Not sure what to make out of this but I'm sure someone will tell me I might as well jump off the bridge because the end is coming... 
11/6/2008 8:52:00 PM
DHL to disclose ‘further steps’ Monday
WILMINGTON
By GARY HUFFENBERGER
[email protected]
As a Monday press conference in Bonn, Germany, draws near, there appear to be warning signs DHL’s business in the United States continues a downhill slide.
Unishippers, a franchise business that consolidates shipments for small businesses, has announced it has switched to United Parcel Service (UPS), according to a Wednesday report on Traffic World Online.
Traffic World Online called Unishippers “the highest-profile shipper yet to abandon DHL in the United States.”
According to the DHL Press Office, Monday’s press conference is being held “to discuss DPWN business results in the first nine months of the year, and inform you about the progress and further steps in the restructuring of our DHL U.S. Express business.” DPWN stands for Deutsche Post World Net, which is the parent corporation of DHL Global, including the U.S. arm of DHL’s global freight network.
Taking part in the Bonn press conference will be DPWN CEO Frank Appel, DPWN Chief Financial Officer John Allan, and DHL Express CEO John Mullen.
The Traffic World Online report said DHL officials did not comment “on growing suggestions” DHL was unable to reach an agreement with UPS on a planned air freight contract involving DHL’s shipments within North America.
Meanwhile, an online Monday report in e-Cargonews Asia said some observers surmise DHL has ended its plan to be a viable alternative to FedEx and UPS in the U.S. parcel market. These observers predict DHL will return to its earlier focus on international shipments to and from the United States.
The online trade publication adds if DHL does limit its U.S. operations to international shipping, “there would be no point for DHL to pursue the planned agreement with UPS.” That’s because the announced proposal between the two megacarriers would involve DHL’s air freight within North America, which of course includes DHL air freight that has a U.S. starting point and a U.S. end-point.
The News Journal will post a bulletin Monday morning on its Web site at http:// www. wnewsj.com shortly after the press conference, scheduled to begin 8 a.m. Eastern Standard Time.
11/6/2008 8:52:00 PM
DHL to disclose ‘further steps’ Monday
WILMINGTON
By GARY HUFFENBERGER
[email protected]
As a Monday press conference in Bonn, Germany, draws near, there appear to be warning signs DHL’s business in the United States continues a downhill slide.
Unishippers, a franchise business that consolidates shipments for small businesses, has announced it has switched to United Parcel Service (UPS), according to a Wednesday report on Traffic World Online.
Traffic World Online called Unishippers “the highest-profile shipper yet to abandon DHL in the United States.”
According to the DHL Press Office, Monday’s press conference is being held “to discuss DPWN business results in the first nine months of the year, and inform you about the progress and further steps in the restructuring of our DHL U.S. Express business.” DPWN stands for Deutsche Post World Net, which is the parent corporation of DHL Global, including the U.S. arm of DHL’s global freight network.
Taking part in the Bonn press conference will be DPWN CEO Frank Appel, DPWN Chief Financial Officer John Allan, and DHL Express CEO John Mullen.
The Traffic World Online report said DHL officials did not comment “on growing suggestions” DHL was unable to reach an agreement with UPS on a planned air freight contract involving DHL’s shipments within North America.
Meanwhile, an online Monday report in e-Cargonews Asia said some observers surmise DHL has ended its plan to be a viable alternative to FedEx and UPS in the U.S. parcel market. These observers predict DHL will return to its earlier focus on international shipments to and from the United States.
The online trade publication adds if DHL does limit its U.S. operations to international shipping, “there would be no point for DHL to pursue the planned agreement with UPS.” That’s because the announced proposal between the two megacarriers would involve DHL’s air freight within North America, which of course includes DHL air freight that has a U.S. starting point and a U.S. end-point.
The News Journal will post a bulletin Monday morning on its Web site at http:// www. wnewsj.com shortly after the press conference, scheduled to begin 8 a.m. Eastern Standard Time.
I heard today that the DHL deal is dead. The deal went from 1 Billion to 200 million per year. The money angle did not make anymore sense for the company.
I'd rather believe what BM briefed everybody that attended the ANC GMM two weeks ago. He said that the deal was still on, and it would be announced after the election. He said it was smaller than before, but still significant. He also stated that UPS has not alluded to any furloughs.
Also, I read a research report from a few days ago where the DPWN boss said the deal was still on and should be concluded shortly. I'll try to find it and post here.
Finally, I predict the deal will be announced tomorrow or this weekend, which would make sense regarding the 'big announcement' coming from DHL on Monday.
