Cargojet Base Closures and of Course Layoffs

[pika]

Jan 01 Vancouver and Montreal go. Best of luck to all involved.

[Fr8 dawg]

[arewethereyet]

funny how no other company in canada is laying off except cargojet. and they made a great profit even with major 1 TIME! expenses. looks like management wants it old school! 25 days a month again boys.

[mighty mouse]

I’m fatigued!

Seriously, you plan your rest for your schedule, when you get extra legs added on.. I’m fatigued.
Or, if I’ve worked more than 14 days.. I’m fatigued.

[atpilot]

Bad news indeed! Good luck to all.

[Amateur Turbines]

WTF!!! I don't understand this silly industry. I heard that they are buying more airplanes. Sorry guys I hope that there are better things on the horizon for you!

[Bank Angle]

funny how no other company in canada is laying off except cargojet.

Funny, other than Porter I don't see anyone hiring and although it hasn't happened yet, even AC is talking about layoffs. Look at the world economy, it's only a matter of time!

and they made a great profit even with major 1 TIME! expenses. looks

What quarterly reports have you been reading!?!?

looks like management wants it old school! 25 days a month again boys.

so much for taking care of your own cargojet!

I don't think so. In an effort to continue to provide unsurpassed customer service they are renegotiating contracts to keep them financially feasible for both parties. With a downturn in the economy and less shipping this means less flights = less pilots needed. This is a painfull decision for everyone but a necessary one to avoid becoming just another Canadian air carrier that hires (and sells tickets) until the day everyone shows up and the doors are locked!

My heart felt simpathy goes out to everyone that will be affected by this, not just the pilots, and I hope we will see you back with us soon or hear you've moved on to better places.

[arewethereyet]

Bank angle..


EBITDA dropped to CAD3.1m for the third quarter 2008, from CAD5.2m for the same period last year..

and 3 new aircraft plus 2 new 727's and a huge new hangar.

ps. westjet is still taking 8 guys a month. porter is hiring. canjet is hiring. sunwings is still hiring. london air, sunwest, anyhow you get the point.

im sure the guys at cargojet will do fine. damn good guys. im sure its a huge shock for all.

good luck guys!

[727driver]

Its a good thing most of the critics here don't actually run an airline. The decision to close bases was not made as a knee jerk reaction. In case you hadn't noticed we are in the midst of global economic crisis. I would be more concerned about working for a company that ignored the current trends and forecasts and continued on with business as usual. The harsh reality is we crewed up for business volumes that we had in the first half of 08. Those volumes do not exist under these current market conditions and if predictions are correct this will continue well into next year. Most airlines that fail, do so because they are reactive to these conditions and indicators. They wait until they hermoraging cash like a mortaly wounded bull at a Mexican Bull fight and when the coffers are empty, everything is sold that can be sold and the creditors have had enough everyone is out of work. Is it unfortunate some had to be sacrificed for the greater good: YES. However better to lose a few good soldiers than unneccesarily wipe out a whole army. The measures CJT took were preventative measures to prevent a potentially catostrophic outcome. Companies without deep pockets or large war chests of cash will find it hard to find credit this time should they fall into bankruptcy protection and try to restructure. Look at how reluctant the government is to sign cheques to the big 3 automakers.

I wish all those negatively affected by the base closures the best of luck and may good fortunate quickly smile upon the lives of you and your loved ones.

[Hoov]

Are they laying off in YHM as well? I know someone who just got on not to long ago, hope he gets to keep his job.

[nite fr8]

Arewethereyet,

On Cargojet taking care of its own, consider this;

Cargojet is a publicly traded company. As such, the financial results are openly disclosed and made available to the public as you're obviously aware judging by your last post. EBITDA this past quarter as you point out, has decreased by nearly 68% over the same period last year. For those reading this thread not familiar with the term, EBITDA is Earnings Before Interest, Taxes, Depreciation and Amortization. Essentially;

EBITDA = Operating Revenue - Operating Expenses + Other Revenue.

The announcement of the Q3 results came on the heels of an announcement made the previous day by DHL, that due to their own financial realities, they will be pulling out of the inter-domestic North American market.

Nobody's making this up, there's no hidden agenda. The softening of the global economy and the corresponding decrease in demand for lift, is as real as it is unforgiving. Failure to acknowledge this and further failure to act, would invariably result in deminishing the company's ability to weather the storm and emerge on the other side on solid footing. Wouldn't you agree that inaction by the company to ensure its survival and future growth would clearly serve better as an example of Cargojet not taking care of its own?

All of that being said, the last thing anyone wants to see is any of our own out of work. I've had the very fortunate pleasure of working with some phenominal folks lately, remarkable individuals on both personal and professional levels and I feel lucky for it. My greatest wish is that the current situation is short lived and that call backs are swift.

