PURCHASE, N.Y., November 21, 2019 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today confirmed that its subsidiaries Atlas Air, Inc. and Southern Air, Inc. have prevailed in another legal dispute with the union that represents its pilots in ongoing negotiations, the International Brotherhood of Teamsters.
The decision by the U.S. Court of Appeals for the Second Circuit affirms a March 13, 2018, decision by the Southern District Court of New York compelling the Teamsters to arbitrate whether the merger provisions in Atlas Air and Southern Air’s collective bargaining agreements apply to the bargaining process. Today’s decision, as well as two binding decisions by arbitrators rendered in favor of both Atlas Air and Southern Air this summer, have made clear that IBT must engage in the current Atlas Air and Southern Air collective bargaining agreements’ expedited and defined process for achieving a joint collective bargaining agreement.
In a separate labor-related decision rendered in July 2019, the U.S. Court of Appeals for the District of Columbia unanimously affirmed a federal district court ruling in November 2017 that ordered the union to stop an intentional and illegal work slowdown by Atlas Air pilots in violation of the Railway Labor Act. The unanimous ruling from a three-judge panel upheld the lower-court order that blocked the union from continuing to engage in improper activities such as excessive sick calls on short notice or refusing to volunteer for open time.
“With these decisions behind us, it’s time for the union to honor its obligations under the collective bargaining agreements and these binding decisions. Specifically, the union has an obligation to produce an integrated seniority list and engage in direct bargaining for a defined and limited period of time. In ongoing negotiations, the union has yet to provide us with a comprehensive economic proposal covering pay and benefits for evaluation. We remain committed to working collaboratively with union leaders to efficiently negotiate and complete the contract,” said William J. Flynn, Chairman and Chief Executive Officer, Atlas Air Worldwide.
For more information about the contract negotiations process and updates, please visit AtlasAir5YPilots.com and follow @AtlasAir5Y on Twitter.
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers the broadest array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasairworldwide.com.
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Nancy Escobar and Ana Archie in Bagram, Afghanistan. June, 2011.
Ana Archie and Nancy Escobar may have only worked together in Materials Operations for about six months, but the women have a shared history that dates back to 2008, when both enlisted in the U.S. Army looking for adventure, new experiences, and opportunities to develop new life skills.
The two were assigned to their first duty station in Fort Carson, CO. As part of the 152nd Movement Control Team (MCT), they deployed to Afghanistan in support of Operation Enduring Freedom for a one year rotation.
While in Afghanistan, they worked Air and Ground Operations for Regional Command, East Afghanistan. The 152nd MCT’s work directly contributed to the shutdown of U.S. operations in Iraq and transfer of soldiers to Afghanistan.
“The friendship and the bond that you form while you’re in the military, and particularly when you deploy overseas, is different than most friendships,” said Ana. “It’s a bond that can’t be defined.”
The unit returned to Fort Carson in May 2012. Ana spent one more year with the U.S. Army before transitioning to military outsourcing in the private sector, while Nancy continued to pursue her dream of becoming Airborne and grow within the ranks of the Army.
“Jumping out of planes taught me to embrace fear, take it as a challenge, and conquer it,” said Nancy.
In 2016, the two women found themselves working alongside each other again in Germany, as a result of their both being tasked out to Special Forces. “It is truly a small world, considering I had transitioned to the private sector,” said Ana.
Nancy added, “Our knowledge about each other’s strengths and weaknesses has always made us a great team.”
Two years later, both women headed back to the United States. Ana was hired by Atlas as Materials Operations Supervisor in Houston (the interview process began while she was still overseas), and Nancy took some time to stay at home with her son and continue her education in logistics.
Admittedly, Nancy felt a bit restless. “Spending time with my baby was great, but I couldn’t let my knowledge and expertise in the field go to waste, logistics is my passion.”
Nancy took a job as a bank teller, while Ana embraced her new role at Atlas. “My aviation experience in the Army prepared me very well for my new position,” Ana explained.
An opening in Ground Ops came up later that summer – a Catering Coordinator position for VIP charters – and Ana thought Nancy with all of her experience, particularly her work with Special Forces, made her the perfect candidate.
Ana’s assessment was spot on; Nancy was hired by Atlas in August, 2018. Recently, an opportunity came up for Nancy to transfer into Materials Operations, and now, once again, they are on the same team.
When asked about their military career and its influence on the work they do today, both women acknowledge the impact the Army has had on them, and how it’s shaped their “get it done” work ethic.
“In my role as Materials Operation Manager, I am faced with many difficult tasks,” said Ana. “But that doesn’t stop or scare me. I focus on figuring out not only how to get it done, but to get it done well.”
“The Army taught me that failure is not an option,” added Nancy. “Here at Atlas, I refuse to give up; I always give 100% in all that I take on.”
PURCHASE, N.Y., October 30, 2019 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced third-quarter 2019 income from continuing operations, net of taxes, of $60.0 million, or $2.32 per diluted share, compared with reported income of $71.1 million, or $0.84 per diluted share, in the third quarter of 2018.
