UPS to take over flying DHL packages in Europe and Asia?
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UPS to take over flying DHL packages in Europe and Asia?
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DHL to take over flying UPS packages in Europe and Asia
Sorry, but this could easily be read either way depending on who you work for.
Guess you might have a pretty big test of that scope clause of yours across the pond and on the rim.
Guess you might have a pretty big test of that scope clause of yours across the pond and on the rim.
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Scope clause is as much worth as furlough protection, i.e. worthless because nobody can enforce it. DHL and UPS will do whatever makes most business sense to them. Remember, it's all about generating profit for shareholders and nothing else. Don't lose the big picture now!
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I know this is a rumour network but I didn't expect to find US senators starting them. The UPS/DHL deal is for the US only, if anything else happens, and don't hold your breath, it would be UPS flying on DHL outside the States.
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Hot air from politicians.....
This is just speculation from a US politician who knows ....how much??... about the international networks of UPS and DHL.
Seriously - this is just a ploy to upset people and it seems it is succeeding...
What benefit would there be to either DHL or UPS in cross sharing uplift in Europe or Asia? The networks are on a par (please correct me if I'm wrong here).
(edited to add extra comment)
Seriously - this is just a ploy to upset people and it seems it is succeeding...
What benefit would there be to either DHL or UPS in cross sharing uplift in Europe or Asia? The networks are on a par (please correct me if I'm wrong here).
(edited to add extra comment)
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In the interview of the DHL Chairman that I saw he stated that if the current deal with UPS in the U.S. is successful we could expect more similar deals in Europe and Asia. Sounded pretty matter of fact to me.
While Europe is obviously not a country, for EU members it is a common market. The free movement of goods and services etc. As such, from a commercial point of view it should be viewed as one "country". Since the kind of aviation we're talking about is of a commercial nature, it should be treated just like any other business.
Hence, non-EU registered operators should be allowed to operate within the EU only under the sames rules applying to an EU registered carrier operating in the visting carriers "country", be it political or commercial. So, when a G-reg aircraft is allowed to fly JFK-ORD, N-reg'd aircraft can fly LHR-MAD. Or A40 reg'd aircraft can go BRU-OSL when OO-reg'd aircraft can go BAH-DXB (or within the GCC countries in other words). Simple, really.
Hence, non-EU registered operators should be allowed to operate within the EU only under the sames rules applying to an EU registered carrier operating in the visting carriers "country", be it political or commercial. So, when a G-reg aircraft is allowed to fly JFK-ORD, N-reg'd aircraft can fly LHR-MAD. Or A40 reg'd aircraft can go BRU-OSL when OO-reg'd aircraft can go BAH-DXB (or within the GCC countries in other words). Simple, really.
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Oh I dunno Rat... it is good sometimes to have a civics lesson. I have found that some on the continent don't understand the differences between the EU and the US, the sovereignty of countries, and the various aviation treaties. If it can be done with some civility it can be educational for all. Cargo canines need civics too!
In any case it is hard to call someone supporting the EU a nationalist.... isn't it?
In any case it is hard to call someone supporting the EU a nationalist.... isn't it?
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Pilots file suit against DHL
Pilots file suit against DHL - Atlanta Business Chronicle:
Tuesday, July 29, 2008 - 5:59 PM EDT
Pilots file suit against DHL
Atlanta Business Chronicle
The Air Line Pilots Association International (ALPA) announced Tuesday it has filed a lawsuit against DHL Holdings USA on behalf of ASTAR Air Cargo Inc. pilots.
In a suit filed in the Court of Common Pleas in Clinton, Ohio, ALPA alleges that DHL breached its contract with ASTAR pilots. It also accuses DHL of fraudulent inducement. DHL is owned by Deutsche Post World Net, and its United States operations are based in Wilmington, Ohio.
DHL is in negotiations with Atlanta-based United Parcel Service Inc. (NYSE: UPS) to take over its North American air service from ASTAR Air Cargo, which was formerly DHL Airways.
ALPA alleges DHL is in violation of certain job security assurances under ASTAR pilots’ labor agreement.
The pilots also claim that DHL “fraudulently induced” the pilots union to drop lawsuits against the parcel company by promising job security assurances while the pilots argue the company was in discussions about switching service to UPS, according to a news release.
