RE: below info from BCO 3rd quarter report. What is the future of the BAX overnight fleet?
Americas BAX Global's third quarter 2003 operating loss in the Americas region was $15.3 million higher than the same 2002 period on a 7% decrease in revenues. The operating loss in the nine-month period in 2003 was $21.3 million higher than in the same period of 2002 on 3% lower revenues. A decrease in Intra-American volumes of higher-yielding overnight and second day airfreight, more than offset an increase in volumes for freight with deferred delivery and volumes related to BAX Global's new wholesale freight forwarding product. Deferred delivery shipments are generally transported via truck on BAX Global's North American ground transportation network or, if space is available, the shipments may be transported on its Intra-American air transportation network. Management believes that much of the shift from expedited to deferred shipments is likely to continue. However, in an improving economy the absolute weight of expedited freight is likely to increase.
Overnight freight demand has been slowly dying for a few years. Just a matter of time before MD takes the plunge and divests ATI, hopefully to a company with enough demand to fully leverage a cargo network.