JonnyKnoxville

Evergreen Airlines to lay off 131, but is it shutting down? - Portland Business Journal

Evergreen Airlines to lay off 131, but is it shutting down?

Luc Willems, via Wikimedia Commons

Evergreen International Airlines on Friday notified the state that it will lay off 131 workers. Delford Smith, CEO of parent company Evergreen International Aviation, denied published reports that the McMinnville-based cargo airline would cease operations on Nov. 29.

Erik Siemers
Managing editor-
Portland Business Journal

Evergreen Airlines Inc. this week notified state officials that it will lay off 131 workers in Oregon, but the company issued conflicting statements on whether the McMinnville-based cargo airline plans to shut down later this month.

The Yamhill Valley News-Register on Thursday reported that employees were informed that the air-cargo transport company will cease operations on Nov. 29.

A document filed Thursday by Evergreen notifying state officials of 131 pending layoffs appears to confirm the news report. The filing included a memo to Evergreen International Airline employees announcing that the company will shut down effective Nov. 30 with the possibility of extending into December.

"EIA will no longer conduct business," stated the document from Monique Gregory, Evergreen's human resources manager. "We appreciate your service, hard work and strong commitment to the Airlines over the years. The loss of our company is very unfortunate; however, we appreciate your continued excellent support during this ending phase."

That, however, conflicts with a statement issued late Friday by Delford Smith, CEO and chairman of the airline's parent company, Evergreen International Aviation, who called reports of the airline's demise false.

"While Evergreen generally does not comment on market rumor or conjecture, rumors that a decision has been made to cease operations at this time are false," Smith said in the statement. "Evergreen remains committed to continuing to address the current business environment with its customers.”

Officials with Evergreen have not responded to requests for clarification.

Smith acknowledged that Evergreen's business has been "adversely impacted" over the past few years from decreased military spending and weak global markets.

"Management has moved to aggressively address these challenges, including through the divestiture of businesses and assets and the significant reduction of secured debt," Smith said. "Evergreen is in discussions with its significant constituencies and is exploring available strategic alternatives with those constituencies."

The 131 layoffs are to begin Nov. 7 and continue throughout the month, according to the documents it filed Thursday in conjunction with the federal Worker Adjustment and Retraining Notification Act.

The airline's financial struggles are well documented. In August, Evergreen pilots that belong to the Air Line Pilots Association questioned whether Evergreen would be able to survive under a debt load thought to be near $280 million. In a move to pay down that debt, the company sold its helicopter division to Erickson Air-Crane in March for $250 million, but it continued to struggle, including missing contribution payments to pilot pension plans.

flyboy32

RULE # 1 Never trust anything that Delford Smith says. NEVER.

Rule # 2 Dell does not live in actual reality.

Rule # 3 Dell does what make Dell happy.

Rule # 4 Repeat rule 1-3 again and again.

If you believe Dell your a fool.

GIANT PILOT

Got off FI forums Evergreen Int'l sued for $77,000 in hotel bills | kgw.com Portland

DoubleD

" The hotel owner is also suing 20 Evergreen employees listed in the lawsuit as "Does 1-20" because those employees allegedly used fictitious names"

Don't know if that is funny or sad. Using a fake name because you fear your employer will not pay the bill?

I hope the best to you all. Seems there was a lot to put up with over there.

MaydayMark

Many of us have lived through the airline bankruptcy story and survived. In case some of you Evergreen guys haven't been there (trust me I realize it's likely you have), this is what happened at my now out of business Legacy Airline. Maybe it will help?

- We all knew the place had been on the rocks for a long time. The corporation had been selling significant assets for many years trying to keep up with pay the bills

- Approaching Christmas, I'd flown a Charter into Andrews AFB and drove half an hour home and went to bed. I woke up in the morning and the Chapter 11 filing was big news on TV first thing the next morning.

- We operated several more months desperately trying to merge the remaining significant assets with other major airlines. To this day I'm still surprised the "routes, airplanes and pilots" didn't get purchased at bargain basement prices.

- When we finally went "sneakers up," all of my remaining pay, retirement and even expense reports were paid in a timely manner. Aside from losing my job, I lost my unused vacation and sick leave. I was stuck with several hundred shares of worthless stock certificates.

-There were ABSOLUTELY NO airlines hiring. I was lucky enough to have a USN Reserve flying job. My wife's job and the Reserves paid all the bills. The Reserves also kept me current and qualified in case someone called me for an interview. I eventually got a job working at a Defense Contractor which I like very much.

I had several interviews, mostly at start-up operations that required that you pay for your own training AND buy stock in the company. I was sure I didn't want to do that ... I had a good job, but I missed the flying job.

One day NWA called and scheduled me for an interview (a month later). While waiting for my interview FedEx called me for an interview (next week). I'm happy to report that I was in FDX training when my NWA interview would have happened. I felt obligated to call NWA and give them the courtesy of telling them I wasn't planning to attend their interview.

Shortly after getting hired at FedEx, I flew with numerous guys that had been 30 year old wide-body Captains. I was just happy to have a good job. I'm happy to report that I'll retire from FedEx in a few years ... life goes on.

If there's any good news it's that airlines are hiring again and the FAA made it MUCH harder to get the credentials needed to get hired (that's at least some good news for you guys).

Good luck to you folks.

flyboy32

How much worse does it get?

GIANT PILOT

It will continue as long as guys keep showing up to hotels, and checking in with fake names. I'm sure once the word gets out, the hotels will request crew Id's along with passports.

EZRider

I guess the employees signed the boilerplate check-in paperwork, saying they'd be 'responsible for all charges', vs. signing a 'sign-in sheet', where you don't actually sign the same thing any regular guest would sign, personally obligating yourself to the charges (its been awhile since I stayed there). Each hotel does it differently, as we all know.

I never even thought twice about signing those sheets . . . until now.

CargoPirate

no one gave a false name at check in. that is total bull****.

When the reservation was made a personal credit card from someone at HQ was used. But the crewmembers checked in with their own names.

I.E. Joe Blow at HQ used his credit card to guarantee a hotel room for Dick Head the crewmember. Dick Head then checked in using his own name.

CargoPirate

From reading your posts....you seem amused by the demise of Evergreen.

Its too bad that so many good people have to lose their jobs to amuse you!