The pilots union has asked the court to enjoin DHL from switching service to UPS. ALPA also asks for compensatory damages and attorney’s fees.
"We're going to fight this agreement in every way we can-including in the courts," said Capt. John Prater, president of ALPA. "Ten thousand hard-working Americans are depending on us to help save their jobs and communities. DHL has let them down-we won't."
ALPA says 10,000 pilots and other DHL employees will lose their job with the switch to UPS.
An after-hours message left with a DHL spokeswoman was not immediately returned.
Representatives with UPS declined to comment.
Tuesday, July 29, 2008 - 5:59 PM EDT
Pilots file suit against DHL
Atlanta Business Chronicle
The Air Line Pilots Association International (ALPA) announced Tuesday it has filed a lawsuit against DHL Holdings USA on behalf of ASTAR Air Cargo Inc. pilots.
In a suit filed in the Court of Common Pleas in Clinton, Ohio, ALPA alleges that DHL breached its contract with ASTAR pilots. It also accuses DHL of fraudulent inducement. DHL is owned by Deutsche Post World Net, and its United States operations are based in Wilmington, Ohio.
DHL is in negotiations with Atlanta-based United Parcel Service Inc. (NYSE: UPS) to take over its North American air service from ASTAR Air Cargo, which was formerly DHL Airways.
ALPA alleges DHL is in violation of certain job security assurances under ASTAR pilots’ labor agreement.
The pilots also claim that DHL “fraudulently induced” the pilots union to drop lawsuits against the parcel company by promising job security assurances while the pilots argue the company was in discussions about switching service to UPS, according to a news release.
The pilots union has asked the court to enjoin DHL from switching service to UPS. ALPA also asks for compensatory damages and attorney’s fees.
"We're going to fight this agreement in every way we can-including in the courts," said Capt. John Prater, president of ALPA. "Ten thousand hard-working Americans are depending on us to help save their jobs and communities. DHL has let them down-we won't."
ALPA says 10,000 pilots and other DHL employees will lose their job with the switch to UPS.
An after-hours message left with a DHL spokeswoman was not immediately returned.
Representatives with UPS declined to comment.
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DPWN owns DHL which owns 49% of ASTAR so isn't this kind of like suing yourself? Wouldn't it make just as much sense for ALPA to file a lawsuit against ASTAR because because DHL dropped ASTAR?
I guess I don't understand what you guys are tring to achieve, force DHL to continue losing money? Maybe the state of Ohio could subsidize DHL USA?
I wish you guys good luck with your futures, but I have a feeling you guys are fighting an uphill battle and the hill is rather steep if not vertical.
I guess I don't understand what you guys are tring to achieve, force DHL to continue losing money? Maybe the state of Ohio could subsidize DHL USA?
I wish you guys good luck with your futures, but I have a feeling you guys are fighting an uphill battle and the hill is rather steep if not vertical.
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I'm rushed for time Rock, but the short answer is, no, it's not like suing yourself. It's suing one of your owners with a seat on your BOD to honor the contract that was negotiated, and had to wait on DHL for approval. It is indeed an uphill battle, but the stated reasons DPWN has made for their reasons to go with UPS are at best, a flat out lie. We'd sue DPWN if we had the legal recourse, but we have to go through DHL. You are right in that it is an uphill battle, but it is one we're going to fight till the end through any legal means necessary. Political, lawsuits, public pressure, etc.
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Hvydriver, thanks for the info! Looks like DPWN does not appear to be change course yet.
Bloomberg.com: Worldwide
Deutsche Post Profit Falls 11% on DHL U.S., Postbank
By Jann Bettinga
July 31 (Bloomberg) -- Deutsche Post AG, Europe's biggest mail carrier, said second-quarter profit fell 11 percent on costs to revamp the DHL Express division's U.S. unit and after writedowns hurt earnings at Deutsche Postbank AG.
Net income fell to 254 million euros ($396 million), or 21 cents a share, from 285 million euros, or 24 cents, a year earlier, Bonn-based Deutsche Post said in a statement today. Sales rose 5 percent to 16.2 billion euros.
