Scott Group, Wolfe Research - Analyst [62]

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Perfect. And then just lastly, any update you can give us on pilot contract negotiations and if you are assuming any kind of step up in pilot pay in the guidance for 2017?

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Bill Flynn, Atlas Air Worldwide Holdings, Inc. - President & CEO [63]

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Scott, this is Bill. So our contract at Atlas became amendable in September of last year and in November of last year at Southern. We are in discussions with our pilots. We look forward to continuing to make progress or make progress with the pilots on the contract and we haven't made specific assumptions on the contract in our guidance this year other than the contractual rates that we have in place.

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Scott Group, Wolfe Research - Analyst [64]

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Okay, so you don't accrue any potential increases in real time?

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Spencer Schwartz, Atlas Air Worldwide Holdings, Inc. - EVP & CFO [65]

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No impact expected for 2017, if that is what you are asking.

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Scott Group, Wolfe Research - Analyst [66]

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Okay, thank you, guys. Appreciate it.

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This is the part that ****es me off. Bill flat out lying. In what f'in universe do we have an attractive contract? And even though we hired 370 last year, what was the net gain after all the attrition?


Unidentified Analyst

Okay, perfect. And then just ramping up for this contract, how does hiring look, are you guys having any trouble bringing in pilots are you having to pay any more to get people to come over or is that been relatively smooth?

Bill Flynn

We scaled – certainly been able to scale to meet our growth across all of our asset types. We hired about 370 pilots last year across all of our aircraft type. We have our contract in place. We think we have an attractive contract in place and certainly believe we'll be able to hire the additional pilots we need in 2017 and 2018, as we grow for Amazon and for our other customers.

However, Bill had to tell Amazon that he couldn't meet the 20 plane requirement for 2017. I think lying 101 comes with every MBA. We had a pres once state:"it's not a lie if you choose your words correctly". Thank you JG for setting the standards of purity at ABX.

What's the big deal......its just alternative facts......totally acceptable these days. As usual stepping over dollars to pick up dimes at AAWH. Connie, without a Harvard MBA has out foxed all of these bozos. He will end up the darling with Bezos the way things are going.

He usually does

Earning calls are like pony shows... they re there to sell the company stock, get its pps up, and sound all good and rosy.

We were never contracted to operate 20 by the end of 2017. The number was 20 by the end of 2018.

From Cargo Facts May 2016........The first of these freighters will enter Amazon service in the second half of this year, with all twenty to be in service by the end of 2018.

Atlas scores deal with Amazon for 20 freighters, 20% stake | Cargo Facts

True except one is already in service, and another as a spare. They begin entering into service around June through the end of 2018 at 1.2 airframes per month.

It appears they have already hired fat into the 767 to cushion attrition.

24 Atlas hired at UPS year to date.