ASTAR Air Cargo Sets Deadline for ABX Air

[Box-Hauler]

Basic business, DHL needs to consolidate, period. They are pissing away money like a sailor on shore leave. The best way to do it is buy an established airline (AKA ABX), stupid US law forbids competition (foreign ownership) like this. So we have Astar that is DHL controlled (but only 49%, yeah right) buy ABX. Instantly we have one airline, the way it was supposed to be. Will there be growing pains, yes.....will some people lose their jobs, yes, and in managements case this is not a bad thing...... long term this is whats best for DHL.

As for pilot jobs once the companies merge. ABX is understaffed now. Every month we have more retirements with no hiring. Not sure of Astar but even if they are fat in some planes they are short on others. Together I believe we would still be understaffed. There is also the time line of combining the unions, voting on representation, combining the contracts etc..... This all takes time. Not sure but the way I understand it is that this then becomes a status quo time frame, can you furlough during this time? But more importantly who will fly the boxes, you know the stuff that actually makes the money. Without crews the boxes don't go, the money does not get made and whoever is driving the ship will not get his/her bonus......... See basic business. And you though I slept through all those business classes.

As for Joe saving ABX I do not know. I do know he is not a "I have a dream" leader. His vision is .......... exactly I do not know either. He has never said what his dream or even his 5 year plan is. He is an accountant who is trying to be a CEO. Don't get me wrong lots of my family members are accountants, heck I started my college as an accountant, but we do not need an accountant, we need a CEO with dreams and goals that is being "reigned" in by an accountant.

 

[Fly Astar Jets]

Props for Box

Well said Box :beer:

FAJ

 

[ABXbooger]

Seriously, why can't you guys just read the original Astar proposal. It says right there that they have already negotiated an even further extension of their ACMI with DHL if the ABX buyout goes through. If that doesn't say DHL is behind this 10000000000% then I don't know what does.

If ABX doesn't take this offer or some other huge thing is in the works, DHL's biz is gone for ABX. As a junior pilot with ABX, I welcome this offer and hope I can finally look forward to a semi-stable career.

Look at the new proffer for KIX. Talk about a bunch of genius managers...do the words TITANIC FAILURE mean anything??

 

[shooter]

You know at no point did I attack you or your group. It does seem that you could care less about anyone but yourself. I hope all ABX pilots don't feel that way. I do understand your desperation and I'm sorry you feel the way you do. I would suggest a therapist who can help you with your anger and hate issues.

Wow, I don’t know why you guys always think I have hate and anger issues every time I post a reply. You guys need a thicker skin because I don’t know how to speak "puddie" cat. I did not speak ill of your group, just your management as well as DHL’s and I meant it. If you want to speak ill of ours you are more than welcome…..oh wait….you did.

Where do the ABX guys think there headed? Asia? USA other than DHL? Where??

Guess you lost management crew is just as lost as ours. And we are just holding on during the ride.

And I said that the deal will go through:

But don’t worry; Hete looks out for the stock holders so it will probably go through once the offer becomes realistic (I should say when there even is formal offer).

Dasburg just needs to get a deal on the table and make a formal offer. Once it reaches that magic mark Hete wants for the stockholders, then they have a vote.

If you don’t like the way I speak of how your management has kept you guys down, take it up with them because it’s the truth. If you don’t like the way I speak poorly of DHL, then tell them to get the Airborne business they lost back to fill these planes.

As far as acting all swell about ABX guys being out on the street, never gonna happen. There is nothing I can do about it, but I sure won’t be singing kumbaya while holding hands with ASTAR there chief. Sorry if that brings a tear to your eye, but this is the freight business and freight guys are not "dogs" because they are soft.

 

[HeavyjetDC8]

From the perspective of both the shareholder and employee a merger is the only way forward. Without a merger the ABX stock price along with employment opportunities will trend to zero as the airline shrinks. Charter work alone without DHL isn't going to keep the ABX ship afloat.

 

[inplaneview]

I pulled this off of the Yahoo site this morning:

Source: ABX Air, Inc.


ABX Air Responds to ASTAR's Letter Dated July 16, 2007
Tuesday July 17, 8:00 am ET


WILMINGTON, Ohio--(BUSINESS WIRE)--The ABX Air (NASDAQ:ABXA - News) Board of Directors, consistent with its fiduciary duties and commitment to enhancing value for shareholders, has been conducting an evaluation of the indication of interest previously proposed by ASTAR on June 26, 2007. With the consultation of the Company's legal and financial advisors, the Board and management have conducted several meetings and conference calls to discuss ASTAR's indication of interest. The Board and its advisors are scheduled to meet again on Friday, July 20, 2007, and expect to have a response to ASTAR's indication of interest by next week.
Goldman, Sachs & Co. is acting as financial advisor to the Company. Sullivan & Cromwell is serving as legal counsel.

The Company responded to ASTAR with the following reply:

John H. Dasburg
Chairman, Chief Executive Officer and President
ASTAR Air Cargo Holdings, LLC
2 South Biscayne Blvd. Suite 3663
Miami, Florida 33131

Dear John,

I am responding on behalf of the ABX Air Board of Directors
to your July 16 letter.

