ABX Air Declares DHL in Fault of Agreement

[Whistlin' Dan]

oh wow, I don't want to read too much into this. But when you look at the 2Q reports, they had a boost in stock prices due to the rumor that UPS was looking at a "partnership" of sorts with DHL. And when they start asking questions about selling off portions of the US market like the "Domestic Air" or ground, it makes me nervous.

Ummm...this is a gentleman's forum, Mr. Shooter. We don't discuss that subject in here.

It leaves a very bitter taste in the Kool-Aid.

 

[erichartmann]

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.

I'm not real sure I understand what you are trying to say. I think the question is:

What does ABX pay once the outside business exceeds 10% of DHL's business. I've seen the answer somewhere (I think) but don't remember it. It could be that ABX pays 100% of the overhead on the outside business once the revenue exceeds 10%, or it could be they pay the overhead only on that portion which exceeds the 10%.

I think the answer was 100% of the overhead on the outside business once the 10% was exceeded. If that is the case then we can look for ABX Air (as opposed to ABX Holding) to make an effort to keep charter business below the 10% threshold. DHL will, in turn, try to lower the threshold as much as possible. Hence the current disagreement. Whatever the 10% turns out to be, everything over that amount will go the CHI.

 

[flyinboxes]

Ummm...this is a gentleman's forum, Mr. Shooter. We don't discuss that subject in here.

It leaves a very bitter taste in the Kool-Aid.

Sell it ....who cares.

 

[Reebo]

Buy more Frozen Orange Juice!

Waiting on the crop report from Beeks

 

[shooter]

I'm not real sure I understand what you are trying to say. I think the question is:

What does ABX pay once the outside business exceeds 10% of DHL's business. I've seen the answer somewhere (I think) but don't remember it. It could be that ABX pays 100% of the overhead on the outside business once the revenue exceeds 10%, or it could be they pay the overhead only on that portion which exceeds the 10%.

I think the answer was 100% of the overhead on the outside business once the 10% was exceeded. If that is the case then we can look for ABX Air (as opposed to ABX Holding) to make an effort to keep charter business below the 10% threshold. DHL will, in turn, try to lower the threshold as much as possible. Hence the current disagreement. Whatever the 10% turns out to be, everything over that amount will go the CHI.

I agree if it's 100% once over 10%.

 

[TWA]

At ILN, DHL owns the airport and buildings, but ABX handles all of the airfield operations, sort, and GSE, right? So, if ABX wanted to, they could essentially pull the plug on the entire ILN operation? Just tryin to make sure I completely understand the situation there. Thanks.

 

[HeavyjetDC8]

Contracts notwithstanding, ABX could pull the plug in several ways. Which would shut down DHL their biggest customer, which would leave ABX aircraft without freight so in turn effectively shutting down ABX. Mutually assured destruction - similar to throwing hydrogen bombs at each other. See avatar.

 

[Cargoav8or]

Contracts notwithstanding, ABX could pull the plug in several ways. Which would shut down DHL their biggest customer, which would leave ABX aircraft without freight so in turn effectively shutting down ABX. Mutually assured destruction - similar to throwing hydrogen bombs at each other. See avatar.

Shuts down ABX Air, not ABX holdings, who happens to be purchasing another company who owns 2 airlines (CCl/ATI), guaranteeing the top survives.

"During the third quarter of 2007, DHL informed ABX Air that it intended to take over management of its South Bend, Indiana regional hub and its Columbus, Ohio, logistics center, currently managed by ABX Air. Management of the South Bend hub was transferred to DHL on November 3, 2007. The Columbus center transition will be completed on January 1, 2008."

Looks a little one sided to me, and were not fairing any better. But hey who needs to work together you fellers got it figured out. The 76 will save the day, right?




:uzi: Ain't this industry grand.

 

[erichartmann]

Contracts notwithstanding, ABX could pull the plug in several ways. Which would shut down DHL their biggest customer, which would leave ABX aircraft without freight so in turn effectively shutting down ABX. Mutually assured destruction - similar to throwing hydrogen bombs at each other. See avatar.

What really matters in fighting a nuclear war is not whether or not it can be won, but whether or not you think it can be won. If you believe you can survive and are willing to take the damage to destroy your enemy....

 

[erichartmann]

Shuts down ABX Air, not ABX holdings, who happens to be purchasing another company who owns 2 airlines (CCl/ATI), guaranteeing the top survives.

"During the third quarter of 2007, DHL informed ABX Air that it intended to take over management of its South Bend, Indiana regional hub and its Columbus, Ohio, logistics center, currently managed by ABX Air. Management of the South Bend hub was transferred to DHL on November 3, 2007. The Columbus center transition will be completed on January 1, 2008."

Looks a little one sided to me, and were not fairing any better. But hey who needs to work together you fellers got it figured out. The 76 will save the day, right?




:uzi: Ain't this industry grand.

You have been told what's needed to engender that cooperation. I don't see much point in cooperating if that cooperation ultimately spells my doom. Sort of like the frog giving the scorpion a ride...