Tag: USA

Precision Conversions Receives 757-200PCF Order from DHL

Posted by | Jun 28, 2007 | |

Precision Conversions, LLC (Precision) is pleased to announce that the company has received an award to provide DHL with their first full 15-pallet position 757-200PCF. The Rolls-Royce powered, ex-VIM Airlines aircraft (MSN 27598) will commence modification at the Flightstar Aircraft Services facility in Jacksonville, Florida this week and will be re-delivered in October, 2007. The aircraft is owned by DHL’s European Air Transport, but is expected to be operated by Blue Dart Aviation based in Chennai, India.

DHL’s Airline Director, Gordon Olafson, said that, “The Precision Conversions 757-200PCF, with its weight enhancements, is the right product at the right time to support our expanding global operations, especially in India.”

Precision Conversions has re-delivered 12 conversions to date and currently has 2 aircraft in work. The company holds 6 firm orders and contracts on more than 47 options for its 757-200PCF conversion.

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Astar Air wants to buy ABX Air

Posted by | Jun 28, 2007 | |

Miami’s Astar Air Cargo Holdings is seeking to enter into negotiations to acquire ABX Air, an Ohio-based cargo airline that claims Plantation-based DHL as its largest customer.

In a letter to ABX’s board Thursday, Astar boss John Dasburg said it was prepared to offer USD 7.75 per share for all of the outstanding ABX shares. ABX reported nearly 58.7 million shares outstanding as of last month, which would put Astar’s offer at about USD 454 million.

The offer comes about two weeks after DHL acquired a 49 percent equity interest and a 24.9 percent voting interest in Astar.

ABX’s shares soared 85 cents to USD 8.08 in early afternoon trading.

ABX was an affiliate of Airborne but was spun off to Airborne’s shareholders after DHL acquired Airborne’s ground operations for USD 1.05 billion in 2003. Federal rules restrict foreign ownership of U.S. airlines. DHL is an arm of Germany’s Deutsche Post.

Dasburg and an investor group acquired Astar four years ago when the airline was known as DHL Airways. The group paid USD 57 million for the airline.

“Mr. Dasburg and the ownership team have always wanted to own both carrier operations,” said Elliott Seiden, a lawyer representing Astar. “They made a proposal to DHL to buy both airlines back in 2003.”

Dasburg believes operating both Astar and ABX under one management team will create operational efficiencies, Seiden said.

ABX has received Astar’s offer and is evaluating it with advisors.

The smaller Astar has a fleet of 45 aircraft and 1,100 employees. ABX, by comparison, has about 100 aircraft and more than 6,100 full-time employees.

DHL has accounted for virtually all of ABX’s cargo in recent years, ABX reported in a regulator filing. ABX generated USD 90 million in net earnings on USD 1.26 billion in 2006. Astar is privately held.

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Troutdale city in favor of FedEx tax break

Posted by | Jun 27, 2007 | |

A majority of the City Council is in favor of giving Federal Express an estimated USD 4 million break on property taxes as part of a new enterprise zone to attract industrial businesses.

The shipping conglomerate is debating relocating from Swan Island and building a larger distribution center on the Reynolds Metal site as part of a USD 1.8 billion expansion of its North American network.

FedEx has told city officials it’s prepared to invest USD 100 million in the local relocation, which could bring hundreds of jobs to East County. Troutdale could eventually expect about USD 1.6 million annually in property taxes after the tax-abatement period runs out, City Administrator John Anderson told the council.

A two-hour work session Tuesday, June 26, grew testy at times as councilors debated what one called a monumental decision. At issue is whether FedEx will build a 500,000-square-foot ground distribution facility in Troutdale or in Washington State. Troutdale appears to be at the top of the company’s list, Anderson said.

Councilor David Ripma wondered why the city would establish an enterprise zone if the company already seems committed to the Reynolds site. He and Councilor Jim Kight were against giving FedEx the tax break, which would last three years and possibly five if the zone is renewed.

The rest of the council, however, said the enterprise zone wasn’t necessarily about just FedEx, but about attracting top-flight industry in general. And there is the risk that FedEx could either go to Vancouver or Ridgefield.

FedEx officials would like to know the city’s position on the incentives by the end of June. Councilors instead scheduled a public hearing on the matter for July 10.

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The National Labor Relations Board delivers labor jab to FedEx

Posted by | Jun 27, 2007 | |

The National Labor Relations Board’s certification of a union vote last week involving FedEx Home Delivery drivers in Wilmington, Mass., could add a layer of intrigue to a case that pits the independent-driver model against the more traditional employee model.

Drivers in the Home Delivery division in Wilmington last October voted 24-8 to choose the Teamsters as their bargaining representative.

By intervening, the NLRB said it agreed that the drivers are employees and not independent contractors, according to Patricia Gilbert, NLRB spokeswoman in Washington.

The decision was made by the regional director in Massachusetts.

FedEx says the 15,000 people who drive its courier vehicles with the purple and green FedEx painted on the side are independent contractors running their routes as they see fit.

They own their own trucks and pay all expenses, including fuel and maintenance.

But a growing number of the drivers say they are really employees, paid like contractors, who have given FedEx an edge over rival UPS, which employs Teamster drivers.

Drivers in Tennessee, California, Massachusetts, Minnesota, South Dakota and elsewhere are suing FedEx, arguing the company shirks worker protection laws by refusing to hire them as employees eligible for overtime pay, health insurance, workers’ compensation and other benefits. They also want to be reimbursed for back operating expenses and lost benefits.

FedEx Ground, based in Pittsburgh, was created in 1998 as a way to diversify FedEx Express, the world’s largest cargo airline. Its independent-contractor system promotes huge efficiencies, saving it equipment, insurance and benefits costs. But the structure also keeps drivers from organizing, experts say.

A victory by the unhappy drivers would raise employee costs and force FedEx Ground to maintain its own fleet of trucks.

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FedEx rolls out new campaign: “FedEx Stories”

Posted by | Jun 26, 2007 | |

FedEx this week introduced an integrated corporate brand campaign called “FedEx Stories” to show how the company’s employees strive to serve customers.

The campaign, developed by BBDO New York and Atmosphere BBDO New York, is aimed at C-level executives and influencers.

It launched with TV spots that drive users to a Web site at www.fedexstories.com, where online videos feature FedEx employees telling stories of how they have helped customers.

Print ads will begin appearing next month in publications including Financial Times, The New York Times and The Wall Street Journal.

The budget was undisclosed.

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