Added validity for FedEx/DHL rumor?

[Clyde]

Rumor around the industry is that FedEx and DHL will enter into an agreement where FedEx will takeover most of DHL's domestic deliveries and in exchange DHL will do the same for FedEx's European volume.

Now, with the recent cancellation of FedEx's plans for a Paris domicile, does this add any weight to the above rumor?

 

[fob727]

http://www.smartmoney.com/bn/index.cfm?story=19990923073953

 

[hyflyin]

http://www.smartmoney.com/bn/index.cfm?story=19990923073953

Is an article from 1999 supposed to tell us something? Much can change in 9 yrs.

 

[fob727]

I'm sorry, wrong link and now I can't get it to paste.

It's from the April ALPA magazine. The article talks about the ongoing negotiations between the pilots and management, along with the holdups. I.E-housing, domestic storage and compensation. The compensation issue is mostly due to the high rate of taxation in France and China.

My point is that the Paris domicile is still in negotiations.

 

[flyinboxes]

My friend at FedEx said the negotiations are on going although CDG is canceled for now. DHL thing isn't going to happen. Looks like they have been talking though on a logistics deal with remote delivery options overseas and domestic, could even involve the USPS. Air is unaffected.

 

[FastHap]

Deutsche Post, Fedex talks on U.S. express partnership deal fail - report
April 15, 2008: 0302 AM EST


FRANKFURT, Apr. 15, 2008 (Thomson Financial delivered by Newstex) -- Talks between Deutsche Post World Net AG. and Fedex (NYSE:FDX) Corp. on a strategic partnership in the U.S. express market have collapsed, Handelsblatt reported.

'Talks with Fedex on a cooperation have fizzled out,' the report quoted Axel Funhoff, analyst at Dutch Bank ING Groep (NYSE:ING) N.V. as saying, attributing his information to sources close to the companies.

Deutsche Post's DHL express operations in the United States have posted unspecified losses since the German mail services company entered the market in 2004.

Chief executive Frank Appel in a recent interview said the company is in talks with potential partners but said Deutsche Post is not dependent on finding a partner.

The report said a spokeswoman for Deutsche Post declined to comment on the matter.

fr1/ejb
Copyright Thomson Financial News Limited 2008. All rights reserved.

http://money.cnn.com/news/newsfeeds/articles/newstex/AFX-0013-24500097.htm

 

[HeavyjetDC8]

....Air is unaffected.

As it should be, because Air isn't the problem. Both ABX and Astar move aircraft to destination on time but said aircraft regrettably don't contain an over abundance of payload.

 

[Colonel Savage]

...but said aircraft regrettably don't contain an over abundance of payload.

Well who's friggin fault is that?

BTW, if ASTAR cuts and runs, why couldn't Airborne go back to providing their own service like they did before. It would take some time, but with a coordinated transfer of business from DHL back to ABX it might get done.

Would be a good riddance.

 

[hvydriver]

Well who's friggin fault is that?

BTW, if ASTAR cuts and runs, why couldn't Airborne go back to providing their own service like they did before. It would take some time, but with a coordinated transfer of business from DHL back to ABX it might get done.

Would be a good riddance.

DHL would never do that.

 

[shooter]

Well who's friggin fault is that?

BTW, if ASTAR cuts and runs, why couldn't Airborne go back to providing their own service like they did before. It would take some time, but with a coordinated transfer of business from DHL back to ABX it might get done.

Would be a good riddance.

One thing we could all be sure of is that if DHL does not stop losing customers both ABX and Astar will be out of jobs. DHL can't keep bleeding money and remain here doing what we all do now. Either they need to fix the problems to get packages to move through the system or there will be nothing left from any of us.

I don't know if the now failed FedEx partnership would have saved the money DHL needed to return to the black, but I doubt that partnership would have been in the best interest for ABX and Astar air networks. I think DHL's stupidity and incompetence will (or already has) push both airlines between a rock and a hard place. Their arrogance will be the demise of many or possibly all from both companies and it pisses me off.

 

[hvydriver]

>Either they need to fix the problems to get packages to move through the system or there will be nothing left from any of us.<

Quite right Shooter. I've said many times, the problems are not with either airline, but with the sort/ground delivery network. You can't have a superior product running part time employees all over the place. You can't get them to care about it. This combined with a high turnover rate due to inferior pay and benefits has decimated the system. The question is, have the Germans waited too late, or not? I don't think we're going to have to wait much longer to find out. If they don't take some sort of signifigant action in May, we'd better fire up the printer.

