DHL in talks to sell US Unit to FDX

[nitefr8dog]

Had a talk with a very senior DHL person over beers on Friday. Whilst he couldn't, or wouldn't, be very precise he mentioned the following options:

1) DHL pulls out of NA all together.

2) DHL sells the NA domestic operation to another operator (i.e. FedEx)

3) DHL sells the NA domestic operation to FX and FX sells the EU operation to DHL

4) DHL "pulls a FedEx" and decides to service only major business areas in NA.

5) OPS normal, as far as operations goes, but with major contractual changes (ABX is presently being paid cost +X for every flight performed for DHL).

1 and 3 seems the least likely, but I've no idea which way the tide will turn.

Latest plans will see my sorry self amongst the corn fields in mid May. If that's firmed up, suggest you'll allow me to take whomever fancies going out for a couple of brews and a meal on the expense account. I can smoke outside in May

I personally do not think you have clearance to talk to the clerk in the DHL mailroom, or maybe that is who you are talking to! DHL pulling out of US all together would be just like the Germans 60 years ago start a project then commit suicide. Dp has said over and over they have no plans to pullout of the US market.So the people you are talking to do not know jack.

 

[EuroWheenie]

I personally do not think you have clearance to talk to the clerk in the DHL mailroom, or maybe that is who you are talking to!

His title is something along the lines of Global Aviation Director; hardly mailroom material. I'll let him know that an ABX driver disapproves of his abilities.

 

[fozzie]

Dhl

I guess you have us all terrified now that you are going to turn in our comments to the ever powerful and all knowing Global Aviation Director. Wow, I am so impressed. Your previous comments on the possible scenarios and outcomes of DHL are so enlightening and forward thinking. It seems to me that your main purpose is to stir the pot!! Euro, what ever happens---- happens. If I have to seek a new job, then I will accept that fact and go forward with my life and accept the challenge. People like you disgust me. You sit in some other country thumbing your nose at people you don't even know. These are hard working people, who want their career to be successful and want DHL to be successful. If your problem is Joe Hete, then write him a letter and tell him so. Better yet, when your here in May (the prime outdoor smoking season in Ohio), go to Joe Hete's office and speak your mind his face. I am not defending Joe Hete, but please don't thumb your nose at the hard working people at ABXAIR and make them the scapegoat of the current situation.

 

[nitefr8dog]

His title is something along the lines of Global Aviation Director; hardly mailroom material. I'll let him know that an ABX driver disapproves of his abilities.

"Something along the lines" just my point. Just go back to the mailroom and start sorting the rest of the mail!

 

[MJH767]

Anyone ever heard of an agitator who went by the handle "Rhoid". don't take the bait.

 

[TWA]

Anyone ever heard of an agitator who went by the handle "Rhoid". don't take the bait.

Mod, Mod, IP check please!

 

[shooter]

His posts for the past 3 years have proven to be quite consistent, so I have no doubt he is who he says he is. I do however have to agree with the rest of you that question the reasons for posting such a broad spectrum of possibilities other than to stir the pot. But if you read into his posts (other than the fact he seems to harbor some grudge against ABX) he has tentative plans to be in KILN in May. This could be good because that would mean they have already decided to keep the operation in ILN.

Why you harbor hatred toward ABX is beyond me weenie. But to quote a song you should be familiar with; Always Look on the Bright Side of Life.

Some things in life are bad;
They can really make you mad.
Other things just make you swear and curse.
When you're chewing on life's gristle,
Don't grumble, give a whistle,
And this'll help things turn out for the best, and.……

 

[EuroWheenie]

Fozzie

I really couldn't give a flying fcuk how impressed or not you happen to be, and I think I've made it pretty clear that my beef is not with ABX staff but their management. For all I know the vast majority of ABX staff might very well be decent, hard-working and upstanding pillars of society. Some comments here, however, does make me think if certain ABX people are under the impression they are gods gift to express freight.

I really have no intention of paying Joe a visit. First ofall I don't know the geezer and secondly it's way above my paygrade barging into a directors office and tell him he's a w@nker. The fact that I happen to take a beer with some very senior boffins with DHL, and through those social encounters happen to discuss some rather interesting topics, does not make me a senior manager.

nitefr8dog

Giving the exact title would kind of blow my cover, wouldn't it just? Do you really think I'm at liberty to discuss the things I have? I might very well find myself in knee-deep doo-doo if someone put two and two together.

