Gemini Air Cargo shuts down operations

Word on the street is that Gemini Air Cargo has ceased operations. Usually I try to stay away from posting rumors on Aircrew Buzz, but I've had an unusual number of inquiries over the past 24 hrs about whether Gemini was going out of business. This prompted me to make some inquiries of my own. There's no message or notice on the Gemini Air Cargo website stating that the carrier's operations have ceased, however several sources I tend to trust have said that the rumor about the shutdown of Gemini's operations is true.

Apparently I am not the only one trying to verify the rumors. An article today on FlightGlobal.com, which is known as a reliable source of aviation news, reports that "sources with knowledge of the situation" say that Gemini Air Cargo has indeed closed its doors.

Regular readers of Aircrew Buzz will recall that I reported in June that Gemini Air Cargo filed for Chapter 11 bankruptcy protection. At that time, 75 of Gemini's 225 pilots were either furloughed or terminated, however the air freight carrier continued to operate its DC-10-30F and MD-11F aircraft. The bankruptcy filing in June was the air cargo operator's second in two years.

I will add an update to this post as soon as any official information becomes available.

UPDATE Aug. 15, 2008: Air Cargo News reported this morning that Gemini Air Cargo has ceased operations and has entered Chapter 7 liquidation. The article said, "The bankruptcy court was due to rule on a successful bidder on 15 August, however, it is believed that negotiations with the final interested party, Bravia Capital, broke down on 12 August and the airline subsequently ceased flying operations."

According to Air Cargo News, Gemini's four MD-11Fs will now be returned to the lessors, two to GECAS and two to AerCap. Rumor has it that the two GECAS-owned aircraft are likely to be placed with World Airways, which has been looking to increase its MD-11 fleet.

Bankrupt Gemini Air Cargo eliminates 75 pilot jobs

Last week Gemini Air Cargo filed for Chapter 11 bankruptcy protection for the second time in two years. The carrier plans to continue to operate during restructuring, however 75 of its 225 pilots are being furloughed or terminated, a move that the pilots' union says is in violation of the terms of their contract.

The Gemini Air Cargo pilots, represented by the Air Line Pilots Association (ALPA), released the following statement about the bankruptcy announcement:

“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.”

Aviation news website FlightGlobal.com, quoting from a letter to Gemini employees from the cargo airline's management, reports that the decision to file for bankruptcy was driven by "record-shattering fuel prices" coupled with revenue shortfalls encountered over the past 12 months.

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