I do not believe the sky is falling, and I suspect UPS is really enjoying all you guys speculating that your services are not required or needed at this company.
Fuel prices are plummeting. UPS is getting a lot of volume from ex-DHL customers. The ANC training center is hiring instructors in January, and I predict that UPS will hire pilots in the spring.
Just relax and quit driving yourselves crazy.
Also, I read a research report from a few days ago where the DPWN boss said the deal was still on and should be concluded shortly. I'll try to find it and post here.
Finally, I predict the deal will be announced tomorrow or this weekend, which would make sense regarding the 'big announcement' coming from DHL on Monday.
I do not believe the sky is falling, and I suspect UPS is really enjoying all you guys speculating that your services are not required or needed at this company.
Fuel prices are plummeting. UPS is getting a lot of volume from ex-DHL customers. The ANC training center is hiring instructors in January, and I predict that UPS will hire pilots in the spring.
Just relax and quit driving yourselves crazy.
Here is an excerpt from the Oct. 27 DHL investor conference call.
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Michael Esteril - Wall Street Journal - Media
Yes, good morning. I was hoping you could give us some more insight into why the UPS deal hasn't been signed yet. The CEO
of UPS last week talked about revisiting the size and scope of the agreement. Could you tell us a little bit more about the status
of those talks and how the outline agreement may look different?
John Allan - Deutsche Post AG - CFO
Yes. I think we wouldn't really want to go beyond what UPS said last week, which is that we are continuing to make progress
very constructively. Both of us are anxious to conclude an agreement that is sensible, given the future size and shape of our
business, and therefore our view on that has been evolving over the course of the last few months.
But we continue to engage with them, I think in a very constructive way, and I think we continue to strive to try to find a contract
that will be satisfactory for both parties, as indeed they are. Inevitably, because I think our business is shrinking rather faster
than was our assumption in the early part of the year, we would be looking at a different volume picture. And we're obviously
anxious that any agreements we conclude with UPS accurately reflect the volume prospects of our business.
That's one of the reasons why we've been a bit cautious. But I have to say, although the two companies are knocking seven
bells out of each other in the marketplace and competing very vigorously, talks on this potential subcontracting of some of our
aviation continues to make progress and be very constructive.
------------------------------------------------------------------------------------------------
Michael Esteril - Wall Street Journal - Media
Yes, good morning. I was hoping you could give us some more insight into why the UPS deal hasn't been signed yet. The CEO
of UPS last week talked about revisiting the size and scope of the agreement. Could you tell us a little bit more about the status
of those talks and how the outline agreement may look different?
John Allan - Deutsche Post AG - CFO
Yes. I think we wouldn't really want to go beyond what UPS said last week, which is that we are continuing to make progress
very constructively. Both of us are anxious to conclude an agreement that is sensible, given the future size and shape of our
business, and therefore our view on that has been evolving over the course of the last few months.
But we continue to engage with them, I think in a very constructive way, and I think we continue to strive to try to find a contract
that will be satisfactory for both parties, as indeed they are. Inevitably, because I think our business is shrinking rather faster
than was our assumption in the early part of the year, we would be looking at a different volume picture. And we're obviously
anxious that any agreements we conclude with UPS accurately reflect the volume prospects of our business.
That's one of the reasons why we've been a bit cautious. But I have to say, although the two companies are knocking seven
bells out of each other in the marketplace and competing very vigorously, talks on this potential subcontracting of some of our
aviation continues to make progress and be very constructive.
Amen Brown,
Too many chicken little's staring at the sky.
Be careful what you ask for,
Having said that isn't it always beneficial to be prepared to lose your income source?
I mean you could be hit by a garbage truck in front of sticky fingers for cryin' out loud.
Relax and enjoy watching an undermanned company (vis a v FDX) handle peak.
Later days,
TB
Too many chicken little's staring at the sky.
Be careful what you ask for,
Having said that isn't it always beneficial to be prepared to lose your income source?
I mean you could be hit by a garbage truck in front of sticky fingers for cryin' out loud.
Relax and enjoy watching an undermanned company (vis a v FDX) handle peak.
Later days,
TB
Quote:
Once again, nice work Ohio and ALPA. Looks like you screwed many more thousands.
It's a shame because it seems that the DHL/UPS deal would have allowed DHL to be a viable entity, and it would have preserved many jobs, including the bottom UPS pilots.
ADS- ALPA Derangement Syndrome strikes again in the form of a hemmoroid whose nom de plume is Ned Ryerson. Go blame your ills somewhere else..meh.Originally Posted by Ned Ryerson
At least ALPA and the Ohio lawmakers were able to get the DHL/UPS deal squashed or at least pushed back so long that DHL had no choice but to pull out of the USA entirely. Great work! Now there will be many more job losses on both sides, but at least everybody is miserable rather than just some.Once again, nice work Ohio and ALPA. Looks like you screwed many more thousands.
