Astar Air Cargo

[johnnypilot1967]

Another great pilot job gone! When will the insanity stop?

Tailwinds brothers!

[Lowrider2]

So, what does your post mean? Astar gone?

[cvg2iln]

Astar gone - as in with us no more. DHL put the hammer down and Astar's operations terminated on 1st June. The aircraft have been flown to desert storage. RIP.


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ASTAR MEC FastRead
May 29, 2012

This morning we were informed by ASTAR management that DHL intends to terminate its contract with ASTAR for air transportation. DHL indicated that it wanted to accomplish this sooner rather than later and by sooner it meant as early as the end of this week. While, at this stage of our history, no-one can be surprised at another example of DHL’s lack of consideration and regard for pilots who have supplied it faithful service, this announcement can’t help but be a bitter surprise for us. We will obviously review our legal rights, including our rights under the WARN Act and any residual rights we may have under the 2010 Settlement Agreement. We will also actively work for a severance package for the pilots who remained until the end of ASTAR’s operation.

Obviously there will be many other questions. We will be working on the potential end of our Company throughout the coming days and will transmit answers to you as soon as they become available.





Air Line Pilots Association, International (http://www.alpa.org/)
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Five CFM DC-8s flown from KCVG to KIGM (Kingman AZ, desert bone yard)morning of June 2nd.

[Intruder]

Nothing in the US or financial press that I can find...

[aviatorhi]

Numerous photos of aircraft ferried into desert on certain "spotter" sites and confirmed from "jumpseat" sources.

[Po Boy]

Astar USA to shut down its DHL operations, layoffs expected

FLORENCE, Ky. - More than 160 people at a Northern Kentucky facility found out Monday that they will be losing their jobs.

Employees at Astar USA in Florence were told during a staff meeting that the company was ending its operations with DHL.

Several employees told 9 News that DHL had a contract with Astar until 2013. However, DHL told the company it was unable to renew their contract.

Astar provides air cargo charter services to domestic and international airports. The company's two largest customers are DHL and the United States Air Force.

Employees say Astar was given a 90-day notice to shut down DHL operations and that all flights provided by the Florence company stopped last week.

John Fredricks has been a pilot with Astar for 25 years, he said he expected some changes, but didn't know the severity until Monday.

"What was surprising was the operation shutting down within a three day, you know we had a three day heads up and then a final word on Friday and last operation ceased Saturday morning," said Fredricks. "It's been great, I got on the right time you know back then, I've been captain on four different aircrafts flew with great crews, very professional organization, we had the best on time performance that DHL had."

Some of the employee said they will be offered severance packages, but those will be based on seniority.

"It's tough, you know, I've been with this company for 12 years and to be let go with no little notice, it's just heartbreaking," said one employee who did not want to be identified.

Fredricks is remaining optimistic because his company is providing him with a severance package so he has a little time to find another job.

"Part of the reason is I've been lucky here and I've been able to put away some money, I have money in the 401 K and they are making right on their obligations at the back end here so there's no immediate need to go out and find a job," Fredricks explained.

Below is a statement released by the company Monday night.

ASTAR USA is a Miami-headquartered company whose work for DHL is ending in accordance with the terms of its contract with DHL. Unfortunately, the end of this contract may result in approximately 200 layoffs in the Cincinnati area over the coming months. ASTAR will continue to provide services to other customers, including the United States Department of Defense.

[Icebear2710]

I feel very sorry for everybody who might lose the job, but I am afraid this is just another chapter of the rather unsuccessful engagements of Deutsche Post in the U.S. domestic market during the first decade of this century. From what I know, ASTAR (didn't it get the name then?) was separated from DHL operations when DP took full ownership of DHL, because it wasn't anymore allowed to maintain an controlling ownership of a US airline. While this kind of protectionism does exist on both side of the Atlantic it doesn't make things any easier for anybody envolved.

In the DPDHL annual report 2010 it was already written that DHL took 100% ownership of ASTAR again.
http://www.dp-dhl.com/content/dam/Investors/Publications/DPDHL_Annual_Report_2010.pdf
(p. 114)

While one might be able to consolidate a company, the flying/airline bit needs to be found a new home. It looked to me then, that the future of ASTAR wasn't really looking rosy. The current announcement isn't a surprise.

From the distance the ACMI seems to be the better option for DPDHL. They can rent the aircraft they need over the desired period of time, and that all without the restraints of a foreign ownership of an airline. Again, I feel very sorry for all the individuals affected by what is happening, but I am afraid, if DHL became an American company again, it would likewise happen to us here in Europe.
Just look at TNT. I wouldn't be suprised to see exactly the same to happen. TNT becomes an American owned/controlled company
-> Don't worry, we will restructure it and rent in your services
-> Sorry, you're getting to expensive, why shouldn't we use other airline's services
-> Now, your equipment is getting too old and since we can't own the airline anyway, we won't spend money on it....

I hope that everybody will find work soon, or that perhaps with new costumers the operation could continue.

[grounded27]

Hopefully I am stating the obvious. Astar was created as DHL being owned by DP was forced to do this for DHL to compete in the American market. It must have been an obvious failure.

I wonder if DHL is giving up on the US market or has found a less expensive or possibly a partnership with another us flag carrier to maintain this market.

[Best foot forward]

THe hub uin CVG is expanding so the capacity must be being taken up by someone.

Good Luck to all the ASTAR crews.

[Intruder]

I suspect the economics ofthe DC-8 played a large part in the decision. DHL just added on (or will within a month or so) 2 more Southern 777s, for a total of 3. They also have 2 or 3 Atlas 767s on line now, with 3 or 4 more coming for domestic work.

[4 Holer]

Heard the first DC8 coming out of the desert shortly for HeavyLift Singapore if ASTAR can get reasonable crew cost agreement ?

[oceancrosser]

MK Cargo is starting again I believe in Zimbabwe and will be using DC8's.


Incredible, now how many incarnations of MK have there been?

[SMT Member]

Contrary to what has been suggested up thread, DHL are not retreating or scaling down in the US, and are actually and for the first time in a very long while on their way to profitability in that market.

Instead of scaling down in the US, DHL are actually expanding. Both in CVG, where a ramp extension and a new warehouse have been built, but also elsewhere. There's a new LAX-LEJ-HKG-LAX service introduced not long ago, flown by Southern 777s. This is on top of the CVG-BAH-HKG-CVG they already operate, so it's 4 777s they've got flying for DHL, not 3. Polar have added 767s to the domestic fleet, and it doesn't take a rocket scientist to work out what they were for - replacing the increasingly uncompetitive DC8s operated by Astar.

The future US based flying for DHL will, thus, mainly be done by Polar (74s and 76s), ABX (76s) and Soutern (77s). The 8s were odd-balls, and with the high cost of fuel they had to go.

It's sad, but commercially sound, and I hope the guys in Astar will find other employment soon.

[atpcliff]

Technically the "Polar" 767s are Atlas planes. The 744s are a mix of Polar and Atlas planes.

Both Atlas and Polar Airlines are owned by Atlas Air Worldwide Holding Company. All of the former Atlas and Polar pilots are on one list, and it is now called Atlas Air.

Atlas also has 744s and 748s flying cargo, 744s flying passengers, and 763s flying passengers.

cliff
CVG

[E.A.T]

Don't forget Kalitta

[grounded27]

Man the ACMI business has changed, my day with Polar and Atlas, Polar had a 741 in their fleet and Atlas had probably less than a dozen aircraft. Kalitta had a rag tag fleet of DC-8's/L1011's and a few &741,2's.

As I remember Polar took schedual routes dropped by the FedEx merger with the Flying Tigers.