FreightDreamer

I'm a little bit confused about this and it's been bugging me for a while - If Astar rely on DHL for over 90% of their work - in essence DHL pretty much controls the airline? right? which was the problem with the DoT all those years ago.....

If DHL is the major contractor, don't they have an obligation to Astar and it's pilots?

I'm sorry if this has already been covered but I've searched the threads and not found an answer to this.

Commando

If True, It is an embarassment this guy is running the company. I think he's lying for political points in Washington. He'll say anything to derail the agreement. Which is fine, but watch in 4 months when all of a sudden they have other "work".

Astar has a plan "B", it's just not as good as what they have now.

AirTrucker

You do have a good point, why would they not have a plan B! I would not think any of the investors would be glad to call it quits. One would think that the ASTAR managers would be much better then that!! As for ABX I think they will keep flying but under a reduced fleet. As for the DC9 fleet what will happen to them? Will they fly some?

Commando

Yes, I think both companies will be operating into the future without DHL as a customer. Around Mid November DHL will announce there agreement with UPS.

But ABX and Astar will most likely shrink by at least 60% and then stabilize. The DC9's are finished.

A Pilot

I hope you are right about that but in this economy I don't see any ACMI work for them. Kitty Hawk and Gemini couldn't find enough work to maintain their companies and that was before the economy took a nose dive.

FlightPhoenix

If the DHL/UPS deal goes through Astar is finished. Dasburg has said this. This is why he hired the lawyer he did to replace Rosum. Astar is gone; please do not create false hope for a bunch of guys that are absolutely screwed.

130drvr

we're using our one 76 so far on the BAX system, possibly just for FAA proving runs. Primary work for our 76s will be MIA contract with Aeromex and Mexicana doing Central Am and Carribean.

Commando

We'll, If there CEO is that much of an idiot, then so be it. No company should put all there assets and future on one company for there survival.

I still believe they have an out. they have the assets to be put to use.

Whistlin' Dan

Yes and no. If you mean a moral obligation then I suppose that DHL does owe something to Astar's pilots. However, that's not gonna happen. They (DHL) knew this was coming even while Astar was negotiating the Scope and Successorship provisions of the latest contract. Neither they, nor Astar management, are going to dip into their own pockets to help the same guys they were writing OUT of their future plans 6 months ago.

There does exist a contractual obligation between Astar and it's pilots, but it's so full of holes and drop-in-the-bucket "liquidated damage" provisions that even ALPA's own lawyer has said it probably can't be enforced to any meaningful extent. How that came to be is a story unto itself, and would be open to much debate. However, the bottom line is that under the old contract, it would have been financially impractical for DHL to contract their flying to UPS, while under the new one, they can. Having done so, there are ways they can then terminate the pilots contract for pennies on the dollar.

A Pilot

Keep in mind Astar is not your typical ACMI carrier, they were DHL Airways, and although they were spun off they are 51% owned by DHL and have an ACMI agreement until 2019. Imagine if someday UPS or FedEx is bought buy a foreign company and the airline is spun off but still provides the lift. They would be an ACMI carrier that is completely dependant on one company. Thats what happened to Astar.

Otherwise, I won't argue with what you said about that or any other CEO.