Hete feels the Heat

[Chubaka]

ABX shareholder's meeting on May 13th. That's only 3 weeks away. Will Hete answer the tough questions?

 

[ABXbooger]

What would those be?

How is it possible that by me being released from my company I can make four years of high pay for nothing?

What are you doing to raise shareholder value?

Why is labor peace so difficult for your managment team to live with?

Early in the A.M. but I am just getting the ball rolling. Any other good ideas?

 

[splatt]

I believe Hete would like to sell-off the DHL business, hence his purchase of another carrier... perhaps providing for a convenient way out... and a new President of ABX... that could go with the sell out... and his 4 year Golden Parachute... He could then move into a more profitable Asian and Latin America charter business as ABX Holdings? If DHL does not like him and he's tied to a 1.75% profit via a contract with a company that won't give him a better long term contract and that company is loosing $900 million per year... in an industry ABX was profitable in before DHL came along and added triple redundancy in management... why would you want to ride a sinking ship to the bottom. No company can continue to loose $900 million a year... Hete has an exit plan!

 

[shooter]

I believe Hete would like to sell-off the DHL business, hence his purchase of another carrier... perhaps providing for a convenient way out... and a new President of ABX... that could go with the sell out... and his 4 year Golden Parachute... He could then move into a more profitable Asian and Latin America charter business as ABX Holdings? If DHL does not like him and he's tied to a 1.75% profit via a contract with a company that won't give him a better long term contract and that company is loosing $900 million per year... in an industry ABX was profitable in before DHL came along and added triple redundancy in management... why would you want to ride a sinking ship to the bottom. No company can continue to loose $900 million a year... Hete has an exit plan!

How will he sell DHL operations and keep ABX Air? He can't sell ABX and keep Asian operations since it was ABX that was approved (VERY VERY strict requirements to boot) to operate there, not ABX holdings. Are you talking about an asset sale? Well, pilots do not usually go with an asset sale and unless DHL gets a bunch of qualified pilot real quick and that is not going to happen. You say he has an exit plan like ABX was responsible for the $900 million loss, and you just wrong if you are.

BTW, has anyone asked who the other potential partners were beside FedEx?

...will be able to present a solution on its loss-making US Express business only in the second-half of May
... are negotiating currently with potential partners and need up to two weeks time to choose a partner for the US Express business.

http://www.iii.co.uk/news/?type=afxnews&articleid=6681739&action=article

 

[erichartmann]

How will he sell DHL operations and keep ABX Air? He can't sell ABX and keep Asian operations since it was ABX that was approved (VERY VERY strict requirements to boot) to operate there, not ABX holdings. Are you talking about an asset sale? Well, pilots do not usually go with an asset sale ...

Actually, under the 1224's CBA scope language, the pilot's would (or could) go with the sale.

 

[shooter]

Actually, under the 1224's CBA scope language, the pilot's would (or could) go with the sale.

Interesting. Would that be by seniority or volunteer and how would play into an integration of pilots? Since the operating certificate would stay with ABX, I guess that could go many ways. thanks

p.s. when I ask about integration, would they be giving up 1224 as their representation after the sale and be new hires under the buying company labor agreements?

 

[727flier]

Would this "poison pill" amendment raise stock prices and facilitate a sale if it was what the stock holders want? I believe that is what I got from it.