Boeing to Supply 767's for DHL US Operations

[Jurassic Jet]

http://biz.yahoo.com/prnews/070308/sfth019.html?.v=89


Boeing to Supply Six 767 Freighters to Re-fleet DHL U.S. Operations
Thursday March 8, 8:11 am ET

SEATTLE, March 8 /PRNewswire-FirstCall/ -- Boeing (NYSE: BA - News) and DHL agreed on an order for six 767-300ER (Extended Range) Freighters. DHL, wholly owned by Bonn, Germany-based Deutsche Post World Net, is a leading international express delivery and logistics company. The order is valued at $894 million at list prices. This order has previously been accounted for on Boeing's Orders & Deliveries Website.


The Boeing 767 Freighter has excellent fuel efficiency, operational flexibility and low noise levels. The airplane meets and exceeds international Chapter 3 noise requirements.
"Adding the wide-body 767 Freighter to our network allows us to grow our business considerably," said John Mullen, CEO DHL Express. "This acquisition will support the DHL Express strategy with particular emphasis on renewing and updating the network supporting operations that serve the U.S. market." DHL has successfully established a solid number 3 market position in the U.S. and is striving to expand its overall leadership in the global express business.
In its annual World Air Cargo Forecast, Boeing predicts a market demand over the next 20 years of 841 airplanes in the 767-size, medium wide-body category of which 244 will be new production freighters. Since the 767 Freighter's launch in 1993, seven customers have ordered a total of 83 airplanes.

"DHL's high-volume express operations require a freighter that has proven capabilities in terms of utilization and schedule reliability. The 767 Freighter has exactly those attributes," said Marlin Dailey, vice president Sales for Europe, Russia and Central Asia, Boeing Commercial Airplanes. "Boeing's complete line of freighter airplanes allows us to offer our customers the right product to match their needs."

Boeing offers its customers a complete line of production and conversion freighters ranging in size from the standard body of 18 tonnes (Boeing 737-700 Convertible) and under 45 tonnes (757 Freighter) to medium wide-bodies such as the 767 (40-75 tonnes) and large freighters over 75 tonnes such as the Boeing 777 and 747.


Source: Boeing Co.

 

[abxdx]

Who will be flying these puppies? ASTAR?????

 

[hvydriver]

I wouldn't rule out DHL UK or EAT either.

 

[abxdx]

I wouldn't rule out DHL UK or EAT either.

to fly in the U.S.???

 

[hvydriver]

The press are the ones who are saying it's for DHL US. But, here is what Mullen says in the article: "Adding the wide-body 767 Freighter to our network allows us to grow our business considerably," said John Mullen, CEO DHL Express. "This acquisition will support the DHL Express strategy with particular emphasis on renewing and updating the network supporting operations that serve the U.S. market."

A 300ER would obviously be used on oceanic routes. Note what Mullen says above: "renewing and updating the network supporting operations that serve the U.S. market." I'm not saying that the a/c will be going to DHL UK or EAT. But I wouldn't rule them out, either.

 

[Cargoav8or]

Who will be flying these puppies? ASTAR?????

Quit, I almost fell out my chair laughing. Part of the 4.5 million given to the mighty DAZ will be used bring them up to CATII certification.

Watch out ABX, Astar is coming.:laugh:

No Concessions!!

 

[AV8OR]

Alright,

Might as well splash in the kiddie pool here for a minute.....

A. Hvydriver's got it right, in that DHL can punt these to anybody. Maybe they're going to EAT to do JFK-BRU-BAH. Bottom line, know one knows.

B. Have ya even considered that they might be going to the real (as in they own 49% of em) DHL US airline.....Polar?

C. The difference between Astar pilots and ABX guys is, we've been in this rodeo riding The German Bull a lot longer . So we are exceedingly sceptical we'll see those aircraft. And pretty sceptical ABX'll see em. See, we remember at the old-old hub, when DHL finally decided to build the brand new $300mill sort. We remember seeing the mockups of the ramp, with 76's and 75's and all that stuff. And we remember all the ceo's that promised 75's and 76's. So, I don't think you'll see anybody on the AStar side getting moist with anticipation at the 767 press release. It's just another smoke bomb.

