Originally Posted by
Worldguy
I just do not see where the the incredible windfall is that some of our UPS brothers are anticipating. DHL was losing money and now they are pulling out. Ok, so.......what? If they did not have a substantial market share in the US how can UPS gain a substantial market share from the demise of the DHL(abx/astar) operation? UPS in not going to be doing the legwork for DHL every where else on the planet, DHL is doing that just fine themselves.
I don't think most of us saw a 2% addition to the gross as an incredible windfall, much of that depends on the amount of extra capacity currently built into the system.
I think the real money for UPS would be in their ability to utilize the DHL infrastructure in markets they have not yet penetrated. Net benefit to the pilot group would be small, but the net benefit to UPS/DHL would be quite large since it would save both of them the duplication of infrastructure elements.