Bankruptcy again for PTC’s World Airways

Bankruptcy again for PTC’s World Airways

Global Aviation Holdings, Inc., including its two operating air lines World Airways and North American Airlines, all headquartered in Peachtree City, has announced it has filed voluntary petitions for relief under Chapter 11 of the United States Bankruptcy Code.

It’s the second time this year the company has been under a Chapter 11 umbrella. It emerged from the earlier filing this past February.

The company plans to lay off 16 percent of its more than 1,200 employees over the next 90 days, though it intends to continue to operate during the reorganization, according to a news release issued by Global.

Of the 161 employees who will be laid off, 38 are Georgia residents, a company spokesperson said Tuesday afternoon. The headquarters building is at 101 World Drive, off North Peachtree Parkway.

GAL is the largest commercial provider of charter air services to the U.S. military and a major provider of worldwide commercial global passenger and cargo air transportation services, according to the company.

Company leaders cited a recent decision by the U.S. military to “immediately curtail” cargo flights.

GAL has taken this action to strengthen its balance sheet and gain financial flexibility as it continues to realign its operations to align its cost structure with the realities of market demand, company officials said.

The company will trim its aircraft fleet along with personnel, according to Chief Executive Officer John Graber.

“We intend to use the reorganization process to help implement our plan to lower costs, stabilize our businesses, grow revenue and diversify our product lines,” Graber said. “We have taken a number of steps to improve our operations over the past few months and we were making great progress; however, the continued worldwide downturn in commercial freight markets coupled with the military’s decision to immediately curtail its cargo expansion flying has made it necessary for us to undertake this court-supervised reorganization. We believe that this reorganization will enable us to reduce our debt and implement operational changes, while maintaining our commitment to safety, compliance and reliable customer service.”

Graber said the company will support the laid-off employees as best it can.

“We appreciate the ongoing dedication of our employees, whose hard work is critical to our success and the future of our company,” Graber said. “Regrettably, as a result of a necessary reduced fleet size and as a part of this reorganization, jobs will be impacted. We are committed to treating those who are affected with the respect and dignity they deserve.”

In conjunction with its reorganization, the company has obtained debtor-in-possession (DIP) financing from its first lien lenders. On court approval, the new financing and cash generated from the company’s ongoing operations will be used to support the business during the reorganization process.

The company has filed various motions with the court in support of its reorganization, including requesting authorization to continue paying employee wages and providing healthcare and other benefits. The company has also asked for authority to continue existing customer programs and intends to pay vendors for goods and services provided after the filing date of Nov. 12.

The company has established a toll-free restructuring information hotline for interested parties, at 877-726-6511 in North America or internationally at 424-236-7251. Additional information is available on the company’s website at www.glah.com. Court filings and other documents related to the reorganization proceedings are available on a separate website administered by the company’s claims agent, KCC, at www.kccllc.net/GLAH.

Global Aviation Holdings Inc. is the parent company of North American Airlines and World Airways. North American Airlines, founded in 1989, operates passenger charter flights using B767-300ER aircraft. World Airways, founded in 1948, operates cargo and passenger charter flights using B747-400 and MD-11 aircraft.

whatnow2424
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How do you make Air Line stock worth one million dollars?

Answer: Invest 5 Million....

moelarrycurly
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Let me add

Give another 10 million or more in compensation to the Board of Directors, have a union involved and end the need for the reason for the service (Pentagon budget slashing after arbitrary end date of war)...

Roadrunner
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I wish the best for their former employees

No matter what some politicians are saying about a recovery, when the workforce participation rate is as low as its been since post WW2 times are tough! Roughly half the group I'm in at work was just let go this month, and this economy is recovering?....

stranger than f...
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Recovery is only Helping the Well Off

The recovery largely helps the most wealthy Americans. According to the Pew Research Center, the upper 7% of American households own 63% of the nation's total household wealth. Times are very rough for the majority of Americans. I, too, wish these laid off workers the best.

Cyclist
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World Airways suspended...

operations yesterday and laid off 325 employees.

PTC Observer
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Cyclist - This

This is an example, albeit a small one, of why government cannot "create" jobs, government funded work is not sustainable over the long haul. The only way to have meaningful job creation is to unleash the power of freedom of choice by individuals in a free market.

Cyclist
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PTC O

This is a bigger example of a business plan that put almost all its eggs in one basket.

Now with that said, let's see how Secretary of Defense Chuck Hagel will balance the military budget while keeping an eye on what's going on in the world.