Reported results in the third quarter of 2019 included an unrealized gain on outstanding warrants of $83.2 million, partially offset by a special charge, net, of $18.9 million, compared with an unrealized gain on outstanding warrants of $46.1 million in the year-ago period.
On an adjusted basis, EBITDA totaled $95.6 million in the third quarter this year compared with $123.9 million in the third quarter of 2018. Adjusted income from continuing operations, net of taxes, in the third quarter of 2019 totaled $9.5 million, or $0.37 per diluted share, compared with $43.8 million, or $1.54 per diluted share, in the year-ago quarter.
“Our third-quarter performance was affected by the uncertain global macroenvironment, driven by ongoing tariff and trade tensions,” said Chairman and Chief Executive Officer William J. Flynn. “In addition to lower yields and volumes than we anticipated, labor-related service disruptions had a significant impact on our performance during the third quarter.
“Looking to the full year, we expect revenue of about $2.75 billion, adjusted EBITDA of approximately $500 million, and adjusted net income of approximately 60-65% of our 2018 adjusted net income.*
“We expect to benefit from peak-season volumes and yields, including the seasonal flying we do for express and e-commerce customers. In addition, our outlook anticipates increased passenger flying for the military and lower maintenance expense compared with the fourth quarter of 2018, as well as from a refund of aircraft rent paid in previous years.”
Mr. Flynn continued: “We have recently received favorable arbitration rulings that confirm the contractual process to negotiate a new agreement for our pilots. We value the contributions of our pilots, and we look forward to reaching a competitive contract that recognizes their efforts supporting our customers and our company. ”
He concluded: “Airfreight is a long-term growth industry. Despite current macroeconomic issues, the global middle class continues to expand and supply chains continue to grow and develop to meet demand. And as consumption increases and supply chains evolve, airfreight is vital in transporting the goods and materials required by consumers safely, reliably, and efficiently. With the scale and scope of our operations, and our strategic focus on express, e-commerce and faster-growing markets, we are positioned well to serve the demand for airfreight today and in the future.”
President and Chief Operating Officer, John W. Dietrich added: “We have the right platform to serve our customers and future airfreight demand. We have a strong core of long-term customers, and we play a key role in their operating networks.
“We are also taking steps to navigate through the current headwinds. We continually assess the market to best balance our capacity with the demand for our aircraft and services. We are adjusting our business to adapt to the changing market environment with a focus on reducing costs, enhancing productivity, improving profitability, and generating cash.
“Not only will these actions benefit Atlas in the near term, they will also contribute to the long-term success of the company.”
Third-Quarter Results
Revenue in the third-quarter of 2019 was relatively in line with the third quarter of 2018. Higher volumes during the period reflected increases in ACMI and Charter flying.
ACMI segment revenue increased slightly during the period reflecting higher levels of flying, partially offset by a decrease in the average rate per block hour due to the growth of smaller-gauge 767 and 737 CMI flying. Block-hour growth was primarily driven by incremental CMI flying, partially offset by a decrease in ACMI flying due to the impact of tariffs and global trade tensions. In addition, ACMI segment revenue was impacted by the two-month redeployment of two 747-8F aircraft to the Charter segment prior to their subsequent placement with an ACMI customer that needed to obtain a required regulatory approval, as well as labor-related service disruptions.
ACMI segment contribution decreased during the quarter as increased levels of flying were more than offset by the impact of tariffs and global trade tensions on customer demand; labor-related service disruptions; additional heavy maintenance expense; increased amortization of deferred maintenance costs; and the two-month redeployment of two 747-8F aircraft to the Charter segment. In addition, segment contribution was impacted by start-up costs for customer-growth initiatives and higher crew costs, including enhanced wages and work rules resulting from our interim agreement with pilots at Southern Air.
Charter segment revenue increased during the period reflecting higher levels of flying, partially offset by a decrease in the average rate per block hour due to the impact of tariffs and global trade tensions on commercial cargo yields (excluding fuel). Block-hour volume growth primarily reflected increased passenger demand from the military and the two-month redeployment of two 747-8F aircraft from the ACMI segment. These drivers were partially offset by lower cargo demand from commercial customers as well as labor-related service disruptions.
Lower Charter segment contribution was primarily driven by a decrease in commercial cargo yields related to the impact of tariffs and global trade tensions and labor-related service disruptions. These items were partially offset by earnings from the two-month deployment of two 747-8F aircraft from the ACMI segment; an increase in military passenger flying; and lower heavy maintenance expense.
In Dry Leasing, lower segment revenue and contribution during the quarter primarily reflected the scheduled return of a 777-200 freighter, partially offset by the placement of additional aircraft.
In the third quarter of 2019, we incurred a special charge primarily due to an impairment loss for four aircraft engines to be disposed of and the permanent parking of two 737-400 passenger aircraft used for training purposes.
