UPS to take over flying DHL packages in Europe and Asia?
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DPWN is interested in dumping the 49% stake it has in Polar?
I am also hearing that DPWN is interested in dumping the 49% stake it has in Polar.
Any chance Atlas at the request of DPWN would sell the Polar -400s since Atlas does not have money to cash out DPWN? This would generate cash for Atlas to purchase ABX if they so desire. With Atlas possibly about to go Teamsters http://atlasforteamsters.com/ and ABX already being Teamsters this might work!
I however don't see any potential buyers for Astar and I think they are soon be history. Again, this is just pure speculation on my part. The airline business is a cruel business where luck plays an important part.
Any chance Atlas at the request of DPWN would sell the Polar -400s since Atlas does not have money to cash out DPWN? This would generate cash for Atlas to purchase ABX if they so desire. With Atlas possibly about to go Teamsters http://atlasforteamsters.com/ and ABX already being Teamsters this might work!
I however don't see any potential buyers for Astar and I think they are soon be history. Again, this is just pure speculation on my part. The airline business is a cruel business where luck plays an important part.
Last edited by Rock_On; 3rd Aug 2008 at 02:04.
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Deutsche Post Kills Huge HP Outsourcing Deal
Seems like DHL might be having some second thoughts about their restructuring.
Deutsche Post Kills Huge HP Outsourcing Deal
The parent company of DHL decided not to proceed with the multibillion-dollar deal after determining the expected cost savings weren't there, <i>InformationWeek</i> has learned.
By Mary Hayes Weier, InformationWeek
Aug. 1, 2008
URL: http://www.informationweek.com/story/showArticle.jhtml?articleID=209901551
Deutsche Post World Net has backed out of a planned IT outsourcing megadeal with Hewlett-Packard worth billions of dollars, InformationWeek has learned.
Deutsche Post, the German logistics company and parent to DHL, chose not to finalize the contract after a six-month review found the "benefits, particularly in the early years, do not outweigh the risks," according to an internal memo.
It's a considerable blow to HP, which has had limited success winning IT services megadeals. HP plans to propel itself into the IT services big leagues via the pending acquisition of EDS for $13.9 billion.
The dropped outsourcing deal called for HP to hire 2,500 Deutsche Post employees, including those working for DHL. It included taking over the operations and management of data, infrastructure, networks, and software running in data centers in Scottsdale, Ariz.; Prague, the Czech Republic; Malaysia; and other regions.
Although the companies didn't make the contract size public in January, when they announced the signing of a letter of intent, they said Deutsche Post would save at least 1 billion euros over seven years by outsourcing IT and expected to reach a "definitive agreement" with HP by the middle of 2008.
Analysts had lauded the significance of the deal. In a January research note titled, "HP-Deutsche Post Agreement May Herald Fresh Outsourcing Wave," Gartner analyst Claudio Da Rold wrote that the planned deal signified that the "threat of a recession means outsourcing providers may see a period of intense activity as companies race to sign similar deals."
But the cost savings apparently weren't there. In a July 18 e-mail to employees, Stephen McGuckin, IT services managing director at Deutsche Post, wrote that the deal had fallen through partly because it wasn't going to bring Deutsche Post the expected savings.
During the past six months, "both companies have learnt much about the challenges, risks and benefits of the proposed outsourcing. More significantly ... [Deutsche Post] IT Services continued to improve its cost position, increased the number of services delivered while also maintaining service levels. Simply put, during the six months of the evaluation, our improving cost position made HP's job that much harder and their cost reduction target that much more difficult to achieve."
McGuckin added that the decision is "not a reflection of HP's merits as a service provider; it is a vote of confidence in [Deutsche Post] IT Services and our track record of service delivery." McGuckin and other Deutsche Post officials could not be reached Friday morning.
However, there were other issues at play, according to sources within Deutsche Post that requested anonymity. HP was having some difficulty negotiating with IBM -- a staunch IT services competitor -- for acceptable prices on existing IBM server and mainframe software and support in the data centers, they claim. Also, some employees raised concerns about HP's compensation packages.
InformationWeek was unable to get a response from HP or Deutsche Post about these claims Friday.
HP did confirm Friday that the deal was off, but said it's still working with the company. "The [Deutsche Post] and HP teams working on the project identified a number of areas where optimization can be achieved without outsourcing at this time," an HP spokesperson said in an e-mail. "As a result, [Deutsche Post] IT services will continue to retain responsibility for all day-to-day services while working with HP's support to deliver the savings through a series of transformation projects." The companies have a "strong relationship" and "jointly agreed to revisit the situation if and when appropriate at a future time," the spokesperson added.
HP, meanwhile, should get into big IT outsourcing deals via the planned EDS acquisition. If the deal goes through, EDS will give HP blue-chip customers like American Airlines, Bank of America, and Royal Dutch Shell. The combined services revenue for EDS and HP last year was $38 billion, compared with $54 billion for IBM. Earlier this week, EDS said that Europe's antitrust watchdog agency had OK'd the deal. On Thursday, EDS said a majority of its shareholders voted in favor of the acquisition.
Deutsche Post Kills Huge HP Outsourcing Deal
The parent company of DHL decided not to proceed with the multibillion-dollar deal after determining the expected cost savings weren't there, <i>InformationWeek</i> has learned.
By Mary Hayes Weier, InformationWeek
Aug. 1, 2008
URL: http://www.informationweek.com/story/showArticle.jhtml?articleID=209901551
Deutsche Post World Net has backed out of a planned IT outsourcing megadeal with Hewlett-Packard worth billions of dollars, InformationWeek has learned.
Deutsche Post, the German logistics company and parent to DHL, chose not to finalize the contract after a six-month review found the "benefits, particularly in the early years, do not outweigh the risks," according to an internal memo.
It's a considerable blow to HP, which has had limited success winning IT services megadeals. HP plans to propel itself into the IT services big leagues via the pending acquisition of EDS for $13.9 billion.
The dropped outsourcing deal called for HP to hire 2,500 Deutsche Post employees, including those working for DHL. It included taking over the operations and management of data, infrastructure, networks, and software running in data centers in Scottsdale, Ariz.; Prague, the Czech Republic; Malaysia; and other regions.
Although the companies didn't make the contract size public in January, when they announced the signing of a letter of intent, they said Deutsche Post would save at least 1 billion euros over seven years by outsourcing IT and expected to reach a "definitive agreement" with HP by the middle of 2008.
Analysts had lauded the significance of the deal. In a January research note titled, "HP-Deutsche Post Agreement May Herald Fresh Outsourcing Wave," Gartner analyst Claudio Da Rold wrote that the planned deal signified that the "threat of a recession means outsourcing providers may see a period of intense activity as companies race to sign similar deals."
But the cost savings apparently weren't there. In a July 18 e-mail to employees, Stephen McGuckin, IT services managing director at Deutsche Post, wrote that the deal had fallen through partly because it wasn't going to bring Deutsche Post the expected savings.
During the past six months, "both companies have learnt much about the challenges, risks and benefits of the proposed outsourcing. More significantly ... [Deutsche Post] IT Services continued to improve its cost position, increased the number of services delivered while also maintaining service levels. Simply put, during the six months of the evaluation, our improving cost position made HP's job that much harder and their cost reduction target that much more difficult to achieve."
McGuckin added that the decision is "not a reflection of HP's merits as a service provider; it is a vote of confidence in [Deutsche Post] IT Services and our track record of service delivery." McGuckin and other Deutsche Post officials could not be reached Friday morning.
However, there were other issues at play, according to sources within Deutsche Post that requested anonymity. HP was having some difficulty negotiating with IBM -- a staunch IT services competitor -- for acceptable prices on existing IBM server and mainframe software and support in the data centers, they claim. Also, some employees raised concerns about HP's compensation packages.
InformationWeek was unable to get a response from HP or Deutsche Post about these claims Friday.
