Originally Posted by
penguin22
But let’s just say on Thursday, an un-named candidate for President visited ILN, and called for Congressional hearings into the DHL/UPS deal.
If we get those hearings, maybe we can discover how DPWN’s Express division (DHL) can make 2 billion USD profit in 2007, yet claim to have lost a billion in the US. How they can buy Airborne Express, a profitable company for like 50 years, then 3 years later tell everybody they’re losing a billion, so we've gotta move it over to UPS
Maybe they’ll ask Rep. Mike Turner’s question:
“Rewind to just five years ago and you will find DHL operating at the Cincinnati-Northern Kentucky airport, Emery Worldwide operating at the Dayton airport, and Airborne Express operating in Wilmington.….. Reportedly, Emery and Airborne operated profitably with DHL operating with minimal losses.
Five years ago, if UPS and DHL had announced the formation of a strategic alliance that would include the acquisition of Emery and Airborne and the consolidation of all four companies' U.S. operations, antitrust alarms would be blaring. Certainly, this new transaction needs to be viewed in light of the possibility that the acquisitions of Emery and Airborne were steps one and two of a stepped transaction. Perhaps, the UPS-DHL combination is step three.”
Has there been a systematic elimination of all smaller express carriers in the US? Maybe, maybe not. But it might be fun to find out.
Let's suppose for a moment that the deal is cancelled. Now what? Do you actually believe that DHL can be forced to continue on a losing investment in the US market? Their withdrawal from the market would send their US market share to Fedex and UPS.
How does that mesh with your anti-trust conspiracy theory?
Unlike passenger airlines, the package delivery business requires huge upfront capital investments in infrastructure-DHL has not made those investments and has not been competitive in the market.
You make the argument that DHL has suffered no loss in the US market-this is just false. Both the US and German governments accept their accounting and financial statements as correct and they are independently audited by an outside accounting firm.
Just as a side note, do you know what other cargo airline DHL holds a 49% stake in?