It's a shame because it seems that the DHL/UPS deal would have allowed DHL to be a viable entity, and it would have preserved many jobs, including the bottom UPS pilots.
Quote:
Very good point! I appreciate other UPSers trying to 'warn' us - the junior guys - that we might be getting furloughed so we have more time to "prepare". However, I get confused when people blame the union or the company for not being honest with us regarding this "Armageddon" to come...Originally Posted by TurboBeaver
... Having said that isn't it always beneficial to be prepared to lose your income source?...
It's a tad insulting to think that we, the youngens, are semi-intelligent Kool-aid drinkers who don't know any better and therefore need to be warned by other, somehow wiser brown drivers.
Many if not most of us have been through other furloughs before and most are still paying off credit cards from the probationary year. What are those warnings gonna do for us? The doom and gloom hysteria does not make us prepare faster instead it gives ulcers...
Having said that, I'll be back here in the next few hours trying to learn my fate from other, much wiser fellow APCers...
Sitting here at the bottom of the list, I must throw in my 2 pesos.
With every IPA member I have flown with over the last few months, I have brought up that I am worried about a furlough coming very soon. Keep in mind that I have not flown with anyone in the past few months who is any more junior than 4th year pay. Each and every individual has looked at me like I have 3 heads. My point: If you're not in the bottom 300, at this moment, nobody knows you exist or cares about your vulnerability. Utter denial that a furlough is even remotely possible. I'm not saying I'm unhappy about this or PO'd at anyone--just that it's inconceivable to most everybody right now unless you're in that 300.
I was at the GMM and saw the "slide." This made me happy because at least the union finally acknowledges that it is a possibility and they intend to do something if it happens and are thinking ahead. The disturbing part is that the "slide" has little chance of working before all of us poor saps get that piece of registered mail from UPS. They are not going to tell the union--the first guy that checks his mail is going to tell the union. At this point it will be too late to enact any strategies because, well, UPS has made up their mind and that's that--they've already thought this through to the end.
The only (proactive) good thing that really comes of this open time ban will be that it will minimize the number of folks furloughed and keep it delayed as long as possible. UPS knows right now exactly how many they can furlough. They know exactly what an open time ban will do and exactly what they can have management do to fill the gaps. They have a pretty damn good idea of how many people will still fly open time and JA.
There was some other point I wanted to make, but it escapes me--I'll edit later...
With every IPA member I have flown with over the last few months, I have brought up that I am worried about a furlough coming very soon. Keep in mind that I have not flown with anyone in the past few months who is any more junior than 4th year pay. Each and every individual has looked at me like I have 3 heads. My point: If you're not in the bottom 300, at this moment, nobody knows you exist or cares about your vulnerability. Utter denial that a furlough is even remotely possible. I'm not saying I'm unhappy about this or PO'd at anyone--just that it's inconceivable to most everybody right now unless you're in that 300.
I was at the GMM and saw the "slide." This made me happy because at least the union finally acknowledges that it is a possibility and they intend to do something if it happens and are thinking ahead. The disturbing part is that the "slide" has little chance of working before all of us poor saps get that piece of registered mail from UPS. They are not going to tell the union--the first guy that checks his mail is going to tell the union. At this point it will be too late to enact any strategies because, well, UPS has made up their mind and that's that--they've already thought this through to the end.
The only (proactive) good thing that really comes of this open time ban will be that it will minimize the number of folks furloughed and keep it delayed as long as possible. UPS knows right now exactly how many they can furlough. They know exactly what an open time ban will do and exactly what they can have management do to fill the gaps. They have a pretty damn good idea of how many people will still fly open time and JA.
There was some other point I wanted to make, but it escapes me--I'll edit later...
Quote:
Who did you hear this from?Originally Posted by JustUnderPar
I heard today that the DHL deal is dead. The deal went from 1 Billion to 200 million per year. The money angle did not make anymore sense for the company.
The CEO of UPS says the deal is still on. The CEO of DPWN says the deal is still on. BM says the deal will be announced within days. The CEO of ABX Air said in a voicemail a few days ago that the deal is still on, and just today the ABX Air hotline said that the deal was still on.
So should we assume that you have some better info than these people?
Keep in mind, I think that it may very well be illegal for the CEOs of UPS and DPWN to say that the deal is still on, if that's is untrue. They are public companies and have disclosure rules.
Just my 2 cents...
