1800 RVR

Do you know for a fact that these -8's are being put back in storage? I do know that ROW has been used as a swap area for a/c that getting ready for checks or, more recently, a waiting area for some -8's to get some kind of special inspections, which I understand to be a settlement between the FAA and UPS for missing paperwork from previous owners. These inspections have been happening at GSO and SAT. The a/c are flown out of ROW as space opens at these mx gateways.

Then again, I could be wrong...

jungle

UPDATE: Deutsche Post Cuts 2008 Target On Weak Express Operations

October 27, 2008: 07:46 AM EST


(Adds analyst comment, more detail)

By Julia Mengewein

Of DOW JONES NEWSWIRES

FRANKFURT -(Dow Jones)- German mail and logistics company Monday slashed its 2008 goal for adjusted earnings before interest and taxes by 17% due to a weak performance by its Express operations, particularly in the U.S., and withdrew its 2009 guidance due to increasing economic uncertainty.

"The main shortfall will be seen in the Express corporate division, which is being particularly impacted by deteriorating market conditions in the U.S.," Deutsche Post said, adding that it prefers "to be cautious with its outlook" due to uncertain growth prospects.

At 1125 GMT, Deutsche Post's shares had slumped 16%, or EUR1.56, to EUR8.11, underperforming a 4.7% fall in the DAX 30. The stock has shed about 66% so far in 2008 on fears the economic downturn would impact the company's 2008 goals.

"The profit warning didn't come as a surprise, but in the current market environment investors simply start selling their shares fast," said Martina Noss, Deutsche Post analyst at NordLB.She added that Deutsche Post had always said its guidance is valid only as long as the economic environment doesn't worsen. She said there's no reason to change her buy rating on the stock.

"The company is still well financed and while EBIT will fall in 2008, it still expects a small growth for 2009, which is positive," she said.

Deutsche Post said it still expects to increase profits in 2009, but has withdrawn its EUR3.4 billion target for underlying EBIT, which excludes contributions from Deutsche Postbank AG (DPB.XE). The company said it would issue fresh guidance "once the economic prospects are sufficiently clear."

Deutsche Post now expects underlying EBIT for 2008 to come in at about EUR2.4 billion, down from its previous forecast of EUR2.9 billion, excluding the contribution from Deutsche Postbank AG (DPB.XE).

In the third quarter, the company's adjusted EBIT dropped 8% from EUR468 million, Deutsche Post said, pointing to a significant deterioration in the global economic environment.

Deutsche Post's profit warning comes as its peers are also taking action to try and mitigate the impact the economic downturn. Earlier Monday, Dutch competitor TNT NV (00906.AE) cut its 2008 outlook for its express business and said it will take more aggressive cost-cutting measures.

The warning also highlights the German company's particular woes in the U.S., where it has run up billions of dollars of losses trying to expand the business but has failed to break the dominance of U.S. rivals United Parcel Service Inc. (UPS) and FedEx Corp. (FDX). UPS last week warned it may revise a deal to fly freight for Deutsche Post amid speculation of deeper-than-expected cuts in the German group's U.S. operation.

Also Monday, Deutsche Post said it would partake in a capital raising by its majority-owned banking unit Deutsche Postbank, which hopes to raise up to EUR1 billion to boost its balance sheet after posting a big third quarter loss on trading losses and its exposure to collapsed U.S. bank Lehman.

Deutsche Post, which agreed to sell a 29.75% in Deutsche Postbank to Deutsche Bank AG (DB) earlier this year, said it would take fresh capital if the raising is priced at or below EUR18.25 per Postbank share.

-By Julia Mengewein, Dow Jones Newswires; +49 69 29 725 507; julia.mengewein@ dowjones.com

brownie

All i know is 3 8's were flown back to ROW within the last 2 weeks and no plans for them per MX or peak, I'm just translating it to smaller dhl deal since they were origionally brought back out for that purpose.

Roberto

In September, UPS suddenly put C-checks on hold for the DC8's that were scheduled for the remainder of the year. The DC8 that went to ROW last week and the two that are scheduled this week I am told are in need of C-checks (As I understand it, a C-check is major maintenance required every year. There are three different C-checks, and over three years they take the place of a D-check. I'm not a maintenance guru, but this is my understanding from asking questions at the check facility when delivering an airplane.)

nitefr8dog

Fr8k9, I think you are going in the total opposite direction with this one. The ground freight is being given away DPWN has told its customers to find another way to ship! I think one of the many hold ups is the freight numbers have fallen off so much that DPWN is not willing to pay 1 Billion to move 500 Million worth of freight. FWIW 4 stations that were to close on Nov 1 have been put on hold. Its almost down to a few caravans and a couple of shorts would get it done!

FR8K9

From the sounds of the press releases coming right from DPWN is doesn't seem like they are the one's in the drivers seat. I think UPS is squeezing them. We'll see, though.

Edit: Heck, I guess UPS could even string them along a little longer then simply drop the deal entirely. DHL would be in a tough spot then.

That would be a very effective negotiating strategy.

UPS1856

What about the 5 DC-8's coming out if check in GSO? Replacements for those? I think one comes out this week.

J Dawg

How can the original deal be bigger if...

1) The original deal was to provide 100% of DHL's N. American air lift. "Deeper-than-expected cuts" can only mean the original volume would be smaller.

2) Why would a larger deal for UPS warrant a "warning"?

⌐ AV8OR WANNABE

1) The initial deal was for 'air-lift' only and some people here (not me) believe the deal may now include ground shipments as well.

2) The warning was issued to the Deutsche Post shareholders (not UPS shareholders) because their value will now be lower than previously indicated... Standard procedure when a stock drops below a certain value.

A Pilot

Or could it be that the deal is off? Which could still be trouble for the DHL pilots, as they still need DHL to maintain a presence in the US to save some DHL pilots jobs.

Anyway, some of us are rooting for the underdog.