Astar a black hole?

[two(2)%]

Is Astar being positioned for a possible Asset purchase? John do*sheberg of Astar has insisted that his intentions are to purchase all existing Astar aircraft, buy partial ABX assets and fullfill his "ABX cleansing" prophecy. Instead Astar bought just twenty common remaining types (727) which, coincidentally, is the number of aircraft Joe Hete of ABX mentioned he would require to fly the entire DHL US network. We all agree that two airlines in the DHL network is cost prohibitive in the long run. Mergers won't solve the cost problem either. anyone care to posit any additional scenarios? Too much existential angst here.

 

[shooter]

Is Astar being positioned for a possible Asset purchase? John do*sheberg of Astar has insisted that his intentions are to purchase all existing Astar aircraft, buy partial ABX assets and fullfill his "ABX cleansing" prophecy. Instead Astar bought just twenty common remaining types (727) which, coincidentally, is the number of aircraft Joe Hete of ABX mentioned he would require to fly the entire DHL US network. We all agree that two airlines in the DHL network is cost prohibitive in the long run. Mergers won't solve the cost problem either. anyone care to posit any additional scenarios? Too much existential angst here.

I doubt ABX would want 727's. But anything is possible I guess.

 

[TWA]

I thought AStar bought out leases on 20 airplanes they currently fly, not 20 new airplanes....

Yep, no new aircraft, just a new owner. Astar finally can call a part of their fleet their own.

Dumb question: What is DHL doing with the old facility at CVG? Is it just sitting vacant?

 

[AV8OR]

They use it for some logistical stuff down at CVG. Other than that, just the ramp space for parked A/C.

Here's one for ya.....

I don't think JD's gonna buy jack. I do think he's getting us ready to sell. My money is on Polar/Atlas. BTW, just my opinion, not really a rumor, but it is based on a variety of pieces of what I think is the big puzzle. I think that's a primary reason for the contract stalling.

Fire at will.

 

[bvt1151]

DHL will go with whatever has "A" containers. The "C" containers are costing way too much money.

 

[356emain]

That is interesting about the "c" container. I was told that all 767's that haul c's will have the belly conversion done by summer 2007. Eight have already been done, and i beleive they carry the "L" container. I don't see those airplanes going anywhere anytime soon.

 

[goastar]

I think it goes something like, wish in one hand, crap in the other. Nice thought.

They use it for some logistical stuff down at CVG. Other than that, just the ramp space for parked A/C.

Here's one for ya.....

I don't think JD's gonna buy jack. I do think he's getting us ready to sell. My money is on Polar/Atlas. BTW, just my opinion, not really a rumor, but it is based on a variety of pieces of what I think is the big puzzle. I think that's a primary reason for the contract stalling.

Fire at will.

 

[AV8OR]

I think it goes something like, wish in one hand, crap in the other. Nice thought.

I suppose it's better than the likely alternative.

T

 

[goastar]

Much mo better.

I suppose it's better than the likely alternative.

T

 

[Whistlin' Dan]

Grooming for resale makes some sense, and could account for the stalled contract. My understanding is that Astar is on a cost-plus basis with DHL. At the conclusion of that agreement, DHL will no doubt be playing a very hard game of hardball with Astar. In other words, there's no reason not to pass costs along to DHL now, because they're not going to be a lucrative customer for Astar (or anybody else) in the future. Especially at their present size. In other words, Astar might as well $crew 'em now, because they're going to be $crewing Astar in 5 years.

Likewise, the pilots might as well get all they can now, because in 5 years, they'll be bidding against companies that will work for (and pay their employees at) half the rates curently in effect.

Labor costs can have a tremendous multiplier-effect on the net worth of a company, especially a company like Astar which exists largely on paper only. The value of such an organization is not in it's equipment (most of which would be parked in the desert if not for DHL) or it's operating certificate (common and easily attainable) but it's future contracts. Every dollar they can shave from the next labor contract will be worth at least 5 over the course of the next 5 years. Meaning that every single dollar they can shave from the next contract equals 2 or 3 in Dasburg's pocket when he sells. No wonder he's so reluctant to give them up...

What's the longest period of time JD has ever headed a company, anyway?