Western Global Airlines Issues Company Update
NEWS PROVIDED BY
19 July, 2023, 17:23 ET
ESTERO, Fla., July 19, 2023 /PRNewswire/ -- Western Global Airlines ("Western Global," "WGA" or the "Company"), today issued the following statement regarding recent actions taken to protect the Company:
WGA, its CEO and Founder Jim Neff, and its management team are committed to acting in the best interests of the Company and its stakeholders. After 10 years of profitable operations and successful growth, the Company is currently navigating financial challenges driven by unforeseen industry-wide factors, including the conflict in the Ukraine, the weakened global economy and particularly air cargo demand, spiraling costs, and the recurrence of COVID-19 pandemic in China, which disproportionately impacted WGA and its customers. Notably, up until the end of 2022, WGA delivered profitable operating results every year since its founding in 2013.
The Company continues to believe that maintaining its operations and infrastructure is in the best interests of all stakeholders. Accordingly, WGA is working diligently with its advisors to explore all value-maximizing alternatives and take the steps necessary to address its financial position. On June 29, 2023, Jim Neff purchased the outstanding loans held by WGA's senior secured lenders in a competitive process independently conducted by the lenders. This was a positive step in an effort to protect WGA and provide the Company additional time and resources, and the Company immediately benefited from improved lending conditions. As a result of the purchase by Jim Neff, WGA has been positioned to continue to provide its customers with the safe and effective services they rely on.
Additionally, WGA believes it is important to note the following in response to media coverage:
In 2020, all employees were granted beneficial ownership through an Employee Stock Ownership Plan (ESOP) not only in the airline, but also in Jim Neff's two affiliated leasing companies, which leased airplanes to the airline and were transferred into the airline as part of creating and funding the ESOP.
The ESOP was created through an extensive due diligence period that involved financial and industry experts, an independent ESOP Trustee who worked with his own team of financial advisors and legal experts, and an independent third-party appraiser appointed by the Trustee to ensure that the ESOP transaction complied with ERISA and other laws and regulations protecting the ESOP participants and beneficiaries.
There are no Western Global shares in employees' 401(k) accounts. WGA's 401(k) program with Company match was not affected by the ESOP and has no relation to it.
ESOP participants did not purchase Western Global shares; the shares were granted to them at no out-of-pocket cost, in addition to other employee benefit programs. Participation in the ESOP is voluntary.
The only litigation related to the ESOP is a putative class action lawsuit that was commenced by two pilots shortly after the ESOP was established. There has been no new litigation related to the ESOP.
The Company intends to provide further updates as appropriate.
About Western Global Airlines
Western Global Airlines, headquartered in Estero, Florida, is structured for high flexibility and responsiveness to their customers' evolving needs worldwide, including last-minute changes. Streamlined efficiencies and advanced technology, in-house expertise, and vertical integration support their low-cost, high service model. They own all their 19 wide-body aircraft and engines, maintain an extensive parts inventory, and provide in-house maintenance support. Western Global created Team WGA - a people friendly environment where teamwork, cooperation, and excellence throughout the company are encouraged and rewarded. As one of the largest independent providers of worldwide commercial air cargo transportation services, their substantial critical mass ensures that shipping customers receive the cost savings they want. Team WGA has proven itself with some of the world's most discerning blue-chip logistics companies.
Media contact: WGAComms@fticonsulting.com
SOURCE Western Global Airlines