 

[Whistlin' Dan]

Nothing's changed, really. The problems at DHL that led to them having to seek out an alliance with Fedex in the first place are still there.

Some people in the business are speculating that Fedex will let DHL stew in it's own juices for awhile, and that after DHL has lost another billion or two, Fedex be back, offering less favorable terms.

 

[ABXbooger]

I have to agree. If there aren't major changes made, Fedex won't have to do anything to have an "alliance" with DHL, they will just sit there and watch the demise then sweep up the pieces.

 

[rotor&wing]

Some people in the business are speculating .........

Guess that excludes you Jim. Don't you have a wall to paint or some carpet to install?

 

[Whistlin' Dan]

Guess that excludes you Jim. Don't you have a wall to paint or some carpet to install?

One of the problems that DP has had is that their $hit rolls downhill, touching every element of an operation. Of course, whether one picks up that $hit, plays with it, then throws it at somebody else is a matter of choice.

I guess some people just like the "feel" of it.

Since this isn't a thread about "carpets" or "paint" but about DHL, why don't you tell us about that letter in your file? You know, the one you got after your comments to your F/O last year?

She could have had your job, you know...

 

[rotor&wing]

why don't you tell us about that letter in your file? You know, the one you got after your comments to your F/O last year?

That's a new one on me, and I can assure you there are no letters in my file.

I like many others are just tired of you pretending to be an Astar pilot Jim. You hope to see the demise of this airline so you can justify your several firings from the company.

So why don't you tell us why the FAA lifted all your licenses?

 

[Whistlin' Dan]

That's a new one on me, and I can assure you there are no letters in my file.

I like many others are just tired of you pretending to be an Astar pilot Jim. You hope to see the demise of this airline so you can justify your several firings from the company.

So why don't you tell us why the FAA lifted all your licenses?

Why don't YOU tell ME? You're the official, self-appointed, Astar Gossip B1tch. If we want to know about anything or anybody, we just ask you. And if we don't ask you, you tell us anyway. I guess that's the nice thing about being a captain, nobody can tell you to STFU. Not that you would...

I guess it's true - Internet+Anonymity=Instant A$$hole.

BTW...since you're the "expert" on everything and everybody, would you mind citing your sources? "Heard it from the guy in the dickie" and "pulled it fresh from my own a$$ just 5 minutes ago" isn't good enough. If you weren't "there" and you didn't talk to "me" then where are you getting your info?

You're an embarrassment to the true professionals of the Astar pilot group.

 

[ABXbooger]

Hey, you two sound like squabbling children, but I gotta ask...several firings? How the h-e-double hockey sticks did you manage that?

 

[Clyde]

Hey, you two sound like squabbling children, but I gotta ask...several firings? How the h-e-double hockey sticks did you manage that?

Heck, that's nothing. At UPS there is a recently retired captain that UPS tried to fire 16 times!

 

[Whistlin' Dan]

Hey, you two sound like squabbling children, but I gotta ask...several firings? How the h-e-double hockey sticks did you manage that?

The answer is...you can't. That's why I'm calling BS on this.

 

[Fly Astar Jets]

The answer is...you can't. That's why I'm calling BS on this.

Ohhhh I don't know about that.

 

[abxdx]

Let's get this Thread back on its feet.. Anyone care to comment!

FRANKFURT (Reuters) - Shares in Deutsche Post (DPWGn.DE: Quote, Profile, Research) rose on Monday as traders cited market talk that U.S. package delivery company FedEx Corp (FDX.N: Quote, Profile, Research) was interested in buying a stake in the German mail and logistics group.
"There are rumors that FedEx wants to buy a 14-percent stake in Deutsche Post," one trader said.
Deutsche Post had no immediate comment.
Deutsche Post shares were up 1.5 percent at 20.40 euro by 6:34 a.m. EDT, while Germany's top-30 index .GDAXI was up 0.9 percent.

 

[Fly Astar Jets]

...
"There are rumors that FedEx wants to buy a 14-percent stake in Deutsche Post," one trader said.
....

My bet has always been some tie in with FDX using their substantial feeder air network and ground ops to support the smaller markets. Might be wishful thinking though.

FAJ

 

[time builder]

My bet has always been some tie in with FDX using their substantial feeder air network and ground ops to support the smaller markets. Might be wishful thinking though.

FAJ

My first inclination is to agree with you. DHL feeders, from what I've seen, have too much empty space in them, and fly to far fewer destinations than UPS and FEDEX.

