ABX expects to live on
Leader empathizes with Ohio workers losing jobs when agreement ends
By James Hannah
ASSOCIATED PRESS
WILMINGTON, Ohio -- Cargo carrier ABX Air and 7,500 of its workers are waiting to hear their fate.
DHL plans to hire United Parcel Service to replace ABX Air and ASTAR Air Cargo in transporting DHL packages. The proposal would mean that much of the work normally handled at Wilmington Air Park would be transferred to a UPS facility in Louisville, Ky.
ABX will survive if the switch happens; the victims will be thousands of workers whose jobs will evaporate and safety net of benefits disappear, ABX President John Graber said.
"What we all struggle with is that we understand we can put a model together for ABX Air to continue forward successfully for a long, long time absent DHL," Graber said. "It's just not the best solution for the community."
UPS spokesman Norman Black said Wednesday that UPS expects a deal with DHL to be completed and the transition of volume to begin this year.
ABX employs about 10,000 worldwide. It also has contracts to supply aircraft, crews and maintenance to All Nippon Airways in Japan and to companies out of Miami.
"Those businesses are successful, but they are much smaller, and they are much more susceptible to the vagaries of the marketplace than the steadfastness of the DHL product ever would be," Graber said. "We're going to go from flying over 100 airplanes to flying less than 30."
Graber, who is 51, said that even if the DHL-UPS deal goes through, he hopes ABX will be able to keep about 1,000 workers at the Wilmington Air Park by running DHL's sorting operation there and performing maintenance on 40 planes from other airlines owned by ABX's parent company, Air Transport Services Group.
Graber said that not only will 7,500 ABX jobs in Wilmington be lost if the DHL-UPS deal goes through, but he also doubts that UPS will hire 7,500 workers in Louisville to handle the increased freight.
UPS plans to create jobs as a result of the deal, but it doesn't know how many, Black said. Of its 358,000 U.S. employees, UPS has 20,500 in the Louisville area and 14,500 in Ohio.
"With the U.S. economy as slow and stagnant as it is right now, if you can't find new ways to grow your business, you're potentially jeopardizing the jobs of those 358,000 employees," Black said.
Last week, Air Transport said it was in danger of being delisted from the NASDAQ stock market after its shares closed below the minimum of $1 per share for 30 consecutive trading days
"I think our stock clearly feels the pressure of the DHL situation," Graber said. "Ninety-two percent of our revenue is from DHL, and the market looks at the DHL situation and wonders what we're going to do."
Charles Jack, an analyst with Wall Street Access who follows the industry, said Air Transport could have a viable business without DHL.
"Ultimately, however, the success or failure of the company will be dependent on management's ability to navigate the current difficult environment and restore investor confidence in its future plan for the business," Jack said. "At this point, I think the jury is still out."
Graber understands what's at stake.
"Thousands and thousands of people who rely on ABX Air for a paycheck and a social net to take care of them when they need something to take care of them will not have it," Graber said. "It's going to be really, really stressful for the community, for southwest Ohio, for Clinton County and the counties around us."
http://www.dispatch.com/live/conten...0-03-08_C8_TSBGA93.html?type=rss&cat=&sid=101
:laugh:
is that somehow the "World, N.American, ATA" conglomerate managed to Bankrupt ATA alone and their structure is almost identical to the now ATSG it seems. When ATA went BK and liquidated I couldn't understand how it was legal but I guess it was because they are toast and the other 2 survived for now. I guess that is why they are called "holding companies". They hold separate companies but somehow mix and mash money together but can get rid of one at any time. I believe Joe can BK ABXA to rid himself of the DHL note, then liquidate to pay down the other 200 million plus.
