OREGON-based Evergreen International Aviation has lost its parts-delivery contract with Boeing after the aircraft manufacturer decided that it would hand the lucrative deal to Evergreen competitor Atlas Air starting September this year.
As reported by the Yamhill Valley News Register, Evergreen first won the contract with Boeing in 2005, which requires the former to deliver pre-assembled 787 parts from Japan and Italy to Boeing's Dreamliner manufacturing plant in Everett, Washington.
The news came as a surprise to Evergreen chairman, Tim Wahlberg, who said that his company was given no explanation or advanced notice of Boeing's decision to not renew its contract, which he expected to last at least 35 years, subject to renewal every five years or so.
Up to 200 Evergreen support staff jobs, and 75 pilot, ground handler, and mechanic posts, may be affected as a result of the loss.
The Seattle Times speculated that Atlas, which currently holds a pending order for 12 747-8 freighters, may have enjoyed some extra leverage in its bid to snatch the contract away from Evergreen, with Boeing having been urging its customers, including Atlas, to delay 747-8 delivery dates for some time now.
Wahlberg indicated that he was misled, as Evergreen was often praised by Boeing for its services.
A month prior to the cancellation, Wahlberg received a call from manufacturer, stating that it was reviewing its cost structure, but that it was merely a routine procedure.
News of the eventual cancellation came at a particularly bad for time for Evergreen, which, according to an anonymously sourced report, was said to be looking to sell off its aircraft maintenance arm to reduce its debt exposure. Walberg however dismissed the allegation, despite a December Standard & Poor's report suggesting that the company do just that.
The defiant chairman insisted that Evergreen was in a sound position and had no plans to sell of its assets. Rather, he noted that the company would be increasing its holdings, with an upcoming purchase of a 747-400 freighter and three Air France BCFs. Evergreen, he added, had more work than its aircraft fleet could accommodate.
Walberg went on to cite the strength of the company's military freight business to Iraq and Afghanistan, which allowed aircraft to reposition for a profitable return leg from China. He also cited plans to expand the company's helicopter division.
(Source: www.schednet.com)