Dhl Buy's 49% Of Astar

[UM#1]

I assume that DHL renegotiated their contract % with Astar. Is it lower now. Also I bet there were some discussions of the no furlough clause or staffing levels. You cannot operate a profitable company and pay people to bid "no fly" lines. Has anyone seen the new ACMI agreement. This might not be as good a deal for Astar as I first thought.

The ACMI agreement was not changed at all, it's the same agreement just extended til 2019.

 

[Box-Hauler]

The ACMI agreement was not changed at all, it's the same agreement just extended til 2019.

Good for Astar then, otherwise it could have been an even tougher negotiation. Now you should have some leverage, good luck to you guys, no concessionary contracts. You and ABX need to bring DHL flyers up to "industry standard" for overnight express. I do not care if you are an ACMI, even if that is all Mr. Hete keeps pushing on us, if DHL wants to play with the big dogs they will need to get off the porch. That means pay and benefits in the ballpark of UPS and FedEx. You cannot get reliability to make a 10am delivery deadline if you will not pay. That goes for drivers as well as pilots. DHL has a lot to learn.

 

[erwaz]

Shooter,

I understand what you are trying to say. However, my point is you can't buy DHL stock only DP. You can't buy polar stock only Atlis Air group stock. You can't buy Astar stock only DP stock. These companies answer to their parent companys not stock holders. Its a shell game! ABX stock can be aquired by anyone!

 

[Clipperskip]

The ACMI agreement was not changed at all, it's the same agreement just extended til 2019.

We heard yesterday from one of our Union leaders that it is not just extension of the present ACMI, there are "adjustments" from the original numbers. Think about it, isn't this what happened just recently with the reworking of our "hub services agreement". Accept a slightly reduced percentage of profit for a extension in the term of the agreement, in this case, ten more years. That aside, I am happy for our Astar brothers and sisters, and I wish them well with their efforts to achieve a suitable contract.

 

[flyinboxes]

My mistake wasn't the press release, just DHL saying it...


Plantation-based express-delivery company DHL on Tuesday announced it has acquired a minority stake in Miami's Astar Air Cargo for an undisclosed amount. DHL acquired a 49 percent equity interest and a 24.9 percent voting interest in Astar -- just under federal thresholds that restrict foreign ownership of U.S. airlines. DHL is an arm of Germany's Deutsche Post. Jonathan Baker, a DHL spokesman, said the transaction was reviewed by the U.S. Department of Transportation. The deal comes four years after the airline, then known as DHL Airways, was sold by DHL and a private investor to a group led by former Burger King boss John Dasburg for $57 million.

''The business environment has changed significantly since 2003,'' Baker said in explaining why DHL reacquired a stake in Astar. He didn't offer any specifics. DHL has recently targeted aviation investments to support its operations in the United States. It recently invested in New York's Polar Air Cargo, which offers delivery services between the United States and Asia. DHL relies on Astar to handle about a third of its U.S. express domestic air services, Baker said. The transaction ''signals DHL's confidence in the capabilities of Astar,'' said Dasburg, Astar's chairman, president and CEO.

At the time of the 2003 sale of the cargo firm to Dasburg's group, both United Parcel Service and FedEx challenged the deal on the grounds that airline was controlled by Deutsche Post. But a Department of Transportation judge disagreed with the two package-delivery giants. Astar would have had to shut down had the judge ruled the other way, according to a company lawyer at the time. Federal law prohibits foreign ownership of any U.S. airline to 49 percent and voting interest to 25 percent. The law dates back to 1926.

Yes, one third the services, i.e. "cities and thru flights". But one half the weight. Its all on the lift sheets and nightly freight tonnage. Not that it even matters.

 

[shooter]

Shooter,

I understand what you are trying to say. However, my point is you can't buy DHL stock only DP. You can't buy polar stock only Atlis Air group stock. You can't buy Astar stock only DP stock. These companies answer to their parent companys not stock holders. Its a shell game! ABX stock can be aquired by anyone!

true, you can't buy DHL stock. When you buy DPW stock you are buying into the "group" and DHL is in that group. So when you invest in DPW you invest in DHL as well as all other companies owned by DPWN. So if you as an investor buy stock into DPW, you need to know where your money is going as what kind of risk you are taking as well as what the possible returns might be. If that company you invested in does not disclose where they shovel money, corruption and stealing could go on and as result they are required to disclose to the investors where they put their money. This includes Astar. You cannot be part of an investment without disclosing it to the investors. Even if it is only a 49% equity stake.

Just because the stock ticker does not say DHL does not mean they are a private company.

 

[erwaz]

true, you can't buy DHL stock. When you buy DPW stock you are buying into the "group" and DHL is in that group. So when you invest in DPW you invest in DHL as well as all other companies owned by DPWN. So if you as an investor buy stock into DPW, you need to know where your money is going as what kind of risk you are taking as well as what the possible returns might be. If that company you invested in does not disclose where they shovel money, corruption and stealing could go on and as result they are required to disclose to the investors where they put their money. This includes Astar. You cannot be part of an investment without disclosing it to the investors. Even if it is only a 49% equity stake.

Just because the stock ticker does not say DHL does not mean they are a private company.

I understand but these companies DHL, POLAR, ASTAR if they wanted to sell, buy, expand, or what ever they can do so without answering to any share holder. Just like DHL just did with Astar. They bought 49% and no one knows the dollar amount! They just did it behind closed doors.

 

[erwaz]

All anyone knows is what Dasburg said that the ACMI contract remains the same (7%) it just got extended to 2019.

 

[shooter]

I understand but these companies DHL, POLAR, ASTAR if they wanted to sell, buy, expand, or what ever they can do so without answering to any share holder. Just like DHL just did with Astar. They bought 49% and no one knows the dollar amount! They just did it behind closed doors.

This is what I disagree with you on. They DO have to answer to shareholders. You should see it in the DPWN 2nd quarter results, annual report etc. You can also find that info in Atlas reports when they bought 49% of Polar. You are correct that Daz does not need to report it to anyone since Astar is private, but DHL needs to. This is why I said this thing is still moving and not over yet. So if you want to find out what 49% equity share was worth vs. the original 57 mil investment. Just follow DPWN's quarterly and it HAS to be reported to the DPW share holders.

I just hope ABX gets some good news soon like you guys have. By the way...congrats!

 

[two(2)%]

When your 767's begin getting cargo doors I will be the first to say your back in the game. Rumor of you getting them and actual 767's with doors showing up are two different things.

First of all, to all Astar employees, congratulations on the support from DHL. ABX just became the Betamax of cargo aircraft. One thing to consider, ABX has all the conversion slots booked for the next two years on 767 conversions at IAI and We all know the future of freight is medium modern gen aircraft like the 767SF, not the 727F. The six A300s are supposed to be retired by the end of '08. Possibly one year after that DHL will begin taking delivery of their first of six new 767f's. Practically speaking, I'd say these slots are worth as much if not more than the current fleet of 29 727f's. I suppose the upside is that DHL needs more lift, not less, as all can attest to the current higher evening A/C loads. Question: can Astar folks comment/speculate on the 49% price being about $140M? That Daz is a crafty old man. Has he ever been to ILN?