Arrow Air grounded after 57 years
South Florida Business Journal - by Bill Frogameni
Miami International Airport
Arrow Air, the largest single cargo shipper at Miami International Airport, is ceasing operations after 57 years in South Florida, effective immediately.
“Like many companies in our industry, Arrow Air has experienced significant operating losses as a result of increasing operating costs and declining revenues. The decision to wind down the company’s schedule service operations was a difficult one,” the company said in a news release. “This decision was not made lightly, and was a last resort after the company exhaustively searched for other options, including financing or a sale of the business.”
Between Oct. 1 and the end of May, Arrow was the leader at MIA, handling 12.5 percent of the total cargo weight, airport spokesman Greg Chin said. Between January and the end of May, Arrow’s volume grew 42 percent compared to the prior-year period, he added.
On April 9, Arrow told the state in a Worker Adjustment and Retraining Notification Act notice that it could cease operations and lay off all 473 employees at MIA. The company said at the time that it had been seeking investors.
While Arrow spokeswoman Andi Salas said she didn’t know exactly how many of the company’s employees are based outside of Florida, she noted that most are based here. Arrow has 250 employees stationed throughout the Americas, according to the company’s website.
Salas declined to comment on whether the company will declare bankruptcy or what could happen to its assets.
“The press release speaks for itself,” she said.
Arrow has a heavy presence in Latin America and the Caribbean, but the majority of the cities it serves also are served by other cargo carriers at MIA, Chin noted. Those other carriers are likely step in and quickly fill the void left by Arrow, he added.
“Of course, we hate to see any operation cease here and see employees be out of work,” Chin said. “But, as far as the airport goes and our cargo volumes, it shouldn’t effect us very much.”
MIA is projecting 24 percent growth in cargo by the end of 2015.
According to Arrow Air’s website, it operates more than 60 weekly flights to Latin America and the Caribbean.
The company has 67,000 square feet of refrigerated storage at MIA and more than 155,000 square feet of dry storage, according to its website.
While Arrow’s shutdown won’t be a long-term problem for South Florida shippers who work with the company, it will present near-term complications, said Cari Cossio, VP of American River International’s shipping location in Doral and president of the Florida Customs Brokers and Forwarders Association.
“That’s terrible,” Cossio said when she learned the news. “It’s going to impact us right now on the logistics end because we’re going to have to move everything around.”
Arrow is owned by MaitlinPatterson Global Advisors, a New York-based private equity fund that specializes in distressed assets, Arrow President Luis Soto told the Business Journal in April. However, Maitlin bought Arrow in July 2008 just before the market crash and the investment hadn’t performed as well as the equity fund had hoped, Soto said.
Arrow’s older fleet was hampered by fuel costs, too, Soto said in April. Still, he predicted at the time that the cargo carrier’s strong volume would lead a to a buyer.
During the first quarter, the company posted an operating loss of $4.4 million on operating revenue of $61.5 million, according to data from the U.S. Department of Transportation. That was an improvement over its $4.8 million loss on $45 million in revenue the company reported in the first quarter of 2009.
For all of 2009, Arrow posted an operating loss of $27.8 million on operating revenue of $221.8 million.
The company reported a $470,000 operating profit in 2004, the only year from 2000 on when it posted a profit.
Read more: Arrow Air grounded after 57 years - South Florida Business Journal
South Florida Business Journal - by Bill Frogameni
Miami International Airport
Arrow Air, the largest single cargo shipper at Miami International Airport, is ceasing operations after 57 years in South Florida, effective immediately.
“Like many companies in our industry, Arrow Air has experienced significant operating losses as a result of increasing operating costs and declining revenues. The decision to wind down the company’s schedule service operations was a difficult one,” the company said in a news release. “This decision was not made lightly, and was a last resort after the company exhaustively searched for other options, including financing or a sale of the business.”
Between Oct. 1 and the end of May, Arrow was the leader at MIA, handling 12.5 percent of the total cargo weight, airport spokesman Greg Chin said. Between January and the end of May, Arrow’s volume grew 42 percent compared to the prior-year period, he added.
On April 9, Arrow told the state in a Worker Adjustment and Retraining Notification Act notice that it could cease operations and lay off all 473 employees at MIA. The company said at the time that it had been seeking investors.
While Arrow spokeswoman Andi Salas said she didn’t know exactly how many of the company’s employees are based outside of Florida, she noted that most are based here. Arrow has 250 employees stationed throughout the Americas, according to the company’s website.
Salas declined to comment on whether the company will declare bankruptcy or what could happen to its assets.
“The press release speaks for itself,” she said.
Arrow has a heavy presence in Latin America and the Caribbean, but the majority of the cities it serves also are served by other cargo carriers at MIA, Chin noted. Those other carriers are likely step in and quickly fill the void left by Arrow, he added.
“Of course, we hate to see any operation cease here and see employees be out of work,” Chin said. “But, as far as the airport goes and our cargo volumes, it shouldn’t effect us very much.”
MIA is projecting 24 percent growth in cargo by the end of 2015.
According to Arrow Air’s website, it operates more than 60 weekly flights to Latin America and the Caribbean.
The company has 67,000 square feet of refrigerated storage at MIA and more than 155,000 square feet of dry storage, according to its website.
While Arrow’s shutdown won’t be a long-term problem for South Florida shippers who work with the company, it will present near-term complications, said Cari Cossio, VP of American River International’s shipping location in Doral and president of the Florida Customs Brokers and Forwarders Association.
“That’s terrible,” Cossio said when she learned the news. “It’s going to impact us right now on the logistics end because we’re going to have to move everything around.”
Arrow is owned by MaitlinPatterson Global Advisors, a New York-based private equity fund that specializes in distressed assets, Arrow President Luis Soto told the Business Journal in April. However, Maitlin bought Arrow in July 2008 just before the market crash and the investment hadn’t performed as well as the equity fund had hoped, Soto said.
Arrow’s older fleet was hampered by fuel costs, too, Soto said in April. Still, he predicted at the time that the cargo carrier’s strong volume would lead a to a buyer.
During the first quarter, the company posted an operating loss of $4.4 million on operating revenue of $61.5 million, according to data from the U.S. Department of Transportation. That was an improvement over its $4.8 million loss on $45 million in revenue the company reported in the first quarter of 2009.
For all of 2009, Arrow posted an operating loss of $27.8 million on operating revenue of $221.8 million.
The company reported a $470,000 operating profit in 2004, the only year from 2000 on when it posted a profit.
Read more: Arrow Air grounded after 57 years - South Florida Business Journal
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