HP did confirm Friday that the deal was off, but said it's still working with the company. "The [Deutsche Post] and HP teams working on the project identified a number of areas where optimization can be achieved without outsourcing at this time," an HP spokesperson said in an e-mail. "As a result, [Deutsche Post] IT services will continue to retain responsibility for all day-to-day services while working with HP's support to deliver the savings through a series of transformation projects." The companies have a "strong relationship" and "jointly agreed to revisit the situation if and when appropriate at a future time," the spokesperson added.
HP, meanwhile, should get into big IT outsourcing deals via the planned EDS acquisition. If the deal goes through, EDS will give HP blue-chip customers like American Airlines, Bank of America, and Royal Dutch Shell. The combined services revenue for EDS and HP last year was $38 billion, compared with $54 billion for IBM. Earlier this week, EDS said that Europe's antitrust watchdog agency had OK'd the deal. On Thursday, EDS said a majority of its shareholders voted in favor of the acquisition.
Last edited by Rock_On; 3rd Aug 2008 at 02:10.
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I am also hearing that DPWN is interested in dumping the 49% stake it has in Polar.
Any chance Atlas at the request of DPWN would sell the Polar -400s since Atlas does not have money to cash out DPWN? This would generate cash for Atlas to purchase ABX if they so desire. With Atlas possibly about to go Teamsters http://atlasforteamsters.com/ and ABX already being Teamsters this might work!
I however don't see any potential buyers for Astar and I think they are soon be history. Again, this is just pure speculation on my part. The airline business is a cruel business where luck plays an important part.
Any chance Atlas at the request of DPWN would sell the Polar -400s since Atlas does not have money to cash out DPWN? This would generate cash for Atlas to purchase ABX if they so desire. With Atlas possibly about to go Teamsters http://atlasforteamsters.com/ and ABX already being Teamsters this might work!
I however don't see any potential buyers for Astar and I think they are soon be history. Again, this is just pure speculation on my part. The airline business is a cruel business where luck plays an important part.
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"After more than a decade of cohabitation, UPS assumed full control of its activities in Korea in June, acquiring partner Korea Express's 40 percent share in the joint venture the pair had run since 1996.
The integrator and its Korean partner continue to work together feeding traffic to one another, but the deal gives UPS full autonomy to chart its course in an Asian country with a vibrant economy and a strong interest in promoting logistics and connections to China."
http://www.aircargoworld.com/regions/pacific_0808.htm
The integrator and its Korean partner continue to work together feeding traffic to one another, but the deal gives UPS full autonomy to chart its course in an Asian country with a vibrant economy and a strong interest in promoting logistics and connections to China."
http://www.aircargoworld.com/regions/pacific_0808.htm
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UPS: No 'significant' cargo flights from DHL until 2009
UPS: No 'significant' cargo flights from DHL until 2009
UPS: No 'significant' cargo flights from DHL until 2009
UPS says it needs an agreement first then work can begin on a new operational plan for Wilmington hub.
By John Nolan
Staff Writer
Sunday, August 03, 2008
One of the big questions about DHL's proposal to hire United Parcel Service to fly its express delivery packages nationwide is how soon it will start taking away jobs from Wilmington, from where the ABX Air and ASTAR Air Cargo airlines now fly DHL's U.S. cargo.
Ohio officials estimate that a DHL shift to UPS will cost at least 8,000 jobs at DHL's Wilmington air freight hub, a major regional employer. A UPS spokesman said it could be "well into next year" before any changes are noticeable.
DHL said on May 28 that it hoped to work out a contract with UPS within three months and to start making changes in DHL's delivery network beginning later this year.
But that timetable may be unrealistic, because of the complexities of negotiating a deal and putting it into effect, UPS spokesman Norman Black said. UPS is unlikely to begin flying significant amounts of DHL cargo until well into 2009, Black said in a telephone interview last week from his Atlanta office.
"Bottom line is, we expect to be able to negotiate an agreement by the end of this year," Black said. "We, as a vendor, can't build a new operational plan for them until we've got an agreement, until they share information with us about their network and their package flows."
Lt. Gov. Lee Fisher said DHL hasn't given Ohio any new information about the timetable for the proposed deal with UPS.
Fisher made a personal visit to the U.S. Department of Justice in Washington on July 10 to explain Ohio's position that a DHL deal with its rival UPS would reduce competition in the U.S. express delivery market and potentially violate antitrust laws designed to promote competitive markets. If regulators agree, the federal government could join Ohio in a possible antitrust lawsuit against DHL, or Ohio could go it alone under the state's own antitrust law, Fisher said.
Fisher said Justice Department officials told him they had started collecting information about the proposed DHL-UPS deal, but could not start any antitrust investigation until DHL and UPS have a deal in place.
"We are being relentless in our efforts to explore how we can stop this transaction, on multiple fronts," Fisher said.
Ohio would be willing to work with DHL on ways to help reduce its operating costs, but only if the company backs away from the UPS deal and commits to staying in Wilmington, Fisher said. DHL has said it is committed to a deal with UPS.
With the Bush administration scheduled to relinquish power in January 2009, Ohio officials have covered their bases by also bringing their concerns about DHL and the Wilmington jobs to the attention of both major-party presidential candidates, Fisher said. Republican John McCain plans to go to Wilmington in early August for a campaign trip to DHL. Democrat Barack Obama recently met with Wilmington's mayor and workers at DHL.
Ohio has also asked the U.S. Department of Transportation to consider using its authority, independent of an antitrust case, to stop the proposed UPS-DHL deal on grounds it would have negative effect on the U.S. shipping market. Ohio is awaiting responses from both federal agencies.
DHL and UPS say there is no antitrust issue and no need for any government approval. They say it would be a customer-vendor arrangement, similar to DHL's current contracts under which ABX Air and ASTAR Air Cargo fly DHL packages nightly from Wilmington. Replacing ABX and ASTAR with UPS would shift the cargo sorting and flying work to UPS' hub at Louisville, Ky.
DHL projects a $1 billion loss on its U.S. cargo operations this year, but says it needs to continue operating in the United States as a key part of its global delivery network. DHL has forecast that hiring UPS would reduce DHL's U.S. losses to $900 million in 2009, $500 million in 2010 and $300 million in 2011.
DHL said it would also save money by reducing its U.S. delivery network capacity.
"The purpose of our restructuring plan is to build a stronger foundation for sustained operations in the U.S.," Jonathan Baker, a DHL public relations representative, wrote in an e-mailed answer to a reporter's questions. "To do this, a new operating model is required — one that is better matched to the current economy and existing volumes.
"Both rising fuel prices and the downturn in the U.S. economy have had a significant impact on our operations and on the nature and timing of our restructuring plans," Baker wrote.
Ohio's support for DHL in Wilmington
Here is Ohio's accounting of its direct funding contributions in recent years to support expansion and improvements at DHL's Wilmington air freight hub:
Job retention tax credit, valued at $66 million.
Job creation tax credit, 90 percent for five years and 70 percent for 10 years, valued at $13 million.
Rapid outreach grant, up to $2 million.
Training grant, up to $2 million.
Road improvement grant, $1 million.
Dayton-Montgomery County Port Authority sold $270 million in bonds in support of the hub improvement.
The Ohio Department of Transportation is building a $99 million highway bypass project designed to support regional economic department. The project's initial emphasis was DHL's needs, but the state says the new route is still needed to reduce truck traffic through Wilmington and noise in residential neighborhoods. Construction is to be complete by early 2011.
Source: Ohio Department of Development
Contact this reporter at (937) 225-2242 or [email protected].
UPS: No 'significant' cargo flights from DHL until 2009
UPS says it needs an agreement first then work can begin on a new operational plan for Wilmington hub.
By John Nolan
Staff Writer
Sunday, August 03, 2008
One of the big questions about DHL's proposal to hire United Parcel Service to fly its express delivery packages nationwide is how soon it will start taking away jobs from Wilmington, from where the ABX Air and ASTAR Air Cargo airlines now fly DHL's U.S. cargo.
Ohio officials estimate that a DHL shift to UPS will cost at least 8,000 jobs at DHL's Wilmington air freight hub, a major regional employer. A UPS spokesman said it could be "well into next year" before any changes are noticeable.
DHL said on May 28 that it hoped to work out a contract with UPS within three months and to start making changes in DHL's delivery network beginning later this year.
