ABX buys Pace

[Jurassic Jet]

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.

This looks to be timed pretty well. The second quarter conference call is going to be 8/10.

 

[LarryinTN]

The story with the 767s is that we've bought twelve from DAL and DAL has already removed them all from service but our conversion lines can only do one or two at a time so it's going to take time to get them all converted to freighters. We assume that if we could use them for pax then we'd be able to take delivery of them sooner and put them to productive uses while they wait for their turn on the conversion line.

We've already received and converted some of those twelve. Maybe three or four with two or three finished? I'm not sure what the schedule is for conversion of the rest. I've heard that they're putting them through as fast as they can. Maybe a 767 guy would know more.

All of the DAL airplanes are getting the flat panel conversion when they go through the freighter conversion. Here's a picture of the first one to get it. http://www.airliners.net/open.file/1067871/M/

Meanwhile, we just got a brand new international ops manual and, for the first time, we all must now carry the international ops manual on all flights. Also word that the 767 instructors have been/are doing a number of international proving runs. Don't really know to where but heard something about Asia.

CRAF work has also been a persistent rumor as has stories about our mechanics going all over the place checking out other 767s that may be for sale including -200ERs and -300s.

Remember, everything in this message after the bit about the international ops manual is rumor and speculation. Could all be right or it could all be wrong. Will certainly be interesting to listen on the 10th!

 

[GoABX]

ARE YOU GUYS MAKING MONEY? or at least close to breakeven.

If the pax path is only a revenue bandaid to keep the birds flying until they can get them converted, then Pace might be in trouble. They would probably strip out what they wanted and cast away the rest. ala Challenge Air. (I'm not saying I want that...these guys are pretty tough businessmen. I'd rather have another 100 on the seniority list)

The world doesn't need another passenger carrier (ABX), but Pace seems to have a specialized slice of it. With the other pax carriers reporting profits maybe they think they can do it too. Correct me if I'm wrong but with such a low utilization and small seat density, making a buck in the vacation & VIP charter business has got to be really tough.

As someone stated earlier, ABX would have up to 9 months to decide what to do with the Pace assets and people. If they want to keep the operation small and strip out the value then they will probably keep everything separate. This would allow them to continue to pay the Pace rates instead of ABX rates. If they are serious about getting into your business & growing they might integrate.

Based on the threats, fears, and rumours we heard years ago about an Astar/ABX comingling, I'd guess that IF they wanted the pilots they offer preferential interviews rather than merging. Obviously we aren't qualified to fly your pax charters, so they do need you. This is just a cheesy way to reset your longevity clocks.

All I can say to the Pace guys is that I (We) can fully appreciate the stressful time you are going through. We have been on the emotional roller-coaster for 5 years too. (Not flamebait) If it were me I guess I'd prefer to swallow the bitter pill and hope for a seniority staple, keep your current seat, and hitch my horse to a bigger company with better pay/stability/pension. The alternative is staying independent, but with leased aircraft you can be cut loose at anytime.

Has your DO or CP not given you any indication of the future? He can't tell you inside info before it is announced, but have they said anything like 'brush up your resumes' or 'you hit the lottery'? With no intel morale has got to be sketchy.

How busy are the guys that are still working? When do the current leases end? Do you have any scheduling rules? Profit potential? I think the current state of things at Pace provides insight as to what the plan is and where they'd put the assets.

 

[GoABX]

Do you know any of the names of the ABX people that were taking the tour?

 

[FreightNazi]

ARE YOU GUYS MAKING MONEY? or at least close to breakeven.

If the pax path is only a revenue bandaid to keep the birds flying until they can get them converted, then Pace might be in trouble. They would probably strip out what they wanted and cast away the rest. ala Challenge Air. (I'm not saying I want that...these guys are pretty tough businessmen. I'd rather have another 100 on the seniority list)

The world doesn't need another passenger carrier (ABX), but Pace seems to have a specialized slice of it. With the other pax carriers reporting profits maybe they think they can do it too. Correct me if I'm wrong but with such a low utilization and small seat density, making a buck in the vacation & VIP charter business has got to be really tough.

As someone stated earlier, ABX would have up to 9 months to decide what to do with the Pace assets and people. If they want to keep the operation small and strip out the value then they will probably keep everything separate. This would allow them to continue to pay the Pace rates instead of ABX rates. If they are serious about getting into your business & growing they might integrate.