Higher unallocated income and expenses, net, during the quarter primarily reflected fleet growth initiatives and increased amortization of a customer incentive asset, partially offset by a ratification bonus in 2018 related to the interim agreement with the Southern Air pilots.
Reported earnings in the third quarter of 2019 also included an effective income tax benefit rate of 16.0%, due mainly to nontaxable changes in the value of outstanding warrants. On an adjusted basis, our results reflected an effective income tax expense rate of 5.7%.
Nine-Month Results
Reported income from continuing operations, net of taxes, for the nine months ended September 30, 2019, totaled $117.1 million, or $1.34 per diluted share, which included an unrealized gain on financial instruments of $78.9 million as well as $59.8 million of tax benefits related to the favorable completion of an IRS examination of our 2015 income tax return. Results for the first nine months compared with income from continuing operations of $59.6 million, or $2.27 per diluted share, which included an unrealized loss on financial instruments of $11.7 million, for the nine months ended September 30, 2018.
On an adjusted basis, EBITDA totaled $300.1 million in the first nine months of 2019 compared with $354.9 million in the first nine months of 2018. For the nine months ended September 30, 2019, adjusted income from continuing operations, net of taxes, totaled $41.4 million, or $1.54 per diluted share, compared with $117.3 million, or $4.17 per diluted share, in first nine months of 2018.
Cash and Short-Term Investments
At September 30, 2019, our cash and cash equivalents, short-term investments and restricted cash totaled $82.8 million, compared with $248.4 million at December 31, 2018.
The change in position resulted from cash used for investing and financing activities, partially offset by cash provided by operating activities.
Net cash used for investing activities during the first nine months of 2019 primarily related to capital expenditures and payments for flight equipment and modifications, including the acquisition of 747-400 passenger aircraft, 767-300 aircraft and related freighter conversion costs, spare engines and GEnx engine performance upgrade kits.
Net cash used for financing activities during the period primarily reflected payments on debt obligations.
2019 Outlook*
Based on global economic conditions and our current expectations, we anticipate full-year 2019 revenue of approximately $2.75 billion; adjusted EBITDA of approximately $500 million; and adjusted net income, including a benefit related to an expected refund of aircraft rent paid in previous years, to be about 60-65% of our 2018 adjusted net income of $204.3 million.*
We expect to fly approximately 325,000 block hours this year, with about 75% of the hours in ACMI and the balance in Charter.
Aircraft maintenance expense in 2019 is expected to total approximately $380 million, mainly reflecting an increase in daily line maintenance due to the growth in block hours. Depreciation and amortization is expected to total about $260 million. In addition, core capital expenditures, which exclude aircraft and engine purchases, are projected to total approximately $135 to $145 million, mainly for parts and components for our fleet.
We also expect our full-year 2019 adjusted effective income tax rate will be approximately 12% due to proactive tax planning to maximize income tax benefits.
We provide guidance on an adjusted basis because we are unable to predict, with reasonable certainty, the effects of outstanding warrants and other items that could be material to our reported results.*
Conference Call
Management will host a conference call to discuss Atlas Air Worldwide’s third-quarter 2019 financial and operating results at 11:00 a.m. Eastern Time on Wednesday, October 30, 2019.
Interested parties may listen to the call live at Atlas Air Worldwide’s Investor site or at https://edge.media-server.com/mmc/p/b97icjpn.
For those unable to listen to the live call, a replay will be archived on the Investor site following the call. A replay will also be available through November 7 by dialing (855) 859-2056 (U.S. Toll Free) or (404) 537-3406 (from outside the U.S.) and using Access Code 2347678#.
To supplement our financial statements presented in accordance with U.S. GAAP, we present certain non-GAAP financial measures to assist in the evaluation of our business performance. These non-GAAP measures include Adjusted EBITDA; Adjusted income from continuing operations, net of taxes; Adjusted Diluted EPS from continuing operations, net of taxes; Adjusted effective tax rate; and Free Cash Flow, which exclude certain noncash income and expenses, and items impacting year-over-year comparisons of our results. These non-GAAP measures may not be comparable to similarly titled measures used by other companies and should not be considered in isolation or as a substitute for Income (loss) from continuing operations, net of taxes; Diluted EPS from continuing operations, net of taxes; Effective tax rate; and Net Cash Provided by Operating Activities, which are the most directly comparable measures of performance prepared in accordance with U.S. GAAP. Effective during the three months ended September 30, 2019, we changed our method of calculating Adjusted EBITDA to include Other Non-operating expenses (income) to enhance the usefulness for investors and analysts, and the comparability of the calculation to that of other companies. Prior period amounts have been adjusted for comparability.
Our management uses these non-GAAP financial measures in assessing the performance of the company’s ongoing operations and in planning and forecasting future periods. We believe that these adjusted measures, when considered together with the corresponding U.S. GAAP financial measures and the reconciliations to those measures, provide meaningful supplemental information to assist investors and analysts in understanding our financial results and assessing our prospects for future performance. For example:
*We provide guidance on an adjusted basis and are unable to provide forward-looking guidance on a U.S. GAAP basis or a reconciliation to the most directly comparable U.S. GAAP measures because we are unable to predict with reasonable certainty the ultimate outcome of certain significant items. The principal item is the impact on our results of our outstanding warrants, which are highly dependent on the change in our stock price during the period reported. These items are uncertain, depend on various factors, and could have a material impact on our U.S. GAAP results.
