ASTAR Air Cargo Sets Deadline for ABX Air

[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.

 

[shooter]

Past, present and future?

I hear that ABX is currently purchasing 5 767-200’s from Air China and 10 more from American Airlines. Dasburg’s feeble offer of $7.75 needs to be increased to the $9-$10 range before ABX sells. It’s a desperate act from a desperate man to purchase ABX and trust the 20% of ABX that is owned by investor groups will think he is right about the future of ABX. ABX has a business plan that does not include DHL. The $64,000 question is: Will 2.5 years be enough to ramp up operations without DHL? Another thing to consider is that Red Mountain met with ABX to have a say in it’s operations last November, one month prior to Dasburg’s initial meeting with Hete to buy ABX. Red Mountain’s managing partner was a former partner of Goldman Sack’s, who ABX has hired to asses the company’s “true” value. Coincidence?

DHL recognizes it is in the throws of losing ABX as it’s main carrier unless it beefs up it’s ACMI profit percentage. So it throws some money into the smaller carrier, ASTAR, and tries to gain control ABX. DHL, making all the wise decisions as it has in the past regarding American operations, does not do it’s homework on Dasburg. Not realizing he was just an okay CFO and a disaster CEO. Northwest was plagued with labor problems and strikes while he was in charge and he left to go to Burger King which showed Dasburg the door after just 2 years of screwing up their already ailing company to save it from definite liquidation under his command. DHL, also not realizing that his poor actions and remedial handling of the interest to purchase ABX will further distance ABX from DHL contracts.

ABX and the BOD will gladly sell to ASTAR, but they will not give the company away. Customers are lined up to use ABX services and unless DHL increases it contract to match that ASTAR, ABX will gladly utilize future aircraft on more profitable business. Basic supply and demand: If ABX did not have the customers lined up, DHL would get the 767’s (like they want) and ABX would be grateful to have them flying. ASTAR knows it has outdated equipment that does not have the reliability or lower operating costs and knows it will not survive without attaching itself to the teat of mama DHL. ABX is a strong machine that does not need a teat, it provides for itself. It knows how to attract and service customers and continue to grow. Even if that growth morphs it into something other than it is now.

Then I see a repeat of the integration problems for DHL. They think they can do it, but needs to come back to ABX in order for it to work. But without securing work for ABX all the equipment s dedicated to others and DHL falls even farther down in the US market. UPS and FedEx are smiling all the way to the bank because all the past Airborne Express customers have now signed contracts with them. DHL becomes an even more rag-tag operator than they were before when they were in CVG. They continue to use the dumb-arse remote load planning system and all flights depart 5 hours late every morning. ASTAR employees seek self-help against Dasburg like Northwest employees did. I retire from aviation and smile every time I get a UPS delivery. Deutche Post shuts down US operations and uses UPS and FedEx to handle it’s international US freight. Okay maybe the last one was off, but the rest….oh yeah, ASTAR tries to sell itself off because it is in bankruptcy.

 

[Narco-leftseat]

Shooter,

You sound like a crying little girl. "Waahhh!!"...."God.....Please kill them !!"""...."Waaaah"

Why don't you wait until next week like the rest of us to see which direction ABX BOD take thier own future?

You probably did get one thing right though, Astar will go away,....when it is re-named DHL America.

Now apologize to your mother for throwing a tantrum, spank yourself, and go to bed.

 

[shooter]

Shooter,

You sound like a crying little girl. "Waahhh!!"...."God.....Please kill them !!"""...."Waaaah"

Why don't you wait until next week like the rest of us to see which direction ABX BOD take thier own future?

You probably did get one thing right though, Astar will go away,....when it is re-named DHL America.

Now apologize to your mother for throwing a tantrum, spank yourself, and go to bed.

wish in one hand and crap in the other....see which one fills up first narkee. I'll e sure to spank your wife for your tantrum. she like it like that.

