Whistlin' Dan
Well-known member
- Joined
- May 18, 2006
- Posts
- 460
"Pulling the plug" on Astar right now would virtually guarantee the exact thing that DHL is trying so hard to avoid...a sole-source provider of domestic lift at what would almost certainly be market (read;$225/hr) rates.For now, my reading of the tea leaves is that Dasburg is getting ready to pull the plug on Astar with DHL's blessing. The 20 727's Dasburng bought will go to either ABX or Polar/AAWW. To a large degree I think which will depend on the terms of Polar's ACMI with DHL.
If anything, DHL will keep Astar alive, in order to leverage their contract negotiations with the much-larger ABX group. Because the ABX pilot group is half-again as large as Astar's, every dollar they can squeeze out of this contract equals $2.50 in the combined Astar/ABX contracts.
DHL may be trying to force a job-action at Astar, which would leave them free to seek other, and undoubtedly cheaper, carriers. Leaving the carcass of Astar to rot in view of the ABX pilot group would no doubt have an effect on their forthcoming negotiations.
My "reading of the tea leaves" as you put it, is that DHL will employ Astar at their current strength (minus however many they can fire or encourage to leave) for at least the next 5 years, because they're contractually obligated to do so. That contract, as I understand it, specifies a "cost plus" arrangement with DHL. What is at question is what those "costs" will be...ACMI, bottom of the barrel labor rates, or UPS/FedEx rates. You can bet your sweet donkey that some portion of whatever Dasburg manages to save DHL in labor costs will be returned to him in the form of a performance bonus.
By asking for "industry standard" wages, the pilots of Astar are taking money directly out of Dasburgs pocket...money he could be using to buy bigger houses, or other companies to compete with Astar when this contract runs out. It's as simple as that...
Pay attention, ABX! You're on deck...
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