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers the broadest array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasairworldwide.com.
This release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect Atlas Air Worldwide’s current views with respect to certain current and future events and financial performance. Those statements are based on management’s beliefs, plans, expectations and assumptions, and on information currently available to management. Generally, the words “will,” “may,” “should,” “expect,” “anticipate,” “intend,” “plan,” “continue,” “believe,” “seek,” “project,” “estimate,” and similar expressions used in this release that do not relate to historical facts are intended to identify forward-looking statements.
Such forward-looking statements speak only as of the date of this release. They are and will be, as the case may be, subject to many risks, uncertainties and factors relating to the operations and business environments of Atlas Air Worldwide and its subsidiaries (collectively, the “companies”) that may cause the actual results of the companies to be materially different from any future results, express or implied, in such forward-looking statements.
Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, the following: our ability to effectively operate the network service contemplated by our agreements with Amazon; our ability to coordinate with Amazon to accept newly converted aircraft; the risk that the anticipated benefits of our agreements with Amazon will not be realized when expected, or at all; the possibility that Amazon may terminate its agreements with the companies; the ability of the companies to operate pursuant to the terms of their financing facilities; the ability of the companies to obtain and maintain normal terms with vendors and service providers; the companies’ ability to maintain contracts that are critical to their operations; the ability of the companies to fund and execute their business plan; the ability of the companies to attract, motivate and/or retain key executives, pilots and associates; the ability of the companies to attract and retain customers; the continued availability of our wide-body aircraft; demand for cargo services in the markets in which the companies operate; changes in U.S. and foreign government trade policies; economic conditions; the effects of any hostilities or act of war (in the Middle East or elsewhere) or any terrorist attack; significant data breach or disruption of our information technology systems; labor costs and relations, work stoppages and service slowdowns; the outcome of pending negotiations with our pilots’ union; financing costs; the cost and availability of war risk insurance; aviation fuel costs; security-related costs; competitive pressures on pricing (especially from lower-cost competitors); volatility in the international currency markets; weather conditions; government legislation and regulation; additional regulatory guidance or changes in interpretations and assumptions with respect to the impact of the U.S. Tax Cuts and Jobs Act of 2017; consumer perceptions of the companies’ products and services; anticipated and future litigation; and other risks and uncertainties set forth from time to time in Atlas Air Worldwide’s reports to the United States Securities and Exchange Commission.
For additional information, we refer you to the risk factors set forth under the heading “Risk Factors” in the most recent Annual Report on Form 10-K and subsequent reports on Form 10-Q filed by Atlas Air Worldwide with the Securities and Exchange Commission. Other factors and assumptions not identified above may also affect the forward-looking statements, and these other factors and assumptions may also cause actual results to differ materially from those discussed.
Except as stated in this release, Atlas Air Worldwide is not providing guidance or estimates regarding its anticipated business and financial performance for 2019 or thereafter.
Atlas Air Worldwide assumes no obligation to update such statements contained in this release to reflect actual results, changes in assumptions or changes in other factors affecting such estimates other than as required by law and expressly disclaims any obligation to revise or update publically any forward-looking statement to reflect future events or circumstances.
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Will Succeed John W. Dietrich When He Becomes Chief Executive Officer
Appointment Effective January 1, 2020
PURCHASE, N.Y., October 29, 2019 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced that James A. (Jim) Forbes will be promoted to Executive Vice President and Chief Operating Officer of the company, effective January 1, 2020. Mr. Forbes will succeed John W. Dietrich as Chief Operating Officer. As previously announced, Mr. Dietrich will assume the role of Chief Executive Officer, effective January 1, 2020.
In addition to his role as Executive Vice President and Chief Operating Officer of Atlas Air Worldwide, Mr. Forbes will serve as Chief Operating Officer of the company’s subsidiaries Atlas Air, Inc. and Southern Air, Inc.
Mr. Forbes’ appointment is in line with the leadership transition plan initiated by the company in July, at which time William J. (Bill) Flynn announced his retirement from the Chief Executive Officer role, effective January 1, 2020. Mr. Flynn will continue to serve as Chairman of the Board.
Mr. Forbes has over 30 years of aviation operating experience, including more than 20 years with Atlas Air Worldwide. He is currently Senior Vice President, Chief Operating Officer for Southern Air. In this role, Mr. Forbes has been responsible for all aspects of the day-to-day Southern Air operation, including flight, ground and technical operations, as well as safety, performance and customer satisfaction.
“Jim is an accomplished leader with deep industry expertise and a proven track record of delivering operational excellence across all areas of our business,” said Mr. Dietrich, President and Chief Operating Officer, Atlas Air Worldwide. “He is a critical driver of the company’s long-standing success, and is widely respected for building a strong company culture.