Shooter

I'm way to detached emotionally to harbour any hatred towards something like an entire company. I am, along with a large number of DHL people this side of the pond, frustrated at the attitude we get from ABX management.

But on a personal note I'd very much like to thank you for keeping this conversation civil - hurling insults and calling eachother names does not make for a constructive debate in my humble opinon.

PS
Am a big fan of the Pythons, and often find myself hum along to the very song you refer to - which can be a tad distressing to those in my immediate surroundings as I'm pretty close to being tone deaf

If live seems jolly rotten
there's something you forgotten
and that's to laugh and smile dance and sing
when your feeling in the dumps
don't be silly chumps
just purse your lips and whistle that's the thing

Life's a piece of shiite, when you look at it
life's a lauge and death's a joke it's true
you'll see it's all a show
keep 'em laughing as you go
just remember that the last laugh is on you.

aaaaaaaaaaaaaaaaaand
always look at the bright side of life

 

[nitefr8dog]

Fozzie

I really couldn't give a flying fcuk how impressed or not you happen to be, and I think I've made it pretty clear that my beef is not with ABX staff but their management. For all I know the vast majority of ABX staff might very well be decent, hard-working and upstanding pillars of society. Some comments here, however, does make me think if certain ABX people are under the impression they are gods gift to express freight.

I really have no intention of paying Joe a visit. First ofall I don't know the geezer and secondly it's way above my paygrade barging into a directors office and tell him he's a w@nker. The fact that I happen to take a beer with some very senior boffins with DHL, and through those social encounters happen to discuss some rather interesting topics, does not make me a senior manager.

nitefr8dog

Giving the exact title would kind of blow my cover, wouldn't it just? Do you really think I'm at liberty to discuss the things I have? I might very well find myself in knee-deep doo-doo if someone put two and two together.

Shooter

I'm way to detached emotionally to harbour any hatred towards something like an entire company. I am, along with a large number of DHL people this side of the pond, frustrated at the attitude we get from ABX management.

But on a personal note I'd very much like to thank you for keeping this conversation civil - hurling insults and calling eachother names does not make for a constructive debate in my humble opinon.

PS
Am a big fan of the Pythons, and often find myself hum along to the very song you refer to - which can be a tad distressing to those in my immediate surroundings as I'm pretty close to being tone deaf

If live seems jolly rotten
there's something you forgotten
and that's to laugh and smile dance and sing
when your feeling in the dumps
don't be silly chumps
just purse your lips and whistle that's the thing

Life's a piece of shiite, when you look at it
life's a lauge and death's a joke it's true
you'll see it's all a show
keep 'em laughing as you go
just remember that the last laugh is on you.

aaaaaaaaaaaaaaaaaand
always look at the bright side of life

All BS flame!

 

[Clipperskip]

Fozzie


Shooter

I'm way to detached emotionally to harbour any hatred towards something like an entire company. I am, along with a large number of DHL people this side of the pond, frustrated at the attitude we get from ABX management.


