ABX says NO THANK YOU to ASTAR

[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: