ABX Air Declares DHL in Fault of Agreement

[LarryinTN]

If they move charters to CHI then they have to pay 100% of the overhead. How is that better than DHL paying some of the overhead costs for ABX?

 

[erichartmann]

LOL........nice eric cartman. Getting your hopes up?

Nope.

Just trying to figure out what may be going on and what the possible impacts could be.

 

[erichartmann]

Yep. But it's done. It's just a question of what the final cost for DHL will be.

Done deal but not paid for. Nice deal if you get it I guess.

Seems to me I heard or read somewhere that posession is 9/10ths of the law. If DHL/DPWN still has the money...

 

[hvydriver]

Done deal but not paid for. Nice deal if you get it I guess.

Seems to me I heard or read somewhere that posession is 9/10ths of the law. If DHL/DPWN still has the money...

No, I meant it's a done deal. It's just a matter of them reporting the total cost. The only one left they are paying on is Polar. Don't misunderstand me. I don't take any false security from them owning 49%. After all, we used to be 100% owned. You see where that got us. They could sell it off tomorrow.

 

[b707guy]

deleted

 

[shooter]

If they move charters to CHI then they have to pay 100% of the overhead. How is that better than DHL paying some of the overhead costs for ABX?

Oh I agree with that. But Hete is planning on growing business. If we are already at or even just close or over the 10% threshold, then grown for ABX is done unless its DHL growth.

That what the basis for my question to see what you guys think.

 

[LarryinTN]

If we are already at or even just close or over the 10% threshold, then grown for ABX is done unless its DHL growth.

Why? CHI would have to pay 100% of the overhead for any growth at CHI. DHL is still, and will continue, paying much of the overhead costs for growth at ABX, just not all of it as they had in the past.

 

[abxaviator]

Why? CHI would have to pay 100% of the overhead for any growth at CHI. DHL is still, and will continue, paying much of the overhead costs for growth at ABX, just not all of it as they had in the past.

The question is, how are the overhead costs handled after reaching the 10%? For example, if the Company adds a new flight, is ALL associated overhead paid by ABX et al or is an incremental portion still paid by DHL? If the former, it follows that ABX would place the flight where the costs would be lowest. Of course this is a very simplistic example.

To me, of greater import is learning what DP plans to announce in January.

 

[shooter]

Why? CHI would have to pay 100% of the overhead for any growth at CHI. DHL is still, and will continue, paying much of the overhead costs for growth at ABX, just not all of it as they had in the past.

okay, so like what abxaviator said, the amount over the 10% is what we need to know, right? If the costs over the 10% DHL volume is say 2% paid to DHL for 11-15% and 3% 16-20% over and so on, right? That makes sense if so. Somehow I get it mixed up that at the 11% mark, ABX would have to pay 100% of the costs for the overhead. Don't know how I got that screwed up, but I did.

Thanks for the feedback and I agree about January. Some changes are coming then, wonder if the grape vine will hint at what it would be.

 

[abxaviator]

Listen to what Dr. Zumwinkel has to say starting about 17 minutes in.


http://download.world-television.com/dpwn/20071108/dp_ak_qanda_081107.mp3