Euro,

I continue to be confused and bewildered over your preception that ABX Holdings CEO Mr. Joe Hete has not "played ball" with DHL or DPWN. Correct me if I am wrong but at the time of the Airborne Express purchase by DHL, ABX Air was "spun off" and made a publically traded company. By law CEO Hete and the ABX Board of Directors are beholding to the stock holders of ABX Air not to DHL. Obviously ABX has a large vested interest in the viablility of DHL but that is not in ABX's control. Hete and the BOD's responsibility is to maximize shareholder value. It is apparent that the "small mark-up" in the ACMI deal thrust upon ABX at the time of the spin off was not in the long term best interests of the shareholders. Therefore, it must be assumed that CEO Hete's responsibility is to either encourage a longer term and more financially lucurative ACMI than present or to diversify and achieve addition revenue streams less dependent on DHL. He has chosen to pursue both. Apparently this is why CEO Hete is "not in favor" with DHL Management. On the other hand, what has DHL done to the publically traded ABX air during the last four years; they have shrunk the ABX Air fleet (a loss of around 18 DC-9s and 7 DC-8s and the revenues they generate) and they have reduced the ABX revenue stream of Sort and Hub management by taking over those responsibilites themselves. ABX Air has continued to watch their largest customer reduce their revenue stream and the shareholder value. Even under these rather difficult conditions it appears that CEO Hete has tried to extend an olive branch by committing two additional ABX Air B767-200SFs to the DHL system under present "bargain basement" ACMI rates. It is clear that these a/c could generate more revenue in the open market (ref. ANA) but Hete decided to support his largest customer in their time of need even if it meant taking less money. From ABX Air's point of view since the integration they have continued to watch DHL make substantial financial investments in "other" organizations such as Polar, and Astar Air cargo and partnerships with Lufthansa Cargo (Jade Cargo/AeroLogic). It seems to me that perhaps it is DHL who is not including ABX Air in the ball game. Yes, I know what you are thinking so please let me address it at this time. There was that press release back in late June of 2007 that said that Astar Air Cargo was intending to make an "offer" to buy ABX. The ABX Air BODs and Hete decided that the offer, as it was submitted, was not in the best interest of the shareholders and therefore they recommended that it not be pursued. Once again, he is just doing the job entrusted to him by the shareholders.

Astar Air Cargo, on the other hand, is not publically traded and therefore not beholding to public stock holder's demands of value and return. CEO Dasburg would therefore be more "legally flexible" to be servant of DHL's desires without fear of being removed from his position due to disregard of his fiduciary responsibility. I believe that this is the way DHL wants it. If they wanted the same deal with CEO Hete and ABX Air at the time of the spinoff then they should have made ABX Air privately held.

DHL has been financially bleeding in the USA for quite sometime. This is very unfortunate for all of us who derive our earnings either directly or indirectly from them. DHL has not only lost the market that they acquired when they purchased Airborne Express but the hearts of their employees as well. This is understandable when DHL continues to make decisions that jeopardize the careers of their contractors. I have tried to keep an open mind throughout the whole process but my morale is scrapping bottom. When the buyout took place I had pride in the flying the yellow and red airplanes now after my company has been continually blamed for the integration mess, and after seeing DHL's commitment to Polar, Astar, and Lufthansa and their apparent utter contempt for ABX Air, I look forward to flying the grey and red ones. I hope that there will soon be a day that I once again take pride in being a contractor for the gobal express operator DHL but honestly that is up to them. Let me say that I harbor no ill will toward my brothers and sisters at Astar Air Cargo they, too, are victims in this tragedy.

The past is the past. Let DHL learn from it, regroup, and and plan a new course of action. I hope for all our sakes they develop a winning strategy for the US as well as the world. I hope, additionally, that ABX is part of that plan but that will be their decision. Thanks for the Monty Python references they are something that we surely can agree on.

 

[ABXbooger]

Weenie,

I would seriously watch what you say. Passing along "inside" information can be adverse to ones freedom, unless you like prison.

Things posted on an "anonymous" board are not anonymous and can and have led to serious ramifications, thats why people seriously doubt you.

 

[penguin22]

Euro, perhaps you could help me understand something. DHL paid big bucks to buy the customer base that we at Airborne Express had built. A much bigger U.S. customer base than DHL had been able to create on its own. That customer base was obviously satisfied with the service ABX provided for many years. Even you can’t argue with that. And we were profitable. Since DHL took over, however, that customer base has dwindled down to a fraction of what it was before DHL bought Airborne. Why?

Yet the only thing you seem to care about is whether or not we submitted to the politics of the DHL culture.

I would respectfully suggest you keep that in mind as you have a look around the corn field when you get here.


By they way, a couple corrections:

Secondly, Airborne never did supply chain management or designed and implemented complex logistical solutions. That's a whole different ballgame.

Are you sure about that, Euro??

“Airborne Logistics Services doubled in size between 1996 and 1999”
http://www.referenceforbusiness.com/history2/58/Airborne-Freight-Corporation.html

(Airborne Logistics Services is now rebranded as DHL Logistics Services)

Thirdly there's the international aspects. ABX used to be US domestic only, now they've got to handle a large number of international import and export shipments, something they are still struggling with in the ILN hub.

