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DHL restructuring plan presentation

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- Foreign ownership restrictions
- Duplicated vendors and overhead
- Ageing aircraft fleet
- Multiplicity of aircraft types
- Low fuel efficiency
- Mixed C/A Container configuration

1) Not solved by outsourcing to UPS. Half control with a merged ABXA/AStar group is better than no control and your competitors hand in your cookie jar.

2) If ABXA and AStar merged, problem solved.

3) This and point #5 I concede to DP. But still not unsurmountable.

4) This point makes no sense. ABXA: DC-9's and B767's. AStar: DC-8's, A300's and B727.

5) See point #3.

6) ABXA has enough door conversion slots to cover all the 767's that are economically feasible to convert and then some. The DC-9 fleet has about 8 or 10 (not sure, help me out here) deactivated door A/C that can be activated. The fleet will then be all C container.


ABXA & AStar folks:
Lets be realistic here. If a combined air fleet was to work for us, there would pain for both groups.

: Lots of DC-9's parked.
: The elimination of the A300 type.
: The elimination of the DC-8-73's unless they could be used as a charter aircraft in Latin America outside of the DHL network.
: The 727 is a gas hog three crew A/C. But it is flexible enough that I think it could stick around until a more suitable type is brought on. Until then, the 727 and the Door DC-9's stay.

This would give a merged ABXA/AStar group a B767, B727 & DC-9 fleet for use in the service of DHL with the 727 and -9 to be replaced ASAP. And the option to keep the DC-8-73 for outside work.

Of coarse all of this will be moot if ABXA and AStar management can not come to grips and offer an alternative to the UPS deal.


FAJ​
 
FAJ, ABX said they have customers for the 767's (and to release them from dhl routes ASAP) and if they find customers for the 9's they will reactivate the cargo doors. If they do this via ABX or ATI who knows. But I doubt he will sell, again. Any idea if Das would sell to ABX?

That plus an extended tax break for DHL from the state and Wilmington may just be enough to have them change their mind, maybe.
 
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Fly Astar Jets said:
- Foreign ownership restrictions

- Duplicated vendors and overhead
- Ageing aircraft fleet
- Multiplicity of aircraft types
- Low fuel efficiency
- Mixed C/A Container configuration​

1) Not solved by outsourcing to UPS. Half control with a merged ABXA/AStar group is better than no control and your competitors hand in your cookie jar.​

2) If ABXA and AStar merged, problem solved.​

3) This and point #5 I concede to DP. But still not unsurmountable.​

4) This point makes no sense. ABXA: DC-9's and B767's. AStar: DC-8's, A300's and B727.​

5) See point #3.​

6) ABXA has enough door conversion slots to cover all the 767's that are economically feasible to convert and then some. The DC-9 fleet has about 8 or 10 (not sure, help me out here) deactivated door A/C that can be activated. The fleet will then be all C container.​


ABXA & AStar folks:
Lets be realistic here. If a combined air fleet was to work for us, there would pain for both groups.​

: Lots of DC-9's parked.
: The elimination of the A300 type.
: The elimination of the DC-8-73's unless they could be used as a charter aircraft in Latin America outside of the DHL network.
: The 727 is a gas hog three crew A/C. But it is flexible enough that I think it could stick around until a more suitable type is brought on. Until then, the 727 and the Door DC-9's stay. ​

This would give a merged ABXA/AStar group a B767, B727 & DC-9 fleet for use in the service of DHL with the 727 and -9 to be replaced ASAP. And the option to keep the DC-8-73 for outside work.​

Of coarse all of this will be moot if ABXA and AStar management can not come to grips and offer an alternative to the UPS deal.​



FAJ​
Click to expand...

FAJ, I could not agree more. We need to get together and make this work. As painful as it sounds to take pay cuts and merge lists, that would be nothing compared to no job! Pass the word talk to your MEC as I have to your manegement as I have. Maybe we have a chance!
 
shooter said:
FAJ, ABX said they have customers for the 767's (and to release them from dhl routes ASAP) and if they find customers for the 9's they will reactivate the cargo doors. If they do they do this via ABX or ATI who knows. But I doubt he will sell, again. Any idea if Das would sell to ABX?

That plus an extended tax break for DHL from the state and Wilmington may just be enough to have them change their mind, maybe.
Click to expand...

Does the new customers list include the non door 767's (I think you call them PC's right?) or just the door 767's ( again, SF's right? ). I think Daz could buy the PC's with conversion slots for each and the door -9's. Or you could be on to something and Daz might sell his crap to Joe and retire. But I think DHL might be more inclined to accept a vendor that was privately held. I also like your idea of Ohio and Wilmington stepping up. As I've said in another post, it is an election year and politicians look real good when they can say they saved thousands of jobs.


FAJ
 
Browntothebone said:
http://www.dpwn.de//mlm.nf/dpwnew/presse/news_ab_05_2008/presentation_us_express_restructuring.pdf


Page 12 lays out the reasons DHL is outsourcing the flying to UPS.
Click to expand...
This is a presentation, not a statement of facts or a guarantee of performance. I have reasons to doubt that they will achieve the results they've predicted, and only those results. Remember, the same people who are now proposing a "cure" for all of DHL's proiblems are the same ones who got us here in the first place.