But that timetable may be unrealistic, because of the complexities of negotiating a deal and putting it into effect, UPS spokesman Norman Black said. UPS is unlikely to begin flying significant amounts of DHL cargo until well into 2009, Black said in a telephone interview last week from his Atlanta office.
"Bottom line is, we expect to be able to negotiate an agreement by the end of this year," Black said. "We, as a vendor, can't build a new operational plan for them until we've got an agreement, until they share information with us about their network and their package flows."
Lt. Gov. Lee Fisher said DHL hasn't given Ohio any new information about the timetable for the proposed deal with UPS.
Fisher made a personal visit to the U.S. Department of Justice in Washington on July 10 to explain Ohio's position that a DHL deal with its rival UPS would reduce competition in the U.S. express delivery market and potentially violate antitrust laws designed to promote competitive markets. If regulators agree, the federal government could join Ohio in a possible antitrust lawsuit against DHL, or Ohio could go it alone under the state's own antitrust law, Fisher said.
Fisher said Justice Department officials told him they had started collecting information about the proposed DHL-UPS deal, but could not start any antitrust investigation until DHL and UPS have a deal in place.
"We are being relentless in our efforts to explore how we can stop this transaction, on multiple fronts," Fisher said.
Ohio would be willing to work with DHL on ways to help reduce its operating costs, but only if the company backs away from the UPS deal and commits to staying in Wilmington, Fisher said. DHL has said it is committed to a deal with UPS.
With the Bush administration scheduled to relinquish power in January 2009, Ohio officials have covered their bases by also bringing their concerns about DHL and the Wilmington jobs to the attention of both major-party presidential candidates, Fisher said. Republican John McCain plans to go to Wilmington in early August for a campaign trip to DHL. Democrat Barack Obama recently met with Wilmington's mayor and workers at DHL.
Ohio has also asked the U.S. Department of Transportation to consider using its authority, independent of an antitrust case, to stop the proposed UPS-DHL deal on grounds it would have negative effect on the U.S. shipping market. Ohio is awaiting responses from both federal agencies.
DHL and UPS say there is no antitrust issue and no need for any government approval. They say it would be a customer-vendor arrangement, similar to DHL's current contracts under which ABX Air and ASTAR Air Cargo fly DHL packages nightly from Wilmington. Replacing ABX and ASTAR with UPS would shift the cargo sorting and flying work to UPS' hub at Louisville, Ky.
DHL projects a $1 billion loss on its U.S. cargo operations this year, but says it needs to continue operating in the United States as a key part of its global delivery network. DHL has forecast that hiring UPS would reduce DHL's U.S. losses to $900 million in 2009, $500 million in 2010 and $300 million in 2011.
DHL said it would also save money by reducing its U.S. delivery network capacity.
"The purpose of our restructuring plan is to build a stronger foundation for sustained operations in the U.S.," Jonathan Baker, a DHL public relations representative, wrote in an e-mailed answer to a reporter's questions. "To do this, a new operating model is required — one that is better matched to the current economy and existing volumes.
"Both rising fuel prices and the downturn in the U.S. economy have had a significant impact on our operations and on the nature and timing of our restructuring plans," Baker wrote.
Ohio's support for DHL in Wilmington
Here is Ohio's accounting of its direct funding contributions in recent years to support expansion and improvements at DHL's Wilmington air freight hub:
Job retention tax credit, valued at $66 million.
Job creation tax credit, 90 percent for five years and 70 percent for 10 years, valued at $13 million.
Rapid outreach grant, up to $2 million.
Training grant, up to $2 million.
Road improvement grant, $1 million.
Dayton-Montgomery County Port Authority sold $270 million in bonds in support of the hub improvement.
The Ohio Department of Transportation is building a $99 million highway bypass project designed to support regional economic department. The project's initial emphasis was DHL's needs, but the state says the new route is still needed to reduce truck traffic through Wilmington and noise in residential neighborhoods. Construction is to be complete by early 2011.
Source: Ohio Department of Development
Contact this reporter at (937) 225-2242 or [email protected].
Last edited by Rock_On; 3rd Aug 2008 at 13:32.
Transparency International
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Here is a cut and paste of the full letter for those who might want to see it:
August 1, 2008
The Honorable Thomas Barnett
Assistant Attorney General
Antitrust Division
United States Department of Justice
950 Pennsylvania Avenue, N.W.
Washington, D.C. 20530
The Honorable William E. Kovacic
Chairman
Federal Trade Commission
600 Pennsylvania Avenue, N.W.
Washington, D.C. 20580
Dear Assistant Attorney General Barnett and Chairman Kovacic:
On May 28, 2008, DHL Express US (“DHL”) and United Parcel Service, Inc. (“UPS”) announced their intention to enter into a contract where UPS will become, for ten years, the exclusive provider of air transportation for DHL’s North American package delivery service. As the Chairman and Ranking Republican Member of the Senate Antitrust Subcommittee, we believe that this proposed agreement raises important antitrust and competition issues that should be examined carefully by the Department of Justice (“Department”) or the Federal Trade Commission (“Commission”).
UPS and DHL are, respectively, the second and third largest overnight package delivery services in the United States. Therefore, if consummated, DHL will become reliant for air transportation on one of its two major competitors. This raises the question if DHL will still be able to effectively compete against UPS, since UPS will now have a large role in determining the cost and quality of DHL’s services. In addition, we presume that such a relationship would also require DHL to adopt UPS’s package tracking, labeling and hub distribution systems. Whether, and how, DHL packages will receive priority should UPS planes fill to capacity is another concern raised by this deal. As a result, some critics of the proposed agreement contend that DHL will become a captive of UPS, rather than an independent competitor. Further, having only two airlines providing national airlift capacity for overnight package delivery could raise the risk of serious economic disruption should service on one of these two airlines be reduced due to unforeseen difficulties, such as a strike, maintenance issues, weather disruptions or other similar disruptive events.
It has been reported that the parties are close to finalizing this agreement. The prospect of a quick ratification is equally disconcerting since the proposed contract will have a devastating financial impact on DHL’s current air transport providers, ABX Air and ASTAR and these airlines’ base of operations, southern Ohio.
It should be noted that we have not reached a conclusion as to the legality of this proffered transaction under the antitrust laws. However, due to the issues raised above and urgency of this matter, we respectfully request that the antitrust agencies initiate an investigation into this arrangement immediately.
Thank you for your consideration of this matter.
Sincerely,
______________________***********************
HERB KOHL ORRIN G. HATCH
Chairman, Subcommittee on Ranking Member, Subcommittee on
Antitrust, Competition Policy Antitrust, Competition Policy, and
and Consumer Rights Consumer Rights
August 1, 2008
The Honorable Thomas Barnett
Assistant Attorney General
Antitrust Division
United States Department of Justice
950 Pennsylvania Avenue, N.W.
Washington, D.C. 20530
The Honorable William E. Kovacic
Chairman
Federal Trade Commission
600 Pennsylvania Avenue, N.W.
Washington, D.C. 20580
Dear Assistant Attorney General Barnett and Chairman Kovacic:
On May 28, 2008, DHL Express US (“DHL”) and United Parcel Service, Inc. (“UPS”) announced their intention to enter into a contract where UPS will become, for ten years, the exclusive provider of air transportation for DHL’s North American package delivery service. As the Chairman and Ranking Republican Member of the Senate Antitrust Subcommittee, we believe that this proposed agreement raises important antitrust and competition issues that should be examined carefully by the Department of Justice (“Department”) or the Federal Trade Commission (“Commission”).
UPS and DHL are, respectively, the second and third largest overnight package delivery services in the United States. Therefore, if consummated, DHL will become reliant for air transportation on one of its two major competitors. This raises the question if DHL will still be able to effectively compete against UPS, since UPS will now have a large role in determining the cost and quality of DHL’s services. In addition, we presume that such a relationship would also require DHL to adopt UPS’s package tracking, labeling and hub distribution systems. Whether, and how, DHL packages will receive priority should UPS planes fill to capacity is another concern raised by this deal. As a result, some critics of the proposed agreement contend that DHL will become a captive of UPS, rather than an independent competitor. Further, having only two airlines providing national airlift capacity for overnight package delivery could raise the risk of serious economic disruption should service on one of these two airlines be reduced due to unforeseen difficulties, such as a strike, maintenance issues, weather disruptions or other similar disruptive events.
