DHL rumors??

[U-I pilot]

Heard a rumor today DHL/Airbourne is planning to build a runway in Wilmington capable of handling 747-400s which spawned a further rumor:
Will/Could DHL buy ATLAS?

Stranger things could happen with a Government supported bank roll.....

If they did, would the case against them brought by UPS/FEDEX be stronger? Strong enough to stop the expansion?
Any thoughts?

 

[cougar6903]

Heard a rumor today DHL/Airbourne is planning to build a runway in Wilmington capable of handling 747-400s which spawned a further rumor:
Will/Could DHL buy ATLAS?

Stranger things could happen with a Government supported bank roll.....

If they did, would the case against them brought by UPS/FEDEX be stronger? Strong enough to stop the expansion?
Any thoughts?

......and if so, will this mean my stock in Atlas will be worth more than $0.005?

 

[abxaviator]

That's a new one! Haven't heard that in ILN, maybe I'll start circulating it! Our Flt Ops lobby has an overview of the airport which identifies the improvements DHL has planned for the hub consolidation; a new runway is not on that drawing.

DHL CANNOT buy Atlas or any other US carrier, just as they do not hold any equity interest in either ABX or Astar.

 

[GoABX]

3+ years ago when DHL was trying to put together a deal with Airborne and wasn't sure whether it would happen they also were in talks with Emery and Atlas.

A lot has changed since then. Emery is no more and who would want to buy the patchwork that is CNF's express division. Atlas bought Polar and went from a great business model to one that went into the dumper and their founder died.

I believe Emery was a hedge in case the ABX buyout did not materialize and Atlas was to add to the breadth of service. Most people know that Astar/ABX is in an entirely different business than Atlas/Polar. So DHL is trying to have the total logistics package available to its customers.

There is some merit in a 747 operation but the question is how do you get there. With depreciated prices you could build it yourself quite easily, but it is not DP's style, and it would take some time. Or one could cherry-pick the best parts of Atlas OR Polar. And finally if the deal was right (cheap enough) you could take the whole Atlas package and just deal with the blemishes. Another option is buy NWA's cargo unit (12-18 747s) and build on to it as you need it.

 

[U-I pilot]

Interesting thoughts.....
I think somewhere along the line of expansion, DHL is gonna walk on one to many toes and the government is gonna have to step in. Sadly, the deep pocket, come in and undercut philosphy is gonna work until something changes.....

 

[FN FAL]

DHL's loss may be huge to N.Ky.

[font=arial,helvetica]But FedEx, other new jobs could offset it some [/font]




By James Pilcher
Enquirer staff writer


The pullout of DHL could drain $250.9 million a year from the Northern Kentucky economy, according to an analysis released Tuesday by the Northern Kentucky Chamber of Commerce.

In addition, Kentucky could lose out on nearly $3.5 million in sales-tax revenue annually once the air cargo company consolidates its hub in Wilmington in September 2005, said the study, prepared by Tom Zinn, a University of Cincinnati economist and consultant to the chamber.

"As we were working with Dr. Zinn on these numbers, we realized just how significant this loss of jobs was to the community over the course of a year and half as DHL phases out the jobs," Northern Kentucky chamber president Gary Toebben said.

DHL announced Friday it was leaving the Cincinnati/Northern Kentucky International Airport to consolicate its hubs in Clinton County, about 50 miles northeast of Cincinnati. That decision had been pending since the Brussels-based air cargo company bought most of Airborne Express for $1.05 billion in April 2003.

DHL, a subsidiary of the German postal service Deutsche Post, said it was losing $160 million a year by operating the two hubs. It said it was eliminating 800 jobs with the move, but promised Ohio it would create 900 more jobs in Wilmington and invest $295 million there in return for $422 million in incentives. DHL also said 300 full-time employees would stay at its Erlanger building.

In addition, about 700 local jobs with Astar Air Cargo, the separate airline that carries DHL freight, will probably be transferred to Wilmington, although Astar officials have not yet confirmed such a move.

"We haven't gotten final word," said James Bonney, chairman of Astar's branch of the Air Line Pilots Association. The union represents the company's approximately 500 pilots.

"But we are under the impression that the vast majority of our flights will be in and out of Wilmington," Bonney said.

The chamber study included the Astar jobs as being lost to the area, even though many of those workers could still live in Greater Cincinnati and commute. A DHL DC-8 captain with 10 years seniority makes about $156,000, and Bonney said the majority of DHL pilots have about 10 to 11 years experience.

"No one is looking to sell their houses over this," Bonney said. "We are hoping to work with the company on transportation issues."

Said Toebben: "We would hope that to be the case, and that could lessen the impact somewhat."

The analysis also used 580 as the figure of full-time equivalent jobs being lost, since some of the local positions DHL is cutting are part-time.

But Toebben said he hoped some of those workers could find a new home at the FedEx Ground truck hub set to open in April 2005 in unincorporated Boone County off Mount Zion Road.

That operation is scheduled to be fully operating by next July, with 380 workers needed initially. Some projections call for the truck hub to eventually employ upwards of 1,500, with company officials saying they would welcome experienced hub and sort workers.

"We definitely won't turn them away," said FedEx Ground spokesman David Westrick.

"An experienced workforce is something we are very interested in."

With 700 direct and indirect workers to start, the positive impact would be $52.6 million from the $65 million facility, the chamber said.

Kentucky and Boone County offered FedEx a tax-abatement incentive package worth about $3 million over a 20-year period. In addition, the state pledged to complete an already scheduled new railroad overpass nearby.

The chamber also said that if FedEx fills out to a possible 1,500 workers, the impact could be $212.4 million, with $3.82 million in sales tax revenue being generated.

Toebben said that could eventually help soften the blow from the loss of DHL.

"FedEx is no longer just the icing on the cake," he said. "It's a necessity."

 

[pilot1704]

so who cares what Kentucky loses!

So who cares if Kentucky loses money!

 

[UPSer]

Heard a rumor today DHL/Airbourne is planning to build a runway in Wilmington capable of handling 747-400s which spawned a further rumor:
Will/Could DHL buy ATLAS?

Stranger things could happen with a Government supported bank roll.....

If they did, would the case against them brought by UPS/FEDEX be stronger? Strong enough to stop the expansion?
Any thoughts?

What makes you think that DP/DHL, ABX, or Astar would buy Atlas? What will probably happen is that DHL will do another ACMI contract with a 747 operator to do those flights. Remember that DHL already contracts with Northwest to operate CVG-ANC and on to the pac rim, expect that flight to shift to ILN with they consolidate the hubs.

 

[AV8OR]

Not that it would definitely pan out this way, but, contractually, AStar has right of first refusal on any "new" business, so another ACMI group would technically be illegal.

 

[goastar]

continued

Not that it would definitely pan out this way, but, contractually, AStar has right of first refusal on any "new" business, so another ACMI group would technically be illegal.

Thats comforting, because DHL always honors their contracts!! Besides, we always refuse and hand it over to others.