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ATSG form 8-k

DC8CRIVER

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Anyone care to translate this? If it is real, I don't think I like the sound of it. the dark lord, DHL, strikes again...



Form 8-K for AIR TRANSPORT SERVICES GROUP, INC.

5-Feb-2009

Entry into a Material Definitive Agreement, Change in Director

Item 1.01. Entry into a Material Definitive Agreement

On December 31, 2007, Air Transport Services Group, Inc. (formerly "ABX Holdings, Inc.") ("ATSG"), ABX Air, Inc. ("ABX Air") and certain former shareholders of Cargo Holdings International, Inc. (the "Significant Shareholders") entered into a Securities Purchase Agreement, pursuant to which the Significant Shareholders may loan ATSG and ABX Air $61 million (the "Significant Shareholder Loans"). Also on December 31, 2007, ATSG, ABX Air, the Significant Shareholders and Wells Fargo Bank, National Association (the "Escrow Agent") entered into an Escrow Agreement pursuant to which the Significant Shareholders deposited the $61 million into an escrow account (the "Escrowed Funds"). The Escrowed Funds may only be used to pay off a portion of the Note, dated August 15, 2003, in the original principal amount of $92,948,714, originally issued by ABX Air to Airborne, Inc. (now DHL) (the "DHL Note"). The Escrow Agreement originally provided that the Escrowed Funds would be available to ATSG and ABX Air until April 29, 2008, which period could be extended until July 29, 2008 under certain circumstances (the "Funding Deadline"), if DHL demanded prepayment of the DHL Note prior to the Funding Deadline. On January 14, 2008, ABX Air received a demand for prepayment of the DHL Note from DHL. However, ABX Air did not then, and has not, made a draw upon the Escrowed Funds because it does not believe, and disputes, that DHL has the right to demand prepayment. On March 17, 2008, ATSG, ABX Air and the Significant Shareholders entered into a First Amendment to Escrow Agreement, in which they extended the Funding Deadline until January 31, 2009.

On January 30, 2009, DPWN Holdings (USA), Inc. and ABX Air entered into a tolling agreement pursuant to which DHL agreed that it would not, for a period of 30 days from that date, renew its demand or otherwise take any action with respect to the DHL Note (the "Tolling Agreement"), while the parties discuss various business matters, including the status of the DHL Note.

Thereafter, on January 31, 2009, ATSG, ABX Air and the Significant Shareholders entered into a Second Amendment to Escrow Agreement, in which they extended the Funding Deadline until February 6, 2009, at 12:00 Noon EST. ATSG and ABX Air also agreed that they would not terminate, waive or agree to amend or modify any of the provisions of the Tolling Agreement without the express prior written consent of the Significant Shareholders.
 

TWA

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All it really means is that DHL won't be asking for repayment again until March 1, and ATSG only has access to funds to pay it back until tomorrow, unless they amend it again. Not much has changed.
 

SiouxMD11

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What's the latest? Has management come to the Union for talks?

Because my feeling is the DHL/UPS agreement wont go through. Which gives either ABX or Astar life to fly the international stuff.

ABx most likely I'm thinking, unless the Astar A300's can fly 10 hours over the pond.
 

DC8CRIVER

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The Astar A-300's definitely do not have 10+ hour range. The DC-8's do, however.

My understanding is that ABX has only 1 or 2 ex TWA 76ER's that can do trans-Atlantic flights.
Do the other ABX 767's have 10+ hour tanks?

8
 

Mach88

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What's the latest? Has management come to the Union for talks?

Because my feeling is the DHL/UPS agreement wont go through. Which gives either ABX or Astar life to fly the international stuff.

ABx most likely I'm thinking, unless the Astar A300's can fly 10 hours over the pond.

The left over international product will be transported throughout the US from ILN, CVG, or where ever the hub will be. Polar, Lufthansa Cargo and whoever else who currently fly the international freight to the US will probably continue to do so.

So, it could be either ABX, Astar or a combination of the two that would continue to fly the freight within the US. ABX has 767s. Astar has a fleet of old airplanes but is 49% owned by DHL and an acmi agreement until 2019. Keep in mind DHL has not made logical business decisions in the past, so its anybody's guess who if anyone will survive.
 

DC8CRIVER

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. Keep in mind DHL has not made logical business decisions in the past, so its anybody's guess who if anyone will survive.

True words, 88.

My bet is that DHL will pay FedEx 10 or 12 Billion dollars to come over to Europe and take away flying over there. "In order to rationalize the tremendous costs involved with running a business, we have decided to spend no money at all on our own transportation system. Instead, we will outsource our entire global transportation system, delivery systems, billing, advertising, EVERYTHING to FedEx. However, we are still in negotiations with all parties over just why we deserve to make any money at all ..."
 

