75 Crewmembers Furloughed and Terminated
For the second time in as many years, Gemini Air Cargo has
filed for bankruptcy. The company, based in Dulles, Virginia and
with other offices in Miami, Brussels and Ostende, Belgium, filed
Chapter 11 bankruptcy in the spring of 2006 and came back to life
that August after reaching agreements with its financial
partners.
The latest filing came Wednesday and according to initial
reports, lists somewhere between 1,000-5,000 creditors, with $100
to $500 million in assets and approximately the same in total
liabilities. Published creditors include MTU Maintenance of
Hannover, Germany, ($3.6 million); Defence Financing and Accounting
in San Antonio, Texas ($1.7 million), and KLM of Amsterdam, which
is on the hook for $1.2 million. Gemini filed the most recent
Chapter 11 petition in the U.S. Bankruptcy Court of the Southern
District of Florida. Affiliated companies Gemini Cargo Logistics,
Gemini Leasing Holdings, Gemini Leasing have also sought protection
under bankruptcy regs.
Gemini Air Cargo is an American cargo airline, operating
worldwide cargo schedules and charters.
Gemini Pilots Respond to Bankruptcy Announcement
Gemini Air Cargo pilots, represented by the Air Line Pilots
Association, Int'l (ALPA), released the following statement
regarding Wednesday's announcement that Gemini filed for protection
under Chapter 11 of the US Bankruptcy Code.
"We are very surprised by the bankruptcy announcement," said
Capt. Bill Atchison, chairman of the Gemini unit of ALPA, "and we
are also very troubled by the additional news that 75 crewmembers
were terminated or furloughed. The furloughs were done in direct
violation of Section 23 of our current contract, and we will take
whatever steps are necessary to protect the rights of those pilots
affected.
"However, we remain optimistic that these cost-saving measures
are necessary during this financially turbulent time to re-position
the company as an attractive opportunity for prospective
investors.
"Gemini filed for Chapter 11 bankruptcy protection in 2006, and
emerged five months later as a stronger airline. I am confident we
will see the same results during this restructuring and Gemini will
emerge with prospects for a healthier future by the end of
summer.
"We are scheduled to open Section 6 contract negotiations in
March 2009, and we will move forward with the development of a
strategic plan to support those negotiations. We want and need to
be prepared for the future growth of this airline, any increase in
the types of services we provide, and the possible expansion of the
current and additional aircraft type we fly."
ALPA represents 225 crewmembers at Gemini Air Cargo, which is
one of the largest Aircraft, Crew, Maintenance and Insurance (ACMI)
operators worldwide and flies MD-11F and DC-10-30F aircraft.
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