Southern Air to move headquarters from Norwalk to Cincinnati
NORWALK, Jan 22, 2013 (The Hour - McClatchy-Tribune Information Services via COMTEX) --
Southern Air, an air cargo company located on Glover Avenue, will move its headquarters to Cincinnati, according to an email sent to employees from CEO Dan McHugh.
In the email, which was sent to employees on Thursday, Jan. 17, McHugh also writes that many employees will lose their jobs, although others will be offered positions in Cincinnati. Up to 120 positions will be shifted to Cincinnati, according to published reports.
The move will be nearly completed by the end of April, the email read, "although certain functions in Norwalk will continue through the end of May."
Tad Diesel, Norwalk's director of marketing and business development, expressed disappointment in the company's decision.
"We tried for several years, in cooperation with the Chamber (of Commerce) and state, to find a way to make it work in Norwalk," Diesel said. "Regrettably, we were not able to do it."
According to the email, Southern Air will move to the Cincinnati/northern Kentucky area because: the Cincinnati airport is the company's largest hub of activity; gives it the "ability to attract and retain aviation talent over the long term;" it will be "better able to manage costs;" and the company's operation and management team will live and work in the same area.
Cincinnati is also a global hub for DHL Express, Southern Air's largest customer.
"Other headquarters alternatives, including remaining within Connecticut or moving to other select cities with air hubs, did not offer the same combination of long term benefits," McHugh wrote.
Southern Air filed for Chapter 11 bankruptcy last year and, according to the email from McHugh: "By the end of the first quarter of 2013, we will emerge from our financial restructuring process with an improved capital structure and streamlined business model ..."
Employees will learn this week if they will be offered positions in Cincinnati. Those not offered positions will be given a severance package.
"I am optimistic about our opportunities to strengthen and grow our business as a result of this move and our successful restructuring," McHugh wrote.
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