2/17/00

Dayton Daily News

Emery pilots warned of safety problems

DAYTON, Ohio _Wednesday's fatal crash in California of an Emery Worldwide Airlines DC-8 en route to Dayton follows more than two years of safety warnings by Emery pilots, according to internal records obtained by the Dayton Daily News.

The four-engine freighter jet crashed into an auto salvage yard Wednesday about 13 minutes after taking off at 7:30 p.m. local time from Mather Field in Sacramento.

The crew was attempting to return to the airport after declaring an emergency and reporting that the airplane had "an extreme center of gravity problem," according to the National Transportation Safety Board, which is investigating the accident. That could mean, among other possible causes, a shift in load, incorrect cargo weight or mechanical problems, Preston Hicks of the NTSB said Thursday.

Investigators were trying to locate the plane's flight data recorder and cockpit voice recorder in the smoking wreckage, Hicks said. The plane, carrying a load of transmission fluid, clothing and a small packet of detonators for auto air bags, was at 800 feet when it tried to return for an emergency landing. The airplane, bound for Emery's air freight hub at Dayton International Airport, erupted in flames and spread fire across the salvage yard.

All three crewmembers died in the crash. An Emery spokesman identified them as Capt. Kevin Stables, 43, of Berlin, N.Y.; First Officer George Land, 35, of Placerville, Calif., and Second officer Russell Hicks, 38, of Sparks, Nev. No one on the ground was injured, Emery spokesman Jim Allen said.

It was Emery's first fatal airplane crash. Emery began flying cargo in 1989.

In a prepared statement, Emery called the DC-8 "the backbone of Emery's air cargo fleet. The company has 38 DC-8s in its fleet and they are a very reliable aircraft for us."

Investigators have not determined the cause of the crash, but in the past two years Emery pilots have complained of improper loading as a safety concern in both internal "flight debrief" reports and in letters to the Federal Aviation Administration.

Emery pilots and the company are in the process of negotiating the pilots' first labor contract.

The identification number on the plane that crashed was N8079U. In August 1998, the same plane was forced to return to Tampa International Airport in Florida after one of its engines flamed out, according to the pilots' flight debrief report on the incident filed with Emery.

In a separate incident at Mather Field last May, the plane's crew became trapped in the cockpit when the cockpit doorknob broke off, according to the flight debrief report on the incident. The previous crew had written up the doorknob in the maintenance log, but a mechanic had written "cockpit door ops OK," the report said. The flight was delayed for three hours while a contract mechanic went to a Home Depot store for parts, according to the report.

The same airplane had problems with cabin pressure and a deicing system last May, according to a pilot report by Emery Capt. Mark Luthi. But on Thursday, Luthi said the DC-8 that crashed "was one of our better planes."

He said there was "no way to speculate" about what caused the airplane to crash.

The Dayton Daily News last June reported that the FAA is investigating an Emery manager's allegations of numerous violations of federal hazardous materials regulations, including shipping hazardous materials without adequate documentation, failing to notify pilots of hazardous cargo on board their aircraft and concealing problems from FAA inspectors.

Emery's Allen Thursday declined to discuss the pilots' safety complaints. In a prepared statement given the newspaper late last year, Emery said the pilots' safety concerns "are either old news and have since been reviewed by the FAA, or are presently under review."

"Overall, our safety record speaks for itself," said Rocco A. Sacci, Emery's director of corporate communications. "The FAA's looking at us all the time. They're looking at all the airlines all the time. This is a heavily regulated industry. We are in compliance with the requirements of the FAA."

In recent years, Emery pilots have filed reports with the company about overloaded airplanes, engines quitting on takeoff, brakes failing on landing, loss of hydraulic pressure in flight control systems, and broken navigation gear.

The reports also include allegations that maintenance crews sometimes kept airplanes flying by signing off faulty equipment as repaired, or repeatedly putting off maintenance on items that continued to fail in flight. In at least two cases, pilots refused to fly an airplane after they discovered that repairs had not been made.

FAA safety managers said they have investigated many of the pilots' reports, some of which remain under investigation. The complaints have not resulted in any enforcement actions by the FAA.

However, FAA safety managers last year said the FAA "is focused" on Emery's airline operations.

Last month, the agency launched its second major inspection of Emery Worldwide, known as a "regional airline safety inspection," in less than a year. The second inspection coincides with the transfer of Emery's airline certificate _ and the responsibility for inspecting Emery _ from an FAA district office in San Jose, Calif., to Cincinnati. The FAA is still investigating issues that arose in last year's inspection, a spokeswoman said.

Among the incidents still under investigation is one from June 14, 1999. A DC-8 loaded with auto parts at Flint, Mich., "barely" got off the ground before reaching the end of the runway, according to a crew report sent to the FAA.

Suspecting the airplane was heavier than their paperwork said, the captain increased the airplane's landing speed when it arrived in Dallas, Texas, according to the report. After landing, the captain had the cargo weighed and found it to be nearly 7 tons heavier than stated, the report said.

Had the crew used the weight figures ground loaders provided to calculate their landing speed, the airplane would have descended too quickly and "we could have ended up in the approach lights," the captain reported.

An FAA safety manager said the agency verified the heavier weight and is still investigating the incident.

Another in-flight emergency occurred over Dayton's northern suburbs early on June 13, 1998, when the main cargo door on an Emery DC-8 flew open just as the airplane was taking off, according to a report Rachford submitted to the FAA.

Emery Capt. Thomas G. Rachford reported the airplane resisted his efforts to raise or lower its nose or turn in either direction. He also heard a loud roar. Moments later, the Dayton air traffic control tower told him the jet's main cargo door was "full open." Without awaiting his response, the tower declared an emergency.

Rachford tried to return to the airport, but the large cargo door jutted from the plane's side like a second rudder. As it turned, the DC-8 swayed and "made a horrific noise" as the cargo door slammed against the plane's upper side, according to the report.

Concerned the door could rip off and smash into the wing or tail, Rachford said he landed the airplane as quickly as possible. Only when the plane touched down did the door-open warning light come on, according to crew reports. An FAA investigation never found what caused the door to open.

Rachford, who is also chairman of the Emery pilots' unit of the Air Line Pilots Association labor union, has been pressing the FAA to scrutinize Emery more closely.

In a September 1998 letter to a FAA safety manager then in charge of safety inspections for Emery, Rachford wrote: "I can't say it any clearer: This airline is going to put a hole in the ground and kill someone."

Asked about the pilots' reports last September, FAA safety managers said they weren't alarmed.

"I wouldn't call it routine, I wouldn't call it particularly alarming," said David Gilliom, Los Angeles-based flight standards manager for FAA's Western Pacific Region. Gilliom's region included the San Jose office that oversaw Emery until last December, when the FAA transferred that responsibility to its Cincinnati district office.

Gilliom could not be reached for comment Thursday, and a FAA spokeswoman said the agency would likely not make any additional comment because of the crash investigation.

On Thursday, Rachford said Emery pilots have had little to show from their discussions with the FAA.

"We were given a lot of meetings and a lot of opportunity to talk at a lot of levels, but there has been zero action," he said. "What's it going to take, one of these things going into a schoolyard?"

 

Los Angeles Times

February 17, 2000

CARGO PLANE CRASHES OUTSIDE SACRAMENTO, KILLING 3

An Emery Worldwide cargo plane crashed into an auto salvage yard Wednesday night after taking off from a Sacramento-area airport, killing all three crew members aboard.

The crash of the DC-8 transport service plane created a spectacular series of explosions as more than 100 cars burst into flames.

The plane took off from the former Mather Air Force Base at 7:52 p.m. bound for Dayton, Ohio, said Lou Padgug, airport operations officer for Sacramento International Airport. The base was decommissioned about a decade ago and is now a cargo and general aviation airport operated by Sacramento County. Shortly after takeoff, the pilot called the airfield's departure control and reported a problem.

"Right before the crash, the pilot said the plane had a center of gravity problem," Padgug said. "This means there was some kind of imbalance and he was having problems controlling the aircraft. On a plane like this, you load the cargo so the weight is distributed. You don't want too much in back or in front. The pilot might have felt the weight was not evened out."