D. If ABX was getting em, don't ya think Hete'd have a PR out right now? I know Astar would. Heck, we put out a glowing press release when JD retires a turd to the john.

 

[nitefr8dog]

you are right if common sense played in ABX would be the logical choice with its own maintence,avionics,engineers, tech support, simulators, FAA approval ,training program in place, 3-4 times less expensive ACMI ,etc,etc. Which is the very reason ASTAR will most likely be flying them!

 

[xspud]

ATI pilots have been talking about rumors of 767s and DHL contracts, too.

In the beginning I thought that DHL was smart enough not to try to bring a third domestic carrier into the mix/mess at ILN, I've seen enough now to know better.

But I don't think the -300ER makes any sense whatever for the domestic routes. Seems like these airplanes would be crossing the ponds.

Article in the Miami Herald yesterday said "Deutsche Post's DHL is looking to expand overseas shipments from the United States," according to DHL exec VP of Ops.

I haven't seen any reason to believe that ABX would fly them (though it obviously would make sense logistically, EAT is flying 757's but I can't think of any other DHL carrier/contractor that's ready to fly the 767 immediately). DHL has a ton of potential and I'm still hopeful they may figure it out in the future, but I have zero expectations from them right now.

"DHL just does not compete with FedEx and UPS when it comes to service and reliability," Daniel Ortwerth, analyst, Edward Jones & Co.

"The U.S. customer just does not tolerate that," Satish Jindel, president, SJ Consulting.

 

[xspud]

If ABX was getting em, don't ya think Hete'd have a PR out right now?

Like I said above, I have zero expectation that ABX will fly these airplanes. But, if we were, I also wouldn't expect to see a press release from ABX until we'd seen it in writing from other places. ABX never makes an announcement until it's signed, sealed and delivered.

 

[AV8OR]

Hey,

On a positive note....this'll probably bring the "ILN ops" thread to a screaching halt. Sweet.

 

[penguin22]

Well this oughta spice up the conversation!

But there's no need to speculate who's gonna fly the airplanes. Whistlin'Dan already told us. DHL's gonna give the airplanes to either FDX or UPS. Something about a strategic alliance.

 

[Narco-leftseat]

Hey,
How many human heads can a 767-300 hold ?

 

[Whistlin' Dan]

But there's no need to speculate who's gonna fly the airplanes. Whistlin'Dan already told us. DHL's gonna give the airplanes to either FDX or UPS. Something about a strategic alliance.

What I said was that given recent developments, DHL might well be considering farming out their U.S. distribution to either FedEx or UPS in exchange for some assistance in accessing markets currently served by DHL International.

Think about it. For all their foibles, DHL is still the undisputed "Big Dog" in many foreign countries. It's here that their service sucks, and it's here that they're hemmoraging money.

Meanwhile, FedEx and UPS have a virtual lock on making reliable overnight connections between any 2 mailboxes (or doorways) here in the United States. Should either one team with DHL, it would accelerate that company's presence in the International market by at least 5 years. I don't know if that's what DHL is hoping will happen, but it would explain their resistance to investing in infrastructure here.

As for the -300's, it's a sure bet that ABX won't get them because they have cargo doors, and Astar won't get them because they're new.

 

[MACHTRANSDUCER]

what about the abus lease expiration?

How about these replacing the bus and supplementing the dod charters astar does already instead of using the 8's, alot cheaper?

 

[abxaviator]

What I said was that given recent developments, DHL might well be considering farming out their U.S. distribution to either FedEx or UPS in exchange for some assistance in accessing markets currently served by DHL International.

Think about it. For all their foibles, DHL is still the undisputed "Big Dog" in many foreign countries. It's here that their service sucks, and it's here that they're hemmoraging money.

