DHL on CNBC

[Quasar]

http://www.cnbc.com/id/15840232?video=761048312

 

[abxdx]

http://www.cnbc.com/id/15840232?video=761048312

Should have asked the tough questions? Like, What would you like to say to the 7000 people you just put out of work.

 

[shooter]

What a piece of garbage. uke: I wonder how much DPWN paid CNBC for that farce?

You want tough questions? How about; How is it your competitors are able to continue to fly their freight? And that they have growth? Oh wait, you say you have been losing customers and oil is your red herring rather than say you have screwed up the operation to the point you feel its irreversible? Well, how did that happen? Was it the aviation operations that got you to the point of such a low customer base it is no longer affordable to fly your own packages? It's not? Well, then what have you done to correct the problem that has got you to this point? Nothing? Really? Nothing? Oh, by the way. I call BS on your "same as what the USPS does" talk. The USPS does not allow FedEx to sort their packages, only fly them. They know that if you allow your customers names and volumes known to your competitor, they just might use that to their advantage. But since you were so smart with the US operations, I am sure you know all will be fine.

They prove themselves to be dopes every time they open their mouth.

 

[shooter]

I was going to wait until the ink was on the contract with brown before jumping ship. I now recommend against that option and getting the F' OUT NOW! If you wait, you may be setting yourself up for DHL to turn the screw in you harder.

With the absolute need to have 100% focus on the UPS Aviation component and seeing that through to an accelerated execution, I have asked Dave Vernon to lead this through to implementation. ~ Ken Allen (bold added for emphasis by me)

http://www.scdigest.com/assets/On_Target/08-06-04-1.php?cid=1712

 

[shooter]

<H2>Ohio: DHL committed to UPS

Lt. Gov. Fisher says it's unlikely DHL will reconsider deal that will cost thousands of jobs at Wilmington hub.


By John Nolan
Staff Writer

Thursday, June 05, 2008
</H2>DHL's senior management is committed to following through on its plan to hire United Parcel Service to fly DHL packages domestically even though it will cost thousands of jobs at its Wilmington air freight hub, Ohio Lt. Gov. Lee Fisher said Wednesday, June 4.

"It's fair to say that they were pessimistic about the chances of being able to reconsider their decision," Fisher said by telephone after he and Gov. Ted Strickland met Wednesday with DHL executives in Columbus. "We have a huge challenge on our hands to overcome the momentum of DHL's decision to pursue an agreement with UPS."

The state will do everything it can to save the jobs, including investigating whether a DHL-UPS deal — to be finalized within three months — would violate U.S. antitrust law by reducing competition in the express package delivery market, Fisher said.

Fisher said DHL appears determined to conclude a contract with UPS, but also indicated a willingness to work with the state and Wilmington officials to find possible alternative uses for DHL's North American air freight sorting hub that could support other jobs there. How soon that would happen, or what the alternative use would be, no one has been able to say.

DHL will work with Ohio and local authorities, company spokesman Jonathan Baker said.

John Mullen, DHL's global chief executive, and Wolfgang Pordzik, its top U.S. official for governmental relations, met with Strickland and Fisher a day after meeting with Senate and House members in Washington, during what the company described as "courtesy visits."

U.S. Rep. Mike Turner, R-Centerville, said he met with Mullen and tried unsuccessfully to persuade him to reverse DHL's decision. It is unfair to Wilmington which has supported DHL, Turner said.

"The usual expectation when a company has losses is that they fire someone in the company, and not fire the town," Turner said.

DHL, which lost $900 million on its U.S. delivery operations last year, surprised state and Wilmington officials last week by announcing it would hire UPS and end the U.S. delivery work it gives to two carriers at Wilmington, ASTAR Air Cargo and ABX Air. ABX also operates the hub for DHL, along with other sorting facilities nationwide.

http://www.daytondailynews.com/n/content/oh/story/business/2008/06/04/ddn060408dhlweb.html

 

[AV80R]

... Oh, by the way. I call BS on your "same as what the USPS does" talk. The USPS does not allow FedEx to sort their packages, only fly them...

I didn't think we were supposed to sort your packages? I'm at brown and just flew with a senior captain who heard that we would only transport DHL packages that were already sorted? Is that info wrong?

I really feel sorry for you guys and hope that DHL will find some replacement routes and also for preferential interviews here at Brown IF we start hiring because of the deal - which personally I don't think we will. They'll just bring some old DC8s back from the graveyard and many over 60 guys who were actually thinking about retiring will decide to stay... You know, so the ones who have plenty get more plenty...

Btw, until just a few weeks ago the word on the street was the Fedex would do all that flying. I read it in several papers and my friends at purple had heard similar stories... I'd like to know what went wrong in their negotiations? UPS likes to do things their own way and doesn't like to sell their services at a bargain price - we were all really surprised here when we heard about it...

 

[Big Beer Belly]

I didn't think we were supposed to sort your packages? I'm at brown and just flew with a senior captain who heard that we would only transport DHL packages that were already sorted? Is that info wrong?

I really feel sorry for you guys and hope that DHL will find some replacement routes and also for preferential interviews here at Brown IF we start hiring because of the deal - which personally I don't think we will. They'll just bring some old DC8s back from the graveyard and many over 60 guys who were actually thinking about retiring will decide to stay... You know, so the ones who have plenty get more plenty...

Btw, until just a few weeks ago the word on the street was the Fedex would do all that flying. I read it in several papers and my friends at purple had heard similar stories... I'd like to know what went wrong in their negotiations? UPS likes to do things their own way and doesn't like to sell their services at a bargain price - we were all really surprised here when we heard about it...