It has been reported that the parties are close to finalizing this agreement. The prospect of a quick ratification is equally disconcerting since the proposed contract will have a devastating financial impact on DHL’s current air transport providers, ABX Air and ASTAR and these airlines’ base of operations, southern Ohio.
It should be noted that we have not reached a conclusion as to the legality of this proffered transaction under the antitrust laws. However, due to the issues raised above and urgency of this matter, we respectfully request that the antitrust agencies initiate an investigation into this arrangement immediately.
Thank you for your consideration of this matter.
Sincerely,
______________________***********************
HERB KOHL ORRIN G. HATCH
Chairman, Subcommittee on Ranking Member, Subcommittee on
Antitrust, Competition Policy Antitrust, Competition Policy, and
and Consumer Rights Consumer Rights
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When will companies realize that outsourcing does not save you money, it just allows the managers to do less managing while making the same or getting bonuses. It just takes a liability off your books and gives it to another company. You still are paying around the same for the same services.
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Wow, wow, wow....McCain's campaign chair former DHL lobbyist
So who will MCCain help out this time? DPWN, UPS, Fred Smith, Teamsters or ALPA? My money is on DPWN and UPS since his campaign manager can give him all the details the way DPWN wants him to hear it.
Denied:1up! Software
McCain's campaign chair former DHL lobbyist
GARY HUFFENBERGER
Staff Writer
Wednesday, August 06, 2008
One day before today’s Wilmington visit by Sen. John McCain concerning the prospect of massive job losses at the DHL Air Park, The Plain Dealer reported McCain’s presidential campaign chairman formerly was a lobbyist for DHL.
In 2003, Rick Davis lobbied the Senate to go along with DHL’s acquisition of Wilmington-based Airborne Express, reported The Plain Dealer.
The news immediately prompted a Wednesday morning press conference call, held by the Ohio Democratic Party and featuring comments from U.S. Sen. Sherrod Brown (D-Ohio).
“We have a major public official in this country that was part of this deal four years ago, five years ago, that’s just stayed quiet,” Brown said of McCain, the Republican candidate for president. Brown said McCain “helped broker the deal” when DHL bought Airborne Express, based on the Cleveland newspaper report.
Brown said he questions why McCain has not mentioned his DHL connection and why Davis has not stepped forward and said he knew executives with DHL and its parent company Deutsche Post World Net.
“We’re trying everything, yet McCain and Davis have stayed silent when they know people at Deutsche Post World Net,” said Brown of the effort to stop a proposed contract between DHL and United Parcel Service (UPS).
McCain spokesman Paul Lindsay characterized the Ohio Democratic Party’s response to The Plain Dealer report as one that politicizes the air park situation.
“John McCain is visiting Wilmington to hear firsthand the challenges facing working families in the community. Rather than try to politicize and take advantage of Wilmington’s struggle, Barack Obama should explain how his support for the failed tax-and-spend policies of the past will create any jobs in this state,” Lindsay wrote in an e-mail sent out after Brown’s conference call.
In reply to a question from the press, Brown said he’s not accusing McCain of a conflict of interest in the DHL matter.
“I’m personally calling on John McCain to send Rick Davis to Germany to use his considerable clout with DHL, to use his long-term connections with DHL, to use his … connections there to help save these 8,200 jobs in southwest Ohio,” said the junior senator from Ohio.
According to The Plain Dealer report by Stephen Koff, who is the paper’s Washington Bureau chief, Senate records show Davis’ lobbying firm was hired to help DHL cope with Congress where there were objections to DHL’s foreign ownership. DHL is owned by the German-based corporation Deutsche Post.
In 2003, when DHL purchased Airborne Express for $1.05 billion, Davis and a partner earned the lobbying firm $185,000 on work for DHL, wrote Koff. During 2004 and 2005, Davis and the partner earned an additional $405,000 on lobbying work for Deutsche Post, the newspaper report said, attributing the numbers to Senate records.
In the conference call with the press, Brown said he and Ohio Gov. Ted Strickland spoke with Democratic presidential candidate Sen. Obama “at length” Tuesday on a campaign trail bus ride between Youngstown and Cleveland.
According to Brown, Obama asked “What else can I do?” concerning the air park matter.
Brown added Obama is “very interested” in helping with the antitrust components of the issue.
Brown took a jab at McCain’s comment in Portsmouth last month when McCain gave little hope of stopping the proposed deal between DHL and UPS, and instead emphasized retraining of the workers who would lose their jobs.
“Well, job retraining is not going to provide all these jobs in, you know, its six counties,” Brown said of the regional reach of air park-based workers.
McCain is scheduled to be in Wilmington today for a private meeting with a cross section of local people to hear about the potential loss of 7,400 to 10,000 jobs if DHL closes its air freight operations at the air park.
Denied:1up! Software
McCain's campaign chair former DHL lobbyist
GARY HUFFENBERGER
Staff Writer
Wednesday, August 06, 2008
One day before today’s Wilmington visit by Sen. John McCain concerning the prospect of massive job losses at the DHL Air Park, The Plain Dealer reported McCain’s presidential campaign chairman formerly was a lobbyist for DHL.
In 2003, Rick Davis lobbied the Senate to go along with DHL’s acquisition of Wilmington-based Airborne Express, reported The Plain Dealer.
The news immediately prompted a Wednesday morning press conference call, held by the Ohio Democratic Party and featuring comments from U.S. Sen. Sherrod Brown (D-Ohio).
“We have a major public official in this country that was part of this deal four years ago, five years ago, that’s just stayed quiet,” Brown said of McCain, the Republican candidate for president. Brown said McCain “helped broker the deal” when DHL bought Airborne Express, based on the Cleveland newspaper report.
Brown said he questions why McCain has not mentioned his DHL connection and why Davis has not stepped forward and said he knew executives with DHL and its parent company Deutsche Post World Net.
“We’re trying everything, yet McCain and Davis have stayed silent when they know people at Deutsche Post World Net,” said Brown of the effort to stop a proposed contract between DHL and United Parcel Service (UPS).
McCain spokesman Paul Lindsay characterized the Ohio Democratic Party’s response to The Plain Dealer report as one that politicizes the air park situation.
“John McCain is visiting Wilmington to hear firsthand the challenges facing working families in the community. Rather than try to politicize and take advantage of Wilmington’s struggle, Barack Obama should explain how his support for the failed tax-and-spend policies of the past will create any jobs in this state,” Lindsay wrote in an e-mail sent out after Brown’s conference call.
In reply to a question from the press, Brown said he’s not accusing McCain of a conflict of interest in the DHL matter.
“I’m personally calling on John McCain to send Rick Davis to Germany to use his considerable clout with DHL, to use his long-term connections with DHL, to use his … connections there to help save these 8,200 jobs in southwest Ohio,” said the junior senator from Ohio.
According to The Plain Dealer report by Stephen Koff, who is the paper’s Washington Bureau chief, Senate records show Davis’ lobbying firm was hired to help DHL cope with Congress where there were objections to DHL’s foreign ownership. DHL is owned by the German-based corporation Deutsche Post.
In 2003, when DHL purchased Airborne Express for $1.05 billion, Davis and a partner earned the lobbying firm $185,000 on work for DHL, wrote Koff. During 2004 and 2005, Davis and the partner earned an additional $405,000 on lobbying work for Deutsche Post, the newspaper report said, attributing the numbers to Senate records.
In the conference call with the press, Brown said he and Ohio Gov. Ted Strickland spoke with Democratic presidential candidate Sen. Obama “at length” Tuesday on a campaign trail bus ride between Youngstown and Cleveland.
According to Brown, Obama asked “What else can I do?” concerning the air park matter.
Brown added Obama is “very interested” in helping with the antitrust components of the issue.
