DHL to shut down US Domestic Ops Jan 30

[shooter]

I just looked at the second quarters 10Q (Haven't seen 3rd quarter yet) and it showed ABX had an EBIT of $7,305,000 and CHI (ATI,CCI and CAM) had an EBIT of $8,292,000. How do you figure only ABX made money?

The figures you are referring to are historical 2007 EBIT which do not include start up costs for ATI 767's and CCI 757's and related expenses. They also do not reflect the ABX ACMI figures that have grown from literally nothing in comparison from June of 2007. EDIT: ACMI operations for 1Q and June 30 2008 are in the red and those include all of ATI, CCI and ABX ACMI services. Since the DHL is cost plus, of course it showed something in the black. But we all know where that is headed.

Just FYI, not that it matters. But you should inject current numbers FWIW.

 

[b707guy]

From the same 10Q, for 2008, it's a bit more difficult to say who made what as contributions by ATI, Cappy, and non-DHL ABX work, called ACMI Services in the report, are lumped together into one value, while DHL work is another number, and CAM is yet another. Suffice it to say that all three elements had positive revenue, but I'll add that the totals attributed to ACMI Services spiked after the acquisition of CHI. A portion of that, roughly 15M, was attributed to ABX KIX and MIA work, but the rest, roughly 110M, came from Cappy and ATI.

The third quarter report is delayed, ostensibly because of the DHL thing.

 

[l8fr82hub]

The figures you are referring to are historical 2007 EBIT which do not include start up costs for ATI 767's and CCI 757's and related expenses. They also do not reflect the ABX ACMI figures that have grown from literally nothing in comparison from June of 2007. EDIT: ACMI operations for 1Q and June 30 2008 are in the red and those include all of ATI, CCI and ABX ACMI services. Since the DHL is cost plus, of course it showed something in the black. But we all know where that is headed.

Just FYI, not that it matters. But you should inject current numbers FWIW.

You're correct, my mistake.

 

[shooter]

From the same 10Q, for 2008, it's a bit more difficult to say who made what as contributions by ATI, Cappy, and non-DHL ABX work, called ACMI Services in the report, are lumped together into one value, while DHL work is another number, and CAM is yet another. Suffice it to say that all three elements had positive revenue, but I'll add that the totals attributed to ACMI Services spiked after the acquisition of CHI. A portion of that, roughly 15M, was attributed to ABX KIX and MIA work, but the rest, roughly 110M, came from Cappy and ATI.

The third quarter report is delayed, ostensibly because of the DHL thing.

You're right, you really can't tell since they lump them all together. This kind of set up ATSG now has now not only can pit you guys against one another, it has the potential to "shuffle" numbers. Since they own CAM, they can set the rates CAM leases aircraft to each airline. They can even set it to show a loss at an airline while the leasing company shows profit. The same goes for maintenance or any other service they "sell" to another division of the company. Many companies do exact or similar things to keep more money in the company. But as a pilot group, you guys best work together or the numbers will find themselves against any one at any given time. Just my opinion. I am low seniority ABX, so I will probably not see February.

 

[shooter]

You're correct, my mistake.

No worries. But like I said above, it will get REAL cloudy with the numbers so nobody will be able to discern who really made what. I guess as long as the bottom line is always positive no one really has anything to worry about.

 

[inplaneview]

I hear there may have been a crew meeting last night. Anybody care to elaborate?

 

[ABXbooger]

There was a meeting Tuesday night, it is archived on the union website for members.

 

[bvt1151]

Maybe I'm missing something here, but DHL isn't shutting down domestic air operations they're shutting down domestic express product. They're still going to have international product they're going to fly and deliver through their ILN hub after 1/30.

I would expect 767 and DC-8's to continue flying. Just a hunch.

 

[b707guy]

Well, hopefully we'll find out come Monday at 10 a.m. when the ATSG third quarter conference call is made.

Who actually carries DHL's overseas freight into and out of ILN? I'm guessing Polar is one, based on Big Pimpn's gracious note above (still enjoying it there, Big D?), but I'm a bit leery of how much of ABX's and Astar's current capacity will be needed for what's left after the domestic Express work is piddled away. I'm assuming by the way that when you say 767s and DC-8s, you mean Astar's DC-8s, right? Is the Airbus fleet out of the picture?


Press Release Source: Air Transport Services Group, Inc.

Air Transport Services Group to Host Third Quarter Investor Conference Call on November 17, 2008
Thursday November 13, 9:28 am ET


WILMINGTON, Ohio--(BUSINESS WIRE)--Air Transport Services Group, Inc. (NASDAQ:ATSG - News) today announced that it will host an investor conference call on Monday, November 17, 2008, at 10:00 a.m. Eastern time to review its financial results for the third quarter ended September 30, 2008. The Company will release its third-quarter results after the close of the market today, November 13, 2008.
ADVERTISEMENT


On the day of the conference call, participants should dial 888-713-4214 and international participants should dial 617-213-4866 ten minutes before the scheduled start of the call and ask for conference pass code 17352634. The call will also be webcast live (listen-only mode) via www.atsginc.com, and www.earnings.com for individual investors, and via www.streetevents.com for institutional investors.

A replay of the conference call will be available beginning three hours after the conclusion of the call. It will be available by phone through Monday, November 24, 2008, at 888-286-8010 (for international callers 617-801-6888); use pass code 42388357. The webcast replay will remain available via www.atsginc.com or www.earnings.com for 30 days.

About Air Transport Services Group, Inc. (ATSG)

Air Transport Services Group, Inc. (NASDAQ: ATSG - News) is a leading provider of air cargo transportation and related services to domestic and foreign air carriers and to other companies that outsource their air cargo lift requirements. Through five principal subsidiaries, including three airlines with separate and distinct U.S. FAA Part 121 Air Carrier Certificates, ATSG also provides aircraft leasing, aircraft maintenance services, airport ground services, fuel management, specialized transportation management, and air charter brokerage services. ATSG subsidiaries include ABX Air, Inc., Air Transport International, LLC, Capital Cargo International Airlines, Inc., Cargo Aircraft Management, Inc., and LGSTX Services, Inc.

 

[ABXbooger]

DHL has said they will need around 25 aircraft after January 30, 2009. ABX, Astar and god knows who else are bidding on this work.

It would make sense that DHL would take all the 767's they can get (fuel,crew,engines, basically cost effective) and who knows what else. I would venture a bet that the '9s are gone, and a good chunk of Astars 727's are gone. The Airbusses are anyones guess.

It will be all A container though, since the C container is basically what drove DHL out of the US domestic market...:}