ABX to compete with DHL?

[abexpilot]

The talk in town is that ABX has hired consultants to study the possibility of ABX purchasing KHA to be the distribution point for ANA in the US. Hete would say bye-bye to DHL, and they would have to scramble to find 86 aircraft in short order. hmmmmmm......

 

[rotor&wing]

that kool-aid over there must be mighty tasty!

 

[Cargoav8or]

The talk in town is that ABX has hired consultants to study the possibility of ABX purchasing KHA to be the distribution point for ANA in the US. Hete would say bye-bye to DHL, and they would have to scramble to find 86 aircraft in short order. hmmmmmm......

Ba-bye.

 

[shooter]

Ba-bye.

yup...ba-bye DHL in the USA.

 

[HeavyjetDC8]

The KHA rumor was actually doing the rounds last week prior to the announced interest from AStar . A domestic operation other than DHL isn't beyond the scope of reasonable possibility - it's the logistics of ABX flying in Asia that pushes the boundary.

 

[rotor&wing]

Looks like Astar will be picking up the ANA flying as well.


**************************************

As you may have heard, our Board of Directors has received by letter a non-binding indication of interest from ASTAR Air Cargo,LLC to acquire ABX Air for $7.75 per share, payable in cash. No matter what you may have heard, we did not solicit this overture, and we have not put the company up for sale.


Nevertheless, we are a public corporation, which means that our Board members have a fiduciary duty- or responsibility to excercise a high degree of care-to evaluate the ASTAR letter on behalf of our shareholders. They are consulting with independant financial and legal advisors, and will respond in due course.


Unfortunately, until our Board members complete their work, we simply cannot speculate on the outcome, or respond to ASTAR's statements about its intent. Unlike ASTAR, which is privately owned, we are subject to federal laws that limit what, when, and how we may communicate with you and others at times like this.


However , I assure you that we are committed to keeping you informed about any developments, as often and as quickly as we can. I can tell you that rumors about a link between the overture from ASTAR and the possibility of Abx Air forming a new holding company structure for ABX Air are unfounded.


Please be assured that as our Board members consider ASTAR's letter, the are aware that events like this are unsettling for you and your families, and leave you with many questions about the future. You should know that ABX Air's future is bright, and we regard our employees as vital for our future. You have done a wonderful job of building a great company. I encourage you to remain focused on keeping our company safe and successful by continuing to deliver high quality service that maintains the respect and confidence of our customers, shareholders, and communities.

When we have something to announce, we will make sure it is posted on our bullentin boards and in other locations as appropriate. If you have specific questions that are not addressed by the press release, please feel free to talk with your supervisor who can forward them on to Employee Relations. Alternatively, you may contact John Starkovich at ext.62096 or email him at m0n3, or write the [email protected]

Have A Quality Day!

Joseph C. Hete
President and Chief Executive Officer

 

[abxaviator]

How do you infer that? Hete's letter has no mention of ANA.

 

[rotor&wing]

How do you infer that? Hete's letter has no mention of ANA.

I can tell you that rumors about a link between the overture from ASTAR and the possibility of Abx Air forming a new holding company structure for ABX Air are unfounded.

 

[abxaviator]

Okay, the typeface is bigger, but says the same thing; no mention of ASTAR keeping the ANA flying. If DHL wants the 767F's, they'll get them, not ANA. I certainly don't know, I was just curious how you get to your conclusion.

 

[Fly Astar Jets]

abxaviator,
I think what R&W is eluding to is the "contract" with ANA to do the Asian charter work.

Clear as mud.

 

[Airbus300]

However , I assure you that we are committed to keeping you informed about any developments, as often and as quickly as we can. I can tell you that rumors about a link between the overture from ASTAR and the possibility of Abx Air forming a new holding company structure for ABX Air are unfounded.

My interpretation of this is that ABX Air did not form the holding company a couple of months ago with the intent of selling off most of the company to Astar. The Astar offer was a surprise to them. The holding company was set up for another purpose. (That is my guess...but it was not written clearly.)

 

[rotor&wing]

Okay, the typeface is bigger, but says the same thing; no mention of ASTAR keeping the ANA flying. If DHL wants the 767F's, they'll get them, not ANA. I certainly don't know, I was just curious how you get to your conclusion.

Astar has made the offer to buy out ABX, including everything down to the pencils on the desk. (the offer was for ALL of the ABX stock)

Astar has and still flies charters. Astar has operated the Pacific Rim, North, Central and South America, Europe and the Middle East. The ANA contract is with ABX appears to be a lucritive venture, and I would bet DHL would be interested in getting involved with it also.

Time will tell.

 

[abxaviator]

Okay, I agree with all you said there. It is indeed lucrative, on the way to China today, we were discussing how DHL might want to keep this going and how they could do it. As you say, time will tell.

 

[penguin22]

I guess there’s two reasons why I think spinning off ANA is at least a possibility.

1. There were rumors of Joe separating with some 767s to just do ANA before Astars proposal was announced. So an ABX/Astar merger provided a catalyst for it to happen.

2. A final agreed upon buyout can end up looking very different from the original offer (or letter of intent). When negotiating the buyout, Joe could try to spin off the ANA op as part of the deal. Seems logical if he assumes he wouldn’t be running things post merger. There’s the whole issue of 121 certificates, but for the sake of argument, let’s just assume it gets arranged somehow.

That said, I hope it doesn’t happen. DHL hasn’t been nice to ABX. They keep parking our airplanes. Still rumors of more DC9s getting parked. (of course, if there’s a resultant furlough, its because of those greedy senior pilots putting the screws to the guys on the bottom, and not because DHL is parking more DC9s. Even though opf goes far past ‘senior’ guys. But I digress ) It’s nice to have another major customer, and not have to rely solely on DHL. All our growth has been from ANA, and all our shrinking has been from DHL. Let’s just say ANA raises our career expectations.

None of us have been impressed with the way DHL has been running things since they took over. (hopefully there’s some slow progress) By stark contrast, this ANA op is first class. It’s good to have both to chose from. If I was an Astar guy, I would definitely want ANA to be included in a merger with ABX. It would raise your career expectations too.

Hopefully ANA won’t get split off. I found it interesting that Joe went as far to say that rumors of the Holding company being linked to Astar’s overture are unfounded. He must be reading this forum!:laugh:

Finally, as was mentioned earlier, over in Asia there’s a feel somehow that this whole thing could get tied together down the road. So why split it up now?

 

[abxdx]

what about all the other flying? You know we do have long term contracts with areomexpress,florida west,BWIA, and Air Jamacia. So ANA is not the end all be all... Hell, its only a two year contract. I hope it turns into something big, just trying to play devils advocate...