Best wishes,

Seabass

[Smitty]

Funny, other than Porter I don't see anyone hiring and although it hasn't happened yet, even AC is talking about layoffs. Look at the world economy, it's only a matter of time!

Don't forget, WJA is still taking delivry of 8 planes next year. There are still jobs to be had, especially with jet time.

Hate to say it, but a layoff was the best thing that ever happened to me. Made me realize how great this job is and forced me to find work with a company that has been the best job of my career.

I know it may not seem like it right now, but brighter times are ahead.

[Four1oh]

Smitty is right. I was holding a layoff notice and it lit the fire under my ass to find a better employer, and here I am.

[jetav8r]

Base closure doesn't neccessarily mean layoffs, maybe just redistribution of crews to a single base for better productivity and cost control.

JMHO

[xqs-me]

Well boys, sorry for those guys, hope this gets better soon so you can get called back and I hope no more lay-offs are required.

[bob sacamano]

Funny, other than Porter I don't see anyone hiring and although it hasn't happened yet, even AC is talking about layoffs. Look at the world economy, it's only a matter of time!

I wouldn't agree with that. Take WJ for example, they're hiring as we speak.

[727driver]

WJ doesn't have much of choice but to continue to hire. The aircraft they ordered are coming whether they like it or not. You might as well have crew to fly them because their not going to make you any money sitting on the ramp. Market saturation is occuring as demand drops and thier capacity increases. This is evident and revenue/seat averages and load factors begin to decrease. Porter is slightly different as they are developing an untapped niche market however they too have aircraft being delivered that need to be crewed. CJT has some leased machines that they have an opportunity to off load in the new year. It only makes business sense to not renew the lease if there is no work for them. This however has a negative impact of putting some of our colleagues out on the street. This is the harsh reality of a slowing economy and its only going to get worse. The party is coming to an end in the west soon as well as property values are retreating and oil prices continue their dramatic slide.

[neophyte]

Hey 27Driver,

This is from our Q3 results:

Revenue Passenger Miles (RPM)
OCT 2008 1.090 billion vs OCT 2007 0.995 billion

It doesn't look like the wheels have fallen off yet, our Load factor may have dropped but we still flew more people more places this Q3 than the previous.

Also, there is always a choice whether to hire or not. Deferral is also an option; however, I doubt you will see that happen because we are still finding people to fill our planes.

A slowdown is upon us, no doubt about it, to what extend, and to how it effects the different companies out there is yet to be seen.

Neo

[arewethereyet]

good post neo.. so far he has not made a point that makes any sense yet?

[buzzjob]

Nobody's making this up, there's no hidden agenda. The softening of the global economy and the corresponding decrease in demand for lift, is as real as it is unforgiving. Failure to acknowledge this and further failure to act, would invariably result in deminishing the company's ability to weather the storm and emerge on the other side on solid footing. Wouldn't you agree that inaction by the company to ensure its survival and future growth would clearly serve better as an example of Cargojet not taking care of its own?

Too bad someone didn't teach the incompetent Zoom management this fairly simple philosophy

Good luck to all affected by this.

[flyingnomore]

well i guess we shouldnt have bought that new plane eh??? we were all doing fine with the smaller ones when there FULL and now we got this new BIGGER one and it is ALMOST EMPTY every day wtf????? GOOD JOB PEOPLE..........

[727driver]

Hey Neo:

I never said the wheels were falling off but things are going to get tougher. The article below confirms this as reported load factors are off by 3% this time last year. Generating more revenue does not always = more profit and adding capacity in a shrinking market usually doesn't yield positive results. As for arewethereyet; dust off you economics 101 text book my friend and re-read the chapter on the Law of Supply and Demand as well as the Invisible Hand concept. This may help if you find what I'm saying is hard too understand. The only way to maintain LF in a shrinking markert is either to reduce capacity or price. Added pricing pressure impacts yield and will eventually have a negative affect on profitability.

http://www.canada.com/saskatoonstarphoe ... 8fc08c9c1d

[Smitty]

Either way, the point is this:

There are airlines still hiring in Canada and some places around the world.

As of right now, they are forcast to continue hiring for the forseeable future.

There is hope for those that are recieving pink slips from Cargojet, which should help with the stress they are experiencing right now.

Good luck to those affected.

[boeingboy]

well i guess we shouldnt have bought that new plane eh??? we were all doing fine with the smaller ones when there FULL and now we got this new BIGGER one and it is ALMOST EMPTY every day wtf????? GOOD JOB PEOPLE..........

Well - they got the bigger plane for one of there (ex) large clients.....if AJ hadn't of bit the hand that fed him - it would probably be full, winging it's way to YYZ - YVR - HNL.

[The Maestro]

BB,

Please, do tell... Whose hand did Ajay bite?

As well, are you suggesting that a customer demanded a larger airplane from CJ, then withdrew a contract?