Chief Executive Officer Frank Appel forecast in May that the DHL U.S. express-delivery unit will suffer a loss of $1.3 billion this year as a slowing U.S. economy hurts demand for air shipments and the business struggles to compete with United Parcel Service Inc. and FedEx Corp. Postbank, the retail bank Deutsche Post may sell, reported yesterday a 21 percent drop in quarterly profit due to writedowns on debt-related investments.
``The reorganization in the U.S. is a big issue,'' Jochen Rothenbacher, an analyst at Equinet in Frankfurt, said today. ``It will remain very, very difficult'' for the postal operator's U.S. express-delivery business, he added.
Deutsche Post fell 45 cents, or 2.9 percent, to 15.09 euros in Frankfurt trading. The stock has declined 36 percent this year.
The company announced plans in May to limit losses at the U.S. express-delivery operations by shrinking the network, firing workers and transferring air deliveries to Atlanta-based UPS. The revamp will cost the mail carrier $2 billion through 2009, it forecast at the time. Appel said today the unit's reorganization is ``on track'' and that talks with UPS over a final contract are making satisfactory progress.
Postbank Sale
Deutsche Post is in talks with ``various potential partners'' about a possible sale of Postbank, Appel also told reporters today, adding that the postal operator hasn't yet decided if or when the business would be sold. ``We will not sell Postbank hastily,'' and Deutsche Post is under no pressure, the CEO said. ``The appetite for major acquisitions is limited,'' he said on a conference call with analysts today.
Deutsche Post, which owns 50 percent plus one share of Postbank, announced June 25 it's holding ``exploratory'' talks about a disposal of the lender as it focuses on mail, express- deliveries and logistics.
Postbank said yesterday that second-quarter net income fell to 119 million euros from 151 million euros a year earlier after writing down the value of securities by 143 million euros. The quarter's markdowns bring Postbank's total losses related to the U.S. subprime-mortgage-market collapse to 429 million euros. Earnings before interest and taxes at Deutsche Post's financial services unit, which comprises the Postbank holding, dropped 26 percent to 185 million euros in the quarter.
Postbank's Value
Postbank may fetch 9 billion euros to 11 billion euros, Carsten Werle, an analyst at Sal. Oppenheim in Frankfurt, wrote to investors this month. The bank has a market value of about 7.5 billion euros after the stock dropped 25 percent this year.
Reorganizing the U.S. express-delivery business cost the postal service 47 million euros in the quarter, causing Ebit at the Express unit to drop 52 percent to 31 million euros. The division is facing a ``weakening economic environment'' in the U.S., with customers switching to cheaper express-delivery shipments, Deutsche Post said, echoing statements from competitors such as UPS.
Appel today stuck to a full-year target that Ebit, excluding one-time costs or gains, will reach about 4.1 billion euros, provided there's no ``significant worsening'' of the global economy. The figure is expected to rise to about 4.7 billion euros in 2009, he said, repeating an earlier target.
Higher Dividends
The postal operator anticipates raising dividends ``broadly in line with underlying earnings in coming years,'' it said today. That corresponds to an average annual increase of about 10 percent, Deutsche Post added.
UPS, the world's largest package-delivery company, reported on July 22 a 21 percent drop in second-quarter net income as fuel costs rose and the cooling U.S. economy damped domestic shipments. FedEx, the second-biggest shipper of packages in the U.S., reported its first quarterly loss in 11 years on June 18 because of rising fuel costs and a writedown on its Kinko's copy shop unit. FedEx said earnings are ``difficult to predict'' because of volatile fuel prices and an ``uncertain economic outlook.''
Deutsche Post bought DHL in 2002, adding a global express- delivery service to its network. The company expanded U.S. operations with the purchase of Airborne Express in 2003 and hasn't made a profit in the country since then. Deutsche Post said in May the U.S. business will continue losing money at least through 2011.
Previous turnaround efforts at DHL have been hampered by delivery delays in 2005 at a new package-sorting hub in Wilmington, Ohio. Deutsche Post scrapped a 2009 breakeven target for the U.S. division last year and wrote down the value of the unit by 594 million euros in the fourth quarter.
To contact the reporter on this story: Jann Bettinga in Frankfurt at [email protected].