ABX Air's Board of Directors has engaged financial and legal
advisors to assist in its careful evaluation of ASTAR's $7.75
per share indication of interest. These advisors are
scheduled to meet with ABX Air's Board of Directors this
Friday, July 20, and I expect that ABX Air will have a
response to ASTAR's indication of interest by next week.

Very truly yours,

ABX Air, Inc.

Joseph C. Hete
President and Chief Executive Officer

 

[shooter]

From the perspective of both the shareholder and employee a merger is the only way forward. Without a merger the ABX stock price along with employment opportunities will trend to zero as the airline shrinks. Charter work alone without DHL isn't going to keep the ABX ship afloat.

I agree DHL is a major part of the ABX earnings picture. Here is my point....

you guys want the leverage to squeeze the jewels of DHL to get your better contract.
You say DHL will squeeze the jewels of ABX if they do not sell.
So why don't you guys have the jewels to squeeze DHL's jewels? They NEED ABX right now. There is no way they can run the operation without them right now. There is no way they can get the lift to ASTAR by the end of 2010. So you learn to play ball with the big boys or you go home without your own ball and bat because you could not take a stand. You tell them what YOU want. Hete did it with the 767's by not allowing them to have them at current ACMI rates. You tell them YOU are out of there at the end of 2010 unless they take an interest in ABX. If they say no, ride out the remaining 2 years and buy Pace (which is going to happen anyway) and run the pax operation along with the charters. We have more people wanting charter lift than we have aircraft.

Put the screws to DHL or we go on our own. And I bet ABX will have LESS people on the street than what ASTAR will put there. All the maintenance work will increase, charters will increase and DHL can run their operation into the ground all they want without ABX.

 

[HeavyjetDC8]

True shooter, but only up to a point. For the aggressive stand against DHL to work it's necessary for everyone ( management + worker trolls) at ABX to be onside - and we're not.

Your perceived future in charter flying comes at the price of flight crews being camped in foreign fields, and from the QOL perspective, it's just not on. Furthermore, I don't accept the default necessity of massive furloughs coupled with a merger.

I do however see the parking of the DC 9 fleet with no prospect for work should we go it alone. Nothing with which to feed those ABX young you mention in a previous post. Band of brothers we may aspire to be, but not unemployed ones.

Because of the reasons you state we do have considerable leverage. Better to use that leverage for an equitable deal under a merger than squander it for a slow death in the ACMI wilderness.

Of course, playing hardball with DHL through threats of discontinued service is a strategy decided above our pay levels. But if it's a successful one, why aren't the high and mighty using it? I suspect that shutting out DHL is the nuclear option - nice to know it's there but best not used.

 

[rotor&wing]

The one thing I can predict to be absolutely true : No matter what you, I and anyone else think about this pending deal, the only ones in control are the ABX BOD and AAC BOD. They'll make their decision then it will be up to the rest of us to work out the details.

 

[fodc8]

ASTAR Extends Deadline For ABX Response To July 27
Company Stands by "Full and Fair" Offer; Cites Unattractive Prospects for ABX Without ASTAR Transaction






Last Update: 10:03 AM ET Jul 18, 2007





MIAMI, Jul 18, 2007 (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. (ABXA : abx air inc com
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Last: 7.90-0.05-0.63%
10:28am 07/18/2007

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<IMG class=pixelTracking height=1 width=1 border=0>ABXA7.90, -0.05, -0.6%) in response to a letter received yesterday from Joseph C. Hete, President and Chief Executive Officer of ABX Air:
July 18, 2007 ABX Air, Inc. Board of Directors c/o W. Joseph Payne, Secretary 145 Hunter Drive Wilmington, Ohio 45177 Gentlemen: On July 17, 2007, I received a letter from ABX Air noting that the ABX Air board of directors will meet on July 20, 2007 with its legal and financial advisors and that ABX Air expects to have a response to ASTAR's indication of interest by next week. ASTAR has therefore decided to extend the deadline for receipt of a meaningful response to my June 26 letter until 4:30 p.m. (Wilmington, Ohio time) on Friday, July 27, 2007. Given the premium price (relative to pre- announcement market prices) we identified in my letter, and, in ASTAR's judgment, the unattractive future prospects for ABX in the absence of a transaction with ASTAR, we believe the price of $7.75 is a full and fair price and generous to the shareholders of ABX Air. Very truly yours, John Dasburg
About ASTAR Air Cargo Holdings, LLC.
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 45 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.
SOURCE: ASTAR Air Cargo Holdings, LLC
ASTAR Air Cargo Holdings, LLC Media Contact: Richard Marcus, 202-295-8770 Copyright Business Wire 2007 ********************************************************************** As of Saturday, 07-14-2007 23:59, the latest Comtex SmarTrend® Alert, an automated pattern recognition system, indicated an UPTREND on 06-15-2007 for ABXA @ $6.94. For more information on SmarTrend, contact your market data provider or go to www.mysmartrend.com SmarTrend is a registered trademark of Comtex News Network, Inc. Copyright © 2004-2007 Comtex News Network, Inc. All rights reserved.