Western Global Airlines
#642
Line Holder
Joined: Jun 2019
Posts: 77
Likes: 0
Talking hotels, WGA is using the same hotels most cargo carriers use, let it be in Korea, Japan, Middle East (stayed in beautiful resorts in Dubai, Kuwait etc.) or anywhere in Europe, so the overseas hotel quality is excellent. Being booked in Economy especially on long flights has been addressed. So far there is no change (hopefully soon) and some pilots use the miles they keep to upgrade themselves.
Hope this info helps.
#643
Line Holder
Joined: Mar 2020
Posts: 269
Likes: 6
As I mentioned in a previous post, seeing lots of planes in RSW is attributed to a combo of the pandemic being over, seasonal slow down coupled with even slower global economy and some needed maintenance work (these birds have been flying hard for the past three years). If you study the airfreight market, there is quite a bit of overcapacity, but March is starting to pick up slightly, so hopefully the downturn will not last too long and everyone will be busy again.
Talking hotels, WGA is using the same hotels most cargo carriers use, let it be in Korea, Japan, Middle East (stayed in beautiful resorts in Dubai, Kuwait etc.) or anywhere in Europe, so the overseas hotel quality is excellent. Being booked in Economy especially on long flights has been addressed. So far there is no change (hopefully soon) and some pilots use the miles they keep to upgrade themselves.
Hope this info helps.
Talking hotels, WGA is using the same hotels most cargo carriers use, let it be in Korea, Japan, Middle East (stayed in beautiful resorts in Dubai, Kuwait etc.) or anywhere in Europe, so the overseas hotel quality is excellent. Being booked in Economy especially on long flights has been addressed. So far there is no change (hopefully soon) and some pilots use the miles they keep to upgrade themselves.
Hope this info helps.
#644
Banned
Joined: Nov 2022
Posts: 51
Likes: 0
The old man's yes men are actively pushing the "seasonal downturn," "much needed maintenance" and "COVID" narratives, but that's b.s. WG abandoned their previous long-term customers in favor of an "all in" COVID money grab. When Amazon pulled the plug, almost all of the company's flying ended immediately. It turns out the former customers may still have hard feelings and are unwilling to ever use WG again. As I write this, Atlas has 22 planes in the air, Kalitta has 13 and WG has only one. Sadly, that's what a good day looks like at WG now......one plane flying.
WG has seen some significant setbacks in the past week or two. The company's credit rating took a major hit, dropping from junk status to raging dumpster fire junk status. Some pilots have had small company credit card charges denied. The owner lost his first court battle against the employees he fleeced with his ESOP scheme. But all of this is trivial compared to the lack of flying. It's going to be really tough to service the debt and stave off bankruptcy with only one plane flying.
More than half of the MD fleet has been permanently parked with a few of the less junky planes being used as spares. There's only one 744 flying on a long-term contract. There's some limited military work. Anyone trying to make a decision about their future should look at the facts and ignore what the "happy talk" guys are spewing.
Finally, the drunken PPSP management quack has said something I agree with: "Consider the source." Indeed! You can believe the lying, incompetent fools in the home office (and their surrogates), or you can believe the honest guy on the internet who's been right about everything. Choose wisely.
#645
RATING ACTION COMMENTARY
Fitch Ratings - Toronto - 28 Feb 2023: Fitch Ratings has downgraded Western Global Airlines, Inc.'s (WGA) Long-Term Issuer Default Rating (IDR) to 'B-' from 'B+ and placed the rating on Negative Watch. Fitch has also downgraded the senior unsecured notes to 'B'/'RR3' from 'BB-'/'RR3'.
The downgrade is mainly driven by heightened near-term liquidity risks. While management's focus on liquidity is appropriate, the soft market outlook, challenged pilot environment, and fully drawn revolver elevate execution risk.
Fitch Downgrades and Places Western Global Airlines' Ratings on Negative Watch
Tue 28 Feb, 2023 - 4:22 PM ETFitch Ratings - Toronto - 28 Feb 2023: Fitch Ratings has downgraded Western Global Airlines, Inc.'s (WGA) Long-Term Issuer Default Rating (IDR) to 'B-' from 'B+ and placed the rating on Negative Watch. Fitch has also downgraded the senior unsecured notes to 'B'/'RR3' from 'BB-'/'RR3'.