Based on the threats, fears, and rumours we heard years ago about an Astar/ABX comingling, I'd guess that IF they wanted the pilots they offer preferential interviews rather than merging. Obviously we aren't qualified to fly your pax charters, so they do need you. This is just a cheesy way to reset your longevity clocks.

All I can say to the Pace guys is that I (We) can fully appreciate the stressful time you are going through. We have been on the emotional roller-coaster for 5 years too. (Not flamebait) If it were me I guess I'd prefer to swallow the bitter pill and hope for a seniority staple, keep your current seat, and hitch my horse to a bigger company with better pay/stability/pension. The alternative is staying independent, but with leased aircraft you can be cut loose at anytime.

Has your DO or CP not given you any indication of the future? He can't tell you inside info before it is announced, but have they said anything like 'brush up your resumes' or 'you hit the lottery'? With no intel morale has got to be sketchy.

How busy are the guys that are still working? When do the current leases end? Do you have any scheduling rules? Profit potential? I think the current state of things at Pace provides insight as to what the plan is and where they'd put the assets.

What about Hete merging ABX with Pace and having Pace the surviving entity? That way he can pay EVERYONE Pace payrates.

 

[Longhorn]

Guys, please DO NOT post real names!!

 

[lahyatt]

As far as how Pace is doing? That would have to be asked before or after Brooks. Pace has a good business going with the sports teams. We do a lot of Platnum charters.(Casino) We are privately held company so we do know $$$$$ We were growing happily we have had some descent management through the years, Then we got bought by hooters and things took a different turn. He wanted flying billboards did not care about the business of flying airplanes to make $. We still have some sports teams and rumor is more want to sign but they are waiting to find out what is happening with the sale.

Those of us at Pace are waiting to be put out of the misery of seeing what is coming next. There is at least 100 options of what can happen and I think we have thought about all of them. As I said early there is only about 30 left on the seniorty list.

 

[lahyatt]

correction -----do not know $$$$$

 

[LarryinTN]

What about Hete merging ABX with Pace...

Hello Rhoid

 

[climbhappy]

why would ABX want to buy Pace...

we heard ya'll were getting many 767s that would need maintenance and refurb...for what purpose I don't know.
why buy Pace? for their maintenance certificate and maybe the 121 cert (my .02 cents) which could be an alter ego operator much like republic , freedom, gojet on the regional side.
It would suck but I don't think it is out of the realm of possibilites since Management does this all the time. Never mind contracts, they usually are violated and end up with lawyers getting rich over the arbitration.

I heard that sports jet, a broker who has used us for amny years out of Phoenix to fly NBA, MLB etc is getting their own certificate. any truth to this?

 

[LarryinTN]

we heard ya'll were getting many 767s that would need maintenance and refurb...for what purpose I don't know.

As I said, it is to convert them into freighters. We don't carry passengers.

The freighter conversion is quite extensive. The cargo door must be cut in the side and the main deck floor is replaced with one strong enough to hold the weight of the freight. A barrier wall is built and crew baggage shelves, passenger seats and oxygen system, galley and loadmaster station are all built. The process takes many weeks.

 

[BoeingBaller]

I heard that sports jet, a broker who has used us for amny years out of Phoenix to fly NBA, MLB etc is getting their own certificate. any truth to this?[/quote] Lots of truth to that..

 

[B727FA]

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

That was 219PA and has since been grounded.

 

[LarryinTN]

Ought to hear something Wednesday (Aug 9th) afternoon if the Pace deal is real.

On a different topic... Saw an Astar memo in SLC last week which said that they lost the lease on a DC8. I hear that they were hoping to negotiate a lower lease rate by threatening to turn the airplane back in (like they did with the four (five?) 727s last year) but it didn't work. The lessor found another lessee for it. Anyway... Any news on if this will result in a change in a city or can Astar continue to fly their current schedules with one less DC8?

 

[Jurassic Jet]

Ought to hear something Wednesday (Aug 9th) afternoon if the Pace deal is real.

And in related news to the Pace rumour, looks like ABX added a director to the board that is experienced with mergers and acquisitions.

A quote from the press release:

Joe Hete, President and Chief Executive Officer of ABX Air, said "Fritz Reed has a broad background in corporate legal and financial management and consulting, with particular experience in strategic and business development, including mergers and acquisitions. I am looking forward to his contributions as we expand and diversify our base of business at ABX Air."

Full story found here:

http://biz.yahoo.com/bw/060807/20060807005704.html?.v=1