ABX says NO THANK YOU to ASTAR

[hvydriver]

Here's the full release from Daz.

Press ReleaseSource: ASTAR Air Cargo Holdings, LLC

ASTAR Withdraws Indication of Interest For ABX Air
Wednesday July 25, 9:39 am ET
MIAMI--(BUSINESS WIRE)--John Dasburg, the Chairman, President and Chief Executive Officer of ASTAR Air Cargo Holdings, LLC sent the following letter to the board of directors of ABX Air, Inc. (NASDAQ: ABXA - News) in response to a letter received on July 24, 2007 from Joseph C. Hete, President and Chief Executive Officer of ABX Air: July 25, 2007ABX Air, Inc. Board of Directorsc/o W. Joseph Payne, Secretary145 Hunter DriveWilmington, Ohio 45177Gentlemen:On July 24, 2007, Joseph Hete informed me that ABX Air's board of directors and management, having consulted with its advisors regarding ASTAR's $7.75 per share indication of interest, have determined not to proceed.ASTAR believes that the $7.75 per share amount reflects a full and fair price and is generous to the shareholders of ABX Air in the absence of a transaction with ASTAR. In light of your response, as reported in Mr. Hete's letter, our board of directors has unanimously determined to pursue other alternatives and we are, therefore, withdrawing our indication of interest.Very truly yours,John H. Dasburg
About ASTAR Air Cargo, Inc.
ASTAR Air Cargo, Inc. is the operating subsidiary of ASTAR Air Cargo Holdings, LLC. ASTAR Air Cargo is a licensed U.S. air carrier operating a fleet of 44 aircraft from its operational hub in Wilmington, Ohio. The airline provides all-cargo scheduled and charter services on a contract basis for the DHL Worldwide Express network and charter services on a contract basis for other customers including the U.S. military and the United States Postal Service. ASTAR Air Cargo is a participant in the United States Civil Reserve Air Fleet program supporting our national defense. Additional information can be found at www.astaraircargo.us.


Contact:
ASTAR Air Cargo Holdings, LLCMedia Contact:Richard Marcus, 202-295-8770Source: ASTAR Air Cargo Holdings, LLC

 

[AV8OR]

"The salesman said no and politely requested Daz make a serious offer."

mmmmm, that's not really what I heard. I think it was polite, but more like....hey, thanks, but, no thanks....now, later, never.

Looks like that's probably where things are headed too.

We'll see.

 

[shooter]

well, good. It's business as usual with both carriers doing their own thing. ABX will try to fix it's internal problems and ASTAR will do the same. No body count thus far. See you guys around KILN!

 

[HeavyjetDC8]

There isn't a fix for the internal ABX problem because the ANA contract involves a type of flying that the majority of pilots don't want - and there's no resolution for a new CBA in sight. In time the value of the stock will most likely decline, the true value play for the ABX shareholder would have been through a merger although at a higher stock price. Having one dedicated airline flying all of DHL's freight would also have been of advantage to both pilot groups.

Perhaps now the only way forward is to treat DHL as badly as they've treated us. Everything to gain with nothing to lose at this point by playing hardball.

 

[flyinboxes]

There isn't a fix for the internal ABX problem because the ANA contract involves a type of flying that the majority of pilots don't want - and there's no resolution for a new CBA in sight. In time the value of the stock will most likely decline, the true value play for the ABX shareholder would have been through a merger although at a higher stock price. Having one dedicated airline flying all of DHL's freight would also have been of advantage to both pilot groups.

Perhaps now the only way forward is to treat DHL as badly as they've treated us. Everything to gain with nothing to lose at this point by playing hardball.

Right on the money HeavyjetDC8.

 

[shooter]

There isn't a fix for the internal ABX problem because the ANA contract involves a type of flying that the majority of pilots don't want - and there's no resolution for a new CBA in sight. In time the value of the stock will most likely decline, the true value play for the ABX shareholder would have been through a merger although at a higher stock price. Having one dedicated airline flying all of DHL's freight would also have been of advantage to both pilot groups.

Perhaps now the only way forward is to treat DHL as badly as they've treated us. Everything to gain with nothing to lose at this point by playing hardball.

well, how did you figure a merger would fix the ANA problems if they can't be fixed now? Did you think the ANA flying would go away? Did you figure the ASTAR guys would bid it? Just asking, not flaming.

 

[ABXbooger]

For DHL to replace ABX would cost them what...

A minimum of 60 airplanes ( to replace the 90ish we fly now????) at a conservative estimate of 20 mill per equals what....1.2 Billion. Not to mention the time it would take to reserve the conversion slots. New frames would probably triple that cost.

And if they do look outside the two current companies, well they might as well pack up and go back to Deutschland.

 

[shooter]

For DHL to replace ABX would cost them what...

A minimum of 60 airplanes ( to replace the 90ish we fly now????) at a conservative estimate of 20 mill per equals what....1.2 Billion. Not to mention the time it would take to reserve the conversion slots. New frames would probably triple that cost.

And if they do look outside the two current companies, well they might as well pack up and go back to Deutschland.

I don't doubt that Dasburg makes a play on Kitty. How many aircraft do they have on line?


got it from the ABX/Kitty Hawk thread....still need ABX.