PTC Observer
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Secretary Hagel

I don't think you will need to wait, he's burning furniture. One of the primary reasons we have a representative government is to protect the people from enemies foreign and domestic. The current administration, clearly doesn't pay much attention to the social contract called the Constitution.

Secretary Hagel, can't walk and chew gum at the same time. So, I don't think we should hold much hope that he can cipher.

Cyclist
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Military Contracts

It's a tough market nowadays for air carriers that provide additional "lift" for the military. Suffering along with World Airways is Evergreen International which is heading for the abyss by the end of the month.

BTW, do any of you Vietnam vets remember which commercial air carrier flew you to and from that exotic land?

Robert W. Morgan
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Almost sure it was Pan Am, but can't really remember

Other things on my mind back then. I remember Tiger Air flew me out and then I did catch ships back from Hawaii to SF. Long time ago. God bless those that are serving now. Need all volunteers now, due to the Slacker Generation.

Hey, want to have some fun? Go grab a 19 year old off the street and teach him how to use a mortar (or a machine gun or a tank or a submarine if you have one) and then tell him ___"This is it!!!" Combat, dude. Go forth and defend. You have 6 months to get ready. If your kid is short, go through the tunnel rat program. Methinks the current crop of 19 year olds may not be up for the task.

And then show him some WWII YouTube interviews with the real heroes or Private Ryan, the movie. Then tell me the greatest generation could come back.

MYTMITE
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Need all volunteers now due to Slacker Generation?

Isn't that statemaent a little backwards?

AtHomeGym
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MYTMITE & Volumteers

As someone who supports Conscription,don't think I need to make opinionated comments in this thread!

stranger than f...
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I agree on Conscription

I totally agree that our armed services should be supplied by a general draft with no deferments except for medical issues. When the wealthy kids must go to war, we will stop doing foolish things like invading Iraq. The uproar will be as strong as it was in the 1960s. No more chicken hawks like George W. Bush will waste our nations personal and financial resources on futility.

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Not sure having a draft is best..

I do not think it helps moral at all in the Armed Forces to have people in the ranks who absolutely have no interest in being there.

Should College be mandatory too?

borntorun
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Draft

The best reason for not calling for a draft is that no member of the combined Joint Chiefs of Staff is asking for one. These are the men responsible for protecting our country and ensuring that our armed forces are fully prepared to meet any potential enemy. They claim you have a better military with those who volunteer to be in it and not forced to join. So why reinstitute it? If the Joint Chiefs do not want a draft, there had better be a good reason to force one on them.

PTC Observer
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borntorun- Well said

Force against the individual never works out well, in the end all the force against individuals that the government currently dishes out won't work out well either.

MYTMITE
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AHF and STF, I agree that everyone should serve their

country. The thing is even when we had a draft those with money and influence got a pass one way or another. Plenty of those with passes are now serving in the Senate or Congress, as wel as a few former presidents. Those that got drafted were usually the ones that had no influence. Many people got married because of that deferrment, there were many births--for those same deferments.
I have always said if everytime our pols decided to go to war to "assist" that they send their own child/children with the first wave or troops. We have an all volunteer now--that is why I was saying Robert's statement was backwards. I think as a majority, our young people who join serve admirably. We do not always treat them admirably when they come home, to our shame. What breaks my heart is so many come back maimed either physically or mentally to fight for people who hate us and do not want us around. More and more I am becoming an isolationist-we have spread ourselves so thin re: personnel and finances that I wonder how we could defend our our shores if it became necessary. I am totally against sending our people into wars for oil, etc., regardless of what noble reasons we are given.

G35 Dude
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Mytmite-Draft

The first draft instituted in this country was instituted by Abe Lincoln during the Civil War. He could not get enough people to fight for his cause to man the union army. But even then you could "buy" your way out of having to serve by paying a fee. We can also thank him for the Federal Income tax for this same reason. He needed money as well. It has always been the poor that fight the battles. I too am an isolationist. Why do we feel the need to be the worlds police? We could do quite well on our own if we just took care of our own.

MYTMITE
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G3D,Amen to that. I have friends who look at me as if I were

craxy when I say we need to take care of our own first and quit using our young people for cannon fodder to 'help' countries that do not want our help. Some of them say "But, But, what about oil?" Well, I may be naive, but to begin with it 'ain't' our oil.
The last generation or so have not had to learn what it means to do without. I laugh when I see what some people today consider necessities. I remember rationing--stamps in a little book that you took to the grocer's when you went to buy certain items. I remember putting the yellow/orange contents of a little packet to a block of what I know must have been lard to make butter. To a little kid it was great fun to take a fork and mix it in to resemble butter. Probably, only a fourth or less of our population had cars (don't reply with statistics, as I am only guessing!) but we had gas ratoning. I also remember black-outs and air raids. I remember saving the tin foil from cigarettes and other items. I don't know if this was ever used or was just a morale booster--but all children in class saved religiously. Our parents bought war bonds and the children bought 'stamps'. Even as children we were made aware that it was necessary to do without, to tighten our belts for the good of our country. Now, unless you have a family member or friend serving, you are far removed from any war.

