US cargo airlines Astar Air Cargo and ABX Air, the two major airlift partners for DHL Express inthe USA, could merge in a $455 million deal to create a stronger, integrated carrier. The move
could be a further sign that DHL wants to have closer control over its international air network.DHL announced earlier this month that it had bought a 49% minority stake in Astar, with 24%voting rights, for an undisclosed sum and extended its ACMI wet-lease deal with the airline until2019.
Astar announced yesterday (June 28) that it had approached the ABX Air board for a fullacquisition of the airline for $7.75 per share. Astar chairman John Dasburg said: “We continue tobelieve a combined entity would be a much more effective and efficient vendor for our principalcustomer, DHL and our other customers including the United States Government. Since DHL is thelargest customer of both airlines, a healthy and growing DHL clearly is in the long term interestsof ASTAR, ABX and the employees of all three companies.”
ABX Air said it had received an unsolicited indication of interest from ASTAR Air Cargo butno formal offer had been made. It would respond after considering the approach and any formaloffer.
Miami-based Astar Air Cargo, with 45 medium-sized cargo planes, is the former DHL Airwaysthat was sold off prior to Deutsche Post acquiring DHL. Operating out of the DHL US air hub atWilmington, it mostly flies domestic routes for DHL and has some international destinations.
The larger, Wilmington-based ABX Air, with about 100 larger and medium-sized cargo aircraft,is the former Airborne Express airline disposed of when DHL acquired Airborne Express. DHL has beenscaling back its use of ABX planes and capacity over the last year, however. Both airline disposalswere necessary since US aviation law prevents foreign companies from being the majority owner of aUS airline.
* Separately, DHL Express Asia Pacific announced yesterday that it has completed theacquisition of a 49% stake in US-based Polar Air for $150 million. “We are pleased with thecompletion of this partnership with Polar Air Cargo, which is a strategic thrust instrumental inpositioning DHL as the global express and logistics provider of choice,” said John Mullen, GlobalCEO of DHL Express.
“The new partnership shortens the global supply chain for our customers and improves tradelanes by connecting the major markets on both sides of the Pacific,” added Dan McHugh, Acting CEO,DHL Express – Asia Pacific. “This significant move reinforces DHL’s role as a trade facilitator,and positions us ideally for even greater growth in Asia Pacific and the US.”
Polar Air Cargo will continue to operate as an independent company and there will be nointegration with DHL or any of its business units, DHL stated.