Originally Posted by Box-Hauler-why would Astar want ABX when they could buy Kitty Hawk, own 17, 72's and 7, 737F's. Then they could ramp up faster. DHL could accelerate their taking away of cities from ABX, make Astar the the sole provider for DHL and realy piss away market share. I have management written all over me. Who has Rolf Büttner's email address a mind like mine is a terrible thing to waist.

Look at Kitty Hawks stock price .32 per share. It has a market cap of 17Mil. Offer 20 million get 24 airplanes. Thats less than $850,000 per plane. Hell there are piston singles that cost that much.I know I can sell this idea to the Germans.

 

[fodc8]

Shooter You got what you wanted. Be happy! However you are going to learn very quickly how replacable you really are. It's just unfortunate that all the good guys at ABX are going to have to take the same ride as you.

 

[shooter]

Shooter You got what you wanted. Be happy! However you are going to learn very quickly how replacable you really are. It's just unfortunate that all the good guys at ABX are going to have to take the same ride as you.

why all bad vibes? I am happy, why are you so sore?

 

[erwaz]

I was disapointed to here that ABX did not sell to Astar. I wonder what the fate of ABX will be. It seems to me that DHL does not want ABX in the future.

 

[GoABX]

Even if there is a lot a behind closed doors discussion between Astar, ABX and DHL, there is no way that Astar and ABX could be described as friends. For the simple fact they have gained and we have lost over the past 4 years. So it is highly unlikely that Dasburg has much inside intel on the unannounced 76 purchases or the scope of the ANA and other charter business that is coming. The same could also be said for DHL. They know more 76s are coming and they know 1.75% ain't gonna get it. So of course they'd like to buy at a discount if they can't rent at a discount.

The ANA-ABX plan is much bigger than 3 a/c. The question is if DHL is tied to the deal or if they take it as a threat. otherwise we may have a horse race to see if ABX can grow quick enough to not need DHL or if DHL can buy lift quick enough to dump ABX. All of this and many opinions on this board presume current and future animosity between ABX and DHL. Based on past history there is no reason to assume things have to get ugly. But there is definitely a chance. The picture will be much more clear to every one by Q1 or earlier.

 

[J3CubDriver]

Guys I see way too much emotion in this. Think business. Does anyone take the first informal offer? This is far from over. This is just normal big business negotiations. Astar ABX DHL all need each other. There can't be anymore disruptions in service in the US. Anybody remember the intergration to ILN. ABX has 44 767's and 55 DC-9s with rumored 12 more from China S Airways and a few more from AA. It's pretty hard to replace that kind of lift. It take years and years to replace that, plus aircraft and conversion slots. ABX has all the 767-200 slots for the next several years. Both pilot groups are much better off together than apart. Strength in numbers. Patients and unity is what we need.

 

[Cargoav8or]

"ABX has all the 767-200 slots for the next several years."

Hey J3 is this in a filing somewhere or just heresy? Are they the Boeing mod or IA?

Just curiosity.

Thanks

 

[ABXbooger]

this is for the IAI Mod which, I think is the only mod available for the -200. Boeing has done some -300 mods for ANA, other than that all the -300 are factory new mods.

Hete has said numerous times that we have locked up every available slot for -200 mods for the next several years. I think he means IAI.

 

[Whistlin' Dan]

Guys I see way too much emotion in this. Think business. Does anyone take the first informal offer? This is far from over. This is just normal big business negotiations.

It's kind of axiomatic in business that when a deal is made based upon the initial offer, either one side has offered too much, or the other side has accepted too little.

I used to think that DHL would never allow ABX and Astar to join together. But seeing how ABX has cornered the market on 767's for the next few years, and how interested other parties are in those assets, I'm not so sure anymore.

What would prevent DHL from making a bid for ABX outright?

 

[abxdx]

It's kind of axiomatic in business that when a deal is made based upon the initial offer, either one side has offered too much, or the other side has accepted too little.

I used to think that DHL would never allow ABX and Astar to join together. But seeing how ABX has cornered the market on 767's for the next few years, and how interested other parties are in those assets, I'm not so sure anymore.

What would prevent DHL from making a bid for ABX outright?

the law!!!

 

[ABXbooger]

here's a scarier thought, maybe...

Why doesn't UPS or Fedex make a bid for ABX. Instantly ruins DHL's plans for having a profitable US biz for years to come. Feds would probably allow it, because DHL can't cry foul as they are not a US company and couldn't afford another ownership fight.

The buy by FDX or UPS would be an instant gain in market share as DHL could no longer offer any sort of overnight delivery. Yeah, I know DHL has a contract with ABX, but for only 2 years. They absolutely couldn't replace ABX anywhere near 2 years. Well maybe they could, but that would involve every ACMI carrier from here to Taiwan, and I'm sure that would be very profitable...

This thought alone should speak volumes as to why DHL needs some sort of deal to happen.

 

[ABXbooger]

how about a shell co. set up jointly by FDX and UPS to buy up ABX and then shut it down...

 

[Cargoav8or]

how about a shell co. set up jointly by FDX and UPS to buy up ABX and then shut it down...

Ah, an optimist!! Don't even joke around like that.:beer: