Dhl Buy's 49% Of Astar

[HD2003]

Posted today DHL purchased 49% of ASTAR with 24.9% voting rights and extends ACMI to 2019.

 

[rotor&wing]

June 12, 2007
Dear Colleague:
Today we announced the sale of a 49 percent economic interest and 24.9 percent
voting interest in ASTAR to DHL. Additionally, DHL and ASTAR have agreed to extend
the current ACMI contract to 2019.
The Board will be expanded from three seats to four seats and DHL will appoint one
director to our Board, which it has done, and we welcome Hans Hickler, CEO of DHL
North America, to our Board.
Consistent with U.S. laws, DHL’s investment is a minority one and the control of ASTAR
remains with the current owners. This investment will have no impact on our day-to-day
management. The senior management team will continue in their current roles.
On behalf of the entire management team, thank you for the work you do – in the air,
on the ground and in our offices – to make ASTAR a success.
Sincerely,
John H. Dasburg
Chairman and CEO

 

[sgu]

Where does ABX end up in this deal?
I thought ASTAR=DHL+ABX?
So now DHL owns 49% of Polar and Astar w/ ACMI deals?

 

[Whistlin' Dan]

Where does ABX end up in this deal?
I thought ASTAR=DHL+ABX?

It won't change things much...maybe make it a little easier for Astar to secure leases and financing in the event that they decide to re-fleet. The extension of the ACMI is a good deal for the Astar guys, but ABX won't be going away any time soon.

 

[Cargoav8or]

[quoteThe extension of the ACMI is a good deal for the Astar guys, but ABX won't be going away any time soon.[/quote]

And that is good. The ABXERS have put a lot of hard work and sweat into their company and deserve nothing less than a good career. I hope this eventually works out well for all!

 

[big_al]

well things don't look good for abx, though. with that news, you have to think they seem to be planning something?

 

[ABXbooger]

any way you look at this, it is not good news for ABX, unless we buy the other 51%...

 

[hvydriver]

Here's the link to the formal press release. I'd bet this is just round #2 in the ongoing financial maneuverings....

http://biz.yahoo.com/bw/070612/20070612006293.html?.v=1

 

[GoABX]

Seems strategically odd that they would not hold this announcement until the Astar contract was ratified. Unless they were more concerned about using the announcement to pressure the ABX guys into signing. (Right now the chances of ratification are the lowest of any time in ABX history.) This press release could have waited 6-12+ months, unless it was necessary for aircraft financing or to pressure Congress on the foreign ownership issue.

My own feeling is the recent DHL announcements of expansion in Asian locations co-located with ABX-ANA facilities is more than coincidence. But just so we don't become too hopeful if Astar buys more than 60 a/c, ABX will be cut out of the domestic market in 5 years.

If we are asked to leave the party at least we can look back and say we did everything we could. Great on-time performance, recoveries, saying "Yes" to everything DHL asked of us, and even returning money that was owed to us.

 

[erwaz]

Don't be surprised if DHL at some point buys a 49% of ABX. Then somehow merges POLAR, ASTAR,ABX in to one company. Renames the airline DHL Airways.

 

[erwaz]

Also don't be surprised if Dasburg ends up as the CEO of the company. He already sent one of his boys over to Polar. Something is up. I think everyone will be ok in the end.DHL needs all the lift of all three airlines. No one airline can do all the flying. My Father even told me that the best way for DHL to merge the airlines is to aquire an interest in each and merge them all into a new company. It seems thats is what is going on.

 

[flyinboxes]

That is possible but I don't think DHL wants the C container around much longer due to costs and logistics. With that in mind and most of the A container 76's headed to Japan that doesn't leave much although I don't know how many 76's ABX has that will fit the DHL system. What you say Hete?

 

[TWA]

It will take a bit more effort DHL to buy into ABX because it is a publicly traded company. All they can do is start buying up shares and hope for the best.

 

[WickedPissa]

Also don't be surprised if Dasburg ends up as the CEO of the company. He already sent one of his boys over to Polar. Something is up. I think everyone will be ok in the end.DHL needs all the lift of all three airlines. No one airline can do all the flying. My Father even told me that the best way for DHL to merge the airlines is to aquire an interest in each and merge them all into a new company. It seems thats is what is going on.

Did you actually hear a message from the "Father" almighty maker of heaven and earth, or just one from your dad?

 

[Sporto]

Did you actually hear a message from the "Father" almighty maker of heaven and earth, or just one from your dad?

Luke......I'm your Father.

 

[fodc8]

Didn't Hete call an emergency pilot meeting last night?

 

[SkyMiles]

Anyone out there with some info on the emergency meeting last night, please!

 

[abxaviator]

"Emergency" is a bit of a stretch. Yes there was a crew meeting at which Hete graciously said practically nothing. "We don't comment on Mergers and Acquisitions..."; "Keep doing the great job you've been doing..."; "We need to be a competitive ACMI carrier..."

 

[erwaz]

Joe Hete

Joe will use this to beat ABX pilots into the ground. Don't give up and keep fighting for a good contract. For the life of me I don't understand why DHL/ASTAR would make this anouncment now before the ASTAR Pilots ratify a new contract.This puts the Astar Pilot group in a much beter position at the negotiations table now that they are DHL again. Stay United and help each other ABX & ASTAR for divided you fall.

 

[BoxesRus]

>>The transaction ''signals DHL's confidence in the capabilities of Astar,'' said Dasburg, Astar's chairman, president and CEO.<<

Okay, I don't mean to run down Astar because we've all got a stake in the game--at least for now. But you have to wonder what DHL is basing all that confidence on. In a choice between Astar and ABX, the latter has had superior performance numbers all around. Astar had it's integration nightmares, (that DHL contributed to), when they made the move from CVG to ILN and they're definitely on the backside of the power curve when it comes to aircraft and capabilities. They've made a decent recovery in performance but why would DHL select a carrier that can't even offer CAT II when ABX is certified CAT II and CAT III? Does DHL still not understand that important difference when it comes to the overnight express industry?
At last night's meeting, when asked why ABX formed a holding company, Hete replied that it could be for tax reasons or to accommodate a merger and/or acquisition. When asked to narrow it down his reply was, "It is our policy to not discuss mergers and/or acquisitions." That makes it easy to conclude that there's another step in this process that has yet to take place. And the only thing that is certain about it is that Hete will be richer than he is today when the dust clears. I wouldn't be surprised to find out that Hete brought back the 10 furloughees because he knew they--and many others--were going to be on the street before it cost him a nickel.