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ABX furloughs

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Doode...

You need to chill! Lay off the coffee...pet a small furry animal...watch some cartoons on cable TV...go downtown and buy yourself a b*** j** and a glass of warm milk. But first and foremost, do yourself a favor and take a break from this and all other message boards until you can respond to the things you read here in a civilized manner. Turning a civil discussion into a personal attack is usually a pretty good sign that your argument, or at least your ability to present it in a persuasive manner, is flawed.

Speaking of "flawed"...I read both documents to which you provided references. Only one applies to this discussion, and neither addresses the issue raised in my previous post - that of guaranteeing Astar a "profit."

"...the agreement provided for more than 90% of Astar's revenues, contained payment provisions that were integral to both Astar's financing and working capital, and shifted all of Astar's risks to DHL worlwide"

I'm just dyin' to say that "the terms of the contract protects Astar's investment to some extent," but then, I'd be repeating myself, wouldn't I?

The same document mentions the "$15 million guaranteed payment to Astar," but says nothing about how that $15 million is carried on the books. A "payment" is NOT the same thing as a "profit." It would seem uncharacteristically generous of DHL to guarantee an annual return of $15 million dollars on an initial investment of just $57 million dollars.

And lastly -

"the agreement provided Astar significant incentives to expand it's business"

That's common business-speak for "If you'll lower your prices, we'll give you more business." It's what every business owner tells his vendors. And for the last 4 years, it's what The Daz has been telling you.

Now...if you care to respond to this, try doing it with the same language and tone that you would do so to my face. Good rule for the internet, and a good rule for life in general.
 
"the agreement provided Astar significant incentives to expand it's business"

They have significantly expanded there business. Block hours are way higher, and they continue to replace Abx Air on routes all the time. They are hiring pilots, it will only be a matter of time for new A/C.

Only real difference I see in ACMI contracts with ABX, is the dis-incentives in the ACMI for Astar aircraft to be removed from service. DHL pays for all the lift, regardless if it is used or not. O' and the incremental mark up.....Astars is way higher, somewhere around 6 or 7%, compared to Abx's 1.25%.
DHL, likes more expensive. Cos the service is sorta the same.......right!!!

This is why Abx is cutting up 2 engine, 2 crew, cat2 aircraft and being replaced with 3 engine 3 crew Cat1 aircraft, that all cost more to operate. Granted a 72 can carry more, but weight is rarely an issue in the DHL express business, they lose more frieght and customers daily. I have not seen a station lose a 9 to 72, because of to much volume.....just is not true.

Before you get into the whole A vs C container deal....the freight does not know what kind of container it is in, the sort did not see what kind of container the freight arrived in, the C's are a joke agreed, and highly unique, but DHL's desire to rid themselves of them yesterday,(I do agree they gotta go eventually) is part of the reason they are losing a Billion USD a year. Walk before you run.....Make a profit first! Abx has removed more AC from service than Astar has total equipment.....what does this say?

Airborne was not stupid.....DHL bought a turn key operation, that needed some tweaking. They shut of the key. Heaven knows now how they will ever turn it around in the US. THe hub disintergration is years behind us, and they still are showing on a dayly basis that they do not understand the US Express business.

Heaven help us all. The wheels are surely going to come of the bus eventually, if they don't get a clue.....I would be happy to buy the first vowl!
 
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Sorry Dan, but AV8or is right. The ACMI is on my hard drive my friend. 15 million whether a plane leaves the ground or not. Also,

I have to wonder about you myself. Trust me when I tell you, your thoughts are a little off base. Do you honestly think we are negotiating with Astar?

And no I will not "post" the ACMI although it may be public info, I don't know. What I do know is that I know it well for reasons I will not post on here.
I had to respond as you are way off base. Listen or not I don't care. Have a good day.
 
OK Dan.....your right. John D is just doing this for the tax write off.

Like I said, at the end of 2007 we'll see what this useless dog is worth.
 
Not trying to Flamebait here, but what is the siginificance of the end of 2007? Previously there was a lot of talk about March being significant for a lock-out or some such, but nothing happened.
 
there's no doubt who 'ol whistlen' dan is, even though he tries to deny it. trust me, he used the same b***s**t technique when he was working at Astar. this is what ultimately cooked his goose.
 
As one of my colleagues (one with a graduate degree in International Finance) has just informed me, there's no use continuing this discussion until the difference between "guaranteed revenue" and "guaranteed profit" are understood by all the participants.

One good thing has come out of this discourse - I'm starting to understand why the contract negotiations have been taking so long.
 
We are indeed blessed; not just a message but also bid packs and a letter of agreement have appeared in my in-box. The bid pack shows 98 lines for some 125 crew members in each 767 seat, the surplus I suppose to be covered by build-up lines which will probably be assigned to maximize the consecutive period spent on ANA flying to 24 days. We did reach agreement for maximum consecutive time spent in Asia to be 15 days didn't we? Not much of an agreement otherwise.
 
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As one of my colleagues (one with a graduate degree in International Finance) has just informed me, there's no use continuing this discussion until the difference between "guaranteed revenue" and "guaranteed profit" are understood by all the participants.

One good thing has come out of this discourse - I'm starting to understand why the contract negotiations have been taking so long.

Please have your international finance guru explain it to us. We are to dumb to finger it out. Our contract negotiations are taking a while because we don't understand the difference between profit and revenue. And to think I invest in the stock market.
 

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