On the other hand, from what I've seen of FEDEX feeders, they just keep loading up one Caravan after another to the same destination. How many Caravans depends on the load. During peak rushes you might see 4 flights, or 2 flights when it's light.

The point is, it's not a matter of empty space with the Caravans, it's a matter of how many you expect to launch, and adding DHL cargo would only require extra flights in most cases.

And heaven forbid on that note, we've already got enough 140 kt. cruisin, airway congesting Caravans in the system. Seems like every night, if I don't cancel IFR coming into the hub, I'll end up with a combination of speed restrictions, delay vectors, and even holding patterns just to provide spacing with these guys.

 

[b707guy]

And heaven forbid on that note, we've already got enough 140 kt. cruisin, airway congesting Caravans in the system.

An interesting observation. I've sat at the end of the runway at PDX awaiting takeoff clearance while a hailstorm (ok, a slight exaggeration...) of mostly FedEx Caravans swooped in to land. Fun to watch, but a bit frustrating at times. So if there is to be some collaboration among DHL and FedEx feeders, would those delays increase with more traffic, or could there be larger aircraft in the feeder's future?

 

[jmreii]

My first inclination is to agree with you. DHL feeders, from what I've seen, have too much empty space in them, and fly to far fewer destinations than UPS and FEDEX.

On the other hand, from what I've seen of FEDEX feeders, they just keep loading up one Caravan after another to the same destination. How many Caravans depends on the load. During peak rushes you might see 4 flights, or 2 flights when it's light.

The point is, it's not a matter of empty space with the Caravans, it's a matter of how many you expect to launch, and adding DHL cargo would only require extra flights in most cases.

And heaven forbid on that note, we've already got enough 140 kt. cruisin, airway congesting Caravans in the system. Seems like every night, if I don't cancel IFR coming into the hub, I'll end up with a combination of speed restrictions, delay vectors, and even holding patterns just to provide spacing with these guys.

we have too many aircraft in the system, period. "suck it up"

 

[time builder]

we have too many aircraft in the system, period. "suck it up"

Yup, I know.

 

[TheDogsBollocks]

And heaven forbid on that note, we've already got enough 140 kt. cruisin, airway congesting Caravans in the system. Seems like every night, if I don't cancel IFR coming into the hub, I'll end up with a combination of speed restrictions, delay vectors, and even holding patterns just to provide spacing with these guys.

Ah, the infernal Caravan-which only climbs due to the fact it consumes fuel in its tanks, a climb rate that is exceeded by the steam off my piss! Seeing them make an early turn out of PDX looking as though they're about to stall. Jeez, I could shoot one of them down with an air rifle!!!:laugh:

 

[Fly Astar Jets]

....a climb rate that is exceeded by the steam off my piss!.... :laugh:

Now THAT'S funny:beer:

FAJ

 

[time builder]

Ah, the infernal Caravan-which only climbs due to the fact it consumes fuel in its tanks, a climb rate that is exceeded by the steam off my piss! Seeing them make an early turn out of PDX looking as though they're about to stall. Jeez, I could shoot one of them down with an air rifle!!!:laugh:

And it's not just their performance that I'm frustrated with. It's the philosophy that you should never cancel IFR in a FedEx feeder. It could be 10 and clear in the entire western US, and they'd still hold on to their IFR all the way down to the visual approach into the hub.

If it's hard VFR, ok, their loss. All the Beeches, Metros, MU2s, 402s etc. will take the short cuts on the VFR transitions and get into the hub quicker.

On the other hand, in my case, my routing is typically mountainous with high MEA's until about 70 miles out, at which point I can easily accept a 4000ish foot ceiling to get in VFR. The problem is that ATC likes to assign holds, vectors and restrictions at about 90 miles out to provide spacing with the "infernal" caravans up ahead holding on to their IFR clearance, even in good VFR conditons.

To give my opinion the other question, yes, I could see some larger planes in the future, in fact I'm a big fan of the EMB 120's and ATR's in the feeder realm.

Seems like one of the biggest problems in the feeder world is aircraft aquisiton, and Beeches and Metros are in short supply. The only newer small feeder on the market is the Caravan (correct me if I'm wrong), I'd much rather see consolidation and larger turboprop aquisition.

Unfortunately, again on the other hand, another trend I see with UPS in particular is that every time they get enough cargo to upgrade to a larger plane (like the ATR or EMB), they just branch out to more destinations flying into smaller airports (often less than 30 miles down the road), and continue flying the smaller planes.