 

[hvydriver]

I hear that ABX is currently purchasing 5 767-200’s from Air China and 10 more from American Airlines. Dasburg’s feeble offer of $7.75 needs to be increased to the $9-$10 range before ABX sells. It’s a desperate act from a desperate man to purchase ABX and trust the 20% of ABX that is owned by investor groups will think he is right about the future of ABX. ABX has a business plan that does not include DHL. The $64,000 question is: Will 2.5 years be enough to ramp up operations without DHL? Another thing to consider is that Red Mountain met with ABX to have a say in it’s operations last November, one month prior to Dasburg’s initial meeting with Hete to buy ABX. Red Mountain’s managing partner was a former partner of Goldman Sack’s, who ABX has hired to asses the company’s “true” value. Coincidence?

DHL recognizes it is in the throws of losing ABX as it’s main carrier unless it beefs up it’s ACMI profit percentage. So it throws some money into the smaller carrier, ASTAR, and tries to gain control ABX. DHL, making all the wise decisions as it has in the past regarding American operations, does not do it’s homework on Dasburg. Not realizing he was just an okay CFO and a disaster CEO. Northwest was plagued with labor problems and strikes while he was in charge and he left to go to Burger King which showed Dasburg the door after just 2 years of screwing up their already ailing company to save it from definite liquidation under his command. DHL, also not realizing that his poor actions and remedial handling of the interest to purchase ABX will further distance ABX from DHL contracts.

ABX and the BOD will gladly sell to ASTAR, but they will not give the company away. Customers are lined up to use ABX services and unless DHL increases it contract to match that ASTAR, ABX will gladly utilize future aircraft on more profitable business. Basic supply and demand: If ABX did not have the customers lined up, DHL would get the 767’s (like they want) and ABX would be grateful to have them flying. ASTAR knows it has outdated equipment that does not have the reliability or lower operating costs and knows it will not survive without attaching itself to the teat of mama DHL. ABX is a strong machine that does not need a teat, it provides for itself. It knows how to attract and service customers and continue to grow. Even if that growth morphs it into something other than it is now.

Then I see a repeat of the integration problems for DHL. They think they can do it, but needs to come back to ABX in order for it to work. But without securing work for ABX all the equipment s dedicated to others and DHL falls even farther down in the US market. UPS and FedEx are smiling all the way to the bank because all the past Airborne Express customers have now signed contracts with them. DHL becomes an even more rag-tag operator than they were before when they were in CVG. They continue to use the dumb-arse remote load planning system and all flights depart 5 hours late every morning. ASTAR employees seek self-help against Dasburg like Northwest employees did. I retire from aviation and smile every time I get a UPS delivery. Deutche Post shuts down US operations and uses UPS and FedEx to handle it’s international US freight. Okay maybe the last one was off, but the rest….oh yeah, ASTAR tries to sell itself off because it is in bankruptcy.

Geez Shooter,

I've been stayed quiet, 'cause from what I gather you'd be close to a _theoretical_ furlough if this merger goes through. That would suck, and I hope it doesn't happen to any of us. I figured you'd get it out of your system, but apparently not. It's amazing to me that everytime we try to make nice with ABX folks on boards, sooner or later, it gets down to _someone_ whining/unwarranted insults/revisionist history on what's actually been happening here the last 4 years. If you claim that your post isn't angry/insulting this time, I think you'd better seek some counseling. I'd put out our view of what actually has happened, (again) but I'm not going to do it, because I think we _all_need to put the pis*ing contests behind us, and focus on how to handle what the most realistic outcomes are for our 2 pilot groups. As in, what do we do if we merge, if we don't, will ABX generate enough revenue through outside charter, how big is the ANA deal going to get, etc. You know. Things that might help. Not divide. End of lecture.

