ABX to compete with DHL?

[Airbus300]

However , I assure you that we are committed to keeping you informed about any developments, as often and as quickly as we can. I can tell you that rumors about a link between the overture from ASTAR and the possibility of Abx Air forming a new holding company structure for ABX Air are unfounded.

My interpretation of this is that ABX Air did not form the holding company a couple of months ago with the intent of selling off most of the company to Astar. The Astar offer was a surprise to them. The holding company was set up for another purpose. (That is my guess...but it was not written clearly.)

 

[rotor&wing]

Okay, the typeface is bigger, but says the same thing; no mention of ASTAR keeping the ANA flying. If DHL wants the 767F's, they'll get them, not ANA. I certainly don't know, I was just curious how you get to your conclusion.

Astar has made the offer to buy out ABX, including everything down to the pencils on the desk. (the offer was for ALL of the ABX stock)

Astar has and still flies charters. Astar has operated the Pacific Rim, North, Central and South America, Europe and the Middle East. The ANA contract is with ABX appears to be a lucritive venture, and I would bet DHL would be interested in getting involved with it also.

Time will tell.

 

[abxaviator]

Okay, I agree with all you said there. It is indeed lucrative, on the way to China today, we were discussing how DHL might want to keep this going and how they could do it. As you say, time will tell.

 

[penguin22]

I guess there’s two reasons why I think spinning off ANA is at least a possibility.

1. There were rumors of Joe separating with some 767s to just do ANA before Astars proposal was announced. So an ABX/Astar merger provided a catalyst for it to happen.

2. A final agreed upon buyout can end up looking very different from the original offer (or letter of intent). When negotiating the buyout, Joe could try to spin off the ANA op as part of the deal. Seems logical if he assumes he wouldn’t be running things post merger. There’s the whole issue of 121 certificates, but for the sake of argument, let’s just assume it gets arranged somehow.

That said, I hope it doesn’t happen. DHL hasn’t been nice to ABX. They keep parking our airplanes. Still rumors of more DC9s getting parked. (of course, if there’s a resultant furlough, its because of those greedy senior pilots putting the screws to the guys on the bottom, and not because DHL is parking more DC9s. Even though opf goes far past ‘senior’ guys. But I digress ) It’s nice to have another major customer, and not have to rely solely on DHL. All our growth has been from ANA, and all our shrinking has been from DHL. Let’s just say ANA raises our career expectations.

None of us have been impressed with the way DHL has been running things since they took over. (hopefully there’s some slow progress) By stark contrast, this ANA op is first class. It’s good to have both to chose from. If I was an Astar guy, I would definitely want ANA to be included in a merger with ABX. It would raise your career expectations too.

Hopefully ANA won’t get split off. I found it interesting that Joe went as far to say that rumors of the Holding company being linked to Astar’s overture are unfounded. He must be reading this forum!:laugh:

Finally, as was mentioned earlier, over in Asia there’s a feel somehow that this whole thing could get tied together down the road. So why split it up now?

 

[abxdx]

what about all the other flying? You know we do have long term contracts with areomexpress,florida west,BWIA, and Air Jamacia. So ANA is not the end all be all... Hell, its only a two year contract. I hope it turns into something big, just trying to play devils advocate...

 

[penguin22]

what about all the other flying? You know we do have long term contracts with areomexpress,florida west,BWIA, and Air Jamacia. So ANA is not the end all be all... Hell, its only a two year contract. I hope it turns into something big, just trying to play devils advocate...

I'm just hoping we can keep it all together!

 

[shooter]

what about all the other flying? You know we do have long term contracts with areomexpress,florida west,BWIA, and Air Jamacia. So ANA is not the end all be all... Hell, its only a two year contract. I hope it turns into something big, just trying to play devils advocate...

top notch! This is the coup de grace to the buy out right here guys. If Goldman, Sachs & Co. sees this income there is NO WAY they will let ABX go for less than $15-$20 per share. There is SO MUCH MONEY to be made in the adhoc stuff ASTAR and DHL will be climbing a ladder of cash to get the potential ABX has. Too many players that WANT ABX lift to give it away to ASTAR. Its all money fellas and how much does DHL want to put out for what others demand? Looks like DHL backed the wrong horse in the 49% interest.

 

[abxaviator]

However , I assure you that we are committed to keeping you informed about any developments, as often and as quickly as we can. I can tell you that rumors about a link between the overture from ASTAR and the possibility of Abx Air forming a new holding company structure for ABX Air are unfounded.

My interpretation of this is that ABX Air did not form the holding company a couple of months ago with the intent of selling off most of the company to Astar. The Astar offer was a surprise to them. The holding company was set up for another purpose. (That is my guess...but it was not written clearly.)

The application for the holding company was made several months AFTER Dasburg and Hete had started talks of merging (per D's letter), so while the two actions may not be related, it was most assuredly not a surprise when the letter came last week.

 

[abxaviator]

Finally, as was mentioned earlier, over in Asia there’s a feel somehow that this whole thing could get tied together down the road. So why split it up now?

If this is referring to what I said, allow me to clarify. In no way did I intend to imply any general feeling here about these ops being tied in. We were merely discussing how that might be possible logistically. My personal belief is that the catalyst for the merger is the 767F's and that DHL wants those airplanes flying yellow freight, that would leave ANA out.

 

[inplaneview]

I have heard from two different sources that ABX has hired a Chief Operating Officer. If that is the case, it seems unlikely that we would accept Astar's offer. Sounds to me like we're ramping up to go in a different direction.