ABX to list on NASDAQ

[ABXbooger]

ABX files to list stock on Nasdaq
By James Pilcher, Cincinnati Enquirer, Thursday April 07, 2005


WILMINGTON, Ohio - ABX Air Inc., the company that operates the air cargo hub here for international shipping giant DHL, has made its much-anticipated filing to be listed on the Nasdaq stock exchange. The company, founded as a public company in August 2003 as a spinoff of DHL's purchase of Airborne Express, said Wednesday that it sent the appropriate paperwork and hopes to have an answer within six weeks. ABX Air president and chief executive officer Joe Hete said the company had been waiting for two key decisions by DHL. The first was DHL's decision last June to consolidate its hub operations at the Airborne site in Wilmington. It moved operations from its other hub at the Cincinnati/Northern Kentucky International Airport. The second decision came in November, when DHL said it was moving only 26 planes from Cincinnati (owned by Astar Air Cargo) to Wilmington. Hete said there was worry that DHL would move up to 40 planes, which would have displaced existing ABX Air operations. ABX trades as an over-the-counter stock, which is off-limits to many institutional investors. Its shares were selling at $7.65 at the close of the market Wednesday.

ABX Air chairman James H. Carey said the move could increase the company's liquidity. "And it certainly moves us to an exchange with more visibility," said Hete, who added that ABX does not plan to issue more stock. The application still needs Nasdaq approval, but Hete said he does not anticipate any problems since the company's corporate governance policies mirror those of Nasdaq and the stock price is well above the $5-per-share minimum. "From the get-go, we set this up around their rules with this in mind," Hete said.

 

[Eaglepuke]

Great. Does anyone think this might mean some hiring soon or what? Been swimmin quite some time.

 

[fr8dogfo]

"The second decision came in November, when DHL said it was moving only 26 planes from Cincinnati (owned by Astar Air Cargo) to Wilmington. Hete said there was worry that DHL would move up to 40 planes, which would have displaced existing ABX Air operations. "



Sorry but this part isn't true. Astar IS moving ALL aircraft to ILN.

 

[Airbus300]

The second decision came in November, when DHL said it was moving only 26 planes from Cincinnati (owned by Astar Air Cargo) to Wilmington. Hete said there was worry that DHL would move up to 40 planes, which would have displaced existing ABX Air operations.

Abxbooger,
What is your take on this? Do you think that DHL is telling Astar one story, and ABX Air another? Or do you think that the reporter mistook what Hete was saying. I don't think that Joe Hete would intentionally mislead the investing public. Our management confirmed with DHL as of today that all of our airplanes are going to Wilmington. This is similar to DHL telling us that we were doing a good job with on-time performance, then spreading the word to ABX Air that we had poor performance....

 

[ABXbooger]

This was the first time I have heard this side. I don't know what to believe. I don't think this was a mistake. With the reference to the "up to 40" planes that rules out the 26 planes that we were supposed to park. At this point I don't know how thats going to happen

Honestly, I don't think the poor performance rumors have come from DHL. Most of the ones I have heard are in reference to you guys taking flights and then we get them right back (except TPA), or from the outbase stations where we co-exist.

 

[hvydriver]

>Most of the ones I have heard are in reference to you guys taking flights and then we get them right back (except TPA), or from the outbase stations where we co-exist.<


ABXbooger,

The only problems I've seen is the difficulty the stations (former ABX) are having breaking down their C containers to reload into A containers. When they can't do it quickly enough, they swap the station back to ABXAir birds. Prime example is SLC. It's going to be interesting times when consolidation comes, that's for sure.

 

[ABXbooger]

As per the station guys in SLC, yes there where some C container issues, but they also said there where load planning issues and flights arriving late or not at all issues. They said it cost DHL a million dollars a day to have the 70 series 8 run it versus the 767. This is all from the station peoples mouths, not mine. I was there two weeks ago...

Also, in IAH we run an A-container plane. No need to break down C's and we have no through stations there.

As for the consolidation, If you guys are hauling as much freight as we are, there's going to be plenty of growth. We are running several extra flights EVERY night and the weekends too. I have seen analyst expectations of DHL capturing up to 18% of the market by end of 2006, they have 7% now, you do the math.