Brown took a jab at McCain’s comment in Portsmouth last month when McCain gave little hope of stopping the proposed deal between DHL and UPS, and instead emphasized retraining of the workers who would lose their jobs.
“Well, job retraining is not going to provide all these jobs in, you know, its six counties,” Brown said of the regional reach of air park-based workers.
McCain is scheduled to be in Wilmington today for a private meeting with a cross section of local people to hear about the potential loss of 7,400 to 10,000 jobs if DHL closes its air freight operations at the air park.
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Dems Web ad highlights McCain's involvment with Wilimington DHL
Dems Web ad highlights McCain's involvment with Wilimington DHL - OPENERS - Ohio Politics Blog by The Plain Dealer
Dems Web ad highlights McCain's involvment with Wilimington DHL
Posted by Christine Jindra/The Plain Dealer August 07, 2008 11:39AM
Categories: Democratic Party, McCain, Presidential candidates
The above Ohio Democrate Web Web ad: "Stand Up" criticizes John McCain's involvement in trying to protect jobs at the DHL-Airborne facility in Wilmington, Ohio.
The Ohio Democratic Party released a Web ad today that contrasts John McCain's aggressive personal intervention in the Senate on behalf of a foreign shipping company with what it says is his unwillingness to intervene just as aggressively with DHL as 8,000 Ohio jobs hang in the balance .
The ad features video of McCain's exchange in early July with a woman at a town hall in Portsmouth, Ohio and reporting from The Plain Dealer and cleveland.com.
The Democratic Party noted that on the eve of McCain's visit today to DHL-Airborne Express in Wilmington, Stephen Koff, The Plain Dealer's Washington Bureau chief, reported that McCain's campaign manager and longtime friend Rick Davis lobbied on behalf of DHL to overcome Congressional opposition to allowing a foreign company to take over Airborne, and that McCain himself intervened to ensure that the deal went through.
The story on Tuesday said that filings in the Senate show Davis' lobbying firm, Davis Manafort, was hired to help both companies deal with Congress, where objections over DHL's foreign ownership arose. Davis and a partner earned their firm $185,000 for the DHL-Airborne Express work that year, records show.
Previous stories: • Brown to McCain: Send your manager to Germany for DHL help. (Aug. 6)
• McCain had role in original Wilmington DHL deal (Aug. 5)
• Obama, McCain showing interest in fate of Wilmington (July 29)
•"Wilmington air park a symbol of what's at stake in 2008 presidential election" (with video, July 26)
They earned $405,000 more from Deutsche Post for work on other issues in 2004 and 2005, after the deal passed Congress.
When DHL and its German owner, Deutsche Post World Net, acquired the Wilmington operations, the merger resulted in expansion, not retraction of jobs. "At the time of the merger, no one anticipated an impact on jobs in Wilmington," McCain spokesman Brian Rogers said.
Asked to respond to the Democratic video, McCain spokesman Paul Lindsay said this afternoon, "John McCain is meeting with the community in Wilmington today to hear their concerns, not Barack Obama."
Several other Republicans in the last day have weighed in in support of McCain's efforts to help Wilmington.
Congressman Mike Turner of Dayton issued a statement saying:
"John McCain's visit to Wilmington shows that the possible next President of the United States takes the issue of the proposed DHL/UPS plan and the job losses that would follow very seriously.
" ....Our local, state, and federal leaders have worked together on a bipartisan basis to respond to DHL's plan and we look forward to working with Senator McCain" and ... his "stated support for the Ohio Delegation'sefforts to make certain the transaction is reviewed by several federal and state agencies for any potential violations of applicable law."
U.S. Sen. George Voinovich last night issued a lengthy statement :
I am pleased that my good friend John McCain is coming to Southwest Ohio to discuss the possible DHL hub closure in Wilmington. His concern for the region and the dramatic impact the proposed closure will have demonstrates what we in Ohio have known: that closure of this facility would be devastating to Wilmington and the entire region.
"The attention the DHL proposal has drawn by both Presidential campaigns serves to confirm the urgency of this situation this is one of the worst job catastrophes that any community in this nation is facing. This is not just a local issue, but has an international dimension because many of us believe that in order for us to have a positive impact we aregoing to need some involvement by the German government. I commend the Mayor of Wilmington, the Clinton County Commissioners, Governor Strickland and other state and regional leaders who have been working to save these 8,000 plus jobs since the announcement in May.
"John McCain recognizes that providing assistance to the workers and families in the region must have a dual-track approach. He supports the efforts by the Mayor, County Commissioners, Governor and the entire Ohio delegation to keep these jobs in the region. At the same time, he has also supported state and federal efforts to ensure that worker and
community assistance efforts are mustered in preparation for the potential loss of thousands of jobs in the Wilmington area.
"I will continue to work with the entire Ohio Congressional Delegation to support all efforts to assist the workers in the Wilmington area and save this facility."
In the meantime, The Justice Departmentis looking to see if there are antitrust implications in the matter, which involves plans by DHL Express to close its air hub outside of Wilmington. DHL wants to use a rival, United Parcel Service, in Louisville, Kentucky, to fly its packages city-to-city.
DHL, owned by the German Deutsche Post, maintains there are no anti-competitive issues in the deal. Although it would stop its own air hub operations outside Wilmington, between Columbus and Cincinnati, DHL would not get out of the delivery business. Instead, it would use UPS for one phase of delivery --air -- but still pick up and deliver its packages by truck and van.
This is the script for the Web ad, "Standup."
Woman: I hope that you're aware, I'm sure you are aware that DHL is closing that airpark in Wilmington. We will lose 8,600 jobs. Will you call for Senate hearings to investigate the DHL-UPS joint venture? (Editor's note: The woman is Mary Houghtaling, of Wilmington, who drove to a McCain campaign appearance in Portsmouth last month to ask the senator for help.)
McCain: I have been briefed, and read about this situation.
CHRYON: "McCain and his campaign manager, Rick Davis, played roles in the fate of DHL Express and its Ohio air park as far back as 2003." Cleveland Plain Dealer, 8/6/2008
McCain: I've got to look you in the eye and give you some straight talk; I don't know if I can stop it or not. Or if it will be stopped it. So I have to tell you that. Some straight talk.
CHRYON: "Those jobs are on the chopping block because Sen. McCain and his campaign were involved in a deal that resulted in control of those positions being shifted to a foreign corporation." - Joe Rugola, president of the Ohio AFL-CIO
McCain: In fact, some more straight talk: I doubt it.
CHRYON: The firm of Rick Davis, John McCain's campaign manager earned $185,000 lobbying for foreign ownership, and $405,000 after the deal passed Congress. Cleveland Plain Dealer, 8/6/2008
CHRYON: Tell John McCain it's time to stop the same old Washington politics and stand up for Ohio jobs.
Dems Web ad highlights McCain's involvment with Wilimington DHL
Posted by Christine Jindra/The Plain Dealer August 07, 2008 11:39AM
Categories: Democratic Party, McCain, Presidential candidates
The above Ohio Democrate Web Web ad: "Stand Up" criticizes John McCain's involvement in trying to protect jobs at the DHL-Airborne facility in Wilmington, Ohio.
The Ohio Democratic Party released a Web ad today that contrasts John McCain's aggressive personal intervention in the Senate on behalf of a foreign shipping company with what it says is his unwillingness to intervene just as aggressively with DHL as 8,000 Ohio jobs hang in the balance .
The ad features video of McCain's exchange in early July with a woman at a town hall in Portsmouth, Ohio and reporting from The Plain Dealer and cleveland.com.
The Democratic Party noted that on the eve of McCain's visit today to DHL-Airborne Express in Wilmington, Stephen Koff, The Plain Dealer's Washington Bureau chief, reported that McCain's campaign manager and longtime friend Rick Davis lobbied on behalf of DHL to overcome Congressional opposition to allowing a foreign company to take over Airborne, and that McCain himself intervened to ensure that the deal went through.
The story on Tuesday said that filings in the Senate show Davis' lobbying firm, Davis Manafort, was hired to help both companies deal with Congress, where objections over DHL's foreign ownership arose. Davis and a partner earned their firm $185,000 for the DHL-Airborne Express work that year, records show.