Bloomberg.com: Worldwide
Deutsche Post Profit Falls 11% on DHL U.S., Postbank
By Jann Bettinga
July 31 (Bloomberg) -- Deutsche Post AG, Europe's biggest mail carrier, said second-quarter profit fell 11 percent on costs to revamp the DHL Express division's U.S. unit and after writedowns hurt earnings at Deutsche Postbank AG.
Net income fell to 254 million euros ($396 million), or 21 cents a share, from 285 million euros, or 24 cents, a year earlier, Bonn-based Deutsche Post said in a statement today. Sales rose 5 percent to 16.2 billion euros.
Chief Executive Officer Frank Appel forecast in May that the DHL U.S. express-delivery unit will suffer a loss of $1.3 billion this year as a slowing U.S. economy hurts demand for air shipments and the business struggles to compete with United Parcel Service Inc. and FedEx Corp. Postbank, the retail bank Deutsche Post may sell, reported yesterday a 21 percent drop in quarterly profit due to writedowns on debt-related investments.
``The reorganization in the U.S. is a big issue,'' Jochen Rothenbacher, an analyst at Equinet in Frankfurt, said today. ``It will remain very, very difficult'' for the postal operator's U.S. express-delivery business, he added.
Deutsche Post fell 45 cents, or 2.9 percent, to 15.09 euros in Frankfurt trading. The stock has declined 36 percent this year.
The company announced plans in May to limit losses at the U.S. express-delivery operations by shrinking the network, firing workers and transferring air deliveries to Atlanta-based UPS. The revamp will cost the mail carrier $2 billion through 2009, it forecast at the time. Appel said today the unit's reorganization is ``on track'' and that talks with UPS over a final contract are making satisfactory progress.
Postbank Sale
Deutsche Post is in talks with ``various potential partners'' about a possible sale of Postbank, Appel also told reporters today, adding that the postal operator hasn't yet decided if or when the business would be sold. ``We will not sell Postbank hastily,'' and Deutsche Post is under no pressure, the CEO said. ``The appetite for major acquisitions is limited,'' he said on a conference call with analysts today.
Deutsche Post, which owns 50 percent plus one share of Postbank, announced June 25 it's holding ``exploratory'' talks about a disposal of the lender as it focuses on mail, express- deliveries and logistics.
Postbank said yesterday that second-quarter net income fell to 119 million euros from 151 million euros a year earlier after writing down the value of securities by 143 million euros. The quarter's markdowns bring Postbank's total losses related to the U.S. subprime-mortgage-market collapse to 429 million euros. Earnings before interest and taxes at Deutsche Post's financial services unit, which comprises the Postbank holding, dropped 26 percent to 185 million euros in the quarter.
Postbank's Value
Postbank may fetch 9 billion euros to 11 billion euros, Carsten Werle, an analyst at Sal. Oppenheim in Frankfurt, wrote to investors this month. The bank has a market value of about 7.5 billion euros after the stock dropped 25 percent this year.
Reorganizing the U.S. express-delivery business cost the postal service 47 million euros in the quarter, causing Ebit at the Express unit to drop 52 percent to 31 million euros. The division is facing a ``weakening economic environment'' in the U.S., with customers switching to cheaper express-delivery shipments, Deutsche Post said, echoing statements from competitors such as UPS.
Appel today stuck to a full-year target that Ebit, excluding one-time costs or gains, will reach about 4.1 billion euros, provided there's no ``significant worsening'' of the global economy. The figure is expected to rise to about 4.7 billion euros in 2009, he said, repeating an earlier target.
Higher Dividends
The postal operator anticipates raising dividends ``broadly in line with underlying earnings in coming years,'' it said today. That corresponds to an average annual increase of about 10 percent, Deutsche Post added.
UPS, the world's largest package-delivery company, reported on July 22 a 21 percent drop in second-quarter net income as fuel costs rose and the cooling U.S. economy damped domestic shipments. FedEx, the second-biggest shipper of packages in the U.S., reported its first quarterly loss in 11 years on June 18 because of rising fuel costs and a writedown on its Kinko's copy shop unit. FedEx said earnings are ``difficult to predict'' because of volatile fuel prices and an ``uncertain economic outlook.''