 

[Airbus300]

"As for the consolidation, If you guys are hauling as much freight as we are, there's going to be plenty of growth. We are running several extra flights EVERY night and the weekends too. I have seen analyst expectations of DHL capturing up to 18% of the market by end of 2006, they have 7% now, you do the math."


.....I agree..

 

[GoABX]

Hey Astar Guys,

If you are going to take our stations, stop taking the good ones, Houston New Orleans Nashville. Why don't you take out $hitholes like Lake Charles, Fargo, Moline El Paso and JFK.....no need to cherry pick us.

The difference in aircraft number may be due to Riverside. They have hinted to both sides that they would be getting the 10-12 runs. Someone saw a proposed schedule and said it would go very senior. Most of the trips were short, one leggers.

Heard 2 others last night. Astar would park the A300s and we would park all our Dc-8s except the cargo doors. At least more 9's are scheduled to be painted yellow this year.

Isn't this fun....it's just your job, your career, your familiy's well being, and your financial decisions being put on hold. It's either everybody upgrades in 5 years or everybody is furloughed in 5 months. Fun, Fun, Fun.

 

[Rhoid]

ABX guys, what's with DHL not needing your latest 767 in service for another 16 months? Why do they continue to prefer to operate the DC-8 instead of using that a/c? I heard that ABX is actively trying to charter out the new 767 until DHL needs it but so far is not having much luck getting customers.

P.S. Remember to check for those gear pins!!!!

 

[fr8dogfo]

Hey GoABX,

I would welcome LCH into our mix, IM sure I would be the only one though. What else is confusing is how Astar is going to make up for all the lift being lost in AUS when we start doing that and ABX pulls out. I guess some sort of merger between us would have been best for all in the long run, though somewhat painful.

The leases on our A300s and 8s are up in 09'. I dont think they will be parked until then at the earliest. I am hearing that Riverside will probably end up being a pilot base for Astar, fwiw. I dont think anybody is going know for sure whats going to happen system wide until after the consolidation.


ABXbooger,

The only thing Astar can be held accountable for in system performance is MX delays or cancelations. In CVG DHL does all the sorting and loading. In ILN its ABX that does all that. So any delays or problems concerning loading, sorting, or whatever is not Astar's fault unless its MX or I over sleep.



Rhoid,

What I have heard 2nd and 3rd hand is that when the 767 became available is that DHL said they didnt need it. Then, supposedly they came back and said o.k. we want the airplane and Hete said sorry, we have other plans for it. I have heard from ABX pilots that their charter dept is going strong and often has to turn work away. Plus, supposedly, a lot of the charter work they do pays better that the DHL stuff does. But I dont work there so I am not sure how accurate that info is.



Later.

 

[Rhoid]

Hey GoABX,

I would welcome LCH into our mix, IM sure I would be the only one though. What else is confusing is how Astar is going to make up for all the lift being lost in AUS when we start doing that and ABX pulls out. I guess some sort of merger between us would have been best for all in the long run, though somewhat painful.

The leases on our A300s and 8s are up in 09'. I dont think they will be parked until then at the earliest. I am hearing that Riverside will probably end up being a pilot base for Astar, fwiw. I dont think anybody is going know for sure whats going to happen system wide until after the consolidation.


ABXbooger,

The only thing Astar can be held accountable for in system performance is MX delays or cancelations. In CVG DHL does all the sorting and loading. In ILN its ABX that does all that. So any delays or problems concerning loading, sorting, or whatever is not Astar's fault unless its MX or I over sleep.



Rhoid,

What I have heard 2nd and 3rd hand is that when the 767 became available is that DHL said they didnt need it. Then, supposedly they came back and said o.k. we want the airplane and Hete said sorry, we have other plans for it. I have heard from ABX pilots that their charter dept is going strong and often has to turn work away. Plus, supposedly, a lot of the charter work they do pays better that the DHL stuff does. But I dont work there so I am not sure how accurate that info is.



Later.

Actually ABX flies into CWF, the former Chennault AFB out in the middle of nowhere. According to ABX management as of a few days ago, ABX has been actively pursuing charter work for the new 767 without any luck and it still sits in ILN. DHL has told ABX that it does not need it for 16 months, DHL thinks it's cheaper to run a DC-8 than to pay for the 767.