Previous stories: • Brown to McCain: Send your manager to Germany for DHL help. (Aug. 6)
• McCain had role in original Wilmington DHL deal (Aug. 5)
• Obama, McCain showing interest in fate of Wilmington (July 29)
•"Wilmington air park a symbol of what's at stake in 2008 presidential election" (with video, July 26)
They earned $405,000 more from Deutsche Post for work on other issues in 2004 and 2005, after the deal passed Congress.
When DHL and its German owner, Deutsche Post World Net, acquired the Wilmington operations, the merger resulted in expansion, not retraction of jobs. "At the time of the merger, no one anticipated an impact on jobs in Wilmington," McCain spokesman Brian Rogers said.
Asked to respond to the Democratic video, McCain spokesman Paul Lindsay said this afternoon, "John McCain is meeting with the community in Wilmington today to hear their concerns, not Barack Obama."
Several other Republicans in the last day have weighed in in support of McCain's efforts to help Wilmington.
Congressman Mike Turner of Dayton issued a statement saying:
"John McCain's visit to Wilmington shows that the possible next President of the United States takes the issue of the proposed DHL/UPS plan and the job losses that would follow very seriously.
" ....Our local, state, and federal leaders have worked together on a bipartisan basis to respond to DHL's plan and we look forward to working with Senator McCain" and ... his "stated support for the Ohio Delegation'sefforts to make certain the transaction is reviewed by several federal and state agencies for any potential violations of applicable law."
U.S. Sen. George Voinovich last night issued a lengthy statement :
I am pleased that my good friend John McCain is coming to Southwest Ohio to discuss the possible DHL hub closure in Wilmington. His concern for the region and the dramatic impact the proposed closure will have demonstrates what we in Ohio have known: that closure of this facility would be devastating to Wilmington and the entire region.
"The attention the DHL proposal has drawn by both Presidential campaigns serves to confirm the urgency of this situation this is one of the worst job catastrophes that any community in this nation is facing. This is not just a local issue, but has an international dimension because many of us believe that in order for us to have a positive impact we aregoing to need some involvement by the German government. I commend the Mayor of Wilmington, the Clinton County Commissioners, Governor Strickland and other state and regional leaders who have been working to save these 8,000 plus jobs since the announcement in May.
"John McCain recognizes that providing assistance to the workers and families in the region must have a dual-track approach. He supports the efforts by the Mayor, County Commissioners, Governor and the entire Ohio delegation to keep these jobs in the region. At the same time, he has also supported state and federal efforts to ensure that worker and
community assistance efforts are mustered in preparation for the potential loss of thousands of jobs in the Wilmington area.
"I will continue to work with the entire Ohio Congressional Delegation to support all efforts to assist the workers in the Wilmington area and save this facility."
In the meantime, The Justice Departmentis looking to see if there are antitrust implications in the matter, which involves plans by DHL Express to close its air hub outside of Wilmington. DHL wants to use a rival, United Parcel Service, in Louisville, Kentucky, to fly its packages city-to-city.
DHL, owned by the German Deutsche Post, maintains there are no anti-competitive issues in the deal. Although it would stop its own air hub operations outside Wilmington, between Columbus and Cincinnati, DHL would not get out of the delivery business. Instead, it would use UPS for one phase of delivery --air -- but still pick up and deliver its packages by truck and van.
This is the script for the Web ad, "Standup."
Woman: I hope that you're aware, I'm sure you are aware that DHL is closing that airpark in Wilmington. We will lose 8,600 jobs. Will you call for Senate hearings to investigate the DHL-UPS joint venture? (Editor's note: The woman is Mary Houghtaling, of Wilmington, who drove to a McCain campaign appearance in Portsmouth last month to ask the senator for help.)
McCain: I have been briefed, and read about this situation.
CHRYON: "McCain and his campaign manager, Rick Davis, played roles in the fate of DHL Express and its Ohio air park as far back as 2003." Cleveland Plain Dealer, 8/6/2008
McCain: I've got to look you in the eye and give you some straight talk; I don't know if I can stop it or not. Or if it will be stopped it. So I have to tell you that. Some straight talk.
CHRYON: "Those jobs are on the chopping block because Sen. McCain and his campaign were involved in a deal that resulted in control of those positions being shifted to a foreign corporation." - Joe Rugola, president of the Ohio AFL-CIO
McCain: In fact, some more straight talk: I doubt it.
CHRYON: The firm of Rick Davis, John McCain's campaign manager earned $185,000 lobbying for foreign ownership, and $405,000 after the deal passed Congress. Cleveland Plain Dealer, 8/6/2008
CHRYON: Tell John McCain it's time to stop the same old Washington politics and stand up for Ohio jobs.
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McCain wants Senate hearing and more on DHL
I can't wait to watch this Senate hearing on CSPAN. Maybe the US government can subsidize DHL in the US. Anything to get votes in a swing state. Can aybody tell me if the DHL ground workers in the US are unionized? As far as I know all UPS ground workers are Teamsters.
McCain wants Senate hearing and more on DHL - OPENERS - Ohio Politics Blog by The Plain Dealer
McCain wants Senate hearing and more on DHL
Posted by Stephen Koff August 07, 2008 18:02PM
AP Photo/Mary Altaffer DHL employees hand Republican presidential candidate, Sen. John McCainsigned petitions during a visit to the Kelly Center Thursday in Wilmington.
GOP presidential candidate John McCain told civic and government leaders in Wilmington, Ohio, that he will seek a Senate hearing as soon as Congress comes back from a five-week break on the antitrust implications of DHL's planned contract with competitor United Parcel Service. McCain also pledged during the meeting in Wilmington this afternoon that he would do everything legally and constitutionally possible to keep DHL from eliminating more than 8,000 jobs in the small community. But he also told about 30 people in the meeting that in the end, he did not know if he could stop what he called a "train wreck."
Several participants of the closed meeting in a room at Wilmington College, where the windows were covered, apparently to keep people from looking in, said the much-anticipated gathering stayed positive and apolitical. The subject of McCain's campaign manager, Rick Davis, and his lobbying for DHL from 2003 to 2005 did not come up, they said.
McCain also said he would call for the chief executive of DHL's German-based owner, Deutsche Post World Net, to come to Wilmington and explain first-hand why the company wants to end its air hub operation there.
McCain wants Senate hearing and more on DHL - OPENERS - Ohio Politics Blog by The Plain Dealer
McCain wants Senate hearing and more on DHL
Posted by Stephen Koff August 07, 2008 18:02PM
AP Photo/Mary Altaffer DHL employees hand Republican presidential candidate, Sen. John McCainsigned petitions during a visit to the Kelly Center Thursday in Wilmington. GOP presidential candidate John McCain told civic and government leaders in Wilmington, Ohio, that he will seek a Senate hearing as soon as Congress comes back from a five-week break on the antitrust implications of DHL's planned contract with competitor United Parcel Service. McCain also pledged during the meeting in Wilmington this afternoon that he would do everything legally and constitutionally possible to keep DHL from eliminating more than 8,000 jobs in the small community. But he also told about 30 people in the meeting that in the end, he did not know if he could stop what he called a "train wreck."
Several participants of the closed meeting in a room at Wilmington College, where the windows were covered, apparently to keep people from looking in, said the much-anticipated gathering stayed positive and apolitical. The subject of McCain's campaign manager, Rick Davis, and his lobbying for DHL from 2003 to 2005 did not come up, they said.
McCain also said he would call for the chief executive of DHL's German-based owner, Deutsche Post World Net, to come to Wilmington and explain first-hand why the company wants to end its air hub operation there.
Last edited by Rock_On; 8th Aug 2008 at 02:59.
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To answer your question, some of the DHL ground workers in major cities in the US are former Airborne Express workers, and most of them are Teamsters. ABX pilots are also Teamsters. So I don't think you'll see the Teamsters take a stand on the UPS side.... there's enough Teamsters on the former Airborne Express side (mainly ABX pilots) to prevent that.
McCain's campaign chair former DHL lobbyist......