“Jim has earned a reputation internally and externally as a trusted, growth-oriented leader with an uncompromising commitment to safety and compliance. He will be a tremendous asset on our leadership team.”
“I am honored to step into this role and work with the dedicated and talented teams across Atlas Air Worldwide,” said Mr. Forbes. “It’s been a privilege to have spent the majority of my career here at Atlas, and I’m incredibly proud of all that has been accomplished as the company’s operations have grown in size and scale. This company has incredible strength to draw on, and I look forward to working closely with John and our outstanding leadership team in driving the company’s agenda forward.”
Mr. Forbes joined Atlas in 1997 as Senior Director of Ground Operations, where he helped build the global infrastructure upon which Atlas has grown. He was promoted to Vice President, Worldwide Ground Operations in 2001, overseeing station operations for all of Atlas Air and Polar Air Cargo. In 2008, Mr. Forbes was named Senior Vice President for System Performance and Quality at Polar Air Cargo Worldwide, Atlas’ joint venture with DHL Express. In that role he led the transformation of the all-cargo network into today’s on-time express operation that supports DHL Express’ worldwide air network.
Prior to joining Atlas, Mr. Forbes was Station Director for USAir’s transatlantic hub in Philadelphia, overseeing 350 daily departures and leading nearly 2,000 employees. Earlier in his career, Mr. Forbes served as Chairman of the Merger Committee for Teamsters Union Local 278, which represented ground employees of Pacific Southwest Airlines and negotiated the all-airport staff merger of USAir and Pacific Southwest Airlines.
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers the broadest array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasairworldwide.com.
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Atlas Air Worldwide to Report
Third-Quarter 2019 Results
On Wednesday, October 30
Conference Call/Webcast – 11:00 A.M. Eastern
PURCHASE, N.Y., October 9, 2019 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) will release results for the third quarter ended September 30, 2019, prior to the opening of stock market trading on Wednesday, October 30.
William J. Flynn, Atlas Air Worldwide’s Chairman and Chief Executive Officer, John Dietrich, President and Chief Operating Officer, and Spencer Schwartz, Executive Vice President and Chief Financial Officer, will host a conference call to discuss the company’s results at 11:00 a.m. Eastern Time on October 30.
Interested parties may listen to the call live at Atlas Air Worldwide’s Investor site or at https://edge.media-server.com/mmc/p/b97icjpn.
For those unable to listen to the live call, a replay will be archived on the Investor site following the call. A replay will also be available through November 7 by dialing (855) 859-2056 (U.S. Toll Free) or (404) 537-3406 (from outside the U.S.) and using Access Code 2347678#.
Slides complementing the company’s presentation will be available for downloading from the Investor site prior to the call.
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers the broadest array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasairworldwide.com.
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Company Renews and Extends Headquarters Lease; Will Create Additional Jobs
PURCHASE, N.Y., September 5, 2019 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced the renewal and extension of its corporate headquarters lease in Purchase, N.Y. Atlas’ plans in New York include creating 100 additional jobs and enhancing headquarters offices to accommodate its growing employee base and strategic business growth.
Empire State Development Acting Commissioner and President & CEO-designate Eric Gertler said, “Companies are choosing to stay and foster growth in New York thanks to the state’s skilled workforce, favorable economic environment and robust business assistance programs, and Atlas Air’s expansion will bring 100 new jobs to the Mid-Hudson region while maintaining a thriving headquarters in Purchase.”
Atlas has maintained its headquarters in New York since 2000.
“New York is our home and we are excited to strengthen our ties and expand our company in this dynamic, thriving state,” said William J. Flynn, Chairman and Chief Executive Officer of Atlas Air Worldwide. “We will continue to grow our team of talented, world-class, customer-focused employees in New York and throughout our global network.”
Atlas currently employs 568 professionals in New York. Atlas expects to retain those positions and create 100 additional jobs in New York over the next five years. Globally, the company employs more than 3,500 aviation professionals.
In addition to its New York headquarters, the company maintains operations centers near the Cincinnati/Northern Kentucky International Airport, in Anchorage, Alaska, and Hong Kong; a training center in Miami, Florida; and key logistics centers around the world, including John F. Kennedy International Airport in New York, to support its global network.
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers the broadest array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasairworldwide.com.
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PURCHASE, N.Y., August 29, 2019 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) congratulates and thanks the United States government for its long-standing efforts to persuade the European Union to enter into a stand-alone agreement allowing U.S. air carriers to provide wet-lease, or ACMI (aircraft, crew, maintenance and insurance), services to European carriers.
The U.S.-EU agreement eliminates one-sided, short-term time constraints that severely limited the ability of U.S. carriers to provide ACMI service in Europe, while European carriers were under no such restrictions in the United States.
“We are extremely gratified that the United States continues to pursue policies that promote open access to the skies and broaden the marketplace for U.S. carriers,” said Chairman and Chief Executive Officer William J. Flynn. “We applaud this new arrangement between the U.S. and EU, and we look forward to the new opportunities that it will bring.”