Meanwhile, FedEx and UPS have a virtual lock on making reliable overnight connections between any 2 mailboxes (or doorways) here in the United States. Should either one team with DHL, it would accelerate that company's presence in the International market by at least 5 years. I don't know if that's what DHL is hoping will happen, but it would explain their resistance to investing in infrastructure here.

As for the -300's, it's a sure bet that ABX won't get them because they have cargo doors, and Astar won't get them because they're new.

So, let me be sure I understand. DHL is going to line UPS or FDX coffers by hiring them for US distribution AND help one of them to compete with DHL internationally!?! Barkeep! I'll have what he's having!!

As for the cargo doors, all our recent and future deliveries have doors, but you knew that.

 

[Browntothebone]

http://www.airlinepilotforums.com/showthread.php?t=6069

My prediction for how the integrator industry will shake out within the next 2 to 15 years, i.e. at some point after Open Skies goes through and Fred Smith steps down:

1. DHL http://www.dpwn.de/dpwn?tab=1&skin=h...File=20 06675 will acquire FedEx to gain instant market share in the US.
2. UPS will have to counter by acquiring TNT http://www.tnt.com/.

or:

1. UPS will acquire TNT http://www.tnt.com/.
2. DHL will have to counter by acquiring FedEx.

Long term there is not room for 3 integrators and the Coke and Pepsi of express volume will end up being DHL and UPS. Schenker http://www.schenker.com/english/company/index.html will eventually also be absorbed by either DHL or UPS.

 

[penguin22]

What I said was that given recent developments, DHL might well be considering farming out their U.S. distribution to either FedEx or UPS in exchange for some assistance in accessing markets currently served by DHL International.

Think about it. For all their foibles, DHL is still the undisputed "Big Dog" in many foreign countries. It's here that their service sucks, and it's here that they're hemmoraging money.

Meanwhile, FedEx and UPS have a virtual lock on making reliable overnight connections between any 2 mailboxes (or doorways) here in the United States. Should either one team with DHL, it would accelerate that company's presence in the International market by at least 5 years. I don't know if that's what DHL is hoping will happen, but it would explain their resistance to investing in infrastructure here.

As for the -300's, it's a sure bet that ABX won't get them because they have cargo doors, and Astar won't get them because they're new.

Yes, yes! Of course you're right!! We're all Doomed !!


DOOMED !!

 

[Whistlin' Dan]

So, let me be sure I understand. DHL is going to line UPS or FDX coffers by hiring them for US distribution AND help one of them to compete with DHL internationally!?!

I suppose you could characterize it that way. But I think it would be more accurate to say that DHL would become a partner of UPS or FedEx, either through an outright purchase/merger or through some form of "strategic alliance" as previously mentioned. The latter would see both companies retain their respective corporate identities, which would ease any concerns that might be raised about "foreign ownership." Such an arrangement would allow both companies to focus on their core areas of expertise, that being International (DHL) and domestic (FedEx/UPS). DHL never capitalized on the explosive growth of overnight express in the 80's and 90's, and even if they were to spend the 3-5 billion dollars it would take to become competitive, it's unlikely they could make any significant inroads into the domestic market now. That ship has sailed...

Both UPS and FedEx have major hubs on both the east and west coasts that are fully capable of handling distribution of the international product anywhere in the continental United States. The domestic product would be routed through Louisville (or Memphis) as they are now.

And what would Polar's role be in all this, you ask? They would be there for the same reasons they are now...to keep some downward pressure upon, and a back-up labor force to, whatever company DHL partners with. Who knows...maybe ABX/Astar would be kept on "life-support" for similar reasons?

Please, I'm not trying to "prophesize doom" here, just point out some areas of exposure that the pilots of both ABX and Astar face in the near future. The guys at Astar have had sunshine blown up their a$$es for years, and are only now realizing that their continued presence in the DHL system is about as assured as that of "Moe," the guy who reloads the snack machine in the employee cafeteria every Tuesday.

 

[Whistlin' Dan]

Yes, yes! Of course you're right!! We're all Doomed !!

Well, yes, it IS possible.

Cranio-rectal insertion HAS been known to cause death in pilots.

