They, in my opinion, will be the ones who end up doing this. It seems like this is just a ploy of some sort to get NAC to take the bait. NAC is in the best position for this type of flying in that what would only be really required is adding them to D085 and doing a differences training between the 737-200/737-300 and 737-400. It makes almost no sense to have ATI or ABX do all the stuff it takes to add the aircraft when NAC is already operating 737Fs and seems to have the room to take it on.

Plus they have some type of "base" in TOL now. So the shift south isn't all that bad.

My view of course.

 

If DHL is successful in getting 737 pay rates for $127 per Captain then I would be VERY concerned if I were a Fed Ex or UPS pilot. This is dragging the cargo world down to a new low.

 

Except for two things. First, neither Fed Ex nor UPS fly 737's and second, neither one of them are contractors competing for the business of an established shipping company. Technically they are not part of the cargo world - they are fully integrated divisions within their respective companies.

The folks who potentially may be affected are the ones working for an ACMI/contractor/non-sked carrier.

 

Disagree as UPS and Fed EX fly narrowbody aircraft at significantly higher pay rates. If DHL can move freight at a 50% cheaper labor expense it will be a HUGE cost advantage for DHL and an undue burden upon anybody who can't move their freight as cheap. Fed Ex and UPS can always use ACMI if their mainline can't compete. If you think Scope is an issue then look at how negatively it has gone downhill with large regional jets in the Pax world. When companies start losing market share then Scope gets hammered. DHL likes ACMI as it pits multiple carriers trying to get that business thereby dragging down labor rates to an all time low.

 

I still have to respectfully disagree with your points.

With regards to cost, the absolute most inexpensive way to move freight is via ground - i.e., big trucks. UPS by far has the most trucks on the road, FedEx is further expanding its ground side, and aside from DHL delivery vans I don't see too many trucks with DHL painted on the side. DHL is primarily an air-express shipper trying to compete with two fully-integrated shipping conglomerates with the capability and infrastructure to ship a package other than by air - and to do so very efficiently.

From a macro-view I do not think DHL has any cost-advantage over UPS or FedEx. People are willing to wait more than a few days because it is cheaper than next-day delivery, and UPS and FedEx have a HUGE cost advantage over DHL because you can always ship something via ground much cheaper than you could ever do by air.

 

Plus UPS likes to have total control over its assets. Remember UPS airlines started as 3 seperate subcontractors (Evergreen, Ryan, Orion) and UPS didn't like the fact that they couldn't integrate operations between the 3 and the problems involved with different work rules etc etc...

 

Lab,

I agree with your comments, DHL is at a big disadvantage on the trucking side. It's just sad to see a cheapening of the wages of the Astar/ABX guys and a constant downward pressure on pilot wages. Time will tell whether they are successful but a 12 year Captain at $127/hour is ridiculous.

 

I totally agree.

 

DHL celebrates expanded facility at CVG

June 14, 2013

HEBRON — International shipping giant DHL has been expanding global operations at Cincinnati/Northern Kentucky International Airport since 2009.
Thursday, DHL’s completion of a four-year, $105 million facilities expansion was on full display, as company CEO Frank Appel and Kentucky Gov. Steve Beshear presided over a spirited ribbon-cutting and jumbo-jet flyover.
DHL leaders hinted more expansion is on the way, although they wouldn’t disclose specifics. The German-based cargo carrier, which has 605,000 square feet of cargo-handling space here, already has been approved to lease an additional 42 acres.
“You will see me sooner than later,” Appel told more than 200 regional business and political leaders, and reporters from at least eight countries.

http://news.cincinnati.com/article/2...d-facility-CVG

 

DHL cuts ribbon on $105M expansion at CVG | Northern Kentucky - WLWT Home

"We are one of the largest employers in the region, we are very happy with our partnership in the CVG airport and, as much as we are pleased with the support from the Ohio and Kentucky region," said DHL CEO Dr. Frank Appel.

The expansion has been about four years in the making as part of an effort to increase business to Asia and Australia.

The company will be adding a daily Boeing 747 flight to Japan and doubling its weekly Boeing 767 flights to Australia from two to four.

The expansion will mean about 150 jobs at DHL, which moved back to CVG after shutting down operations in Wilmington previously.