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers the broadest array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasairworldwide.com.
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Union Ordered to Proceed in Negotiations for a Joint Collective Bargaining Agreement
PURCHASE, N.Y., August 27, 2019 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today confirmed that its subsidiary, Atlas Air, Inc. (the “Company”), prevailed in an important arbitration between the Company and the union that represents its pilots, the Airline Professionals Association, Teamsters Local 1224 (the “Union”). The August 26, 2019 arbitration decision affirms that the merger provisions of the collective bargaining agreement (CBA) apply in connection with Atlas Air’s acquisition of Southern Air, Inc. in April 2016.
It further affirms the Company’s long-standing position that the Union has been in violation of the existing CBA by refusing to follow the merger provisions for a new joint collective bargaining agreement (JCBA), and by failing to present an integrated pilot seniority list to the Company. In a separate, but related, proceeding, the Union was also found to be in violation of the Southern Air CBA for refusing to follow the merger provisions for this JCBA on behalf of the Southern Air pilots.
“It is time for our hardworking crew of over 2,000 Atlas Air and Southern Air pilots to receive a new, competitive contract with enhanced pay and benefits. This has been our goal since we announced the Atlas-Southern merger in early 2016. The recent decisions by the arbitrators have made clear that the existing collective bargaining agreements provide the appropriate path for the merger and should have been followed,” said William J. Flynn, Chairman and Chief Executive Officer, Atlas Air Worldwide.
The arbitrators in both cases ordered the Union to now proceed with contractually required negotiations for a new JCBA in connection with the merger. The Union is required to submit an integrated seniority list of Atlas Air and Southern Air pilots to the company within 45 days, followed by a period of bargaining, after which any unresolved issues would be submitted to timely, interest-based arbitration.
As previously announced, in a separate labor-related proceeding in July, the U.S. Court of Appeals for the District of Columbia affirmed a federal district court ruling that ordered the International Brotherhood of Teamsters, the International Brotherhood of Teamsters, Airline Division, and Local Union No. 1224 to stop an intentional and illegal work slowdown by Atlas pilots in violation of the Railway Labor Act. The unanimous ruling from a three-judge panel blocks the Union from continuing to engage in improper activities such as excessive sick calls on short notice or refusing to work overtime.
“Now, with these decisions behind us, the path forward is clear and we are positioned for real progress,” said Mr. Flynn. “In order to advance negotiations and provide our pilots with the new contract they deserve, the Union has important responsibilities as part of this process. Specifically, the Union has an obligation to promptly provide us with an integrated seniority list as ordered by the arbitrators. Additionally, despite our repeated requests, the Union has yet to provide us with a comprehensive economic proposal covering pay and benefits for evaluation. These steps are essential for us to move forward in a timely way for the benefit of our pilots.
“We value the dedication of our crews, and we look forward to recognizing their significant contributions to the development and growth of our business. Together with the Union, we have a responsibility to create an environment for our pilots to achieve their fullest potential.”
For more information about the contract negotiations process and updates, please visit AtlasAir5YPilots.com and follow @AtlasAir5Y on Twitter.
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers the broadest array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasairworldwide.com.
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William Flynn Elected Chairman of the Board
PURCHASE, N.Y., August 23, 2019 – Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW) today announced that Robert (Bob) Agnew, the Chairman of the Board of Directors, passed away earlier this week.
“Bob was a wonderful director and even finer human being,” said William J. Flynn, Chief Executive Officer of Atlas Air Worldwide. “We are saddened by the news of his passing. His extensive knowledge of the aviation industry and depth of corporate expertise made him a tremendous asset to the Board and to our Company. He was a great leader, a passionate advocate for Atlas, and a good friend to us all. On behalf of Atlas Air Worldwide, we extend our deepest sympathies and condolences to Bob’s family.”
A member of the Atlas Air Worldwide Board since July 2004, Mr. Agnew also served on the Board’s Nominating and Governance Committee, and previously was the Chair of our Audit Committee. He became Chairman of the Board in 2017.
Mr. Agnew was a widely respected leader in the aviation industry, with over 30 years of experience in aviation and marketing consulting and has been a leading provider of aircraft valuations to banks, airlines, and financial institutions worldwide. Most recently, Mr. Agnew was President and Chief Executive Officer of Morten Beyer & Agnew, an international aviation consulting firm experienced in the financial modeling and technical due diligence of airlines and aircraft funding. He began his commercial aviation career at Northwest Airlines, and previously served in the U.S. Air Force as an officer and instructor navigator with the Strategic Air Command.
Mr. Flynn has been elected Chairman of the Board, effective immediately. It was previously announced that Mr. Flynn would assume the chairman role on January 1, 2020. In addition, Board Member General (Ret.) Duncan J. McNabb, USAF, has been named interim Lead Independent Director.
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers the broadest array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasairworldwide.com.
