I for one do not want to hear about your guys dirty laundry. I do not mind hearing what former employees have to say. They have inside knowledge and don't care speaking if it is negative on the company outlook. And we all know what the current employees want no matter what company it is. Personal squabbles need to talked about face to face or nothing should be said at all in my opinion. Keep the discussion open, it is quite interesting how this will play out. Lots of consolidation getting ready to drop this year and cargo may not be any different.

 

It's OK. Most guys come here to share information about things of general interest and maybe brainstorm a little bit. But there are a few who really don't have much to contribute, so they pull down their pants and show the world their A$$ instead. If doing so takes their mind off the fact that DHL is in the process of handing them the same wave-off and "six-point severance package" they gave their other 3,000 employees, so be it. I'm certainly not going to waste my time arguing with anybody who's had almost as many screen names here as he's had "friendly chats" with the guys from ProStan.

If he really wants to take this personal, he knows how to get in contact with "me" or anybody else who's been a DHL/Astar pilot in the last 25 years. I'm betting that he doesn't, and that when he sees this, he'll drop trou and...you know...

 

Guys guys lets first remember niether co. has made a comment on this, just spec at this point by another finance co.

 

That's why I said, "if this comes to fruition"

 

Had a management jumpseater on board a few days back (after the reuters article) and she thought FDX would end up doing a postal like contract with DHL. DHL trucks pick it up at your house/business then it goes on FDX airplanes until another DHL truck drops it off. She said FDX doesn't want/need any trucks/planes or stores, let alone more employees.

Thats what I heard. I didn't make it up.

TB

 

I don't think anything is really going to happen on a grand scale with this, but the problem is not the airline operation for DHL. It's the ground delivery network. Widespread theft/loss/late delivery is the issue. Not that you'll see that in any press releases. To simply put boxes on Fred's jets will not solve their problem.

 

Would Fedex even have the airplane capacity to handle DHL's freight in addition to their own?

 

My guess is, yes. Very few of Fedex's domestic flights are max'ed out in either weight or bulk.

 

Original URL: http://www.cargonewsasia.com/secured...?article=15671

February 25, 2008

Exit of Zumwinkel may end DHL push into US
By Ian Putzger Toronto

The abrupt exit of Klaus Zumwinkel, chairman of DHL parent Deutsche Post, has heightened speculation that DHL may sell its struggling US business.

Zumwinkel tendered his resignation on February 15, following raids of his office and residence by German tax authorities the day before. He is being investigated for alleged tax evasion of around US$1.4 million.

With his November retirement day in sight, Zumwinkel left under a cloud after leading the company for 18 years. He turned a postal outfit into an $88 billion logistics giant.

Throughout his tenure Zumwinkel was seemingly untouchable, lording it over Deutsche Post. But in recent months he came under mounting criticism, most of it directed at DHL's struggling US expansion. Having acquired Airborne Express for about $1 billion in 2003, the company was trying to establish itself as a third force in the US market behind UPS and FedEx, but the operation has produced a flood of red ink, despite several efforts and heavy investment to stem the flow. According to some estimates, DHL could lose $900 million in the US this year alone.

The first salvo against the US strategy came last November, when investment firm Bear Stearns concluded that DHL stood no chance of producing profits in the US in the foreseeable future and advocated a retreat from the US market. Subsequently a second Wall Street firm argued that DHL should abandon the intra-US business.

Since then, speculation has been swirling around DHL that it might sell its US business.

Although the new Deutsche Post chief Frank Appel has pledged to focus on the loss-making US unit and chief financial officer John Allan, whose contract has been extended by two years until the end of 2010, pledged to improve performance of DHL in the US, rumours have been leaking out of Deutsche Post's headquarters that a number of options were under consideration to end the losses in North America.

One scenario that has been bandied about sees DHL handing over the intra-US business to FedEx, which could in turn have DHL handle its intra-European traffic. FedEx and Deutsche Post have declined to comment on these speculations, but sources close to DHL place the origin of this rumour in the Deutsche Post management.

Selling the US arm of DHL Express to FedEx seems unlikely, though, as FedEx has no need for the infrastructure that its smaller rival has built up in that market. Moreover, an outright sale might face legal obstacles. A report by Bear Stearns argues that anti-trust reasons would prevent FedEx from buying what amounts to 11-12 percent of the US air express market.

"However, we suppose FedEx could purchase DHL's smaller ground business and form some form of partnership with DHL to deliver some portion of their air express packages," the report concluded.

While not commenting directly on rumours of a FedEx deal, Allan declared that "there can be no question of exiting the US business. Any options which include a withdrawal can be completely ruled out''.

Deutsche Post has repeatedly stressed that its presence in the US market generates a host of international traffic, such as flows from Asian customers to North America. Allan declared that the US express business is a key management priority for Deutsche Post.

"We are looking at a variety of options to improve performance. In doing so, we are committed to maintaining a significant presence in the US market, which remains of strategic importance to the group," he said.

The first salvo since these comments came on February 12, when DHL Express USA announced a plan to eliminate some 600 jobs. "This action is one of several measures we are taking to improve our competitive position in the US market, which is strategic to our global growth plan," said Hans Hickler, CEO of DHL Express USA.

But profitability is in short supply. On January 24, Deutsche Post announced it would take an $874 million write-down of the value of its express business in the Americas.

The economic slowdown this year is affecting the express business. FedEx is bracing itself for a 15 percent drop in profits in the quarter ending February 29, and UPS showed a paltry 0.6 percent growth in its overnight air and deferred revenues for the quarter that ended December 31. Citing heightened uncertainty in the US economy compared to a year ago, UPS chief financial officer Kurt Kuehn predicted that "the first quarter will be the most difficult of the year".
Times Publishing (Hong Kong) Ltd
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