Capt. Dan Haverty of the American River Fire Department said the pilot informed departure control that he had a problem with "unsettled cargo."

The plane was carrying automatic transmission fluid, clothing and small amounts of "detonating explosives," Haverty said.

From 100 to 200 cars, some with gasoline in their tanks, were set ablaze by the crash about one mile east of the airport, Haverty said. Throughout the night, there were small explosions in the salvage yards near the crash site.

Scattered pockets of flames dotted a five-acre site in an industrial area of Rancho Cordova, about 10 miles east of downtown Sacramento. Plumes of smoke from melting tires and plastic auto parts filled the air.

Firefighters on the ground and in helicopters tried to douse the scattered fires, but smoke was still billowing into the night sky several hours after the crash. There were no reports of injuries on the ground.

Lee Elrod, who owns a business in Rancho Cordova, said he ran out of his building after the windows starting rattling.

"I saw the pilot try to pull up four times," Elrod said. "He'd get to about 2,000-3,000 feet and drop again. Finally it was making a left bank and just dropped to the ground and exploded."

Ernie Killinger was standing nearby when he saw the plane drop from the sky.

"When it hit there was a huge explosion, and the fuselage came shooting out of the fireball," Killinger said. "The pilot looked to me that he was trying to flatten it out and land it in all that mess. He tried to flatten it out and lay it on its belly."

A number of large air cargo companies use Mather Airport, including Airborne Express and UPS, airport officials said. Emery has one flight a day out of Mather.

The crash scene was just off Sunrise Boulevard, a busy thoroughfare during rush hour traffic.

 

The San Francisco Examiner February 17, 2000, Thursday

Pilot's deadly alert of shifting cargo;

Returning to airport in Valley before fiery crash that killed 3

RANCHO CORDOVA, Sacramento County - Investigators are looking into t he possibility that shifting cargo may have caused the fiery crash of a DC-8 cargo plane that plunged into an auction yard of wrecked cars, killing the three people aboard.

The pilot of the Emery Worldwide Flight 17 reported that its cargo shifted shortly after takeoff from Mather Field east of Sacramento on Wednesday evening, authorities said. Because its balance was disrupted, the plane tried to return for an emergency landing but crashed and exploded about a mile east of the field shortly before 8 p.m.

Those aboard the plane, all believed to be Emery employees, were dead by the time fire crews arrived, said Capt. Dan Haverty of the American River Fire Department.

One witness said the plane hit the ground belly first and was surrounded by fire. Firefighters were hampered by intense flames, which burned for several hours after the crash. Smoke was visible in the moonlit night several miles away.

"There was no chance of rescue," Haverty said. He said no one on the ground, including a security guard at the salvage yard, was injured.

The names of the victims were withheld pending notification of next of kin. The three crew members included the pilot, the first captain and a flight engineer.

Flight 17 had taken off at 7:50 p.m. bound for Dayton, Ohio. The pilot immediately called back to the airport's departure control and reported a severe problem with the aircraft's balance, said Jim Whitehead, manager of the Federal Aviation Administration's regional operations in Los Angeles.

Witnesses said the plane veered to the left and went nose-down into the salvage yard, Insurance Auto Auctions, setting as many as 200 cars on fire, many with gas in their tanks, causing several explosions.

The crash sent a three-capped mushroom cloud into the air at least 2,500 feet.

The plane was carrying a load of transmission fluid, clothing and a small packet of detonating devices, which Haverty emphasized had nothing to do with the crash and fire. A spokesman for the Redwood City-based airline said the devices were 0.9 grams of fuses used to activate automobile air bags.

Debris cut a swath about 250 yards wide and a quarter mile long.

Firefighters worked into the night extinguishing scattered flames. Debris from the plane, including a 15-foot-long piece of the fuselage and a wheel assembly, was found scattered among the wrecked cars. Dozens of vehicles were crumpled.

The fire burned for more than two hours. A huge plume of black smoke blanketed the area. By midnight, firefighters were still putting out hot spots.

The crash site is in an unincorporated area near open fields and industrial parks just outside of Rancho Cordova.

Motorist Ernie Killinger of Orangevale said the plane hit the ground belly first.

"I saw the top of the plane. It was like he was crash-landing," said Killinger.

"When the plane come out of the flames, I saw the front half of the fuselage come out of the flames, and the cockpit was straight up, and it just rocked back and forth until it was engulfed by the flames," Killinger said. "I thought at one time it would outrun the flames."

FAA investigators, a bomb squad, officials from the Sacramento County coroner's office and a hazardous materials team were among those on the scene.

The plane was a DC-8 71, a four-engine plane manufactured by McDonnell Douglas, Allen said.

2/18/00

CRASH FOLLOWS PILOT WARNINGS, FAA PROBES

Emery pilots have reported loading problems, equipment failures and maintenance lapses

Wednesday's fatal crash in California of an Emery Worldwide Airlines DC-8 en route to Dayton follows more than two years of safety warnings by Emery pilots, according to internal records obtained by the Dayton Daily News .

The four-engine freighter jet crashed into an auto salvage yard Wednesday just over a minute taking off at 7:49 p.m. local time from Mather Field in Sacramento. All three crewmembers died in the crash.

The crew was attempting to return to the airport after declaring an emergency and reporting that the airplane had "an extreme center of gravity problem," according to the National Transportation Safety Board, which is investigating the accident. That could mean, among other possible causes, a shift in load, incorrect cargo weight or mechanical problems, Preston Hicks of the NTSB said Thursday. Investigators were trying to locate the plane's flight data recorder and cockpit voice recorder in the smoking wreckage, Hicks said.

The plane, carrying a load of transmission fluid, clothing and a small packet of detonators for auto air bags, was at 800 feet when it tried to return for an emergency landing. The airplane, bound for Emery's air freight hub at Dayton International Airport, erupted in flames and spread fire across the salvage yard.

An Emery spokesman identified the dead crew as Capt. Kevin Stables, 43, of Berlin, N.Y.; First Officer George Land, 35, of Placerville, Calif., and Second officer Russell Hicks, 38, of Sparks, Nev. No one on the ground was injured, Emery spokesman Jim Allen said.

It was Emery's first fatal airplane crash. Emery began flying cargo in 1989.

In a prepared statement, Emery called the DC-8 "the backbone of Emery's air cargo fleet. The company has 38 DC-8s in its fleet and they are a very reliable aircraft for us."

Investigators have not determined the cause of the crash, but in the past two years Emery pilots have complained of improper loading as a safety concern in both internal "flight debrief" reports and in letters to the Federal Aviation Administration.

Emery pilots and the company are in the process of negotiating the pilots' first labor contract.

CRASHED PLANE HAD PREVIOUS PROBLEMS The identification number on the plane that crashed was N8079U. In August 1998, the same plane was forced to return to Tampa International Airport in Florida after one of its engines flamed out, according to the pilots' flight debrief report on the incident filed with Emery.

In a separate incident at Mather Field last May, the plane's crew became trapped in the cockpit when the cockpit doorknob broke off, according to the flight debrief report on the incident. The previous crew had written up the doorknob in the maintenance log, but a mechanic had written "cockpit door ops OK," the report said. The flight was delayed for three hours while a contract mechanic went to a Home Depot store for parts, according to the report.

The same airplane had problems with cabin pressure and a deicing system last May, according to a pilot report by Emery Capt. Mark Luthi. But on Thursday, Luthi said the DC-8 that crashed "was one of our better planes."

He said there was "no way to speculate" about what caused the airplane to crash.

The Dayton Daily News last June reported that the FAA is investigating an Emery manager's allegations of numerous violations of federal hazardous materials regulations, including shipping hazardous materials without adequate documentation, failing to notify pilots of hazardous cargo on board their aircraft and concealing problems from FAA inspectors.

Emery's Allen Thursday declined to discuss the pilots' safety complaints. In a prepared statement given the newspaper late last year, Emery said the pilots' safety concerns "are either old news and have since been reviewed by the FAA, or are presently under review."

"Overall, our safety record speaks for itself," said Rocco A. Sacci, Emery's director of corporate communications. "The FAA's looking at us all the time. They're looking at all the airlines all the time. This is a heavily regulated industry. We are in compliance with the requirements of the FAA."

