DHL failed. Return of Airborne ILN only option?

[shooter]

Let them go! The DHL/ABX deal should have never been approved to begin with. It straddled so many federal boundary limits for foreign purchase/acquisition/operation of a US corporate entity> It wasn't funny then, nor is it now. Everyone thought it would be a good idea at the time and all looked well, but you spit on the thousands of workers and families affected at CVG when DHL was permitted to pull-out of there leaving that airport and area holding the check for all the new construction, facilities and leases. No one cried foul then. DHL figured the US would just roll right over again if ILN sunk as well selling off the markets to the number 2 US Express Cargo Shipper. Frank laughed at as he packed his bags for ILN and he will rollinng all over the deck as the ship sets sail for Europe if you think anti-trusts scare him.

100-1/2

Hey 100 1/2, got that truck driving school phone number handy? I think I will need it no matter what filters out of this $#17 soup.

And for what it's worth, I do think anti-trust scares him. If it stops the deal from happening he said he will leave the US market. Well lets see shall we. Over 40% of his international product starts in, comes through or terminates in the US market. I say we see if he true to his word. We are all out of jobs if he stays with UPS or leaves. But something tells me he is full of the same soup we are swimming in and he KNOWS he cant leave the US market. So without UPS he will be forced to sharpen his pencil and learn how to run an express business in the US or forfeit 40% of his international freight.

 

[shooter]

DHL to Donate Hub to Community (Aircargo Asia Pacific, July 2)
DHL reportedly has offered its Wilmington, Ohio freight hub operation – both land and facilities - to the local community if the company signs its deal with UPS to have UPS handle all of DHL's US air cargo transport. DHL has said it expects to negotiate the UPS deal within three months.
DHL has said it would consider publicly donating the 2,200-acre Wilmington property if the UPS deal goes through, in order to help Ohio.
The property includes two runways, control tower and dozens of buildings, including more than one million square feet of cargo sorting space.
A DHL deal with UPS could cost 6,000 jobs at ABX Air, 1,200 at DHL and 1,000 at ASTAR at Wilmington, where DHL is the largest employer.
http://tinyurl.com/6pu67o

I had seen that they would consider donating the air park earlier, BBB. That was in response to the politicians asking them to do it. Nothing done, of course and maybe later they will consider to keep it for drag strip races. Until then ABX is planning on moving to Indiana. More ILN jobs lost.

 

[Big Beer Belly]

And for what it's worth, I do think anti-trust scares him. If it stops the deal from happening he said he will leave the US market. Well lets see shall we. Over 40% of his international product starts in, comes through or terminates in the US market. I say we see if he true to his word. We are all out of jobs if he stays with UPS or leaves. But something tells me he is full of the same soup we are swimming in and he KNOWS he cant leave the US market. So without UPS he will be forced to sharpen his pencil and learn how to run an express business in the US for forfeit 40% of his international freight.

My opinion only... but DHL will clearly not abandon its US business... too many of its clients demand service to/from the US. DHL might just close EVERYTHING in the US with yellow currently on it and farm its ENTIRE US ops to UPS... pickup, sort, ground/air transport, and final delivery.

DHL can't afford the current money losing biz model, yet must have access to the US market. It'll simply be a wholesale outsourcing, not a merger. I highly doubt UPS is interested in a merger of any sort, however limited, with DHL (DPWN.)

BBB

 

[shooter]

My opinion only... but DHL will clearly not abandon its US business... too many of its clients demand service to/from the US. DHL might just close EVERYTHING in the US with yellow currently on it and farm its ENTIRE US ops to UPS... pickup, sort, ground/air transport, and final delivery.

DHL can't afford the current money losing biz model, yet must have access to the US market. It'll simply be a wholesale outsourcing, not a merger. I highly doubt UPS is interested in a merger of any sort, however limited, with DHL (DPWN.)

BBB

Outsourcing to your competitor is called a joint venture and is against anti-trust laws. From what I understand from reading about it.

EDIT: I think it also is referred to in a horizontal merger verbiage. So basically DHL and UPS can call this deal anything they want to. But the reality of business models being presented as we know it today (without anything in a contract to pull from) seems to be able to be stopped by the DOJ. IMO

 

[EMBPILOT1]

Shooter, let me ask you a question. Let's say that this deal took another turn in another time and place. Let's say everything is the same with reguards to the change in vendor(not merger as you see it). Let's now say UPS and DHL agree to keep all 8000 employees at Wilmington with same pay and benefits. Do you think anyone would care?

Now you have your opinions, which I respect. But I have other, I believe more educated opinions which lead me to believe otherwise. I have said it before and will say it again, that if it were not for the terrible loss of jobs, this would be like a fart in the wind. The politicians are doing what they do, which is to protect their district. They can call it anti-trust, you can call it anti-trust, but at the end of the day, it is nothing more than an attempt to save jobs.