For you Astar DC-8 guys in ILN flying the IAH trip, you better stop clogging up the throat of E ramp starting all four engines while ABX has multiple aircraft waiting on you to get out of the way. Why can't you guys do delayed starts?

 

[AV8OR]

For you Astar DC-8 guys in ILN flying the IAH trip, you better stop clogging up the throat of E ramp starting all four engines while ABX has multiple aircraft waiting on you to get out of the way. Why can't you guys do delayed starts?

Hey Rhoid, that's a great idea. Why don't you just put out a required acknowledge memo in SBS to that affect, and we'll be sure and comply with that directive. Tell ya what, you call Gen. Ted Mallory and pass along that admonition for us "AStar DC-8 guys" "You better stop....?" What's that tone all about?

 

[Rhoid]

The Astar DC-8 is causing delays to the ABX planes on E ramp at ILN thats all, if you guys would do a delayed start in the DC 8 like ABX does then it wouldn't be a problem.

 

[Airbus300]

Rhoid,
How come you know so much about ABX Air? Do you have a cousin/ brother/ father, etc who works there? I heard some mention about the DC-8 clogging the throat at a meeting on Thursday, so I think that the word should be getting out soon.

Airbus300

 

[Airbus300]

(Here is the retraction from the April 9th. online edition of the Cincinnati enquirer)........reporter error...


James Pilcher

ABX article included errors

A story in Thursday's Business section about ABX Air's request for listing on the Nasdaq stock exchange should have reported the company would supply 26 fewer planes to air cargo carrier DHL because of DHL's operations relocation from Cincinnati/Northern Kentucky International Airport to Wilmington. In addition, the story should have reported that Astar Air Cargo's full 40-plane fleet is expected to move to Wilmington under contract to DHL.


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[LarryinTN]

Our DC8s start either two or four engines while still in the gate. If they only start two then the remaining two are started during taxi, not after push. Not sure why they'd push back, stop, then start more engines in the 70's.

 

[hvydriver]

LJ,

That's the first I've heard of that prob. I know when I'm in ILN, I usually push with #3 operating, and start the rest on push. That's our usual pushback scenario. By the time the tug is disconnected and moved, you should have all 4 running and ready to taxi. FWIW.

 

[LarryinTN]

I haven't seen the problem myself, just heard about it from others. Sounds like your normal procedure would avoid any delays so the incidents in question must have involved something out of the ordinary.

Our procedure for the DC8 is different. We start #3 and #2 in the gate off of the huffer cart before pushback. We then start #1 and #4 during taxi. If we're planning on a short taxi then we start #3, #4, #2, and #1 in the gate off of the huffer. On the DC9 we start either engine, or both engines, during pushback off the APU. I believe that the B767 always starts both engines during pushback. I don't think that they do a delayed start.

 

[UM#1]

Do you DC8 drivers need air (huffer) to be hooked up during engine shutdown to avoid tailpipe fires? or is this not an issue..curious

 

[Clipperskip]

The Pneumatic Air Cart is only used for engine starts on ABX's DC-8 60's series while at the gate as they do not have an APU found on many of the converted DC-8 70's series aircraft. Delayed engine starts utilize a "cross bleed start procedure" where engine pneumatic pressure from the operating engines is used to start engines #1 and #2. In the 13 years I flew the DC-8 at ABX I have never seen a tail pipe fire at engine shutdown. The Pratt JT-3's are reliable and easy to start but a bit on the "smokey" side, just ask the aircraft taxiing behind them! cough, cough...

 

[hvydriver]

UM,


No, you don't use a huffer on shutdown. For air to spin the turbine, you have to open the start valve for each engine. Never heard of a tailpipe fire problem in the 8 before.

 

[LarryinTN]

a bit on the "smokey" side, just ask the aircraft taxiing behind them! cough, cough...

Hey, those DC8's are old enough to smoke, ain't they?

 

[LarryinTN]

Do you DC8 drivers need air (huffer) to be hooked up during engine shutdown to avoid tailpipe fires? or is this not an issue..curious

Exactly how would the huffer cart be used to assist in engine shutdown? All it does is provide pnuematic pressure to the pnuematic system. You can't engage a starter while the engine is turning as that would destroy the starter so what are you proposing they would do with that pnuematic pressure?