 

[ABXbooger]

Why would they replace the A300's with 767-300's? Not exactly an apple to apple thing? If the buses were running international now, I would think that, but they aren't and never have. So replacing the buses with the 767-200's and then using the 767-300's for international, regardless of who flys them.

I do think ABX has the inside track on these planes, though. As previously stated, basically all they have to do is show up and we could fly them, spares, training, MX, etc all turnkey. But, Joe is pulling planes away from DHL to go to Japan, they (DHL) might take that as a slap...

 

[abxdx]

But, Joe is pulling planes away from DHL to go to Japan, they (DHL) might take that as a slap...

I do not think Hete is pulling away any planes from DHL, the new ones coming online will go to Japan. We are not forfitting any of our flying for DHL to do this contract...

 

[Whistlin' Dan]

Why would they replace the A300's with 767-300's? Not exactly an apple to apple thing? If the buses were running international now, I would think that, but they aren't and never have. So replacing the buses with the 767-200's and then using the 767-300's for international, regardless of who flys them.

You're right, 767-300's aren't a direct replacement for anything in DHL's domestic service except maybe the DC-8, and they're not utilizing those to any great extent. The -300's will be utilized overseas, flown by whichever ACMI operation submits the lowest bid. Maybe "Air Chihuahua" or somebody. Just because DHL can no longer employ illegals in the sort doesn't mean they couldn't use them to fly their planes. What happens in Kazakhstan stays in Kazakhstan, know what I mean?

I do think ABX has the inside track on these planes, though. As previously stated, basically all they have to do is show up and we could fly them, spares, training, MX, etc all turnkey. But, Joe is pulling planes away from DHL to go to Japan, they (DHL) might take that as a slap...

Nobody reading this post in their native language has an inside track on these planes. The closest any of us will get to them is when we're riding the jumpseat, if that's even possible. Assuming the reported value of the contract (150 mil per unit) is correct, it's fair to assume that a comprehensive spares and training package is included with the deal. Plus, they're new airplanes, and Boeings at that. After a few months shakin' 'em down, they'll be pretty reliable birds for the next 15 or 20 years.

Another thought just occured. Doesn't UPS have a bunch of 767-300's on order? Now THAT would imply some commonality between fleets, in the event that some sort of partnership with them were to be reached in the future. See my above post...

 

[Classicdriver]

Not sure how this will mix in, but DHL has indicated to Atlas/Polar that they will be handling all the trans-ocean flying at some point. Atlas is interested in sharing and flying smaller planes with the right deal? Just another thought. I have no inside info.

 

[abxaviator]

Dan and his alliance theories are beginning to make sense (thanks barkeep). I bet these get painted brown for real commonality.

 

[abxdx]

Not sure how this will mix in, but DHL has indicated to Atlas/Polar that they will be handling all the trans-ocean flying at some point. Atlas is interested in sharing and flying smaller planes with the right deal? Just another thought. I have no inside info.

Where did you read or hear that DHL had indicated this? And how do you know what Atlas is interested in?

 

[abxdx]

You're right, 767-300's aren't a direct replacement for anything in DHL's domestic service except maybe the DC-8,

Are you off your rocker, how could you possibly think that a 767-300 would be a direct replacement for the FLYING Semi........................

 

[Classicdriver]

Where did you read or hear that DHL had indicated this? And how do you know what Atlas is interested in?

From meetings our Union MEC has had with the DLH management and union folks in Germany. Also Atlas has said many times that they are interested in a smaller plane if it was the right situation. In fact, they just mentioned it again in their quarterly report conferance call on Thursday. Also they said in that same call, that the current deal with DHL may be just the beginning.

 

[AV80R]

to fly in the U.S.???

Absolutely! Isn’t that what Open Sky agreement was all about?

After all, doesn’t FedEx and UPS fly within Europe?

Note, I’m not saying I agree with it, I’m just saying people wishing for Open Sky deal need to be careful what they’re wishing for, it might bite them.

 

[tired_pilot]

Rumor that Express.net is in the running the operate the 767's. Rumor and rumor only but from reliable source.