And no the DOJ cannot stop a change in vendor, even if it is with a competitor. Actually DHL could claim that not going forward with the UPS deal could lead to even less competition.

The bottom line is that someone is going to have to prove that this deal is going to be bad for the consumer. When you threaten to pull out of the US market and leave 2 companies to choose from, well, that ain't good for the consumer.

 

[shooter]

Shooter, let me ask you a question. Let's say that this deal took another turn in another time and place. Let's say everything is the same with reguards to the change in vendor(not merger as you see it). Let's now say UPS and DHL agree to keep all 8000 employees at Wilmington with same pay and benefits. Do you think anyone would care?

Now you have your opinions, which I respect. But I have other, I believe more educated opinions which lead me to believe otherwise. I have said it before and will say it again, that if it were not for the terrible loss of jobs, this would be like a fart in the wind. The politicians are doing what they do, which is to protect their district. They can call it anti-trust, you can call it anti-trust, but at the end of the day, it is nothing more than an attempt to save jobs.

And no the DOJ cannot stop a change in vendor, even if it is with a competitor. Actually DHL could claim that not going forward with the UPS deal could lead to even less competition.

The bottom line is that someone is going to have to prove that this deal is going to be bad for the consumer. When you threaten to pull out of the US market and leave 2 companies to choose from, well, that ain't good for the consumer.

A change in vendor would be to use World or Amerijet. Using UPS is using your competitor. I would expect your "more educated opinions" would understand who is a competitor and who is not. Not that I am judging your "more educated opinion". I understand it takes much more know how to read the misspelled labeling in the Brazilia. :laugh: just kidding.

I do not know if the DOJ will kill this deal due to anti-trust any more than you know they will not. I admit that, you seem to think you are above it. But from what I have read and understand, there is very strong case that it will be heard by the DOJ and has a very strong chance to be stopped as a result. If your "more educated opinions" can show me different, I am willing to listen.

EDIT:

When you threaten to pull out of the US market and leave 2 companies to choose from, well, that ain't good for the consumer.

You do NOT turn your back on US law due to threats, and the end result would be the same; 2 air options, which you just said "ain't good for the consumer".

 

[EMBPILOT1]

Father retired attorney
Uncle attorney
Uncle retired Federal judge in the great state of Ohio

I think I will will respect what they say more than anything I read on FI.

your lawyers always say you have a great case when they are taking your money. Your always gonna win too. I would rather listen to someone who does not have a dog in the race. :beer:

 

[Big Beer Belly]

I have said it before and will say it again, that if it were not for the terrible loss of jobs, this would be like a fart in the wind. The politicians are doing what they do, which is to protect their district. They can call it anti-trust, you can call it anti-trust, but at the end of the day, it is nothing more than an attempt to save jobs.

And no the DOJ cannot stop a change in vendor, even if it is with a competitor.

I agree completely. In my admittedly lay perspective I see no anti-trust issue. DHL will continue to offer its services after the UPS deal just as they do now. A change in vendors does not reduce or eliminate competition and will be largely transparent to DHL customers. I see no anti-trust issue with a simple change in vendors.

Beyond what's stated above, all I've read is a LOT of what if's, what might be's, this must be what they're planning, hyperbole and innuendo, conspiracy theories, idle ramblings, etc... The facts are DHL expanded their presence in the US domestic market through acquisitions of existing companies and through poor management, poor execution and very tough embedded competition they find themselves in a situation of accelerating losses. They chose to switch US vendors and radically overhaul plans for a substantial domestic presence in the US beyond what is minimally required to service their international product.

By choosing this course of action, they fix and dramatically reduce their future capital outlays as there is no need to upgrade/expand sort facilities, increase workers, modernize aircraft fleets, etc... If their market share is reduced in the US then so is their bill to UPS, unlike their current arrangement of large fixed costs.

They can even argue it is more environmentally friendly to "capacity share" and not fly around a bunch of half-empty fossil fuel burning, greenhouse gas emitting, climate changing evil machines!


BBB

 

[fob727]

Norm, you're back!

We haven't had anybody spew BS here for a while. I guess you didn't get asked to the hearing today.
Maybe we'll see you and hear more nonsense next month in D.C.

If it doesn't agree with your opinion, it's hyperbole, innuendo, and idle ramblings.

A$$hole!

 

[Big Beer Belly]

Norm, you're back!

We haven't had anybody spew BS here for a while. I guess you didn't get asked to the hearing today.
Maybe we'll see you and hear more nonsense next month in D.C.

If it doesn't agree with your opinion, it's hyperbole, innuendo, and idle ramblings.

A$$hole!

fob... your incessant whining, keen intellect and vocabulary is predictable... brings a smile to my face.

BBB