which is the only reason to use an aircraft for small package delivery). The margins UPS are looking to save are in the order of a few thousands per month, and it will be though if AirNet is hoping to outbid the competition on such margins.

 

[ljg]

Pretty clever of management if you look at it their way. Senior guys and gals won't want to move, which is good they cost more. Don't want to lay off outside of seniority so they wait for the senior guys to not take the bid and get themselves let go, bring in some guys at first year pay to fill the few gaps.
My question is what are they going to haul? Checks are dead and dying, airplanes are too small to move cargo except UPS small packages, and there is competition in that area, plus that is a five day a week job sometimes six. Their track record with express work hasn't been that stellar so what is the next move? Can't even sell off the fleet but the parts room will be worth some $$ to the investors.

Thank you for that uplifting, insightful post.

 

[SPilot]

What's the qoute from the airline board room in the movie WallStreet? "He'll make 60-70 millions on this deal. Not bad for a few months work".
The Gecko promised the management the world, but milked the company and bankrupted it.

Kinda see some similarities?

Edit>> Btw, I'm not feeling really good while flying anymore. Sick, stressed, afraid, sad, mad, hard to focus. No way I fit the FAA idea of fit for flight.

 

[JJET44]

Quest diagnostics are hiring in Reading Pa. Newer better equipped Barron's, TBM 700's, and orders for eclipse 500's (they're operating one already).

 

[Denizen]

Thank you for that uplifting, insightful post.

My pleasure, when the writing is on the wall it is almost always best to read it. Good luck to you.

 

[Princedietrich]

It' hard to say. I wonder if the new owners aren't putting on the pressure on management to cut costs.

Oh I can guarantee that's what is happening. I mean, consider the track record of the new guy they brought in for CEO, and the fact that he's only been there for about 3 weeks now.

If word starts to circulate that Chuck Paul is being told to cut back on buying parts, get the hell out and don't look back.

 

[idoitupsidedown]

If word starts to circulate that Chuck Paul is being told to cut back on buying parts, get the hell out and don't look back.

yes, yes, and yes. if chuck starts to worry....you need to worry. one of the things i always tell people after i say i used to fly checks is that i was one of the lucky ones who flew for a company who's mx program was top notch. "oh, you have a post light out? write it up, we'll get you a new one right now and sign it off". happened all the time. i can't think of a single time i heard "we don't have that part, we're going to defer it" (i flew the props). i went through LCK twice each night, and never left thinking, 'that's crap that this is defered'. hopefully, even after all that's going on, when it's all said and done, what's left will still be a quality company. i've never once regretted the time i put in at Airnet. it would be a shame to see that change.

 

[ePilot22]

Any updates...?

I recieved this email today...

AirNet Systems Redesigns Network for Growth

CONTACTS:
AirNet Systems, Inc.
Fred deLeeuw
(614) 409-4832 InvestQuest, Inc.
Bob Lentz
(614) 876-1900

COLUMBUS, Ohio – September 24, 2008 -- AirNet Systems, Inc. (“AirNet”) today announced changes to its airline network and operations that will enhance services to customers and position the Company for future growth. Flight hours and the number of aircraft required to support the network will be reduced, with minimal impact on the primary cities served. This change represents a shift in strategic focus from an airline network designed to serve the historical needs of AirNet’s bank customers to a redesigned network that will better meet the needs of all customers. These changes will enable AirNet to maintain its position as the premium provider of transportation services for small packages that require special handling, custody and control.

AirNet’s customers will continue to benefit from its extensive dedicated and charter airline network, which includes more than 100 owned and operated aircraft. For more than a decade AirNet has balanced the needs of its bank customers and express customers within its network. During this period the express business has grown significantly in markets, such as life sciences, radiopharmaceuticals, laboratories and other niches. However, changes in the transportation needs of bank customers necessitate a reconfigured operations footprint at AirNet. The redesigned network involves the relocation of AirNet’s primary hub and sort operations to Chicago, Illinois. AirNet’s corporate and administrative offices, airline operations and customer resource center will remain in Columbus, Ohio.
George Gonzalez, Chief Executive Officer of AirNet, stated, “We determined it was necessary to redesign the airline network following intensive review and analysis to determine the best course of action for AirNet’s future. Our express business is well-positioned and growing. Our new network will provide more flexibility in serving customers in a cost efficient manner. We are excited about our increased prescence in Chicago and look forward to building upon our core strengths as we expand AirNet’s presence and pursue additional growth opportunities.”
About AirNet Systems, Inc.
AirNet Systems, Inc., an affiliate of Bayside Capital, focuses its resources on providing value-added, time-critical aviation services to a diverse set of customers in the most service-intensive, cost-effective manner possible. AirNet operates dedicated charters and an integrated national transportation network that provides expedited transportation services to banks and time-critical small package shippers nationwide. AirNet’s aircraft are located strategically throughout the United States. To find out more AirNet visit the Company’s website at www.airnet.com and to find out more about Bayside Capital visit www.bayside.com.​

Good Luck guys...

eP.​

 

[Princedietrich]

What kind of freakin IDIOT is that guy? The paint is barely dry on the LCK facility and this doofus wants to pull the plug on it? There is no logic whatsoever in moving the primary hub to an ultra-congested airspace where no facilities of that magnitude presently exist, especially when you have a new dedicated facility (admin, operations, maintenance, training, sorting) all to yourself located at a huge airport less than a jet hour away that has hardly any traffic at all and is virtually a cargo-only airport.

My advice to you Starcheckers is to get the hell out of Dodge, this new CEO appears to be going full throttle towards killing the company.

 

[rubicon789]

WOW!!! is all I have to say. I agree with Princedietrich... the $40m+ facility is so new WTF!!! Unless they are selling the building which would make some sense if they had a good deal on the other side. Still very suprising though.