PURCHASE, N.Y., June 12, 2019 Today, the Miami Herald posted a story that irresponsibly and inaccurately ties the tragedy of Flight 3591 and the colleagues we lost to ongoing contract negotiations. In the story, Union leaders wrongly cast doubt on the experience and training some of their fellow pilots. Our complete response to the Miami Herald is available HERE. The newly launched www.AtlasAir5YPilots.com is also a useful source of fact-based information on the status of the contract negotiations. We invite you to visit the site and follow us on Twitter at AtlasAir5Y for updates.
Company Reiterates Commitment to New Contract that Increases Pilot Pay
PURCHASE, N.Y., June 6, 2019 – Atlas Air, Inc. today officially launched a new website – AtlasAir5YPilots.com – dedicated to sharing the latest information about negotiations to reach a Joint Collective Bargaining Agreement (JCBA) covering pilots at Atlas Air and Southern Air, Inc.
The new site details the companies’ commitment to a JCBA that enhances overall pay and benefits package for Atlas Air and Southern Air pilots, who are represented by the Airline Professionals Association, Teamsters Local 1224.
“Atlas Air has a solid record of delivering strong, trusted service for our customers thanks to our dedicated workforce of 2,000 pilots. We value their hard work and dedication, and we want to pay them more,” said William J. Flynn, President and Chief Executive Officer, Atlas Air Worldwide Holdings, Inc.
“AtlasAir5YPilots.com is designed as a practical resource for pilots and their families to understand the status of the negotiations. We want our pilots to be informed with the facts so they can advocate for a swift resolution of the contract negotiations.”
The new site is named for the call sign for Atlas Air, 5Y, which represents the pilots’ identity as a team. Follow @AtlasAir5Y on Twitter for updates.
Atlas Air and Southern Air are units of Atlas Air Worldwide Holdings, Inc. (Nasdaq: AAWW).
About Atlas Air Worldwide:
Atlas Air Worldwide is a leading global provider of outsourced aircraft and aviation operating services. It is the parent company of Atlas Air, Inc., Southern Air Holdings, Inc. and Titan Aviation Holdings, Inc., and is the majority shareholder of Polar Air Cargo Worldwide, Inc. Our companies operate the world’s largest fleet of 747 freighter aircraft and provide customers the broadest array of Boeing 747, 777, 767, 757 and 737 aircraft for domestic, regional and international cargo and passenger operations.
Atlas Air Worldwide’s press releases, SEC filings and other information may be accessed through the company’s home page, www.atlasairworldwide.com.
Contact:
Debora Coffey (Media) – (914) 701-8951
Dan Loh (Investors) – (914) 701-8200
PURCHASE, N.Y., May 22, 2019 –Atlas Air, Inc. is calling on its pilot union, the Airline Professionals Association, Teamsters Local 1224, to put aside ongoing protests and work with the company to achieve a new Joint Collective Bargaining Agreement (JCBA) that increases pay for its pilots. These protest efforts are common tactics that are often used by unions to spread misinformation and gain leverage in contract negotiations. The facts tell a very different story.
MYTH – Safety is being compromised because our pilots are being overworked.
FACT – SAFETY COMES FIRST, ALWAYS
Our commitment to safety is the foundation of everything we do at Atlas and Southern. We thank our dedicated crew of over 2,000 pilots and over 1,500 ground staff for sharing this commitment and putting it into practice every day. This has enabled us to safely operate nearly 60,000 departures to 425 destinations in 105 countries, with 340,000 block hours a year.
Since our founding over a quarter of a century ago, we have worked hard to earn and maintain a record of safety and compliance.
Both Atlas and our pilots have legal and contractual obligations to adhere to rigorous safety standards set forward by the Federal Aviation Administration (FAA), the Department of Defense and the International Air Transport Association. The Company works on joint committees with the Union to address key topics on the safety and wellbeing of our pilots.
Atlas pilot training includes multiple reviews, evaluations and proficiency checks to comply with FAA regulations. Additionally, Atlas Air pilots flying hour experience is well above the minimums required by the FAA. Industry Regulations stipulate a 1,500 hour minimum requirement to obtain license. Our average pilot has well over 6,500 hours of experience.
Atlas’ fleet and workforce meet or exceed all government safety standards.
MYTH – Pilots are burning out because they are being forced to fly unruly schedules.
FACT – WORK CONDITIONS PRIORITIZE SAFETY AND ARE THE RESULT OF COMPANY, UNION COLLABORATION
The schedules our pilots fly are governed by rules established within their Collective Bargaining Agreement (CBA) between Atlas/Southern and the Union, all of which are well within Federal Aviation Regulations (FARs).
Atlas Air pilots fly an average of 42 hours a month, compared to the industry average of 53 hours a month – which is about 20% less block hours a month than the industry average.
Atlas has also invested heavily in a fatigue risk management program and related best practices. These include: constant quality assurance and control reporting, formal methods for identifying hazards and mitigating risk, focus on training of employees, and flight data monitoring. It is Company policy that when or if a pilot notifies the Company they are unable to fly due to fatigue or illness, his or her request is honored 100 percent of the time.