PILOTS REPORT PROBLEMS WITH PLANES

In recent years, Emery pilots have filed reports with the company about overloaded airplanes, engines quitting on takeoff, brakes failing on landing, loss of hydraulic pressure in flight control systems, and broken navigation gear.

The reports also include allegations that maintenance crews sometimes kept airplanes flying by signing off faulty equipment as repaired, or repeatedly putting off maintenance on items that continued to fail in flight. In at least two cases, pilots refused to fly an airplane after they discovered that repairs had not been made.

FAA safety managers said they have investigated many of the pilots' reports, some of which remain under investigation. The complaints have not resulted in any enforcement actions by the FAA.

However, FAA safety managers last year said the FAA "is focused" on Emery's airline operations.

FAA BEGINS MAJOR INSPECTION

Last month, the agency launched its second major inspection of Emery Worldwide, known as a "regional airline safety inspection," in less than a year. The second inspection coincides with the transfer of Emery's airline certificate - and the responsibility for inspecting Emery - from an FAA district office in San Jose, Calif., to Cincinnati. The FAA is still investigating issues that arose in last year's inspection, a spokeswoman said.

Among the incidents still under investigation is one from June 14, 1999. A DC-8 loaded with auto parts at Flint, Mich., "barely" got off the ground before reaching the end of the runway, according to a crew report sent to the FAA.

Suspecting the airplane was heavier than their paperwork said, the captain increased the airplane's landing speed when it arrived in Dallas, Texas, according to the report. After landing, the captain had the cargo weighed and found it to be nearly 7 tons heavier than stated, the report said.

Had the crew used the weight figures ground loaders provided to calculate their landing speed, the airplane would have descended too quickly and "we could have ended up in the approach lights," the captain reported.

An FAA safety manager said the agency verified the heavier weight and is still investigating the incident.

Another in-flight emergency occurred over Dayton's northern suburbs early on June 13, 1998, when the main cargo door on an Emery DC-8 flew open just as the airplane was taking off, according to a report Rachford submitted to the FAA.

Emery Capt. Thomas G. Rachford reported the airplane resisted his efforts to raise or lower its nose or turn in either direction. He also heard a loud roar. Moments later, the Dayton air traffic control tower told him the jet's main cargo door was "full open." Without awaiting his response, the tower declared an emergency.

Rachford tried to return to the airport, but the large cargo door jutted from the plane's side like a second rudder. As it turned, the DC-8 swayed and "made a horrific noise" as the cargo door slammed against the plane's upper side, according to the report.

Concerned the door could rip off and smash into the wing or tail, Rachford said he landed the airplane as quickly as possible. Only when the plane touched down did the door-open warning light come on, according to crew reports. An FAA investigation never found what caused the door to open.

Rachford, who is also chairman of the Emery pilots' unit of the Air Line Pilots Association labor union, has been pressing the FAA to scrutinize Emery more closely.

In a September 1998 letter to a FAA safety manager then in charge of safety inspections for Emery, Rachford wrote: "I can't say it any clearer: This airline is going to put a hole in the ground and kill someone."

Asked about the pilots' reports last September, FAA safety managers said they weren't alarmed.

"I wouldn't call it routine, I wouldn't call it particularly alarming," said David Gilliom, Los Angeles-based flight standards manager for FAA's Western Pacific Region. Gilliom's region included the San Jose office that oversaw Emery until last December, when the FAA transferred that responsibility to its Cincinnati district office.

Gilliom could not be reached for comment Thursday, and a FAA spokeswoman said the agency would likely not make any additional comment because of the crash investigation.

PILOTS COMPLAIN

OF 'ZERO ACTION'

On Thursday, Rachford said Emery pilots have had little to show from their discussions with the FAA.

"We were given a lot of meetings and a lot of opportunity to talk at a lot of levels, but there has been zero action," he said. "What's it going to take, one of these things going into a schoolyard?"

 

LA Times 2/18/00

CARGO AIRLINE HAD PROBLEMS LONG BEFORE CRASH, FAA SAYS;

ACCIDENT: COMPLAINTS OF LOADS INADEQUATELY SECURED AND SHIFTING DANGEROUSLY IN PLANES PROMPTED INSPECTION, OFFICIAL SAYS.

EMERY WORLDWIDE HAD PROBLEMS WITH INADEQUATELY SECURED CARGO ON ITS PLANES LONG BEFORE WEDNESDAY'S FATAL CRASH OF A DC-8 CARGO JET, A FEDERAL AVIATION ADMINISTRATION OFFICIAL SAID THURSDAY.

One of the pilots of Emery's Flight 17 had reported a "center-of-gravity" problem moments after taking off from Mather Airport, a former Air Force base in suburban Sacramento. That could mean the plane's cargo shifted dangerously or was positioned improperly in the fuselage of the long, four-engine jetliner, a National Transportation Safety Board investigator said.

Center-of-gravity problems can make a plane difficult--if not impossible--to fly. The FAA official, Terge Kristiansen, who once had responsibility for checking some of Emery's planes, said the agency has had misgivings about the way the company strapped down cargo in some airliners.

"There were some problems with it, we can't deny that," Kristiansen said. "It's fair to say there were concerns raised."

Last year, he said, those concerns and pilot complaints prompted a comprehensive FAA inspection of Emery planes that focused on "loading issues."

But neither Kristiansen nor an FAA spokesman in Seattle would divulge the results of that inspection. They also declined to comment on a former Emery pilot's contention that the FAA had grounded some of the airlines' planes last winter and off and on before that because of inadequately secured cargo.

James Allen, a spokesman for the Redwood City-based carrier, said that to his knowledge, the company had not experienced any particular problems with its straps or other cargo-stabilizing equipment. He said he was unaware of any pilot complaints about the issue, or of any FAA investigation addressing it last year.

He added, however, that "it wouldn't be out of the ordinary" for the FAA to inspect the straps and locks and recommend replacements.

"We move a lot of freight," Allen said. "There are a lot of containers, a lot of straps. These things are constantly evaluated."

The former Emery pilot, Steven Weinstein, said that the carrier had repeated problems with the straps and locks that keep cargo from shifting.

Weinstein, who flew for the company for two years before leaving nine months ago to take a job as a sales manager for a high-tech company in Silicon Valley, said the FAA has grounded Emery flights on numerous occasions because of problems with the cargo tie-down equipment.

"Emery knew they were having trouble with cargo shifts," said Weinstein, who continues to fly with the U.S. Air Force Reserve. "I, personally, was on over a dozen flights where the FAA came out, inspected airplanes and made us replace the cargo straps because they were unsafe."

On other occasions, Weinstein said, flights were grounded by the FAA until Emery replaced severely frayed netting that covers cargo and helps hold it in place.

"Emery knew about all this, and they never had a decisive maintenance program to come after this problem and fix it," Weinstein said. "They took an ad hoc approach. . . . They're a cargo airline; that's inexcusable."

Weinstein said cargo is loaded onto planes on pallets with rollers on the bottom for easy movement during packing. There are multiple elements to the system that holds most cargo in place. These include the netting that covers the load and locks on the floor that secure the pallets in place with nylon straps.

On any flight, the pilot in command is ultimately responsible for ascertaining that the plane is airworthy. In the case of Flight 17, that included ensuring that the cargo was secured properly.

Flight 17 took off from Mather at 7:52 p.m. Wednesday and headed east for Dayton, Ohio, with a 62,000-pound load that included transmission fluid, clothing and a small packet of detonators like those used to activate automobile air bags. The plane can carry about 90,000 pounds of freight.

Shortly after liftoff, one of the pilots told air traffic controllers that he was having trouble controlling the DC-8 because of "unsettled cargo."

Weinstein said if the cargo had been loaded too far back in the plane, or shifted there as the jetliner climbed out after takeoff, the DC-8 could have stalled--losing the lift that holds it up in the air.

"The plane becomes tail-heavy and starts to sink," he said. "And it can't recover."

The jetliner was attempting to return to Mather for an emergency landing when it slammed belly first into a junked-auto auction yard and burst into flames. Fire quickly engulfed scores of cars parked in the salvage yard, creating a dramatic scene a few blocks from a busy thoroughfare that had been crowded with commuters only a few hours earlier.