ABXbooger

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Better yet, to maximize our cost reduction, all DHL packages will now have a Fedex label on them...
 

Whistlin' Dan

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Astar has a fleet of old airplanes but is 49% owned by DHL and an acmi agreement until 2019. Keep in mind DHL has not made logical business decisions in the past, so its anybody's guess who if anyone will survive.
The ACMI agreement was tied to DHL's domestic ops. Now that DHL is doing away with domestic ops, it's all pretty moot.

I don't know what DHL's 49% stake in Astar is worth, but it probably isn't much. Apparently The Daz feels the same way, as he's planning to close the doors when the last Astar plane blocks in.
 

rotor&wing

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The ACMI agreement was tied to DHL's domestic ops. Now that DHL is doing away with domestic ops, it's all pretty moot.

BS. The ACMI agreement deals with all of the DHL ops, not just domestic. I've taken the time to read it, you obviously haven't.
 

Whistlin' Dan

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BS. The ACMI agreement deals with all of the DHL ops, not just domestic. I've taken the time to read it, you obviously haven't.
I'm reading from the contract, because that's what determines whether Astar pilots will have jobs or not. It says;

"5. Force Majeure Exception

the Company may furlough pilots and be relieved of it's obligations to acquire additional aircraft when......

f. The cessation or substantial curtailment by DHL of it's domestic air overnight delivery services within the United States and Canada fall to a level less than that provided by ASTAR on DOS"

In my opinion, that can only be interpreted in only one of two ways. In one, you are right - Astar pilot jobs are tied to ALL of DHL's operations, in which case ALPA just wasted a million dollars of it's members dues trying to save jobs that were never in jeopardy to begin with. Astar pilots will have the best "jobs" in aviation - working for a company that doesn't have airplanes, collecting paychecks for the next 8 years NOT to fly.

So why all the rallies and picketing and giant inflatable rats?

The other way to interpret this is that if DHL curtails it's "domestic air overnight delivery service within the United States" Astar can furlough pilots. That's not an "interpretation," actually. That's what the contract SAYS.

I guess we'll know more in the next few months.

Any idea how many birds they got parked over at CVG now? Lots of 727's last time I looked.


BTW-I know how sensitive you and Tweedle-Dum are to ALPA spending "your" hard earned money to "save" other guys jobs. Well, one million dollars spread over 500 members equates to about $2,000 per job...about what ALPA spends to take a disciplinary grievance to system board.

I'm just sayin', that's all.
 

rotor&wing

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I'm reading from the contract, because that's what determines whether Astar pilots will have jobs or not. It says;

Big difference between the pilot's contract and ACMI agreement that Astar has with DHL. You were "quoting" from the ACMI when in fact you know nothing about it as usual.

Jim, you want the demise of Astar to justify your firing (all of them) but you were fired for incompetence, not anything Astar or DHL did. You did it to yourself. That's also the reason the FAA revoked all your certificates, incompetence.

You're nothing but a disgruntled ex-employee with an axe to grind.
 

hvydriver

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Domestic air overnight delivery service constitutes the air route structure in the US. The ACMI also covers this. Since this is the subject of legal action, I would humbly suggest folks ignore Jimbo on this issue. It's simply not worth getting into, IMO.
 

nitefr8dog

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Domestic air overnight delivery service constitutes the air route structure in the US. The ACMI also covers this. Since this is the subject of legal action, I would humbly suggest folks ignore Jimbo on this issue. It's simply not worth getting into, IMO.

And this has what to do with ATSG form 8 k?
 

hvydriver

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Got me dog. Seems like there's thread creep all over the place lately.
 

DC8CRIVER

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Got me dog. Seems like there's thread creep all over the place lately.

Thread creep? Is that a person?
Surely you're not talking about a fired/disgruntled ex-Astar pilot who knows not of what he speaks are you?

I know. I know. No you are not - and don't call you Shirley.....

8
 

Whistlin' Dan

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Jim, you want the demise of Astar to justify your firing (all of them) but you were fired for incompetence, not anything Astar or DHL did. You did it to yourself. That's also the reason the FAA revoked all your certificates, incompetence.
Neither termination had anything to do with "competence" or lack thereof, and you well know it. If it had, the suspension would have been on-the-spot (as it has been with OTHER Astar DC-8 pilots), not 6 months later.

You do a great disservice to your training department and ALL Astar pilots, yourself included, to suggest otherwise.

If you can't stick to the topic, at least stick to the facts, OK?
 
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