 

[shooter]

Geez Shooter,

I've been stayed quiet, 'cause from what I gather you'd be close to a _theoretical_ furlough if this merger goes through. That would suck, and I hope it doesn't happen to any of us. I figured you'd get it out of your system, but apparently not. It's amazing to me that everytime we try to make nice with ABX folks on boards, sooner or later, it gets down to _someone_ whining/unwarranted insults/revisionist history on what's actually been happening here the last 4 years. If you claim that your post isn't angry/insulting this time, I think you'd better seek some counseling. I'd put out our view of what actually has happened, (again) but I'm not going to do it, because I think we _all_need to put the pis*ing contests behind us, and focus on how to handle what the most realistic outcomes are for our 2 pilot groups. As in, what do we do if we merge, if we don't, will ABX generate enough revenue through outside charter, how big is the ANA deal going to get, etc. You know. Things that might help. Not divide. End of lecture.

yeah, your right, I will be out on the street if this goes through. I thought about that and I am okay with it. So I figure, screw it. I hate ASTAR and think DHL is run by a bunch of idiots. I don't hate the workers of ASTAR, but your management. I would rather go work for someone else rather than them. I did not insult any worker, just the management. Then some grease-ball has been johnny come lately comes in and insults me and spews garbage about my mother. So, I have to take it out on his wife, if the loser can find a woman to put up with his loser butt. So, while I do not bite, I bite back. deal with it.

 

[AV8OR]

Shooter says..........
"ABX has a business plan that does not include DHL."

I agree. That's good. Yall run with that!

You don't need no stinkin' DHL. As a matter of fact, what you ought to do is send those same guys from 1224 who've gone over Brussels in the past, to go over there and really lettem' know where you stand.

Hey Joe, you payin' attention? This ole boy's got management puh'tential!

Playin chickin with the train. Guess we'll see how that works out.

 

[shooter]

Shooter says..........
"ABX has a business plan that does not include DHL."

I agree. That's good. Yall run with that!

You don't need no stinkin' DHL. As a matter of fact what ought to do is send those same guys from 1224 who've gone over Brussels in the past to go over there and really lettem' know where you stand.

Hey Joe, you payin' attention? This ole boy's got management puh'tential!

Playin chickin with the train. Guess we'll see how that works out.

and what is DHL's plan without ABX? buy more junk? 8's? 727's? Yep, better tell Dasburg you have puh'tential too, sport.

 

[AV8OR]

and what is DHL's plan without ABX? buy more junk? 8's? 727's? Yep, better tell Dasburg you have puh'tential too, sport.

Sport? Sport! You called me sport? Well....I never...

Anyway, I don't know what the plan is. You are the one predicting ABX king of the world and AStar and DHL's demise. Heck, you know all the answers, why don't you tell me what we're gonna buy? Right now all I know is who we're tryin to buy.

Dude I hope you're right. More power to ya!

You take care now.

 

[shooter]

Sport? Sport! You called me sport? Well....I never...

Anyway, I don't know what the plan is. You are the one predicting ABX king of the world and AStar and DHL's demise. Heck, you know all the answers, why don't you tell me what we're gonna buy? Right now all I know is who we're tryin to buy.

Dude I hope you're right. More power to ya!

You take care now.

ahhhh, now we get to the meat of my original post before one your own decided to throw insults my way.

I do not think ABX is king. I just think we are attractive to all prospects. DHL sees it and they want to buy it. As far as what you are going to buy....who knows what airline will be next. Your management is piss poor and your own union site states that. They can't come up with a business plan, a modern fleet etc. etc. so they try to buy one. If you do not see the danger in working for a group like that, I don't know what to say. ABX, it has a business plan. While they are far from the greatest team around, they know how to do their job. That IS what they get paid for right?

 

[hvydriver]

ahhhh, now we get to the meat of my original post before one your own decided to throw insults my way.

Hmm... so, someone none of us has seen before comes in and tells you to "apologize to your mother for throwing a tantrum, and go spank yourself" is a comment worthy of the rants thus far? I won't even go into the presumption that whoever that is is one of us.

>You guys need a thicker skin because I don’t know how to speak "puddie" cat<

Seems to me taking your own advice might be in order, Shooter. Good luck.