Killed in the crash were the plane's captain, Kevin Stables, 43, of Berlin, N.Y.; co-pilot George Land, 35, of Placerville, Calif., and flight engineer Russell Hicks, 38, of Sparks, Nev. Stables had been with the airline five years, Land for three and Hicks for one.

Emery issued a statement Thursday expressing sadness over the loss of the three crew members. Allen said it was the first fatal crash in the company's 50-year history.

Allen called the DC-8 "the backbone" of Emery's 65-plane fleet, which also includes DC-10s and Boeing 727s. He said there is one flight out of Sacramento each day.

On Thursday afternoon, Flight 17's two "black boxes," the flight data recorder and cockpit voice recorder, were recovered from the seared wreckage and flown to Washington for analysis. George Black of the NTSB, who is leading the investigation, said the devices could provide information about how the crash occurred.

The accident was similar in some respects to the crash of another DC-8 in Miami in 1997.

In that crash, a Fine Air cargo plane stalled and slammed into the ground moments after takeoff from Miami International Airport, killing the three-man cockpit crew, a security guard aboard the aircraft and a motorist on the ground.

The NTSB concluded that loading the cargo too far aft had unbalanced the plane and caused the crash.

Fine Air and a contractor the airline had hired to load the plane received primary blame, but the NTSB also faulted the FAA for "failure to adequately monitor Fine Air's operational control responsibility for cargo loading and . . . failure to ensure that known cargo-related deficiencies were corrected by Fine Air."

 

The Dayton Daily News

February 16, 2001, Friday,

FAMILIES WANT ANSWERS A YEAR AFTER FATAL CRASH

3 died when Emery cargo jet went down

Timothy R. Gaffney, Dayton Daily News

ALEXANDRIA, Va. - Fred Chesbro is waiting to find out what caused the crash of the Emery Worldwide Airlines jet that killed his brother-in-law and two other crew members one year ago today.

Kevin Stables, 43, of Berlin, N.Y., was captain of the DC-8 freighter jet that crashed into an auto auction yard near Sacramento, Calif., last Feb. 16.

The National Transportation Safety Board plans to hold a public hearing on its findings, a rarity in cargo crash investigations, but it hasn't set a time or place. Meanwhile, it has released little information since the crash. Chesbro, 35, an Army major and military pilot at Fort Belvoir, Virginia, recalled getting "this phone call in the middle of the night" a year ago and turning on CNN to see a fiery spectacle.

"It looked like hell on earth," he said.

Emery Flight 17 had just taken off from Mather Field for a flight to Emery's global air freight hub at Dayton International Airport. A witness on the ground saw the plane "porpoise slightly," its nose pitching up and down as it flew, the safety board reported.

Stables radioed a request to return to the airport and reported "extreme CG (center of gravity) problems," according to Chesbro, who said he has listened to a replay of the transmission.

The four-engine jet plowed into the auction yard, erupted in flames, and triggered other fires as it cut a 600-yard-long swath through cars and trucks parked in the yard.

The crash also claimed the lives of First Officer George Land, 35, of Placerville, Calif., and Second Officer Russell Hicks, 38, of Sparks, Nev. No one on the ground was injured.

Chesbro drove to Stables' upstate New York farm to be with his sister Kathleen, Stables' wife, and their two young sons. Then he went with them to California to view the accident scene.

"It didn't look too much better a day or two after the accident. It was scorched earth," he said.

Last month, Mrs. Stables filed a wrongful-death lawsuit in Montgomery County Common Pleas Court against Emery, its parent company, CNF Inc., and other parties. The lawsuit claims the airplane was "uncontrollable" because of "cargo misloading, a cargo shift, improper weight and balance, or defective or improperly maintained cargo handling system or flight control equipment."

Some Emery crew members complained about safety problems with the DC-8s for years before the crash, according to documents obtained by the Dayton Daily News .

Chesbro wouldn't speculate on the cause of the crash. But he said information released so far sounds disturbingly similar to the 1997 crash of a Fine Air DC-8 freighter in Miami, Fla., which killed four in the plane and one on the ground. An investigation found the airplane was overloaded.

Chesbro said he pressed the safety board to hold a public hearing on the Emery crash to focus more attention on safety in air cargo, the fastest growing sector of the airline industry. Only a late departure prevented the Emery jet from hitting the auction yard while it was still open, with hundreds of people in it, he said.

Chesbro called his brother-in-law "one of the type of guys who wanted to fly since the time he could crawl . . . the same kind of guy you would want flying your family. He was the kind of guy who would not cut corners, and that is part of this thing to me."

Chesbro said it has been tough not knowing why his brother-in-law died, but he said he wants a thorough investigation.

"If it means taking extra time to do it right, so be it," he said.

 

Delivered report casts new light on Emery

 

By Wes Hills and Timothy R. Gaffney

 

e-mail address: timothy_gaffney@coxohio.com

 

Dayton Daily News

 

DAYTON | More than two years after the fatal crash of an Emery Worldwide Airlines cargo jet raised questions about aircraft maintenance, federal investigators have been provided a report alleging Emery continued to ignore serious safety problems with its aircraft.

 

Among the allegations in the report was one that Emery permitted use of a jet engine its own engineers had ordered to be taken out of service. The engine later blew apart in mid-air, damaging the airplane and forcing an emergency landing.

 

In the Sept. 27, 2000, report, Mark McConaughy, then the Federal Aviation Administration's principal operations inspector in Cincinnati, further charged that an Emery maintenance supervisor was fired when he would no longer allow use of a commercial repair shop that overhauled engines for Emery's cargo jets because of inadequate repairs.

 

The day after the maintenance supervisor was fired, McConaughy states, the repair shop resumed servicing Emery's planes.

 

Emery's parent corporation, Palo Alto, Calif.-based CNF Inc., disbanded its airline in December as part of a corporate restructuring that consolidated Emery and other operations into a new unit, Menlo Worldwide. The airline had been grounded since August, when CNF stopped flying due to pressure from the FAA.

 

But CNF still owns a fleet of Boeing 727 airliners operated under contract by Wichita, Kan.-based Ryan Airlines, another all-cargo airline. The FAA report said the same shop that worked on Emery's DC-8 engines also overhauled its 727 engines.

 

CNF Spokesman Jim Allen on Wednesday said the company is not aware of any investigation other than the ongoing National Transportation Safety Board investigation of a February 2000 crash near Sacramento, Calif. He said the company was also unaware of the FAA report and had no comment on statements made in the report.

 

The crash, which killed all three crewmembers, raised questions of maintenance oversight by both Emery and the FAA after NTSB investigators found indications of improper maintenance on the jet's tail.

 

NTSB member John Goglia on Wednesday said the board has rescheduled a public hearing on the crash for May 9. He also said the NTSB will hold a separate hearing, probably later in May, to examine the entire air cargo industry.

 

In taped conversations with Tom Rachford, a former Emery pilot and an executive with the Air Line Pilots Association, McConaughy said his memo disappeared from an FAA database. That tape was subsequently given to the FBI, which says it turned it over to an investigator for the Department of Transportation Inspector General's Office in Cincinnati.

 

"We can't confirm or deny" an investigation, said David Barnes, a Washington, D.C.-based spokesman for the inspector general's office.

 

The Cincinnati office has been conducting a criminal investigation into Emery's handling of hazardous materials in cargo shipments.

 

FAA Spokeswoman Elizabeth Cory said McConaughy's report never disappeared.

 

"It was never hidden. It just wasn't in the (FAA's computer) system," Cory said.

 

McConaughy, who was promoted last year to aviation safety instructor at the FAA Academy in Oklahoma City, confirmed he authored the report and that it is being investigated.

 

McConaughy said he has had little contact with investigators.

 

"I've heard enough to know it's being looked into," he said.

 

As for the disappearance of his report, McConaughy said, "Let's just say, yeah, they found it. They had help."

 

Rachford said he hopes McConaughy is called to testify at the NTSB hearing into Emery's Sacramento crash.

 

McConaughy said he's "been told it's a possibility" that he will testify at that hearing but, "I haven't seen the subpoena."

