Can ABX Air survive w/o DHL? How solid is the contract?

[comair1048]

Can ABX Air survive w/o DHL? How solid is the contract?

 

[fr8dogfo]

NO!! Not Likely.

 

[Clipperskip]

It is a seven year renewable ACMI Agreement (Airplane, Crew, Maintenance, Insurance between DHL and ABX Air. ABX is approximately two years in to the first contract. There is also a contract between DHL and ABX Air referred to as a Hub Services Agreement. This contract details the arrangement between ABX Air and DHL and covers the sort operations and its employees. DHL is undoubtably ABX Air's largest customer. Their other customers (charter, maintenance, etc.) are a much smaller part of ABX Air's daily operations but generate a much higher percentage of profit relative to expense. The ACMI is a "cost plus" agreement which ensures ABX Air a modest but guarenteed profit. Termination of the ACMI would most certainly be detrimental to ABX Air's bottom line however replacing the lift of the approximately 120 aircraft overnight would be most difficult for DHL.

 

[comair1048]

It is a seven year renewable ACMI Agreement (Airplane, Crew, Maintenance, Insurance between DHL and ABX Air. ABX is approximately two years in to the first contract. There is also a contract between DHL and ABX Air referred to as a Hub Services Agreement. This contract details the arrangement between ABX Air and DHL and covers the sort operations and its employees. DHL is undoubtably ABX Air's largest customer. Their other customers (charter, maintenance, etc.) are a much smaller part of ABX Air's daily operations but generate a much higher percentage of profit relative to expense. The ACMI is a "cost plus" agreement which ensures ABX Air a modest but guarenteed profit. Termination of the ACMI would most certainly be detrimental to ABX Air's bottom line however replacing the lift of the approximately 120 aircraft overnight would be most difficult for DHL.

Thank you clipperskip for the insight I appreciate it

 

[ABXbooger]

That's like asking can Delta survive without passengers...

No ABX can't survive without DHL, it would be a shell of what the company is.

Neither Astar or ABX could exist without the huge contracts carried out for DHL, but as previously posted, ABX would be hard to replace, and DHL is very happy with us. ABX has grown from 7000 or so employees to 12,000 plus in the last year, their not going to throw that away.

Keep hearing good things are on the way, I sure hope so...

 

[TWA]

ABX would have nothing without DHL. And DHL would be SOL without ABX. That partnership will last quite some time. The contract is about as hard as Michael Jackson in a Mcdonald's Play Place.

 

[gearjockey]

I was wondering the same thing regarding contract stability on the other side of the fence with Astar. Rumor has it that their meeting last week with Ops Managers contained information regarding future growth including hiring and maybe more day sort flights. Does anyone at Astar know care to comment on this? Thank you, I'm interested in working there.

 

[lionflyer]

Wasn't there a greivance goin on with Astar and them having exclusive domestic flying for DHL? What's going on with that. Been outta the loop for a while so go easy on me please.

 

[Fly Astar Jets]

Wasn't there a greivance goin on with Astar and them having exclusive domestic flying for DHL? What's going on with that. Been outta the loop for a while so go easy on me please.

Yes and no. While there is an appeal before the 9'th circus court to compel DHL Express to honor their predecessors commitment to our scope language, it is just that, an appeal. When/if we prevail, all that gets us is a date with DHLE and an arbitor. The arbitor will decide how we are made whole. Do we expect him/her to give us exclusive flying rights? Of course not! 90% (I say 90% because there are always some a**wipes in every group) of our pilot group doesn't expect, nor do we want, DHL to comply to THAT LETTER of our contract, that's just not realistic. It would cause huge injury to the ABXA pilots and the Astar pilot group understand this and will not let that happen. But we do expect to be compensated, as the language dictates, to be made whole.

We believe, as I suspect many ABXA pilots, that there is going to be a whole lot of flying for both our groups. So if you're thinking of applying to one or the other don't short change yourself. Apply to both. In the long run, I doubt you'll regret it.

 

[lionflyer]

Do you think there will ever be a merger between Astar and ABX?

 

[Fly Astar Jets]

Do you think there will ever be a merger between Astar and ABX?

I do believe that a combined Astar/ABXA would provide great synergy for DHLE. But will it happen? I'm not holding my breath.