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.

FMI: http://www.geminiaircargo.com, www.alpa.org