 

The company Emery uses to repair its engines is also authorized to repair engines for any commercial carrier in the nation. The company's Web site describes it as a diversified energy services company with more than 9,000 employees in 30 countries.

 

The Dayton Daily News is not identifying that company, which declined comment, because it has not been charged with any wrongdoing.

 

In one instance McConaughy reported, Emery kept using an engine on one of its four-engine DC-8s for six weeks after an employee ordered it removed.

 

Six weeks later, on April 27, 2000, the engine experienced "a compressor stall so violent that it blew two cowlings off the engine," McConaughy reported. The airplane was cruising at 38,000 feet over the Rocky Mountains at the time, according to an NTSB report. Debris tore holes in the fuselage, damaged the tail and forced the crew to make an emergency landing in Denver, Colo.

 

"It is this writer's opinion that this could have resulted in catastrophic loss of the aircraft," McConaughy states.

 

The investigation into McConaughy's report is the second Department of Transportation probe of CNF's air freight operations. A federal grand jury early last year began investigating possible criminal safety violations in the handling of hazardous materials shipped through CNF's Dayton freight hub.

 

In addition, the NTSB is continuing its probe into the crash of Emery Flight 17.

 

The board was to hold a public hearing on the crash last August in Washington, D.C. Two weeks before the hearing date, the FAA threatened to revoke Emery's operating certificate unless it stopped flying immediately.

 

Emery complied and signed an agreement with the FAA to go through a lengthy process to resolve safety issues and get its airplanes flying again. The agreement included paying $1 million to settle FAA claims of rule violations.

 

• Contact Timothy R. Gaffney at 225-2390 or e-mail him at timothy_gaffney@coxohio.com

 

 

Lawsuit claims Emery ignored parts problems

 

Jet crash killed three crew members

 

By Rob Modic

 

e-mail address: rob_modic@coxohio.com

 

Dayton Daily News

 

DAYTON | A wrongful-death lawsuit against Emery Worldwide Airlines and several other companies claims the air freight carrier ignored warnings and that other companies negligently overhauled and supplied parts for an Emery jet that crashed two years ago in California shortly after take-off.

 

The lawsuit, filed in Montgomery County Common Pleas Court, is on behalf of Emery Flight Engineer Russell Hicks, 38, of Sparks, Nev., who died in the crash with two other crew members.

 

The lawsuit also names as defendants Tennessee Technical Services, of Smyrna, Tenn.; Willis Aeronautical Services, of San Diego, Calif.; and Complete Controls, of Tucson, Ariz.

 

Willis and Complete Controls contracted with Emery and TTS to provide parts, including elevator control assemblies, for the four-engine DC-8 that plunged into an auto auction yard near Sacramento on Feb. 18, 2000.

 

Thursday, Emery spokeswoman Nancy Colvert said the company had not seen the lawsuit and declined comment.

 

She also said the National Transportation and Safety Board investigation is pending and that a final report has not been issued.

 

Last August, the NTSB released information that said a bolt was missing from an essential part of the control system. The bolt should have connected the pilot's controls to one of the plane's elevator control tabs, which a pilot uses to control a plane's pitch, according to the NTSB report.

 

Dave Henley, TTS director of special projects, said last August in response to the NTSB report: "We have conducted internal investigations here . . . and we are confident when the aircraft departed TTS, the bolt was installed" and secured. "Our feeling is that the system was gone into after it left TTS."

 

Henley was not available Thursday for comment, but another spokesman for the company said Henley’s previous comments would serve as a response.

 

A woman at Complete Controls, who declined to give her name, said the company knew "nothing about the lawsuit."

 

Willis could not be located for comment, but a spokeswoman for a company identified in the lawsuit as the newly named corporation said Avioserv San Diego, Inc., had no comment because the case is pending. She also suggested that the lawsuit misidentified the company.

 

According to the lawsuit, Emery was warned about poor maintenance and misloading problems of its aircraft by written debriefings from its flight crews and by the Emery Worldwide MEC Air Line Pilots Association, Int.

 

"The Emery MEC had provided defendant Emery’s parent with disturbing safety-related information about EWA’s flight operations. The (Federal Aviation Administration) had found similar problems in 1999 and January 2000," according to the lawsuit.

 

• Contact Rob Modic at 225-2282 or e-mail him at rob_modic@coxohio.com

 

[From the Dayton Daily News: 02.15.2002]

 

 

Emery subject of suit seeking layoff damages

 

Company acted illegally, ex-employees contend

 

By Wes Hills and Timothy R. Gaffney

 

e-mail address: wes_hills@coxohio.com

 

Dayton Daily News

 

DAYTON | Five former Emery Worldwide Airlines employees have filed a federal lawsuit against the company, charging that it laid off 800 pilots and ground crew in August without giving a required 60-day notice.

 

The lawsuit, filed Tuesday in U.S. District Court in Dayton, seeks certification as a class action and charges the "reason for the layoffs was that the Federal Aviation Administration (FAA) unexpectedly informed EWA it needed to cease flight operations or the FAA would suspend its certificate."

 

At the time of the layoffs, the lawsuit states, EWA said they "would be temporary and that if the issues with the FAA were resolved, employees could expect to be recalled."

 

CNF Inc., EWA's parent company, is named as a defendant besides Emery.

 

"At this time we have not been served with anything," CNF spokeswoman Nancy Colvert said from the company’s headquarters in Palo Alto, Calif. "I can't comment on anything I haven't seen."

 

Emery Worldwide Airlines agreed to ground its fleet in August after the FAA found what it claimed to be more than 100 safety violations in a series of special inspections during 18 months.

 

Subsequently, the airline agreed to pay a $1 million fine and take a long list of corrective steps aimed at resuming operations.

 

Pilots had been complaining about safety problems at the airline for years, in some cases writing letters to top company executives and FAA safety managers.

 

In February 2000, all three crew members on EWA Flight 17 died when a fully-loaded DC-8 crashed shortly after takeoff into an auto auction yard in Sacramento, Calif.

 

The National Transportation Safety Board, which is investigating the crash, scheduled a public hearing in August that it said would look at EWA's use of contract maintenance and its oversight by both EWA and the FAA.

 

The safety board postponed the meeting indefinitely after EWA grounded its fleet. The hearing has not been rescheduled.

 

The EWA furloughs became permanent in December when CNF rolled three of its companies — Emery Worldwide, Menlo Logistics and Vector SCM — into a single operation, Menlo Worldwide.

 

The restructuring included the decision not to resume airline operations.

 

That permanent suspension of its employees, the lawsuit charges, constituted a "plant closing" requiring a 60-day notice.

 

The Emery pilots' council of the Air Line Pilots Association filed grievances after the grounding, claiming it violated contract language aimed at preventing the company from turning over the pilots' work to contractors.

 

Emery has contracted with other cargo airlines to carry its freight since the grounding.

 

Union officials have said the grievances have not been resolved.

 

The lawsuit seeks 60 days' payment of wages and benefits for the permanently furloughed Emery employees.

 

 

 

Contact Wes Hills at 225-2261 or e-mail him at wes_hills@coxohio.com

 

[From the Dayton Daily News: 02.14.2002]

 

 

Aviation Daily: Maintenance Error Caused Emery Gear-Up Landing, NTSB Says

 

By Sean Broderick/Aviation Daily

 

26-Feb-2002 9:50 AM U.S. EST

 

Emery mechanics put the wrong part on a DC-8 and failed to do a required post-maintenance test, causing the plane's next flight to end with a gear-up landing, NTSB concluded.

 

The April 2001 incident at Nashville came 14 months after a fatal crash involving an Emery DC-8 near Sacramento that may be linked to poor maintenance, and four months before FAA forced Emery to ground its fleet over questions about maintenance oversight (DAILY, Aug. 14, 2001). Emery has since shut down its airline unit (DAILY, Dec. 6, 2001).

 

The DC-8-71F involved in the Nashville incident had work done on its landing gear at Emery's Dayton base the night before, NTSB found. At the end of the freighter's first flight out the next morning, the DC-8's left main gear would not extend. The crew managed to bring the plane down safely on the two working gear sets, limiting damage to scraping of the Nos. 1 and 2 engine cowlings.