Yes, DHL's roots are International. But Airborne (now ABX) knows something of international shipments too. We received approval in 1984 to make ILN the only privately owned Foreign Trade Zone (FTZ) in the United States.

Fourthly there's the whole issue of Dangerous Goods. This is a massive earner for DHL, but something ABX was, and still is, utterly inadequately equipped to handle.

Dangerous Goods (‘Haz Mat’ in the US) was also a huge profit center for Airborne Express. You say we were “utterly inadequately equipped to handle” HazMat. I say we were able to keep our own HazMat customers happy for many many years before DHL showed up.
(empahasis on keep the customer!)


Euro, as someone who’s flown for 3 separate cargo companies from within my current job, I can say from my own perspective that DHL is by far the worst, ANA is by far the best, and the old Airborne Express somewhere in between.

Just offering you a different perspective

 

[shooter]

I'm way to detached emotionally to harbour any hatred towards something like an entire company. I am, along with a large number of DHL people this side of the pond, frustrated at the attitude we get from ABX management.

Then I would suggest that the beer offer in May hold and you are able to get with a few of the pilots here. Because while you say you are frustrated with the attitude from the ABX management, I can assure you that ABX is nothing short of completely dedicated to the success of DHL in the Americas. And there are customers that have been with Airborne their whole existence that are now UPS and Fed Ex customers. I am sure that is hard to stand by and witness and maybe DHL has interpreted other than actual ABX intentions. Other than that I would refer you to Clipper's post above, and point that Mr.Hete does have his duties to the stock holders. That is his job and what he gets paid for. If DHL would like a different relationship they should have done it during the initial separation. I do not pretend to have the answers or intend to excuse the top management of ABX if they have done things to offend DHL. If they have, I can be almost 100% certain none on this board are privy to the details. And if past experience is your deciding factor, you should be asking for them to run the whole operation in the USA. They have grown and ran a profitable business here, something DHL can't claim.
Wheww, after all that I can say I understand you may just not like them for other reasons and I can accept that. I can't stand Astar's part owner and president Dasburg and would never work for the guy. I don't have anything against the workers there and have worked with some of them in the past. But I will never work with them over there under Dasburg or that crazy General guy* even if given the opportunity.

* GRIDLOCK! (sorry, an SNL reference of retired Vice Admiral James Stockdale)

 

[HeavyjetDC8]

Regardless of perspective, the facts as argued by penguin stand for themselves - the only rational conclusion being that DHL's business model on this side of the Atlantic is fatally flawed.

 

[EuroWheenie]

Clipper/Penguin/Shooter

Thank you all very much for the postings you've taken the time to compose for my benefit, they have all been tremendeously educational and very well informed. I'll be the first to admit that I'm somewhat biased, perhaps a consequence of being subjected a one-sided presentation of facts. It is pretty hard to remain neutral when a very senior director, whom I have a lot of respect for, rolls his eyes and hisses (with a smile on his lips) "don't you f.ing get me started" when asking him how things are with ABX. Nor could I ignore what I saw with my own eyes on the ramp in ILN, it did remind me of a 3rd world operation (no offence intended).

I am not an expert in running big multinational companies, nor am I well versed in the US express market. My mistake, have I made any, is perhaps to apply what I know of ABX to the whole of the company. Well, I'm not to big to admit mistakes, nor am I (yet) to old to learn new things.

This thread has certainly had its ups and downs, but I am very pleased that we are at least able to keep it at an adult and reasonable level.

I'd very much like to extent an invitation to those of you, whether you're ABX, ASTAR or DHL, who feel like joining me for a couple of cold ones when I visit in May.

Internet boards are all well and good, but nothing beats sitting down over something wet, cold and alcoholic to exchange points of view - however adverse they might be.

Again, thanks all who have constructively contributed to my general education. I haven't completely changed my mind, and there are still things about ABX that frustrates the hell out of me. But it has been my experience that the world is neither white nor black, it seems to be primarily grey. I fell into the trap of forgetting that fact.

(Sorry for my poor attempts at sounding coherent, communicating in what is "only" my 2nd or 3rd language can sometimes be a tad tricky)