Regardless of how we feel about the 'conflict of the day' they are our young people serving and they are our future and we use them like some surplus item with a supply that will never end. And this breaks my heart. Yes, we have a volunteer army today but many who join do so because of the benefits they get, because they would never be able to afford college or any other type of education without the GI Bill or whatever it is called today. I nearly fainted a few years ago when I learned what a friend's grandson was getting as a re-up bonus--not that I begrudge them receiving it but it certainly was nothing like GIs received in the 50s, 60s, etc. Evidently our government feels they must pay these large re-ups in order to retain the people they have trained. Another thing that angers me is that we go into a country, fight their battles (or our battle for oil, etc) help destroy that country and then spend billions rebuilding it--to say nothing of the thousands of refugees we bring into the country with each conflict. All this tax money used in this manner could be used to make our country what is once was, the greatest nation on earth. Now we are fast becoming the laughing stock and a paper tiger. Sad
Sorry, did not mean to rant on but this is a subject that I am passionate about. I want our young people to be able to look to a future where education is doable, where they are not maimed for life from fighting for people who hate them, where they feel they have a future--and that is true for all of us, young and old---I just want my country back.

stranger than f...
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Wars Should Be Fought on a Cash Basis

Mytmite – You make some very astute observations. Besides the draft (eliminating preferential deferments), I also advocate for any war to be fought on a cash basis. If the United States Congress and our President believe that a cause warrants deployment of our brave soldiers into hostile territory, every citizen should be committed to this endeavor on an immediate basis. That is, during wartime, the U.S. must exact a tax on all citizens to pay the entire costs of the conflict. This might be done by a sales tax, payroll tax, etc. exacted until the conflict is resolved. If our soldiers are facing danger to promote our national interests, all of us should have skin in the game.

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hoping you understand

RWM-guys our age did not invent our behavior. We had the benefit of an older generation who taught us. Those you are calling the greatest generation made us what we are. Instead of criticizing and making comparisons, guys our age need to put our efforts into calming young upstarts and mentoring the next generation. If there is something called a Slacker Generation the finger you are pointing goes right back to you and me my friend.

brewster
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values not universal

Good points Mr. Eye - but now the value system is so diluted (led by Hollywood and cable TV), that there is no support system of other adults/authority figures that stands up to the cynical youngsters of the day. Now they can just go to the next person in the aisle and will advise them that morals and honor is relative. Back then there wasn't too many sources for seeking out an alternative viewpoint that could be backed up by a mulitude.

MYTMITE
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I don't know Robert, when I see the young men and, now women,

come back missing arms and legs, blind, etc and accepting their fate, I have to feel there is heroism there. I have to admit tho that we have not prepared our young people to face adversity. We have coddled them too much, intervened too much when they should have been fighting their own battles, and made life way too easy for most of them. All the psycho-babble that took over in this country has made the whole country weaker and softer. The majority feel they should shield their children from that cold cruel world out there. If Johnny or Susie comes home and complains about a teacher, instead of telling them to suck it up and learn to deal with it, Mommy and or Daddy runs down to the school to have the little darling moved to another class. Unless a teacher had put their hands on my child, they were told that they would meet bosses they didn't like or that they thought were 'hard' when they hit that big old world out there so learn how to handle it now. I know people will think I am hard or unfeeling but it bothers me everytime something happens and the schools have all these psychologists to have the students talk over their 'feelings'. We went through the same types of things and maybe there was some discussion with your parents or the teachers or principal but then you moved on. We really are doing our children and our nation a disservice by not making people stand on their own two feet and learn how to overcome problems and adversity.

Cyclist
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Morgan...

"Methinks the current crop of 19 year olds may not be up for the task."

A lot of kids cannot pass the necessary entry exams to get in today's volunteer force.

Different times.

Cyclist
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Seaboard Flight 253, Down in the Kuriles

Some of you might remember this incident.

http://www.seaboardairlines.org/misc/kuriles.htm

Husband and Fat...
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Thanks for sharing

Really enjoy reading about true stories like this. Reminds me of my father sharing stories of his military experience during WWII