 

Following the incident, investigators discovered that mechanics installed an incorrect hydraulic restrictor valve in the gear unit, NTSB said. The valve allowed the gear to retract, but not extend. The valve was not marked with a part number, and a tag that mechanics said was attached to the part showed an incorrect number.

 

Maintenance logs indicated mechanics "ops" tested the repair before returning the plane to service, but the Emery crew that met the plane in Nashville could not get the gear to extend without bypassing the new valve. Seeking more evidence, mechanics swapped the plane's right-main gear restrictor valve with the recently installed valve. The left-main gear then worked normally.

 

NTSB continues to probe the February 2000 accident near Sacramento, which killed all three crewmembers. But information released by the board last August suggests the accident may have been caused by improper maintenance on the plane's elevators.

 

A hearing on the accident slated for last August -- which would have been the first for a cargo airline crash -- was postponed when the carrier grounded its fleet. It has not been rescheduled.

 

 

14:45 EST Wednesday

 

CNF shutters airline unit

 

Kevin Kemper DBJ Staff Reporter

 

Emery Worldwide Airlines is no more today, after officials from parent company CNF Inc. opted to scrap the airline and consolidate company operations.

 

California-based CNF today said it will combine business units Emery Worldwide, Menlo Logistics and Vector SCM into Menlo Worldwide, a single company that will market global logistics, transportation, freight forwarding and supply chain management.

 

Emery Worldwide Airlines, based in Dayton, will be scrapped to save money.

 

CNF officials, however, pledge to continue hub operations at Dayton International Airport.

 

Emery Worlwide Airlines has been grounded since Aug. 13 by the Federal Aviation Administration. Since then, the company has used Wichita, Kan.-based Ryan Aviation and other operators to continue shipping, while approximately 800 pilots, crew members and other administrative personnel were laid off.

 

By scrapping Emery Worldwide Airlines, CNF is expected to save approximately $100 million per year by eliminating assets and reducing operating costs, said Gregory Quesnel, CNF president and chief executive officer.

 

He said the company will continue to use Ryan Aviation and other contractors for flight needs.

 

According to an industry analyst, losing the airline and consolidating the other units was the right thing to do.

 

"It's definitely a good step in the right direction," said Tony Cristello, analyst with BB&T Capital Markets in Richmond, Va. "The overhang on the (CNF) stock was due to Emery and the airlines."

 

During the third quarter, the company reported a $10.4 million loss, or 21 cents per share, and a net loss of $185.8 million, or $3.81 per share, for the first nine months of 2001.

 

CNF estimates the company incurred $17 million in additional expenses with Emery Worldwide Airline's grounding.

 

The demise of the airlines division may not have been unexpected, though.

 

In a letter dated Nov. 5, Emery Worldwide Airlines Chief Executive Officer Jerry Trimarco informed Dayton Mayor Michael Turner that it was taking the company more time than expected to meet Federal Aviation Administration demands that would put its planes back in the air.

 

The company would be kaput, he said, without a cash infusion.

 

CNF spokeswoman Nancy Colvert said the capital would have had to come from CNF, a measure the board of directors did not support.

 

Wall Street reacted positively to the news today, sending CNF stock up nearly 15 percent, or $28.70 per share, in afternoon trading on the New York Stock Exchange.

 

 

Emery Worldwide Airlines grounded for good

 

Dayton Daily News

 

DAYTON | CNF Inc. announced today it will not resume operations of Emery Worldwide Airlines as part of a major restructuring of its wide-ranging freight hauling operations.

 

The airline was based at Dayton International Airport, which also was the site of Emery's main freight hub. The impact of the restructuring at the airport was unclear.

 

In mid-August, Emery grounded its fleet of 37 cargo-carrying jets and curtailed other operations at the airport under pressure from the Federal Aviation Administration. The FAA threatened to revoke Emery's operating license for more than 100 alleged safety violations tallied since January 2000.

 

Emery continued to haul freight using contract carriers. Before the grounding, Emery employed 3,400 people at the airport, including 1,900 full-time workers.

 

CNF said today it will combine its Menlo Logistics, Emery Worldwide and Vector SCM operations for form Menlo Worldwide. The new company will have annual sales of $3 billion, 15,000 employees and more than 200 service centers and operating centers.

 

CNF said a reformed Emery will be a division of Menlo Worldwide and will haul freight using a fleet of contract air carriers, as it has done since mid-August.

 

"By altering the basic business model of Emery in North America, we are taking a major step in CNF's strategy of reducing assets in a way that will benefit both customers and investors," said Gregory L. Quesnel, president and chief executive of CNF.

 

CNF said it will take an after-tax charge of about $200 million in the fourth quarter for ceasing operations of the airline. Much of charge reflects the "planned disposal of all aircraft, leases and other costs," the company said.

 

CNF stock (NYSE:CNF) was trading up $3.32 at $28.32 late this morning.

 

[From the Dayton Daily News: 12.05.2001]

 

 

CNF grounds Emery for good

 

December 5, 2001: 6:05 p.m. ET

 

Freight company will use other cargo carriers, take $200M 4Q charge.

 

By Staff Writer Chris Isidore

 

Emery Worldwide grounds cargo jets - Aug. 13, 2001

 

FedEx foes trying to block postal deal - Apr. 3, 2001

 

FedEx, USPS approve deal - Jan. 10, 2001

 

CNN.com - Emery DC-8 cargo plane crashes near Sacramento - Feb. 17, 2000

 

CNF

 

Menlo Worldwide

 

NEW YORK (CNN/Money) - CNF Inc. is giving up attempts to get its Emery Worldwide cargo airlines back in the air and will take a $200 million charge for permanently shutting the operation.

 

The company has not been able to fly its own cargo jets since August, when the Federal Aviation Administration threatened to revoke its operating certificate if it did not voluntarily ground the planes. The FAA cited a continued series of maintenance problems that its officials said appeared to have played a role in a series of crashes, including one fatal crash.

 

The company has operated Emery since August using aircraft operated under contract by other cargo carriers. It will essentially continue to do the same, merging Emery into a new unit called Menlo Worldwide, which will include Menlo Logistics, a company that handles customers' logistics management, and Vector SCM, which is a joint venture with General Motors Corp. (GM: Research, Estimates) that manages GM's worldwide distribution system.

 

The company said that Emery CEO Chutta Ratnathicam will return to his former position as Chief Financial Officer of holding company CNF, while Menlo Logistics CEO John Williford will be CEO of the new combined Menlo Worldwide.

 

At the time of the August grounding, the company said it would work with the FAA to try to get its own planes back in the air. But the latest move is not unexpected. Even before the maintenance problems grounded Emery there was a belief among analysts that the air cargo market had at least one carrier too many operating its own planes, especially with a weaker U.S. economy cutting into demand for air cargo shipments.

 

"By altering the basic business model of Emery in North America, we are taking a major step in CNF's strategy of reducing assets in a way that will benefit both customers and investors," said a statement from CNF CEO Gregory Quesnel.

 

Emery also suffered a setback when it lost a contract to carry a large amount of priority mail from the U.S. Postal Service to FedEx Corp., a move it fought unsuccessfully in court.

 

Most of the charge that the company will take in the fourth quarter is for disposal of aircraft, leases and other costs. About 130 workers at Emery Worldwide will lose their jobs as a result of the move, with 90 workers being laid off by the end of the week, followed by another 40 workers over the next six to nine months, a spokesman told Reuters. The company's air operations still had about 200 employees after about 800 people lost their jobs following the grounding in August.

 

In addition to Menlo Worldwide, CNF's operations include Con-Way Transportation Services Inc., a series of nonunion regional trucking companies providing near national coverage.

 

Reuters contributed to this report

 

Breaking News

 

00:03 EST Thursday

 

Ryan to continue its work for CNF

 

Wichita-based Ryan International Airlines will continue its contract work for CNF Inc., the parent of Emery Worldwide Airlines, which is now out of business.

 

Emery Worldwide was scrapped after officials from CNF Inc. decided to consolidate company operations.

 

California-based CNF said it will combine business units Emery Worldwide, Menlo Logistics and Vector SCM into Menlo Worldwide, a single company that will market global logistics, transportation, freight forwarding and supply chain management.

