Nothing new per sig but it sounds like they're slowly admitting the talks aren't leading anywhere...

I heard Polar might replace UPS in this deal and turn out to be their sole operator in the US... They already own a big chunk of Polar...

Of course, since my source is a Polar pilot I'd imagine he might be slightly biased...


UPDATE 1-Deutsche Post says UPS talks still on

Thu Feb 26, 2009 1:44am EST

* Deutsche Post says other providers are a viable option

* Says booked $2.1 billion restructuring costs in 2008

* Says still sees 2009 adjusted EBIT loss of $900 mln


FRANKFURT, Feb 26 (Reuters) - Deutsche Post (DPWGn.DE) said it was still in talks over a possible cooperation with United Parcel Service (UPS.N), providing a sought-for update on its drawn-out negotiations.

But a tie-up with other providers was also a viable option, Europe's biggest mail and express delivery company said in presentation slides on Thursday.

In 2008, Deutsche Post and UPS agreed to cooperate on air freight in the United States, but talks stalled. The exclusivity of talks between the two companies expired at the end of January.

Deutsche Post has since the start of the talks said it planned to shut down its domestic U.S. express delivery business and cut a total 14,900 jobs there. That move would cut its air capacity there to less than 100,000 shipments per day, from 1.2 million previously.

Restructuring in the U.S. was on track, Deutsche Post said, adding it still expected to post an adjusted EBIT loss of $900 million at the business in 2009.

In 2008, it booked $2.1 billion of an expected total of $3.9 billion of restructuring costs. Other DHL businesses were not affected by the changes in the United States.

Deutsche Post on Wednesday said the head of its DHL Express business, John Mullen, had resigned and would be replaced by Ken Allen, who most recently headed up the U.S. restructuring project. Mullen had suffered health problems, it said.

According to Thomson Reuters StarMine, which weights analysts' forecasts according to their track record, the stock trades at 8.7 times its 12-month forward earnings, a discount to both UPS and FedEx as investors worry it is losing ground against its rivals.

Deutsche Post's stock has lost more than 60 percent of its value in the past twelve months. (Reporting by Maria Sheahan)

 

Sounds like there isn't much there since a Polar deal would mean using 747's throughout the U.S. on behalf of DHL. Other than a few high-density routes, how could someone profitably run city-pairs utilizing an all 747 fleet?

My guess is all of the good business has already left DHL and all that remains is table scraps - if the above information is indeed accurate.

 

DHL owns 49% of the capacity of Polar, not the company itself. Big difference.

 

WOW! That's the stellar position ABX and Astar were in!

Rott

 

About the same as the stellar position UPS now finds itself in. Better start updating resumes.

 

UPDATE: Deutsche Post Ends Exclusive Talks With UPS On US
Thursday 02/26/2009 3:36 AM ET - Dow Jones News

As of 12:18 PM ET 2/26/09
(Recasts first paragraph, adds details.)

FRANKFURT -(Dow Jones)- Deutsche Post AG's (DPW.XE) Chief Financial Officer John Allan said Thursday the company ended its exclusive negotiations with United Parcel Service Inc. (UPS) on a cooperation in the U.S.
The company is now also in talks with other parties in the U.S., added Allan, who will leave his post June 30, on a conference call.
Deutsche Post earlier said restructuring costs during the fourth quarter for its U.S. business amounted to EUR2.01 billion.
For 2008, Deutsche Post said its net liabilities were EUR2.41 billion, versus EUR2.86 billion the previous year.

Company Web site: Deutsche Post World Net | Home

-By Hilde Arends; Dow Jones Newswires; +49 69 29 725 506; [email protected]

(END) Dow Jones Newswires
02-26-09 0336ET
Copyright (c) 2009 Dow Jones & Company, Inc.

 

DHL owns 49% of Astar.

DHL owns none of ABX.

8

 

There's no way that Polar will fly the DHL city freight in the US. DHL's access is to the capacity. The agreement is with Atlas; the holding company, for the capacity and if Polar does not have enough capacity, the block space agreement puts the freight on Atlas aircraft to move it.

The whole arguement is pretty pointless (no disrespect to the initiator of this thread) because both pilot groups are in joint contract negotiations and once the contract is done, all the flying will be done by the combined crew group. In other words, despite all the mumbo jumbo and theories of what "they," the Polar pilots own, DHL is nothing more than a customer of Atlas Worldwide, who has leased jets to DHL to haul their freight.

Given where the companies business model is structured, they'd have to do a complete 180 to start domestic cities. Since DHL has been closing down their infrastructure in the US, that seems pretty unlikely.

 

Yep - we're right down there with Spirit and Sun Counrty. Will you please hire me to fly that push-pull twin cessna? The only in-line multi-engine time I have is in an F-18. Is that good enough to get an interview? Please?

Man - you're really clueless.

Rott

 

Look like they own 49% of the the airline, not capacity...
49% equity stake = 49% ownership.

Additionally they own 25% of the voting rights (which is the max limit allowed by law)



To cement the relationship, the parties have signed a letter of intent under which DHL will invest $150 million (119 million euros) to acquire a minority 49 percent equity stake in Polar, including a 25 percent voting interest, consistent with all U.S. laws and regulations. The payment will be in cash, $75 million to be paid upon closing of the transaction, and $75 million to be paid in two installments on January, 15, 2008 and Nov. 17, 2008, subject to certain acceleration provisions. In addition, DHL will enter into a 20-year block space agreement with Polar to obtain guaranteed capacity on routes to major Asian destinations.

DHL: Press Releases