Dhl
 

Anyone else heard the rumor that Fedex has gotten the DHL contract in the US. Maybe we don't need no Paris Hub maybe something in Germany???
Propwash

That would fix our overmanning problems at FDX but screw over a lot of our brothers at other carriers. It would yet be another reason for cancelling CDG.

i'm told it's a bad rumor..but what do i know?...like my new avatar?

Kinda like O showing up last week at Ground school and saying CDG is ON!!!!
I'm sure that is what the last word he heard, like a shroom!!!!
Propwash

Nice avatar, at least you won't have to fly with her.

Just don't bring it with you to fly!

I didnt know DHL had a US contract up for bid. I just thought they were an overnight letter and freight company just like yourselves.

Not a really a US contract, but....


Analysts expect money-losing DHL will scale back in the United States and could make the announcement as early as today, handing FedEx Corp. and UPS a boon.

If DHL closes terminals and hubs, analysts say FedEx could get 35 percent of the lost business in the air and another 25 percent on the ground.

If the restructuring costs DHL 2 percent of revenue, FedEx stands to gain $45 million in business, according to a research note published Wednesday by Edward Wolfe. UPS, which has a more powerful ground network, stands to realize $71 million.

DHL, a subsidiary of Deutsche Post World Net, is the fourth-largest player in the U.S. overnight package business, with revenues in the Americas for 2008 estimated at $2.3 billion.

With 9 percent market share, DHL trails the U.S. Postal Service, (32 percent) FedEx (31 percent) and UPS (25 percent).

DHL joined the competitive U.S. overnight business in 2003 when it purchased Airborne Freight for about $1 billion, rankling FedEx and UPS, which accused the monopoly Deutsche Post of investing in a U.S. carrier to fight them on their own turf.

Both pressed the issue in lawsuits, which Airborne eventually won.

Airborne was the low-cost alternative to the big players, claiming about 10 percent of the domestic air express market and 2 percent on the ground.

DHL came in promising a threat to the established carriers, but in reality has kicked little sand in their faces, mostly because it has made a series of integration and operational errors that shook customer confidence.

Analysts estimate DHL has lost $2.8 billion in North America, including a recent $748 million write-down in the United States alone, where it has also announced 600 layoffs.

Wolfe expects DHL will close 85 small ground and air terminals -- as much as 25 percent of its U.S. capacity -- to stem the losses.

Satish Jindel, principal transportation analyst at SJ Consulting in Pittsburgh, says DHL will keep the U.S. markets it needs to protect the interests of global customers.

"I expect they will partner with other companies to handle business with smaller U.S. markets," he said.

Tuesday, Deutsche Post said it planned to split its logistics division into two divisions with separate executive boards. A second announcement could come today when Deutsche Post meets with analysts in Bonn, Germany.

Many analysts, including Wolfe, expect a more detailed plan will emerge in April or May when a DHL Teamsters contract will be ratified.

"DHL is in a tough position because if its customers believe there's even a chance it will leave the U.S., its competitive position will be compromised," Wolfe said. "At this point, we expect modest restructuring efforts will be announced March 6 ... with more restructuring to come."

For months, the buzz has been that FedEx or UPS was planning to buy the U.S. assets. That seems unlikely, based on antitrust issues, experts say.

"I think the antitrust people would not look too kindly on it," said Aaron Gellman, professor at the Transportation Center at Northwestern University. "It would be good enough if DHL just disappeared from a competitive standpoint."

Most doubt that will happen. Instead, analysts expect the deeply entrenched DHL will take time to retool and rise again.

"The burden of proof is always on anyone who suspects DHL doesn't have good strategy," said Paul Stewart, chief executive of 4-Elements Inc., a third-party logistics company headquartered in Arkansas. "They are a proven worldwide logistics organization."

Commerical Appeal

Jane Roberts

March 6, 2008

Hold the Phone
 

I wouldn't be updating those System Bids just yet. While we don't have any more intel than you all might have, we feel an "arrangement" of sorts will be made with FDX on the grnd. side of the operation and-or your small A/C feeder operation. Don't know if this will be a reciprocal agreement with ops in the EU, but it would make sense if that were to occur. Something has to be in the works though. There is just to much smoke not to be a fire somewhere. We just have to wait for the smoke to clear to see where we all stand (hopefully with all our jobs intact). DHL has said the word will come down mid May.

FAJ

One thing I'm clear as mud on... Purple does currently operate a CDG domicile, correct? If so is this just addressing the B757 operation being suspended over there, or the whole thing being shut down? I think that would go a long way toward clarifying the options here.

CDG is fine...more airbusses to be sent over...just not ready financially to open up a new crewbase now...

No, there is no crew domicile currently at CDG. That proposed domicile was recently bid, awarded and just cancelled. The CDG flying will continue to be flown by MEM based crews.

Thanks guys. That clears it up.

I suspect that Fedex will be flying DHL mail just like they do for USPS.
Just a hunch!!!

Know or know not.... There is no hunch. :D

DHL Mail
 

I hope your wrong Wash! If you are right it could mean the loss of my job and those of my commrades at both ABX and Astar. Any reduction in block hours or transfer of said block hours to another carrier (FDX or UPS) is due to DHL's management not being able to effectively manage an air and ground delivery system here in the US and their unwillingness to listen to the ABX management to straighten out the problems. It certainly had nothing to do with the professionalism of the GB (ABX) and ER (Astar) flight crews. Unfortunately it probably goes both ways. If you're flying DHL's domestic product here in the US then maybe DHL is going to be flying your packages in the EU. That should make Fred really smile as the pay and benefits for the DHL European pilots lag greatly behind the pay and bennies you and I enjoy here in the US. The giant sucking sound we hear is the sound of Globalization. It is the sound of our jobs going to overseas pilots who will fly for much less. Perhaps we should look for our CEOs overseas as well. Imagine how much the US stockholders could save on Executive compensation if we were to use lower priced managers and CEOs!

Gee, I thought that FDA LOA was supposed tighten up our scope clause.

BTW, those European pilots may not be so cheap. Fred would have to pay them in Euros.;)

Propwash= flame baiter.

Not gonna happen proppie...now go eat a banana.

What the hell is DHL mail anyway?

I've been hearing that the 757's will be used to move up the 727 retirements at Fedex, any truth to this?