Evergreen Furlough
09-26-2011 | 02:11 PM
#11
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Joined: Jan 2010
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From: dinosaur wrangler
Rumors and innuendo aside, Evergreen's fleet operates in support of the US Military. As we all know, there is a some political pressure to draw down the presence of the US military in Afghanistan. So, that's not promising, though the short term increase supporting the removal of the US presence could work in Evergreen's favor.
To add to this, the global economy, and the US in particular, is in a period of slow growth. Evergreen Aviation's other main business is transporting cargo from China to the US. Again, not promising, at least in the short term.
Evergreen supplies a good deal of lift to UPS during 'peak'. UPS is anticipated to have less of a need for this additional lift this December (and, given the furloughs there, it is hard to see why UPS should need excess lift - this could be a whole separate thread).
Evergreen's fleet is a bit 'long in the tooth'. Atlas has 747-8's on order, Southern is getting 777F's. Kalitta has grown from 3 to 20 aircraft in the last 11 years, and is transitioning to the -400. Evergreen has 1 747-400. The -400's are not only more fuel efficient than Classics, but they earn higher rates (but is it a higher profit?) from the US military too.
Some say Evergreen bids the high profit routes, and lets other carriers fly the less profitable stuff. Some say Evergreen has no money, which is why the fleet hasn't been updated and the airline hasn't grown.
With the 'War on Terror' drawing down, Evergreen will need to place their aircraft on other routes, or shrink the fleet. That's the future. It's up to management to make the right call - a revolving door over the last couple years, though the owner, Dell Smith, is, like Fred Smith and Connie Kalitta, still very much involved with the operation.
Senior guys, who were based in SUU and essentially operating a separate airline flying relatively weather and war free flights, with layovers on tropical islands or temperate climates, are now being forced back to JFK, where the rest of the fleet is based. As these guys see more of the middle east and the snow, they will perhaps see the last of the shine wearing off.
To add to this, the global economy, and the US in particular, is in a period of slow growth. Evergreen Aviation's other main business is transporting cargo from China to the US. Again, not promising, at least in the short term.
Evergreen supplies a good deal of lift to UPS during 'peak'. UPS is anticipated to have less of a need for this additional lift this December (and, given the furloughs there, it is hard to see why UPS should need excess lift - this could be a whole separate thread).
Evergreen's fleet is a bit 'long in the tooth'. Atlas has 747-8's on order, Southern is getting 777F's. Kalitta has grown from 3 to 20 aircraft in the last 11 years, and is transitioning to the -400. Evergreen has 1 747-400. The -400's are not only more fuel efficient than Classics, but they earn higher rates (but is it a higher profit?) from the US military too.
Some say Evergreen bids the high profit routes, and lets other carriers fly the less profitable stuff. Some say Evergreen has no money, which is why the fleet hasn't been updated and the airline hasn't grown.
With the 'War on Terror' drawing down, Evergreen will need to place their aircraft on other routes, or shrink the fleet. That's the future. It's up to management to make the right call - a revolving door over the last couple years, though the owner, Dell Smith, is, like Fred Smith and Connie Kalitta, still very much involved with the operation.
Senior guys, who were based in SUU and essentially operating a separate airline flying relatively weather and war free flights, with layovers on tropical islands or temperate climates, are now being forced back to JFK, where the rest of the fleet is based. As these guys see more of the middle east and the snow, they will perhaps see the last of the shine wearing off.
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