Deutsche Post bought DHL in 2002, adding a global express- delivery service to its network. The company expanded U.S. operations with the purchase of Airborne Express in 2003 and hasn't made a profit in the country since then. Deutsche Post said in May the U.S. business will continue losing money at least through 2011.
Previous turnaround efforts at DHL have been hampered by delivery delays in 2005 at a new package-sorting hub in Wilmington, Ohio. Deutsche Post scrapped a 2009 breakeven target for the U.S. division last year and wrote down the value of the unit by 594 million euros in the fourth quarter.
To contact the reporter on this story: Jann Bettinga in Frankfurt at [email protected].
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Yes, we saw that. DPWN will most likely not change its mind on this course. Airline operations however aren't the reason for the massive losses in revenue they have been experiencing. It's the ground delivery network that has caused that. Late/lost/stolen material on an unbelieveable scale. Loads have dropped tremendously in the past year. Now with the DHL/UPS announcement, they are falling through the floor.
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Seems like DHL is in big time trouble in the US!
From what I see DPWN basically tried to make DHL profitable by cutting costs, using independent contract drivers and sacrificing customer service, instead of investing to expand the ground network. To further gain market share DHL wooed low margin customers and as reliability faltered even these customers started jumping ship.
Further more, gross mismanagement, for example rushed shifting of the entire DHL sort to Wilmington, coupled with stiff competition from UPS and FedEx as well as lack of ground infrastructure appears to have contributed to DHL’s demise.
Your post now clarifies for me that the flying part (ABEX and ASTAR) are not the culprits of DHL’s problems in the US except for slightly dated equipment.
What you write about rapidly falling volume levels, is to me is an indication that the DHL USA operation is imploding. DPWN is basically pulling the plug on a money losing operation. From what I have read, DHL USA appears to be past the point of no return and the company can be equated to a crumbling house of cards. With rising fuel prices it now makes even more sense for DHL to shift volume to UPS since it is not justifiable to keep flying half empty airplanes in their own system and also pay for a sort. The model they are adapting appears similar to TNT’s relationship with FedEx, where FedEx delivers packages in the US for TNT.
Even if ABEX/ASTAR were to keep flying for DHL, the root cause of DHL’s problems have not been addressed so the question really becomes; is DPWN willing to cough up billions of dollars to start from scratch and build new infrastructure in the US and go toe to toe with UPS and FedEx in an economy that is not firing on all cylinders?
Again, good luck guys!
From what I see DPWN basically tried to make DHL profitable by cutting costs, using independent contract drivers and sacrificing customer service, instead of investing to expand the ground network. To further gain market share DHL wooed low margin customers and as reliability faltered even these customers started jumping ship.
Further more, gross mismanagement, for example rushed shifting of the entire DHL sort to Wilmington, coupled with stiff competition from UPS and FedEx as well as lack of ground infrastructure appears to have contributed to DHL’s demise.
Your post now clarifies for me that the flying part (ABEX and ASTAR) are not the culprits of DHL’s problems in the US except for slightly dated equipment.
What you write about rapidly falling volume levels, is to me is an indication that the DHL USA operation is imploding. DPWN is basically pulling the plug on a money losing operation. From what I have read, DHL USA appears to be past the point of no return and the company can be equated to a crumbling house of cards. With rising fuel prices it now makes even more sense for DHL to shift volume to UPS since it is not justifiable to keep flying half empty airplanes in their own system and also pay for a sort. The model they are adapting appears similar to TNT’s relationship with FedEx, where FedEx delivers packages in the US for TNT.
Even if ABEX/ASTAR were to keep flying for DHL, the root cause of DHL’s problems have not been addressed so the question really becomes; is DPWN willing to cough up billions of dollars to start from scratch and build new infrastructure in the US and go toe to toe with UPS and FedEx in an economy that is not firing on all cylinders?
Again, good luck guys!
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FedEx interested in purchasing the automated sort equipment?
Rumor has it that FedEx has been seen in Wilmington and is interested in purchasing the automated sort equipment and move it to their new sort facility in Greensboro, NC. Any truth at all to this? I really hope for you guys that this is a bogus rumor.
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According to DHL management, it is a bogus rumor. It doesn't really matter much if they do purchase it or not. DHL in the US is done. We're carrying joke loads now. As one would expect, given the stellar leadership at DPWN.