Rick Davis was just another lucky break. (The first... this being an election year with Ohio a swing state) The Rick Davis news forced McCain to take a stronger stand in Ohio than he otherwise would have.
Now Obama, the Democrat, will have to take an even stronger stance on "save the jobs", because that's what Democrats do. Otherwise he'll chance losing Ohio, which is key to winning the White House.
If we truly get the Congressional Inquiry that McCain now proposes, who knows what we'll all learn about this mess! DPWN express division logs a profit of over a billion, while claiming it lost a billion in the US. Yeah, right! There's been systematic elimination of all express carriers in the US ever since DPWN bought DHL. Maybe we'll find out how that really happens.
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Congressional hearings are nothing more than a feel good exercise. Nothing will come out of it but the snake oil salesmen can say "We tried, we really did". If anyone will stop this it will be the Federal Trade Commission or some other bureaucratic commission.
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UPS spent more than $1.3 million lobbying federal government in second quarter
From the amount UPS spends in lobbying, I guess it's wise not to underestimate the power of Brown.
UPS spent more than $1.3M lobbying in 2Q: Financial News - Yahoo! Finance
UPS spent more than $1.3M lobbying in 2Q
Friday August 8, 9:20 am ET UPS spent more than $1.3 million lobbying federal government in second quarter
WASHINGTON (AP) -- UPS Inc., the world's largest shipping carrier, spent more than $1.3 million in the second quarter to lobby on issues including its proposal to carry some air packages for DHL, according to a recent disclosure form.
The Atlanta-based company, also know as United Parcel Service, lobbied on the reauthorization of the Federal Aviation Administration, appropriations for the departments of Transportation and Housing and Urban Development, as well as legislation dealing patent reform, data security and health care policy.
UPS also lobbied on aviation safety issues and technology, and UPS' "proposed airlift agreement with DHL," according to the form posted online July 16 by the House clerk's office.
UPS announced on May 28 that it was seeking to work out a contract with DHL that would mostly involve the transport of DHL packages between airports in North America -- not the pickup or delivery of DHL packages to customers. UPS has said the deal, which it hopes to complete by the end of the year, is similar to its existing agreement with the U.S. Postal Service.
UPS said the deal, when completed, will add up to $1 billion in annual revenue for UPS. DHL is the struggling U.S.-based express shipping unit of German postal service Deutsche Post AG.
The deal could be a significant blow to DHL's current vendors for the air shipments UPS is seeking to take over. Thousands of jobs could be lost in Ohio, where some officials are trying to scuttle the deal.
Two U.S. senators have asked the Justice Department and the Federal Trade Commission to review the proposal. They argue the deal raises competition concerns. UPS has asserted that the federal government does not have authority over the vendor relationship.
Besides Congress, the company lobbied the departments of Transportation, Homeland Security, Labor and other agencies in the April-June period.
UPS spent more than $1.3M lobbying in 2Q: Financial News - Yahoo! Finance
UPS spent more than $1.3M lobbying in 2Q
Friday August 8, 9:20 am ET UPS spent more than $1.3 million lobbying federal government in second quarter
WASHINGTON (AP) -- UPS Inc., the world's largest shipping carrier, spent more than $1.3 million in the second quarter to lobby on issues including its proposal to carry some air packages for DHL, according to a recent disclosure form.
The Atlanta-based company, also know as United Parcel Service, lobbied on the reauthorization of the Federal Aviation Administration, appropriations for the departments of Transportation and Housing and Urban Development, as well as legislation dealing patent reform, data security and health care policy.
UPS also lobbied on aviation safety issues and technology, and UPS' "proposed airlift agreement with DHL," according to the form posted online July 16 by the House clerk's office.
UPS announced on May 28 that it was seeking to work out a contract with DHL that would mostly involve the transport of DHL packages between airports in North America -- not the pickup or delivery of DHL packages to customers. UPS has said the deal, which it hopes to complete by the end of the year, is similar to its existing agreement with the U.S. Postal Service.
UPS said the deal, when completed, will add up to $1 billion in annual revenue for UPS. DHL is the struggling U.S.-based express shipping unit of German postal service Deutsche Post AG.
The deal could be a significant blow to DHL's current vendors for the air shipments UPS is seeking to take over. Thousands of jobs could be lost in Ohio, where some officials are trying to scuttle the deal.
Two U.S. senators have asked the Justice Department and the Federal Trade Commission to review the proposal. They argue the deal raises competition concerns. UPS has asserted that the federal government does not have authority over the vendor relationship.
Besides Congress, the company lobbied the departments of Transportation, Homeland Security, Labor and other agencies in the April-June period.
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>Today's WSJ, pg. A5. Things are getting interesting.<
Criticisms of Plans
To Shut DHL Hub
Echo Sen. Obama's
By ALEX ROTH and ELIZABETH HOLMES
August 8, 2008; Page A5
WILMINGTON, Ohio -- Republican presidential candidate John McCain on Thursday jumped onto a populist, anticorporate bandwagon, appearing before workers expected to lose their jobs in the planned shutdown of a large DHL air cargo hub here, and promising to use government powers in an effort to prevent the loss-plagued company from slashing jobs.
Echoing criticisms expressed by his Democratic rival, Illinois Sen. Barack Obama, Sen. McCain called for a congressional hearing and an antitrust investigation into plans by global express delivery giant DHL to outsource much of its U.S. operations to shipping heavyweight United Parcel Service Inc.
Then Sen. McCain one-upped Sen. Obama, suggesting that Frank Appel, the chief executive of Deutsche Post AG, the German parent of DHL, be pressed to visit Wilmington and personally confront the more than 8,000 workers expected to lose their jobs should the contract between UPS and DHL take effect. "It's more than appropriate," Sen. McCain said, for Mr. Appel "to come in and to talk to the individuals whose lives are being affected."
While U.S. politicians more commonly decry the loss of American factories or jobs to overseas companies, the brouhaha around DHL has led both Republican and Democratic presidential candidates to criticize a business contract that will actually result in a U.S. business taking over much of a foreign company's North American operations.
In recent days, Sen. McCain has been criticized by Democrats and local unions in this pivotal electoral state for his support five years ago of DHL's $1.05 billion acquisition of Airborne Inc., then the struggling No. 3 express delivery company in the U.S. behind FedEx Corp. and UPS. As part of the deal back then, DHL acquired Airborne's main air cargo operation, based in Wilmington, and thousands of the company's workers there. Sen. McCain's presidential campaign manager, Rick Davis, also worked at the time as a private lobbyist for DHL. Sen. McCain's and Mr. Davis's support for the 2003 deal was earlier reported by the Cleveland Plain Dealer this week.
In the past five years, DHL expansion in the U.S. soured, and the company lost billions of dollars. In May, the company announced a retrenchment, including plans to outsource most of its air cargo operations in the U.S. to rival UPS, eliminating about 8,000 Wilmington jobs.
Meeting with two dozen community members in a building on the campus of Wilmington College on Thursday, Sen. McCain promised to "do everything in my power" to avert the loss of jobs.
Sen. McCain listened quietly as Mary Houghtaling, president of a local hospice facility, tearfully described the impact the job losses could have on Wilmington, a town of about 12,000 people.
"The schools within the area are going to lose an untold amount of tax revenue, services to retired folks will be in jeopardy, the ability to provide basic human service such as fire, EMS and police would be in question," she said. "Our county hospitals will not be able to survive...never before have so many people been abandoned at once, it is inconceivable."
Controversy over the proposed deal between UPS and DHL flared as soon as it was announced in May. Last week, Senators Orrin Hatch, a Utah Republican, and Herb Kohl, a Wisconsin Democrat, wrote a joint letter urging the Bush administration to conduct an antitrust investigation. Sen. Obama issued a letter calling on regulators "to examine the transaction to ensure that it is not in violation of antitrust laws."
Sen. McCain said the inquiries "should proceed with the highest appropriate standards of review." The White House subsequently appointed an official to look into the matter.
"Such arrangements have been common in the transportation industry for some time and are not subject to prior regulatory approval," DHL said in a written statement Thursday. DHL said it couldn't comment on Sen. McCain's call for its CEO to visit workers in Ohio.
