Alexander & Baldwin, Inc. Q1 2008 Earnings Call Transcript

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2008-04-30 17:39:30.0

Tags: Alexander & Baldwin Inc.

Question-and-Answer Session

(Operator Instructions). Your first question comes from the line of Mr. Jonathan Chappell with JP Morgan. Please proceed.

Jonathan Chappell - JP Morgan

Thank you. Good morning, guys.

Kevin L. Halloran - Vice President, Corporate Development and Investor Relations

Yes, morning John.

Jonathan Chappell - JP Morgan

Good afternoon Jim. Couple shipping questions, so Allen or Jim take them as you see fit. The first one Kevin made a quick comment in his remarks about the airline shutdowns, and I'd imagine there is some cargo capacity lost by those shutdowns as well the passenger capacity loss. Is there any opportunity for Matson to benefit from any air cargo capacity shrinkage, or have you just not seen that yet?

Kevin L. Halloran - Vice President, Corporate Development and Investor Relations

Jim?

James S. Andrasick - President and Chief Executive Officer, Matson Navigation Company, Inc.

Certainly, we're still with the Aloha Airlines. I think fairly well published cargo operation cessation as of the yesterday or the day before. Matson's charter does not allow it to carry cargo interisland in Hawaii, so really there is nothing for us to gain as a result of that particular dislocation. As far as passenger seats disappearing, there is very little cargo capacity on those planes. That ATA and Aloha were operating, so we don't see much of an affect there either.

Jonathan Chappell - JP Morgan

Okay, fair. Second question, this is kind of probably pretty timely given where we are right now in the calendar. Any update on the labor negotiations on the West Coast? I guess you are making a little bit of noise about the work stoppage tomorrow, which isn't going to happen, but how does that going to be reflected in the negotiation processes, and do you see it finishing on time?

Kevin L. Halloran - Vice President, Corporate Development and Investor Relations

Jim, that's a good one for you as well.

James S. Andrasick - President and Chief Executive Officer, Matson Navigation Company, Inc.

Yes, in fact, I just got off a call earlier today on this very subject and the negotiations continue. We have a news blackout of course on distinct issues that are the subject of those discussions. There is still optimism that we will conclude prior to the expiration date on January 30th. And you are also correct Jonathan than that there is indication that there may be, either a slowdown or a work stoppage tomorrow by the ILWU regarding issues that are really unrelated to the contract discussion, discussions themselves.

 

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