ABX Air and DHL question

[av8rnate]

I have a few questions about ABX Air and DHL. Since Airborne Express is no more and ABX Air is now a independent company contracting its services almost exclusively to DHL, I assume that some sort of contract exists between the two companies. If so, how long is that contract for? I assume it must have an expiration date of some sort. From an outsiders perspective it seems that the continued success ABX Air in the future is almost completely dependent on the flying that they do for DHL. I know that ABX is involved in some charter flying as well. What exactly does that involve? Are there any other flying opportunities that they could logically be seeking?

In the past I have heard nothing but great things about flying for Airborne Express, and since the flight department is still basically the same (only the name has changed to ABX Air) I'm sure it is still a good place to be. However, I am kind of curious if it is still a company that you could feel fairly secure starting a long career at.

I realize that AStar is also flying for DHL. What is their new working relationshsip. They must have a contract to provide service to DHL also now that they too are independent and no longer known as DHL Airways; so when does that expire? Again from an outsider's perspective it looks as thought there could be quite a bit of competition between ABX Air and AStar that could cause a real problem for someone looking to have a fairly secure long term career at either company.

I'm also under the impression that DHL was bought by the German postal system. When did that take place and how dependent are they on providing service domestically in America If FedEx and UPS whinds up being too much competition to handle.

I realize that details are hard to come by, but if someone has some insightful information about the future of these three companies, specifically ABX Air, I would be greatly appreciative.

 

[Clipperskip]

Both Astar (former DHL World Airways), and ABX Air (former airline division of Airborne Freight Corp.) are ACMI carriers providing the majority U. S. domestic lift for DHL. Both airlines are now based at KILN DHL Airpark in Wilmington, OH. The ACMI contracts are different for each airline but I believe that ABX's contract runs seven years while Astar's contract runs ten. ABX is nearly two years in to the seven year term. Both contracts may be prematurely terminated in the event that certain modest performance goals are not reached. Additionally, there are financial incentives provided in the ACMI's if additional performance goals and cost savings measures are achieved. The ACMI agreements for both carriers are "cost plus" agreements, meaning that the direct operating expenses of the airlines are paid by DHL and both carriers are paid a modest profit ( around 1.7% adjustable based on goals and incentives) Although this is not a large profit under the circumstances I would imagine that most carriers operating in this competitive enviroment would like have a guarenteed annual profit regardless of fuel costs.
Is the ACMI enviroment as secure for labor as the non-ACMI enviroment? Perhaps not but this is the way the Airborne/DHL buyout was done in order to facilitate the consolidation due to certain foreign ownership restrictions. I am a pilot for ABX and I am optimistic for our future as well as that of Astar due to the fact that we are both efficient lift providers and historically we have been reliable and on time. There have been numerous performance issues related to the consolidation of operations in KILN last September but those are all but worked out. Any other questions feel free to PM me.

 

[abxaviator]

As previously posted, both carriers have similiar ACMI contracts. Is flying for an ACMI carrier inherently less stable? Ask a Delta, Northwest, United or USAir pilot; when I started here I would never have imagined all that has happened on the other side of the airport.

DHL is the world's largest express carrier with little US presence until now. They understand that the US market is key worldwide; John Mullen recently said 60% of int'l freight is to or from the US.

My personal belief is that ASTAR and ABX will ride DHL's coattails for a very long time. The real indicator of long term intentions will be when either or both begin fleet replacement; other than our cargo-door 767's, neither airline has equipment for the next 20-30 years.

Rumor has it we will be hiring soon, keep in the loop and apply.

 

[av8rnate]

Thanks a lot for the information. It sounds to me like ABX Air is at least as stable as any other airline in this volatile industry, or perhaps a bit better. As I previously posted, I have heard nothing but great things about Airborne, and I was kind of curious to see if things are still the same after the merger. I have heard of the potential for pilot hiring in the not so distant future. I'm sending my information there way. Thanks again for the timely and professional responses.