UPS spokesman Norman Black says the deal between the companies is a simple "vendor" contract under which UPS will transport packages for DHL, like any other customer.
"There is no partnership, no merger, no joint venture," Mr. Black said. "It's a little surprising that anybody could realistically look at this and argue that it raises antitrust issues."
Criticisms of Plans
To Shut DHL Hub
Echo Sen. Obama's
By ALEX ROTH and ELIZABETH HOLMES
August 8, 2008; Page A5
WILMINGTON, Ohio -- Republican presidential candidate John McCain on Thursday jumped onto a populist, anticorporate bandwagon, appearing before workers expected to lose their jobs in the planned shutdown of a large DHL air cargo hub here, and promising to use government powers in an effort to prevent the loss-plagued company from slashing jobs.
Echoing criticisms expressed by his Democratic rival, Illinois Sen. Barack Obama, Sen. McCain called for a congressional hearing and an antitrust investigation into plans by global express delivery giant DHL to outsource much of its U.S. operations to shipping heavyweight United Parcel Service Inc.
Then Sen. McCain one-upped Sen. Obama, suggesting that Frank Appel, the chief executive of Deutsche Post AG, the German parent of DHL, be pressed to visit Wilmington and personally confront the more than 8,000 workers expected to lose their jobs should the contract between UPS and DHL take effect. "It's more than appropriate," Sen. McCain said, for Mr. Appel "to come in and to talk to the individuals whose lives are being affected."
While U.S. politicians more commonly decry the loss of American factories or jobs to overseas companies, the brouhaha around DHL has led both Republican and Democratic presidential candidates to criticize a business contract that will actually result in a U.S. business taking over much of a foreign company's North American operations.
In recent days, Sen. McCain has been criticized by Democrats and local unions in this pivotal electoral state for his support five years ago of DHL's $1.05 billion acquisition of Airborne Inc., then the struggling No. 3 express delivery company in the U.S. behind FedEx Corp. and UPS. As part of the deal back then, DHL acquired Airborne's main air cargo operation, based in Wilmington, and thousands of the company's workers there. Sen. McCain's presidential campaign manager, Rick Davis, also worked at the time as a private lobbyist for DHL. Sen. McCain's and Mr. Davis's support for the 2003 deal was earlier reported by the Cleveland Plain Dealer this week.
In the past five years, DHL expansion in the U.S. soured, and the company lost billions of dollars. In May, the company announced a retrenchment, including plans to outsource most of its air cargo operations in the U.S. to rival UPS, eliminating about 8,000 Wilmington jobs.
Meeting with two dozen community members in a building on the campus of Wilmington College on Thursday, Sen. McCain promised to "do everything in my power" to avert the loss of jobs.
Sen. McCain listened quietly as Mary Houghtaling, president of a local hospice facility, tearfully described the impact the job losses could have on Wilmington, a town of about 12,000 people.
"The schools within the area are going to lose an untold amount of tax revenue, services to retired folks will be in jeopardy, the ability to provide basic human service such as fire, EMS and police would be in question," she said. "Our county hospitals will not be able to survive...never before have so many people been abandoned at once, it is inconceivable."
Controversy over the proposed deal between UPS and DHL flared as soon as it was announced in May. Last week, Senators Orrin Hatch, a Utah Republican, and Herb Kohl, a Wisconsin Democrat, wrote a joint letter urging the Bush administration to conduct an antitrust investigation. Sen. Obama issued a letter calling on regulators "to examine the transaction to ensure that it is not in violation of antitrust laws."
Sen. McCain said the inquiries "should proceed with the highest appropriate standards of review." The White House subsequently appointed an official to look into the matter.
"Such arrangements have been common in the transportation industry for some time and are not subject to prior regulatory approval," DHL said in a written statement Thursday. DHL said it couldn't comment on Sen. McCain's call for its CEO to visit workers in Ohio.
UPS spokesman Norman Black says the deal between the companies is a simple "vendor" contract under which UPS will transport packages for DHL, like any other customer.
"There is no partnership, no merger, no joint venture," Mr. Black said. "It's a little surprising that anybody could realistically look at this and argue that it raises antitrust issues."
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>If we truly get the Congressional Inquiry that McCain now proposes, who knows what we'll all learn about this mess! DPWN express division logs a profit of over a billion, while claiming it lost a billion in the US. Yeah, right! There's been systematic elimination of all express carriers in the US ever since DPWN bought DHL. Maybe we'll find out how that really happens.<
Not trying to split hairs P, but DPWN made profits of 6 Billion. Also, did you know that DHL Express US has to pay DHL to help with expenses in LEJ and HKG? There is all kinds of money moving around to various places.
Not trying to split hairs P, but DPWN made profits of 6 Billion. Also, did you know that DHL Express US has to pay DHL to help with expenses in LEJ and HKG? There is all kinds of money moving around to various places.
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To answer your question, some of the DHL ground workers in major cities in the US are former Airborne Express workers, and most of them are Teamsters. ABX pilots are also Teamsters. So I don't think you'll see the Teamsters take a stand on the UPS side.... there's enough Teamsters on the former Airborne Express side (mainly ABX pilots) to prevent that.
Teamsters in the DHL System = 12,500+
There’s strength in numbers and by building your union with the Teamsters, you’ll join more than more than 12,500 workers at DHL Express, ABX Air and throughout the DHL system—and some 250,000 workers in the package-sort-delivery industry—who are proud Teamsters.
Teamsters in the DHL System
Teamsters in the UPS System = 200,000+
The Teamsters Package Division serves more than 200,000 members throughout the United States. United Parcel Service is the single largest employer in the Teamsters Union, and the Division is responsible for ensuring that management abides by the National Master Agreement.
Teamsters Parcel and Small Package Division
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>The first in what will probably be quite a few hearings.<
Committee on Transportation and Infrastructure
transportation.house.gov
Hon. James L. Oberstar (Minn.), Chairman
For Immediate Release, Friday, August 8, 2008
Committee to Hold Hearing on UPS-DHL
Air cargo carriers' 'strategic alliance' to be reviewed
WASHINGTON—A “strategic alliance” announced earlier this year between air cargo giants UPS and DHL will be the subject of a hearing before the House Committee on Transportation and Infrastructure when Congress returns in September.
The hearing was announced today by Committee Chairman James L. Oberstar (Minn.), and was requested by the Ohio Congressional delegation.
“Just as I have opposed additional consolidation in air passenger service, I have serious concerns about the UPS-DHL alliance. My concerns include the transaction’s effects on service, costs, consumer choice, and jobs,” Oberstar said. “This alliance is likely to eliminate two cargo air carriers, ABX and ASTAR, which now serve DHL and compete with UPS. This would lessen, or even eliminate, competition between UPS and DHL in providing overnight package delivery services.”
The letter requesting the hearing, signed by all 18 Members of Congress from Ohio, said that the alliance could cost as many as 8,000 jobs in their state.
Committee on Transportation and Infrastructure
transportation.house.gov
Hon. James L. Oberstar (Minn.), Chairman
For Immediate Release, Friday, August 8, 2008
Committee to Hold Hearing on UPS-DHL
Air cargo carriers' 'strategic alliance' to be reviewed
WASHINGTON—A “strategic alliance” announced earlier this year between air cargo giants UPS and DHL will be the subject of a hearing before the House Committee on Transportation and Infrastructure when Congress returns in September.
The hearing was announced today by Committee Chairman James L. Oberstar (Minn.), and was requested by the Ohio Congressional delegation.
“Just as I have opposed additional consolidation in air passenger service, I have serious concerns about the UPS-DHL alliance. My concerns include the transaction’s effects on service, costs, consumer choice, and jobs,” Oberstar said. “This alliance is likely to eliminate two cargo air carriers, ABX and ASTAR, which now serve DHL and compete with UPS. This would lessen, or even eliminate, competition between UPS and DHL in providing overnight package delivery services.”
The letter requesting the hearing, signed by all 18 Members of Congress from Ohio, said that the alliance could cost as many as 8,000 jobs in their state.