Jurassic Jet
Freight Trash
- Joined
- Mar 10, 2005
- Posts
- 227
Joe Hete on the upcoming DHL announcement:
"I am obviously not going to say much about those discussions now but I can say that we’re pleased that they recognize the strategic importance of the US market and that they know they need efficient, reliable and dedicated partners to be successful.
We know that it will take time for DHL to get its US operations on solid financial footing. We also know that their restructuring, is combined with a strong prolonged economic slowdown in the US; it could bring challenges for both of us but I’m significantly more optimistic than I was few months ago about our future with DHL and eager for all of our companies to play a part in making them more successful in the US and elsewhere."
Joe Hete:
As, Quint mentioned we continue to work through issues with our ABX Air pilots that have hurt ABX Air charter margins. The establishment of the domicile in Osaka for crews that do our flying for ANA has addressed a part of the problem although these costs had a significant impact on our first quarter results.
Unfortunately the pilot union leadership continues to resist changes that are inevitable in the air cargo business even though they are among the best paid pilots in the industry.
It is simply impossible for us to provide all our flight crews with the domicile assignments and the schedules they would like while meeting the changing demands of our customers. We have repeatedly advised them and under any possible future scenario DHL would likely require fewer aircraft and fewer pilots from all of the carriers that support the US air network including ABX Air.
As a result for ABX Air to grow its ACMI business and provide opportunities for pilots, it must adapt to the needs of other customers including those with less predictable schedules from less appealing locations. Without that flexibility our only profitable means of capturing new business maybe to drive away some more of our aircraft to operators that can provide their own crews. Sometime the pay scale is much lower than what our ABX pilots earn now.
We want to be part of DHL's new operating platform in the United State as well as its growth plan in the rest of the America, but we will not accommodate either DHL or pilots in a way that would comprise our returns for shareholders or harm our relationship with other customers.
John Graber:
Charles, good morning. This is John Graber, I am the President of ABX Air. The increased pilot costs are in the neighborhood of a penny a share and they are the result of a disagreement we are having with the union as Joe mentioned and we don’t know how long those cost will continue though; we are taking steps to moderate those costs and drive them down as fast as possible and I think we’re going to see some success in that almost immediately.
Me:
What on earth is this guy talking about???? All I see is increasing JRM every month and more and more D13 days. Oh...I know...park the aircraft...that'll do the trick.
Not sure if my math is right but sounds like a little over a $600,000 hit on quarterly earnings.
Joe Hete:
In every decision our guiding principle will be what represents the highest and best use of that asset or where we can get the best return on it for the shareholder. By following that principle and with the greater appreciation among some in our workforce by the realities of the competitive air cargo marketplace I believe that is ATSG and our future looks bright in deed. Thank you.
Gee...wonder who he is talking about???
"I am obviously not going to say much about those discussions now but I can say that we’re pleased that they recognize the strategic importance of the US market and that they know they need efficient, reliable and dedicated partners to be successful.
We know that it will take time for DHL to get its US operations on solid financial footing. We also know that their restructuring, is combined with a strong prolonged economic slowdown in the US; it could bring challenges for both of us but I’m significantly more optimistic than I was few months ago about our future with DHL and eager for all of our companies to play a part in making them more successful in the US and elsewhere."
Joe Hete:
As, Quint mentioned we continue to work through issues with our ABX Air pilots that have hurt ABX Air charter margins. The establishment of the domicile in Osaka for crews that do our flying for ANA has addressed a part of the problem although these costs had a significant impact on our first quarter results.
Unfortunately the pilot union leadership continues to resist changes that are inevitable in the air cargo business even though they are among the best paid pilots in the industry.
It is simply impossible for us to provide all our flight crews with the domicile assignments and the schedules they would like while meeting the changing demands of our customers. We have repeatedly advised them and under any possible future scenario DHL would likely require fewer aircraft and fewer pilots from all of the carriers that support the US air network including ABX Air.
As a result for ABX Air to grow its ACMI business and provide opportunities for pilots, it must adapt to the needs of other customers including those with less predictable schedules from less appealing locations. Without that flexibility our only profitable means of capturing new business maybe to drive away some more of our aircraft to operators that can provide their own crews. Sometime the pay scale is much lower than what our ABX pilots earn now.
We want to be part of DHL's new operating platform in the United State as well as its growth plan in the rest of the America, but we will not accommodate either DHL or pilots in a way that would comprise our returns for shareholders or harm our relationship with other customers.
John Graber:
Charles, good morning. This is John Graber, I am the President of ABX Air. The increased pilot costs are in the neighborhood of a penny a share and they are the result of a disagreement we are having with the union as Joe mentioned and we don’t know how long those cost will continue though; we are taking steps to moderate those costs and drive them down as fast as possible and I think we’re going to see some success in that almost immediately.
Me:
What on earth is this guy talking about???? All I see is increasing JRM every month and more and more D13 days. Oh...I know...park the aircraft...that'll do the trick.Not sure if my math is right but sounds like a little over a $600,000 hit on quarterly earnings.
Joe Hete:
In every decision our guiding principle will be what represents the highest and best use of that asset or where we can get the best return on it for the shareholder. By following that principle and with the greater appreciation among some in our workforce by the realities of the competitive air cargo marketplace I believe that is ATSG and our future looks bright in deed. Thank you.
Gee...wonder who he is talking about???