 

Ryan is contracted to operate up to 17 Boeing 727s for CNF and will continue that service.

 

"They (Ryan) are definitely part of the network going into the new year," says Nancy Colvert, spokeswoman for CNF. "By far, they have the largest chunk of planes."

 

Ryan has had a long relationship with CNF and Colvert expects that relationship to continue "for some time."

 

Dayton, Ohio-based Emery Worldwide has been grounded since Aug. 13 by the Federal Aviation Administration.

 

By ending Emery Worldwide, CNF is expected to save approximately $100 million a year by eliminating assets and reducing operating costs, said Gregory Quesnel, CNF president and chief executive officer.

 

According to an industry analyst, losing the airline and consolidating the other units was the right thing to do.

 

"It's definitely a good step in the right direction," said Tony Cristello, analyst with BB&T Capital Markets in Richmond, Va. "The overhang on the (CNF) stock was due to Emery and the airlines."

 

During the third quarter, the company reported a $10.4 million loss, or 21 cents a share, and a net loss of $185.8 million, or $3.81 a share, for the first nine months of 2001.

 

CNF estimates the company incurred $17 million in additional expenses with Emery Worldwide's grounding.

 

The demise of the airlines division may not have been unexpected, though. In a letter dated Nov. 5, Emery Worldwide Airlines CEO Jerry Trimarco informed Dayton Mayor Michael Turner that it was taking the company more time than expected to meet Federal Aviation Administration demands that would put its planes back in the air. The company would be finished, he said, without a cash infusion.

 

History of Emery

 

Dayton Daily News

 

CNF Inc.'s announcement Wednesday is the most recent development in what has been a tumultuous history for Emery Worldwide Inc. operations. One of the area's stalwart employers, Emery's fortunes have swung wildly since a botched acquisition in 1987.

 

• 1929: Consolidated Freightways Inc. established.

 

• 1946: Emery Air Freight founded in New York by John C. Emery Sr.

 

• 1981: Emery opened its $85 million North American sorting center at Dayton International Airport, employing 350.

 

• 1987: Emery acquired Purolator Courier in a bid to conquer the small-package market. It was a bad union from the start, and Emery began a five-year slump.

 

• 1989: Emery Air Freight became Emery Worldwide after being acquired by Consolidated Freightways and merged with CF AirFreight.

 

• 1990: Emery Worldwide Airlines headquarters moved from California to Dayton, bringing more than 600 jobs.

 

• 1991: Emery missed out on a U.S. Postal Service contract for overnight and express mail only months after US Air announced it was pulling out of its Dayton hub. Analysts predicted the end of Emery's Dayton hub. Emery employment in Dayton stood at 1,800.

 

• 1992: Emery won $200 million in contracts from General Motors Corp. and Chrysler Corp., becoming the primary air-freight carrier for both companies' manufacturing operations. The contracts strengthened the future of the Dayton hub and its 1,450 employees.

 

• 1993: Emery Worldwide posted its first annual profit since 1986.

 

• 1994: Emery announced a $33 million modernization and expansion plan for its Dayton operations.

 

• 1996: Celebrating its 50th anniversary as an air-freight company and its 15th anniversary of hub operations in Dayton, Emery opened a 100,000-square-foot logistics complex. That year, the company employed more than 2,100 people and processed more than 1 billion pounds of freight, more than three times the amount it handled in 1989.

 

• 1996: Consolidated Freightways renames itself CNF Inc. and spins off its national long-haul motor carrier unit, bearing the Consolidated Freightways trademark. CNF consists of Emery Worldwide, Con-Way Transportation Services and Menlo Logistics.

 

• 1997: The Postal Service awards Emery a $1.7 billion contract for Priority Mail delivery, creating 600 jobs. Buoyed by the United Parcel Service strike, Emery had its best year ever.

 

• 1998: Emery's employment in Dayton grows to more than 4,000 people.

 

• 1999: Dayton unveiled a $1 billion expansion plan aimed at increasing its cargo-handling capacity. With the expansion, the city said, Emery could more than double its local work force over 20 years.

 

• 1999: The Federal Aviation Administration launched an investigation into allegations that Emery shipped hazardous materials without adequate documentation, failed to notify pilots of hazardous cargo on board their aircraft and concealed problems from FAA inspectors.

 

• 2000: An Emery Worldwide Airlines DC-8 en route to Dayton from Sacramento crashed, killing all three crewmembers. The FAA increased its surveillance of Emery in the wake of an inspection that found the airline gave its mechanics little training and flew one airplane with chronic mechanical problems.

 

• 2000: The Postal Service announced a wide-ranging, $7 billion partnership with FedEx Corp. Emery and UPS protest the deal. After a long-standing pricing dispute, Emery and the Postal Service agreed to dissolve their Priority Mail contract in September 2001.

 

• 2001: In January, Emery's bid in federal court to stop the alliance between FedEx and the Postal Service failed. Emery said it was moving up its exit from the Priority Mail contract to April. In March, the FAA proposed fines totaling $698,000 against Emery Worldwide Airlines for alleged aircraft maintenance and hazardous cargo violations.

 

• 2001: In July, CNF, citing a $208 million restructuring charge related to Emery, reported a $228 million loss for the second quarter.

 

• 2001: Responding to a FAA threat, the airline agreed to ground its fleet of 37 cargo jets in August. Contractors continued to carry Emery freight on their planes. Losses at Emery Worldwide, now with about 2,000 Dayton employees, continued to hamper CNF in the third quarter. CNF on Wednesday announced that Emery Worldwide Airlines would not resume operations.

 

 

Emery's fall may hurt plans

 

Could dampen Dayton airport expansion goal

 

By Jim Bebbington and Nancy Bowman

 

e-mail address: jim_bebbington@coxohio.com

 

Dayton Daily News

 

DAYTON | CNF Inc.'s abandonment of Emery Worldwide Airlines will hurt Dayton city coffers and dampen momentum to expand Dayton International Airport.

 

CNF officials announced Wednesday they are closing their airline operations but will maintain their sorting hub at Dayton International Airport, using private contractors to fly merchandise in and out.

 

The closing of the airline will result in about 70 mechanics and ground workers losing their jobs this week, but for now the hub will continue to operate, company officials said. It employs 2,000.

 

It is the latest in a string of cutbacks for Emery's Dayton operations. In 1998, the company employed 4,207 at the airport after getting a contract to handle priority mail for the U.S. Postal Service. Emery lost that contract earlier this year.

 

Blair Conrad, Dayton's Director of Aviation, said with the hub still in business and contractors still flying for Emery, the financial impact to the city should be minimal. He also said the city's proposed airport expansion plan is still valid because the current recession is temporary.

 

"That will come back eventually and the same capacity problems that existed a year ago are still going to be there," Blair said. "Interest rates are down and it's a good time to do projects if you can get the revenue streams for it."

 

But airport expansion critics say Emery's announcement should make it clear Dayton's airport does not need to grow.

 

"As we know from other recent developments, there is no new information or facts under the sun which will move (Dayton International Airport) off of its enchantment with building the country's third largest cargo hub," said Tipp City Manager David Collinsworth. "Neither steady reductions in operations, the grounding of its largest tenant (Emery), nor the epic events of Sept. 11 have deterred this airport from pursuing an expansion plan that is nine sizes too big."

 

The expansion plan is undergoing an environmental impact study by the FAA, but the original timetable had the study completed by now and the airport buying land. Emery was going to provide $300 million of the first phase's $500 million price tag. The first phase would extend the airport's southern runway, requiring a portion of U.S. 40 in Vandalia to be moved.

 

Mike Petro of the Stop Airport Noise and Expansion organization said he and other members of the citizens group are concerned about any loss of jobs at Emery and the impact that could have on area families. SANE opposes expansion, but also thinks the FAA will look at the issue from a safety viewpoint and may allow some form of expansion because of safety considerations.

 

When the expansion proposal was first announced, Emery projected fast growth for the Dayton operations and that Emery would have 5,980 employees by 2003.

