ABX buys Pace

[erichartmann]

This is a quote from the IBT Local 1224 (ABX's pilot's union) weekly wrapup: "industry sources tell Cargo Facts that ABX has completed its long-expected purchase of Winston-Salem-based PACE AIRLINES, but as we go to press, this remains unconfirmed. "

 

[av8rnate]

I don't guess I've ever heard of Pace Airlines. Who are they?

 

[B737Dvr]

This is a quote from the IBT Local 1224 (ABX's pilot's union) weekly wrapup: "industry sourcestell Cargo Facts that ABX has completed its long-expected purchase of Winston-Salem-based PACE AIRLINES, but as we go to press, this remains unconfirmed. "

Hey Eric, How accurate is that source? Does the IBT post factual stuff, rumours, or both? When do you think the next update on that could come in?

 

[abxaviator]

The union was simply quoting a report from Cargo Facts. It goes on to say that, if true, by SEC rules, ABX has until 8/9 to publicly announce.

 

[B737Dvr]

hmmm

Interesting, well i guess we will find out by 8/9 if this is true or not. I wonder what this will mean for the flightcrews of both companies?
When World bought NorthAmerican, I guess they kept both companies separate. ABX could keep Pace separate, but I wonder what if any union language exists about things like this?

 

[LarryinTN]

I don't guess I've ever heard of Pace Airlines. Who are they?

They were the airline that operated the now defunct Hooter's Air. Now they do vacation charters and private charters. I think they do some sports team charters as well. http://www.paceairline.com/

There's been a few ideas tossed around as to why ABX would want to buy pace but it's all speculations. According to their website, their fleet includes 737-200s, -300s and one -400 aircraft as well as two 757-200s.

 

[bocefus]

Hmmm, at the same time DHL notified ABX that an additional 11 DC-9s and 10 DC-8s are being released from service in Aug.

 

[erichartmann]

Hmmm, at the same time DHL notified ABX that an additional 11 DC-9s and 10 DC-8s are being released from service in Aug.

I haven't seen the latest issue of Cargo Facts, but I know the union subscribes. I would have to believe this is a published report, as quoted. I think the cavet about the SEC rules is probably from the union's attorney(s).

I have been told by members of the unions current negotiating committee that ABX does not intend to operate Pace as a seperate carrier beyond a specified integration period. I'm not sure about the length of the period, but I seem to recall 9 months as having been mentioned.

The aircraft released by DHL are not really economically viable with the possible (but not likely) exception of some of the straight pipe DC-8's which have cargo doors. Even those aircraft are likely due for major checks. Recent history on the major checks for the DC-8's is not good. They have been lengthy and expensive. They are also very thirsty. These are some of the reasons DHL has released them from service.

I'm not sure why ABX has purchased Pace, but suspect having a facility off of the ILN hub factors into it. ABX likely needs a place to do routine maintaince on it's growing fleet of charter aircraft, and there is no extra parking available at ILN. Also, ABX has purchased 12 aircraft from Delta, and taken delivery on more than can be converted at this time and put into service in the near term. The choke point is the conversion from pax to cargo. There is also a rumor that ABX is in the process of buying somewhere between 12 and 30 more 767's. If true, and I suspect there are more aircraft coming, I have little doubt some of those aircraft will be delivered before there are slots for them in the conversion line. It would make sense to operate them as pax aircraft in the interim, even if all they did was earn enough to offset the cost of purchase. Finally, I have heard ABX might undertake converting some aircraft itself. To do so they would need their own facility seperate from that located at ILN.

Obviously much of this is speculation on my part, based on what I have heard and putting pieces together. I could be very wrong, and your milage may vary.

 

[shooter]

They were the airline that operated the now defunct Hooter's Air. Now they do vacation charters and private charters. I think they do some sports team charters as well. http://www.paceairline.com/

There's been a few ideas tossed around as to why ABX would want to buy pace but it's all speculations. According to their website, their fleet includes 737-200s, -300s and one -400 aircraft as well as two 757-200s.

Does anyone know right off hand how many are owned and how many are leased?

The registrations are all over the place and none say Pace as the owner. Unless there is a sub. I was really wanting to know if they own anything?

 

[erichartmann]

Does anyone know right off hand how many are owned and how many are leased?

The registrations are all over the place and none say Pace as the owner. Unless there is a sub. I was really wanting to know if they own anything?

Every aircraft listed on the website is leased. Pace appears to own one 737-200, which is not listed on the website.