The downgrade is mainly driven by heightened near-term liquidity risks. While management's focus on liquidity is appropriate, the soft market outlook, challenged pilot environment, and fully drawn revolver elevate execution risk.
RATING SENSITIVITIES
Factors that could lead, collectively or individually, to the resolution of Rating Watch
--FCF generation, increased revolver availability or procurement of additional liquidity within the next six months sufficient to alleviate near-term liquidity risks;
--Normalizing operations, including pilot retention;
--Adjusted debt/EBITDAR sustained around 4.25x; or a Fitch-calculated fixed-charge coverage ratio sustained at 2.5x.
Factors that could, individually or collectively, lead to a positive rating action/upgrade:
--Normalizing operations including successful pilot recruitment and increased aircraft utilization rates;
--Implementation of a credible refinancing plan alleviating the 2025 maturity profile;
--Revolver availability of 50% or more;
--Adj. debt/EBITDAR sustained below 4.0x or a fixed-charge coverage ratio sustained around 3x.
Factors that could, individually or collectively, lead to a negative rating action/downgrade:
--Heightened liquidity risk due to inability to generate positive FCF and inability to execute on contingent liquidity options;
--Structural operating challenges driving adjusted debt/EBITDAR above 4.5x and/or fixed-charge coverage toward 2x;
--Heightened refinance risks or potential for a distressed debt exchange.
#646
Banned
Joined: Nov 2022
Posts: 51
Likes: 0
WG was just served with the paperwork for another lawsuit, this one in Washington. The company who filed, DBA Distribution, claims that WG has stiffed them on 41 invoices from late last year and owes about $766,000.
ACMI fleet status on 3/18 at 0230Z:
Atlas - 22 planes flying.
Kalitta - 14 planes flying.
Western Global - Zero planes flying.
ACMI fleet status on 3/18 at 0230Z:
Atlas - 22 planes flying.
Kalitta - 14 planes flying.
Western Global - Zero planes flying.
#647
WG was just served with the paperwork for another lawsuit, this one in Washington. The company who filed, DBA Distribution, claims that WG has stiffed them on 41 invoices from late last year and owes about $766,000.
ACMI fleet status on 3/18 at 0230Z:
Atlas - 22 planes flying.
Kalitta - 14 planes flying.
Western Global - Zero planes flying.
ACMI fleet status on 3/18 at 0230Z:
Atlas - 22 planes flying.
Kalitta - 14 planes flying.
Western Global - Zero planes flying.
Yeah, this may not be the place you want to bet your future on…
#648
Line Holder
Joined: Jun 2019
Posts: 77
Likes: 0
WG was just served with the paperwork for another lawsuit, this one in Washington. The company who filed, DBA Distribution, claims that WG has stiffed them on 41 invoices from late last year and owes about $766,000.
ACMI fleet status on 3/18 at 0230Z:
Atlas - 22 planes flying.
Kalitta - 14 planes flying.
Western Global - Zero planes flying.
ACMI fleet status on 3/18 at 0230Z:
Atlas - 22 planes flying.
Kalitta - 14 planes flying.
Western Global - Zero planes flying.
#649
In a land of unicorns
Joined: Apr 2014
Posts: 7,072
Likes: 103
From: Whale FO
WG was just served with the paperwork for another lawsuit, this one in Washington. The company who filed, DBA Distribution, claims that WG has stiffed them on 41 invoices from late last year and owes about $766,000.
ACMI fleet status on 3/18 at 0230Z:
Atlas - 22 planes flying.
Kalitta - 14 planes flying.
Western Global - Zero planes flying.
ACMI fleet status on 3/18 at 0230Z:
Atlas - 22 planes flying.
Kalitta - 14 planes flying.
Western Global - Zero planes flying.
#650
Line Holder
Joined: Jun 2019
Posts: 77
Likes: 0
You are absolutely correct: looking at the airline industry and it’s history I doubt there is an airline out there worth betting your future on. Even the legacies had their share of bankruptcies. On top today, on the bottom and furloughed tomorrow. One crisis gone, next is on the way.
As we all know things can change at the speed of light. Working for ANY airline without a “what if” plan is pure insanity. Just my two cents.
As we all know things can change at the speed of light. Working for ANY airline without a “what if” plan is pure insanity. Just my two cents.
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