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.

 

[SPilot]

The building is in an up-and-coming area, and is perhaps why the investors will do this - to run away with the profit.

Buying the company and selling off its assets is like the legal, fair and justified way of stealing what someone else worked for. Nobody can say they are doing something wrong - they bought it, own it, its theirs now. But the profit they'll make liquidating Airnet, is not created by their investments, rather, was built over a lifetime by its founder. If you took someone's lifetime profit any other way, you'd be a criminal...

 

[DA-20]

That's what Bayside dose... Milk it dry, file CH7, and scew the employees and creditors. End of story.

 

[RompXS4D]

George Gonzales is technically a criminal, if Gemini were bigger I am sure there would be investigations. Hopefully there will be. If your company starts to not pay it's bills. You will notice it when maintenance can't get done, parts won't get released that the company owned, ramp and fuel fees. You better run, because that is what happened about 4 months up to the Gemini shutdown. Also keep a real close eye on your medical benefits. I just got a bill from my dentist who said Gemini didn't pay there cut of the insurance June, July, and August. I now have to pay 100% of my fillings that were supposed to be covered 90%.

 

[navigatro]

My guess is that they already have a buyer lined up for the LCK facility. They are 2 steps ahead.

 

[Boris Badenov]

Any idea where they plan to PUT it? Atlantic is booming, don't think they'll be selling. Millionaire is shabby, but seems fairly busy nevertheless. MDW isn't exactly overflowing with extra space...

 

[wlacy]

boris you need to get on the same sheet of music as the rest of us.

 

[ePilot22]

Kord?

ORD doesn't have any 121 turboprop flying. It's all jets. Knowing AirNet does all their business at night might make a difference, but I don't see Caravans and Barons flying in and out of ORD all night long.

What did the bid sheets look like? Where was the major reductions in the system?

Hunt?





eP.

 

[Princedietrich]

Gerry Milburn is probably pissing in his cornflakes after hearing about all of this.

 

[Onlyflyfreight]

The system was redesigned! Two Jet bases was closed. BOS and PHL. Some runs both prop and jet was closed, but there was also some "new" ones.

The most dramatic impact was the system wide rebid for the pilots. A lot of guys are moving. I suspect some will quit as a result. Next few days will show how this shakes out.

Lots of speculation, rumors and very little information. All these changes are supposed to take affect 9-28. Monday night at MDW should be interesting.

 

[hunt234]

The system was redesigned! Two Jet bases was closed. BOS and PHL. Some runs both prop and jet was closed, but there was also some "new" ones.

The most dramatic impact was the system wide rebid for the pilots. A lot of guys are moving. I suspect some will quit as a result. Next few days will show how this shakes out.

Lots of speculation, rumors and very little information. All these changes are supposed to take affect 9-28. Monday night at MDW should be interesting.

That pretty much sums it up. We are all just waiting to find out what happens next.

 

[rodgerdodger]

I'm told that the recruiting department lost a major player- in general I've observed that it is best to imagine several possible futures, then look at what events could take place that might foreshadow each of those futures coming to pass. For example, one possible future is that Airnet is being raided by bayside- what could indicate this is the case? A few MIGHT be:

1) anything that indicates a brand new facility is no longer important in the mid to long term. hmmmm....

2) an inexplicable increase in pilots pay through overtime or other "bonuses" (gotta keep people flying long enough to close the doors)

3) Any noticeable disregard for existing customers

4) elimination of middle management (only takes a warlord and some minions to gut the kill) by the way, is there even a recruiting dept. anymore?

5) Other stoppages of normal expense- if everything from a replacement attitude indicator to coffee in the crew lounge becomes scarce, look out.

Or maybe there will be a succesfull restructuring. Do you see fired personnel replaced with better staff? are new customers showing up? Is there a face to the changes? I remember Biggerstaff giving us his email address- just a gesture I'm sure but has anyone been given access to the new talking heads?

Best of luck to all-

 

[Captain Morgan]

How much do you suppose a hit would cost? Haha! J/K :beer:

 

[hunt234]

This is quoted in an email received yesterday.

"We are also waiting to hear on a new business opportunity that could provide up to 8 perminent and 1 temporary, though it may grow into a perminent, assignment. We should hear notification on that opportunity no later than Monday. Finally, it looks like there is interest by our customers to keep two additional prop routes flying at least for the next week, and perhaps permanently."

The rumor is that some/all of these 8 new runs will be based in DAL.

 

[ePilot22]

Finally, it looks like there is interest by our customers to keep two additional prop routes flying at least for the next week, and perhaps permanently.

Anywhere from now until then, but we're not really sure.

And what's for dinner tonight? ...INTEREST!

Really though, good luck guys!




eP.

 

[StarChecker]

Who would have though.... I feel for you guy's. And still miss AirNet everyday. I loved flying there. Good luck guy's.

Agreed!

Very sorry to hear what's happening to what used to be a great company and a great job.

We had good pay...good bennies and great crews. Sorry it's not that way anymore.

I wish all the best to the StarCheckers...

 

[yawdamp]

Interesting thread...

http://www.airlinepilotforums.com/part-135/31513-airnet-bad-news.html

 

[Princedietrich]

I tend to not believe the parts about Craig being "canned," and here's why.

Last weekend I was at an airshow located in the old stomping grounds for Craig and myself and every other Bobcat alum. While there, I ran into the guy who ran the ramp at the school airport for darn near 30 years before recently retiring (didn't think he'd ever leave until they turned out the lights). He keeps in touch with just about EVERYONE who ever passed through that flight program. According to him, Craig is experiencing some rather significant health issues.

But hey, take that for what it's worth. We all know how rumors can be.

 

[Princedietrich]

Any new developments?

 

[N60OSU]

I tend to not believe the parts about Craig being "canned," and here's why.

According to ..., Craig is experiencing some rather significant health issues.

Heard the same thing about a week ago. Very serious health problems. He needs our prayers if it's true.

Hope someone else is teaching what to do if you're at blue line and still not climbing.

 

[hunt234]

Any new developments?

Their are 5 new prop runs out of ADS, and 2 reserve, as well as a new prop run out of HOU.

I can't remember if this was mentioned but, there is no more city meet at LCK. It is now at MDW. I'm not exactly sure what the deal is, but it'll be interesting to see how it pans out.