I suspect that they made a very similar, and equally glowing, "presentation" when laying out their reasons for buying Airborne Express a few years ago.
 
Fly Astar Jets said:
Does the new customers list include the non door 767's (I think you call them PC's right?) or just the door 767's ( again, SF's right? ). I think Daz could buy the PC's with conversion slots for each and the door -9's. Or you could be on to something and Daz might sell his crap to Joe and retire. But I think DHL might be more inclined to accept a vendor that was privately held. I also like your idea of Ohio and Wilmington stepping up. As I've said in another post, it is an election year and politicians look real good when they can say they saved thousands of jobs.


FAJ
Click to expand...

Thousands of jobs and a WHOLE community. The thousands at ABX will snowball into many other jobs across Clinton county.

We are just the worker bees and who knows what the suits can or can't do to save our jobs. They all have theirs, so it's how much they want to do.

I would think dhl would retain their portion of Astar in a sale. That would make dhl part owner of ABX Air and not Holdings i.e. ATI, CAM and Cappy. But I don't really know what they could do. Question is, will they?
 
Due to the nature of DHLs ownership of Astar, they pretty much have to live with whatever deal the Daz makes. If Astar is sold to ABX, I doubt DHL would keep a share of the company. All they would be able to get would be 49% of the sale price, with no say whatsoever. If the Daz is in a really good mood and decides to sell Astar to ABX for $1 (he's already made his millions anyway), DHL would get their $.49 and have to live with it.
 
As much as I would like our two airlines to survive this mess, there is no way DHL will have Hete as the head of their US airline. Either Hete sells and leaves town or we are for sure on the street.
 
All great points, assuming DHL really wants to stay in the US market. If this is just their way of pulling out with some dignity intact, it won't make a difference if the two companies can agree to merge. Makes me wonder if this is just a back door way to force Joe to sell to ASTAR. Faced with the loss of over 6000 jobs in the area, could Hete still say no? Or the BOD for that matter? Not unless he is willing to face the mob at his door with torches and pitchforks. The piece of the puzzle we don't know is if DHL is ready to throw in the towel or not. The thundering silence from Dasburg makes me wonder what is really going on. Where is the anger?
 
B767Inst said:
The piece of the puzzle we don't know is if DHL is ready to throw in the towel or not. The thundering silence from Dasburg makes me wonder what is really going on. Where is the anger?
Click to expand...

Only a hunch, but I suspect Dasburg's deal with DHL is such that he comes out in good shape either way. I doubt he is too worried.
 
I've lurked on this board for a long time, listened to all the blowhards, grinned & kept my mouth shut. What you've seen so far isn't squat in comparison to what's to come. Bet on it.
 
"Royal T" the Oracle

Royal T said:
I've lurked on this board for a long time, listened to all the blowhards, grinned & kept my mouth shut. What you've seen so far isn't squat in comparison to what's to come. Bet on it.
Click to expand...

Sounds like you know what's going on backstage. Care to share a little info??
 
Royal T said:
I've lurked on this board for a long time, listened to all the blowhards, grinned & kept my mouth shut. What you've seen so far isn't squat in comparison to what's to come. Bet on it.
Click to expand...

They said they are shutting the whole banana factory down. What on God's green earth can not be "squat in comparison"? Are they going to pull the gold crown out of my mouth before I go?

Leave your jewelry and watches home before you come to work boys. Sounds like Royal T thinks we just may get rolled when escorted off the property. OR.......maybe the gas chambers have already been installed. :eek:
 
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Fly Astar Jets said:
Does the new customers list include the non door 767's (I think you call them PC's right?) or just the door 767's ( again, SF's right? ). I think Daz could buy the PC's with conversion slots for each and the door -9's. Or you could be on to something and Daz might sell his crap to Joe and retire. But I think DHL might be more inclined to accept a vendor that was privately held. I also like your idea of Ohio and Wilmington stepping up. As I've said in another post, it is an election year and politicians look real good when they can say they saved thousands of jobs.


FAJ
Click to expand...

New and existing customer are inquiring (so I'm told) about availability. I presume they want 767-200SF'
s (doors and floors). The PC (no doors or floor) would have to be converted. Joe apparently has the slots and a plan to convert most of the PC's in rapid order. Multi-digit numbers/year were mentioned.

I am not yet convinced that DHL really intends to go through with this whole UPS thing. The numbers don't add up very well. They could refleet both airlines AND merge them for what say they plan to spend to shut us all down. The key would seem to be getting rid of Hete. The UPS plan may be an effort on DPWN/DHL's part to "encourage" the ATSG BOD to fire Hete and allow Daz to buy at very reduced rates. If it doesn't work they just go forward. That would explain the time line. It would also explain why they are reputed to have said this was a very high risk move to solve their problems.
 

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