 

The company also projected it would fly more than 6 billion pounds of freight in and out of the airport in 2001. Emery has instead had approximately 1 billion pounds of goods flown into Dayton through the end of October, according to a Dayton airport report. That is down from 1.5 billion pounds at the same time last year.

 

Emery pays the airport per pound brought in, and those revenues have dropped along with Emery's business.

 

"(Emery) quit flying the postal contract sooner than they thought they were," Conrad said. "Things were on the downswing from that point on."

 

City officials Wednesday were still trying to gauge the impact of Emery's announcement.

 

"We've been working since April to try to do anything we can so they know that Dayton is here to help them out," said Rod Smith, Dayton's Economic Development Director.

 

City budget officials are already projecting an overall drop in city revenues for 2001. They had prepared for some cutbacks at Emery.

 

"We knew there was going to be some change, but we didn't know how much," said Jeff Woodson, the city's Budget Director. "A loss of any jobs is going to have a ripple effect."

 

Local development officials viewed Emery's announcement with a mixture of relief and dread.

 

"I guess it's probably hard to call the loss of 110 jobs good news, but given the things they've been facing the last couple months, this is not the worst possible outcome," said Dan Curtis, Vice President of the Miami Valley Economic Development Council.

 

The Dayton Area Chamber of Commerce had created a local college program to train plane mechanics, largely to work on Emery's fleet.

 

"We had viewed several years ago cargo as a growth industry," said State Rep. Jon Husted, R-Kettering, who works for the chamber. "Whether that occurs in Dayton is now up in the air because of this announcement."

 

• Contact Jim Bebbington at (937) 225-2262 or e-mail him at jim_bebbington@coxohio.com. Contact Nancy Bowman at nancy_bowman@coxohio.com or at (937) 335-4357

 

Restructuring leads to Emery's demise

 

One of three companies to make up Menlo Worldwide

 

By Timothy R. Gaffney

 

e-mail address: timothy_gaffney@coxohio.com

 

Dayton Daily News

 

DAYTON | Emery Worldwide Airlines will fly no more.

 

The Dayton-based airline’s demise is part of a major corporate restructuring its parent company, Palo Alto, Calif.-based CNF Inc., announced Wednesday.

 

CNF is rolling three of its companies — Emery Worldwide, Menlo Logistics and Vector SCM — into a single operation named Menlo Worldwide. The restructuring includes the decision not to resume operations by Emery Worldwide’s in-house cargo carrier, grounded since Aug. 13 under pressure from the Federal Aviation Administration.

 

Emery, which delivers freight to 200 nations, stayed in business by using airplanes flown by Wichita, Kan.-based Ryan Aviation and other contractors.

 

Wednesday's changes won't impact most of the 2,000 workers in the Emery freight hub at Dayton International Airport, said Jerry Trimarco, Emery Worldwide Airlines chief executive officer.

 

Still, about 70 mechanics and ground workers will lose their jobs this week. The move also ends any hope of a return to work for approximately 800 airline employees the company furloughed when it grounded its fleet.

 

The airline had been working with the FAA to resolve a wide range of safety issues under a settlement agreement aimed at allowing the airline to resume operations. An FAA spokeswoman said the agency has "called off" the team that was working on the agreement.

 

"There are still safety issues, since our team did not finish its work," FAA spokeswoman Elizabeth Cory said. But the agreement "becomes a moot point" with the airline’s decision not to fly again, she said.

 

Emery will continue as a Menlo Worldwide division for North American air freight, international freight forwarding, customs brokerage and expedited services. It will continue to contract with other cargo airlines to fly its freight.

 

Investors liked the changes. CNF stock (NYSE:CNF) finished trading Wednesday at $28.72, up $3.72, or 14.8 percent.

 

"The market has been waiting for that for a long time. They wanted to get rid of (EWA) big time," said Peter Coleman, an analyst for Bank of America Securities.

 

Contracting for airlift will be cheaper for Emery than operating its own fleet, another securities analyst said.

 

CNF said it will take a $200 million after-tax charge in the fourth quarter for not continuing the airline operation, most of it for maintenance and lease termination costs, said Chutta Ratnathicam, Emery Worldwide’s chief executive. But Ratnathicam, who will return to his former position as CNF’s chief financial officer, said it should save more than $100 million per year in reduced costs compared with this year, not counting the duplicate cost of contracting airplanes while still paying for its own grounded fleet.

 

Mark Luthi, head of Air Line Pilots Association’s Council 110, the union local representing Emery’s furloughed pilots, disputed the cost-saving claim.

 

"You can’t support multiple (airlines) cheaper than you can support one," he said.

 

Eliminating EWA is the latest step in CNF’s costly struggle to restructure Emery Worldwide over the last year in the face of a slowing economy, loss of business to ground transportation services and loss of the Express Mail and Priority Mail contracts with the U.S. Postal service.

 

CNF took a $340.5 million restructuring charge in the second quarter this year to downsize Emery’s fleet of leased cargo jets. And it cost Emery $17 million in duplicate costs in the third quarter to contract for airlift after its fleet was grounded in the last half of the quarter. CNF hasn’t said what it expects duplicate costs to reach this quarter.

 

Making Emery profitable again remains a challenge for CNF. Besides cutting costs, "It’s going to take some amount of growth" — 10 to 15 percent — to reach the break-even point, Ratnathicam said. But even if the economy doesn’t rebound, the restructured company is positioned to grow by gaining market share, he said.

 

The Dayton freight hub is "positioned to grow," Trimarco said. "We hope to add employees to the hub once the business picks back up."

 

But he acknowledged that growth for Emery doesn’t necessarily mean growth at the hub. Emery has regional trucking and international operations that could grow without affecting the Dayton hub.

 

Trimarco said Emery is looking for other business for the hub, which was built to handle much more capacity than it can fill now with its own operations. He said the company is scouting for regional trucking or air cargo companies that can use the hub’s capabilities for rapidly sorting large and small packages. Emery’s specialty is heavyweight freight.

 

The aftershocks of the Sept. 11 terrorist attacks complicate Emery's efforts. The steep decline in air travel has prompted airlines to cut capacity, making it a bad time for Emery to try to return or sublease its planes.

 

Emery also faces the uncertainties of an open crash investigation. Overwhelmed by the crashes of four hijacked airliners on Sept. 11, the National Transportation Safety Board hasn't rescheduled a public hearing it had planned for the Feb. 16, 2000 crash of an Emery DC-8 near Sacramento, Calif. The crash killed all three crew members and raised questions about oversight of contract maintenance by both Emery and the FAA.

 

• Contact Timothy R. Gaffney at 225-2390 or e-mail him at timothy_gaffney@coxohio.com

 

 

Pilots vow to fight decision to shut down Emery

 

Union says CNF ignored problems

 

By Timothy R. Gaffney

 

e-mail address: timothy_gaffney@coxohio.com

 

Dayton Daily News

 

The union representing furloughed Emery Worldwide Airline pilots will fight CNF Inc.'s decision to shut down the airline permanently, a union official said Wednesday.

 

The Emery pilots' council of the Air Line Pilots Association filed grievances claiming contract violations in August after Emery temporarily grounded its fleet of cargo jets and furloughed about 800 airline employees. The furlough included about 400 pilots.

 

Jerry Trimarco, chief executive officer of the airline, said CNF's decision made the furloughs permanent.

 

The union plans to file additional grievances in response to CNF's announcement Wednesday that it was restructuring several of its companies and discontinuing the airline operation, said Mark Luthi, chairman of the Emery pilots' council and a furloughed EWA captain.

 

"We're going after them for the full value in our contract," Luthi said. He called the decision to shut down the airline a "willful abrogation of the contract."

 

The union's grievances contend the company violated its labor contract because it could have prevented the safety issues that caused its fleet to be grounded.

 

EWA grounded its fleet under pressure from the Federal Aviation Administration.

 

The FAA claimed several investigations turned up more than 100 safety violations.

 

The investigations stemmed in part from years of safety complaints by pilots.

 

The company has since contracted with other airlines to move its air freight.

 

EWA "didn't like that we kept raising safety issues which they ignored to the point of a crash," Luthi said.

 

The National Transportation Safety Board is investigating the February 2000 crash of an EWA DC-8 that kille