Rumors are going around hot and heavy these days about a UPS purchase of Atlas Holdings. We've been hearing such things for years, but given our current equiptment and pilot bind, it does seem to make a modicum of sense. Supposedly, according to a management pilot, UPS has a team over there now doing a due dillegence check. Are you guys hearing anything at your end?

 

This one was going around a couple of months ago...supposedly all the action is taking place in MIA...Lots of 747s up for grabs!

 

747's, from who?

 

From Atlas themselves...http://airlinepilotcentral.com/airli...rgo/atlas.html

They have 20 747-400s and 12 747-8s on order with options for 14 more starting in 2010.

 

Maybe that's the reason Atlanta has ordered the airline to cut $200 million for FY 2008?

 

This is from Atlas 2006 Annual report. The entire report is full of doom and gloom.

In September 2006, we placed an order for 12 new Boeing 747-8F freighter aircraft that are scheduled to be delivered in 2010 and 2011. As part of this transaction, we also hold options and rights to purchase up to an additional 14 747-8F aircraft at fixed prices. We are required to pay significant pre-delivery deposits to Boeing for these aircraft. We commenced making these pre-delivery payments in the third quarter of 2006. As of December 31, 2006, we had commitments of approximately $2.1 billion associated with this aircraft order (including estimated contractual escalations and applying purchase credits). We typically finance our aircraft, including the required progress payments, through either mortgage debt or lease financing. Although we have received standby financing commitments to finance four of these aircraft, we cannot assure you that we will be able to meet the financing conditions contained in these commitments or to secure other financing at all or on terms attractive to us. If we are unable to secure such financing on acceptable terms, we may be required to incur financing costs that are substantially higher than what we currently anticipate.

 

The question arises IF UPS buys Atlas AND they decide to keep the pilots, what to do about seniority integration since the VAST majority of Atlas pilots are already trying to get a job at UPS at the BOTTOM of the UPS seniority list. If they keep their Atlas years of service, their pay as a UPS F/O would be much greater than they would ever make as an Atlas captain.

 

Atlas only owns 6 747-400's, 14 747-200's. The rest of the aircraft are leased.

 

Isn't Atlas an ALPA carrier ?

Just ask an ex-TWA guy how that ALPA / APA merger worked out for them ...

 

Plus, their market cap is only $1.15 billion. That's pocket change to UPS.