Southern Air to move to Cincinnati base as part of bankruptcy rescue

TROUBLED Southern Air is to relocate its operational headquarters from Connecticut to Cincinnati/Northern Kentucky International Airport (CVG) by March, which will affect 120 full-time jobs with planned redundancies due by March 18.

The Norwalk-based cargo airline filed Chapter 11 bankruptcy on September 28, which was followed by the release of two of its Boeing 747-400. Southern leases 11 wide-body aircraft, which include three B747-400BDSFs, with one more in storage; one 747-400ERF; and five B777Fs, one operated under CMI lease for TNT Airways, and an additional four operated under ACMI lease for DHL Express.

By consolidating operational and financial divisions in one location it hopes to restructure its balance sheet and reduce legacy debt by more than two-thirds with its assets totalling US$206.9 million and liabilities of $486.5 million.

Its chief executive officer Dan McHugh said the move will remove the heavy costs from the acquisition of Oak Hill Capital Partners in 2007 and legacy debt, reported the New Haven Register.

Cincinnati is a "logical base of operations for our 777 aircraft and represents our single largest hub of activity. It is also one of three global hubs for DHL Express, our largest customer", he said in an email to employees.