AV8OR,

The only way this makes sense for UPS is to use existing infrastructure (i.e., acft, sort facilities). UPS will fly DHL cans from our existing gateways via existing space on our existing acft to our existing sorts which have additional capacity. DHL pkgs will be sorted and the process reversed.

As Mullen said yesterday on CNBC, look for more of these "infrastructure sharing" arrangements around the world.

DHL is basically abandoning the US domestic market. Infrastructure is being reduced by 34%. What is left is a skeleton which they believe will be adequate to service their international origin and destination product. Even so, much of the final mile delivery will be outsourced to the USPS. This arrangement allows DHL to focus on the international market and still have a means of servicing the US "profitably" (or so the plan goes.)

You're absolutely correct that this is a HUGE departure from UPS's past business practice and was a surprise for nearly everyone. I (and others) attribute this to UPS's new CEO thinking "outside the box". Davis is not a classical UPSer in that he started his career at an aviation technology company that UPS later acquired. Perhaps his lack of brown "inbreeding" and ability to see the merits of cooperating with a rival, where appropriate, had much to do with this deal.


BBB

 

[shooter]

I think DHL will be taking UPS international once you guys fly it to DHL gatways abroad in the near future. If you watch Mullen in that CNBC video, when asked that question, he gulps a "we are not talking about that right now" response.

 

[AV80R]

I think DHL will be taking UPS international...

Do you mean we will be flying DHL stuff overseas or they will be flying ours? I doubt we will be flying DHL stuff outside North America as DHL is huge overseas and hardly need our "help." Of course, you never know in this business...


BBB - Davis come from II Morrow, correct?

 

[hvydriver]

Do you mean we will be flying DHL stuff overseas or they will be flying ours? I doubt we will be flying DHL stuff outside North America as DHL is huge overseas and hardly need our "help." Of course, you never know in this business...

They will be flying UPS freight in Europe and Asia. This deal is setting up to be much bigger than just the US. And no pilot group, even the IPA, will be able to stop it.

 

[Big Beer Belly]

I think DHL will be taking UPS international once you guys fly it to DHL gatways abroad in the near future. If you watch Mullen in that CNBC video, when asked that question, he gulps a "we are not talking about that right now" response.

Funny... I read it exactly the other way. Mullen clearly is on board with the concept of "capacity sharing", as he calls it, and left open the possibility intl DHL volume might be outsourced in the future to UPS.

Given the HUGE investments UPS is making in international infrastructure (sorts in Shanghai, Shenzen most recently), purchasing local delivery services all over Asia and branding them brown... I highly doubt UPS intends to bypass their own investments/infrastructure and outsource... but one never knows.

BBB

 

[AV80R]

They will be flying UPS freight in Europe and Asia. This deal is setting up to be much bigger than just the US. And no pilot group, even the IPA, will be able to stop it.

Ok, we'll just scrap our scope protection then...

I think that UPS needed extra volume due to the slowing economy while DHL needed extra lift to offload their money losing parts of the US business - it’s a marriage of convenience. Once the economy improves and we need the space ourselves, and/or once DHL finds a permanent solution to their 'lift equation' this marriage will be dissolved in a heart beat... Then again, tomorrow we all might be flying for Great Wall Airlines...


Off the subject - a buddy of mine who flies for SAS said he overheard a couple of DHL pilots in Europe (they spoke in German) worrying about some of their jobs going to an Indian Airline that DHL controlled...

 

[shooter]

Funny... I read it exactly the other way. Mullen clearly is on board with the concept of "capacity sharing", as he calls it, and left open the possibility intl DHL volume might be outsourced in the future to UPS.

Given the HUGE investments UPS is making in international infrastructure (sorts in Shanghai, Shenzen most recently), purchasing local delivery services all over Asia and branding them brown... I highly doubt UPS intends to bypass their own investments/infrastructure and outsource... but one never knows.

BBB

And Astar thought the same when the new sort in CVG was dumped for ILN. Everyone thought the same when DHL dumped over a billion into ILN. As worker bees, we never know what these suits are thinking. All I know anymore is ask yourself if you cost more than the other guys. If you do, don't unpack. Very irrational no matter how you slice it. Another good reason for me to say goodbye to professional aviation. These guys are CRAZY! :nuts:

 

[AV80R]

... As worker bees, we never know what these suits are thinking. All I know anymore is ask yourself if you cost more than the other guys. If you do, don't unpack. Very irrational no matter how you slice it. Another good reason for me to say goodbye to professional aviation. These guys are CRAZY! :nuts:

Very true and you just never know. However, UPS just celebrated their 100 year anniversary in August of 2007 - it's a company that's absolutely paranoid about doing things ITS way and no other way! This need for control which we normally joke about might be a good thing for us in this particular instance...

 

[hvydriver]

Funny... I read it exactly the other way. Mullen clearly is on board with the concept of "capacity sharing", as he calls it, and left open the possibility intl DHL volume might be outsourced in the future to UPS.

Given the HUGE investments UPS is making in international infrastructure (sorts in Shanghai, Shenzen most recently), purchasing local delivery services all over Asia and branding them brown... I highly doubt UPS intends to bypass their own investments/infrastructure and outsource... but one never knows.

BBB

BBB,

I'm not picking on you guys. DHL has a network that rivals Purple/Brown outside of the US. Just a theory. All you have to do is look at Astar's history to know that when a big deal comes down the pike, scope isn't squat. (Not trying to stir anything up ABX guys. Just trying to illuminate to the UPS crowd that paper means nothing in a multibillion dollar deal.)