CNF forms new subsidiary and ends air cargo operations
Menlo Worldwide will have combined annual revenue of $3 billion, 15,000 employees and more than 200 service centers and operations facilities, said CNF. The headquarters for Menlo Worldwide will be Redwood City, CA, with Vector SCM’s headquarters remaining in Novi, MI.
John H. Williford, formerly CEO of Menlo Logistics, will be the president & CEO of Menlo Worldwide. Chutta Ratnathicam, currently CEO of Emery, will return to his former position as CFO of CNF.
Emery Worldwide Airlines, however, will cease to exist. CNF said Emery will continue to provide full network service and coverage for its North American overnight and deferred services through a fleet of contract air carriers, as it has done since mid-August. Emery Worldwide Airlines voluntarily shut down operations on August 13 following an FAA investigation into alleged safety violations.
The company will take an after tax charge of approximately $200 million in the fourth quarter for ending the operations of the airline, reflecting the planned disposal of all aircraft, leases and other costs, said Gregory L. Quesnel, president & CEO of CNF.
"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," he said. "Emery’s freight division customers using domestic and international services can rely on Emery to offer its extensive services as usual with no interruptions."
S Quesnel added that the formation of Menlo Worldwide effectively restructures CNF’s operations into two basic operating companies, Con-Way Transportation Services and Menlo Worldwide.