MYTH – Atlas cannot keep up with customer’s demands.
FACT – ATLAS DELIVERS FOR ITS CUSTOMERS, IS RECRUITING AND RETAINING TOP TIER TALENT
The Company has a proven and consistent record of delivering high quality service to its vast customer base across our operations.
Atlas Air’s on-time flight performance for its customers consistently meets or exceeds customer expectations and contractual obligations.
In fact, the Company is growing because of this outstanding record of customer service. Our pilot workforce has doubled in the past 4 years from more than 1,000 to over 2,000 today – which is a minimum of 20% growth in pilots year after year.
Our average pilot has well over 6,500 hours of experience. Industry regulations stipulate a 1500 hour minimum requirement to obtain license.
Despite the competitive job market, we continue to attract highly qualified, top tier talent who are attracted to work for Atlas because of our global and diverse operation. On average, Atlas Air Captains have 12 years of experience, while First Officers have 2.5 years of experience.
The Company is eager for a new and updated contract to reward its existing workforce and recruit new team members.
MYTH – Atlas does not want to increase pilot pay.
FACT – PILOTS CURRENTLY RECEIVE ANNUAL RAISES – AND WE WANT TO INCREASE THEM IN THE FUTURE
Since 2016, Atlas has been pressing to enter into its next Joint Collective Bargaining Agreement. We have taken legal action to move these proceedings forward because we want to pay our pilots more.
The pilots currently receive pay increases on an annual basis under the current Collective Bargaining Agreements (with the exception of pilots who may have maxed out under the pay scale due to longevity). These increases amount to approximately 3% of average salary.
We are a successful, profitable company and are committed to increasing the current pay scales. We want to reward our pilot workforce for the significant role they play in making that happen.
MYTH – Atlas does not want to agree to a new contract for its pilots.
FACT – ATLAS WANTS TO MOVE NEGOTIATIONS FORWARD AND FINALIZE A CONTRACT
The truth is the Company is eager to reach a new contract. The Company is committed to working with the Union to reach an updated Joint Collective Bargaining Agreement (JCBA) as soon as possible.
When Atlas merged with Southern Air in 2016, the Company and the union each had its own obligations under the contract:
Until a new JCBA is reached, the existing Collective Bargaining Agreements continue in full force and effect and govern the respective pay and work rules of Atlas and Southern pilots.
MYTH – Atlas customers control the operations.
FACT – ATLAS PILOTS ARE OUR PILOTS – NOT OUR CUSTOMERS’ PILOTS
Contrary to what the Union suggests, our customers play no role governing our operations or setting work rules. Atlas and Southern are certificated air carriers that maintain operational control over their own operations in strict accordance with FAA regulations. Atlas operates nearly 60,000 flights a year, and we are responsible for the crews that we hire, the training we provide, and the aircraft we maintain.
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Media Relations
Debora Coffey
Email: corpcommunications@atlasair.com
Phone: +1 914 701 8951
Investor Relations
Dan Loh
Email: InvestorRelations@atlasair.com
Phone: +1 914 701 8200
PURCHASE, N.Y., May 22, 2019 –“We are proud of our strong and growing workforce of more than 2,000 pilots, and we are eager to pay them more and reach a new contract. These protest efforts are common tactics that are often used by unions to spread misinformation and gain leverage in contract negotiations. The fact is Atlas is committed to its pilots. We have an uncompromised commitment to the safety and well-being of our pilots – and our practices meet or exceed all regulatory requirements and industry standards. Together with our pilots, we are committed to the success of our customers, and have worked hard to earn a strong record of delivering trusted service. It’s time to put pilots first, ahead of protests, and get to a new contract.”
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More information on Atlas Air can be found at www.atlasairworldwide.com.
Click Below to Read:
AAWW Form 8-K – AMZN 737-800 CMI 03-29-19
PURCHASE, N.Y., March 27, 2019 – Our commitment to safety is the foundation of everything we do at Atlas Air. We thank our dedicated crew of more than 2,000 pilots and 1,500 ground staff for sharing this commitment and putting it into practice every day. Atlas proudly serves the air cargo and passenger charter needs of a broad array of customers, operating over 60,000 flights a year. We are responsible for the crews that we hire, the training we provide, and the aircraft we maintain.
Since our founding over a quarter of a century ago, we have worked hard to earn and maintain a record of safety and compliance. We are heartbroken by the loss of Flight 3591 that claimed the lives of three of our friends and colleagues. We are working closely with the National Transportation Safety Board and the Federal Aviation Administration (FAA) to learn what happened, why it happened and what needs to be done to prevent a recurrence.
Recent comments to the media by a handful of pilots and union representatives are misleading and inaccurate, and inappropriately connect the Flight 3591 tragedy with ongoing contract negotiations. This irresponsibly ignores the facts:
Atlas thanks its dedicated employees for their commitment to safety that we all share, and pledges to continue prioritizing safety above all else.
