DHL to consolidate ops in Wilmington, OH

[abexpilot]

Official announcement today. See link.
www.abxair.com

 

[ABXbooger]

I think this bodes well for the future of ABX.

 

[SpiffAV8]

Heard any news about route changes?

What about the feeders?

 

[abexpilot]

I suspect that as the consolidation nears completion, the need for the feeders (at least thoses currently serving Astar) will grow less and less. The most vulnerable will be the cities that are currently being serviced by ABX.

 

[SpiffAV8]

Great, just great!

 

[FN FAL]

Why would they cut out feeder routes? I'm just curious...you'd think that wouldn't change much, since feeders are kind of like the low cost end of the freight market.

And I ain't cutting down feeder flying, that's what I do for a living.

 

[abexpilot]

It would not seem logical to continue servicing markets with feeders that presently are served by the larger jets. For example: BVT, FAR, DSM, CID. All served by a metro feeding DHL in CVG and also by a DC-9 going to ILN. Once consolidation is completed, that freight could be absorbed by the jets. Hopefully, the feeders will be redirected to new markets that may arise from all of the advertising that DHL plans. This is my opinion only.

 

[SpiffAV8]

I move freight for DHL and mainly carry what doesn't fit on ABX. It's still enough to keep the run for now but who knows what will happen. There has been talk about my run going going away for almost a year now. I have heard that they may just change my route a bit and still keep me at the same out station. I hope that's the case. I just don't want to move any more.

 

[steamgauge]

As far as we're concerned...

At Astar, we're not too happy about being jerked around again by DHL but we've adapted to the DOT, spin offs, etc. We'll adapt to this too. And the next round...and the next round.

**** happens.

Cya in ILN.

 

[ABXbooger]

As a furloughed pilot, I don't want to see anyone lose work. In my opinion, I think the feeders are going away. DHL has two airlines flying for it, they don't want anymore. If you could have two airlines instead of a dozen doing the work, wouldn't you? I have seen the Astar ramp at night and there are a ton of feeders from single pipers to 747's at times. I think the first to go will be the larger planes, and then on down to the smaller stuff. Astar and ABX are going to go after this work in the future, especially as the freight grows and DHL's marketing and growth strategies begin to work. The up side is that I really think there will be hiring at both carriers as we fly more freight. Our current market share is 6%, so a double of our freight would only give us 12% of the market, very attainable.

 

[Airbus300]

For Abexbooger... When you say that DHL has 2 airlines and does not want anymore, I think you are a little on the nieve side/ haven't figured DHL out yet. What we've heard and have seen is that DHL would like to have many different airlines flying for them separately. (Kind of like a Comair/ ASA type of thing). I think that they have 3 separate company's doing what we are doing in Europe alone. If they need more lift, they just start another company/ operation.....a new senority list. Welcome to the "ACMI" carrier status...you thought that this was going to be a good thing??

 

[ABXbooger]

Airbus 300,

Look at our two biggest competitors. How many airlines do they have flying for them? If it works that well for them, why would DHL want to be different? The more people you have touching your freight, the more chances you have of screwing something up. Also, there is a reason UPS decided to start their own airline: the service being provided to them up to that point was sub-standard. There are few airlines that can provide the on-time, proven reliability that DHL must have to be competitive.

As far as starting their own airlines, well you should now how that would be welcomed by Fedex and UPS. Yeah, they might get off the ground after spending billions of dollars in court and years down the road.

What you have seen over at DHL US/ Astar is just a glimpse at what DHL wants their business in the US to be. As I have posted previously, even a slight increase in DHL's business is going to mean increased flying for someone, who that's going to be is the big question.

 

[Airbus300]

The starting a new airline was reffering to Europe. I fully understand that DHL Ground cannot run their own airline in the United States. Contracting new routes to NWAC Cargo (many more 747's to Asia), Gemini, ect is what I meant for the United States vs growing Astar or Abex Air. But I may be wrong this time. It would not be the first time. We will have to wait and see.

 

[Bitter]

I have to agree with AbxBooger......Does not mean DHLwill do it, but it makes little sense to have multiple vendors and a venerable corrosion corner at ILN. Did you ever see the USPS ramp at the Eagle sort it in Indy.....chaos. One reason they went to Fedex. I think two or three vendors will work. But multiple hands in the jar in my humble opinion will fail. I can see it now.....XYZ 2 bit ACMI 747 is in XYZ airport broke, carrier B's 727 is delayed at wherever for lack of a crew.....it just won't work.

 

[UPSer]

Obviously you have not seen the DHL operations in Europe where they use many different operators and employ a whole variety of aircraft. The last thing DHL wants is a single contractor with leverage over them. They employ multiple contractors all over the world, why would you think their operations in the US would be any different?

For the Astar crews, welcome to ILN, I hope you bring your own crew vans, unless you like waiting out on the ramp for up to 30 minutes for a ride in a packed, unairconditioned, unheated van. Oh wait, I forgot, they have the heated igloos for you to wait in during the winter!

 

[abexpilot]

I may be mistaken, but I think the reason that DHL employs so many carriers overseas is largely a regulatory one. In order to provide the level of service in the U.S. to compete with UPS and FedEx, they must operate as a much more cohesive unit. (Just as UPS did when it consolidated all of it's contractors into it's own airline. If costs were the only issue, I don't think UPS Airlines would exist.) Though it may be more expensive to operate only one or two carriers, it seems to me that this is a necessity to provide for a smooth and efficient operation. DHL is making a huge investment in North America and I don't think it will jeopardize system integrity by using a large number of carriers.

Also, contrary to the views of many, I wouldn't be surprized if ABX and Astar don't wind up becoming one in the future for the very reasons I stated above. It would be much more efficient in terms of maintaining system integrity to have only one. Hopefully, if this is the master plan, it comes sooner rather than later. My opinion only.

 

[UPSer]

Also, contrary to the views of many, I wouldn't be surprized if ABX and Astar don't wind up becoming one in the future for the very reasons I stated above. It would be much more efficient in terms of maintaining system integrity to have only one. Hopefully, if this is the master plan, it comes sooner rather than later. My opinion only.

Right after the buyout of Airborne's ground ops by DHL, Dasburg tried to purchase ABX, but DHL would not allow it. Like I said earlier, DHL will not allow a single contractor to have leverage over them. DHL will pit ABX against Astar for future growth, kinda like some majors are doing with their commuter partners.

 

[Bitter]

I think Dasburg was disuaded from buying Abx, in case Astar lost its citizenship case. In that event DHL still had an air partner in Abx, rather than nothing......

As far as DHL in europe, the network was created long before the EU. So look at the America's. Astar cannot fly domestically in Canada and Mexico. Same in europe prior to EU. Uk airline could not fly domestically in Germany. Obviously, now with the EU things changed, but that is why so many european carriers.

As far as the US, I see Astar and Abx staying seperate operating certificates with combined dispatch and maintence, but with different flight crew seniority lists. Let the whipsawing begin. As far as multiple carriers....Well who knows, but to me, it just makes no sense to have ten vendors. In europe they can still truck stuff which is delayed, with out to much issue, the US is just to big. Different business. Many vendors would create problems. That is why the two major competators......UPS and FEDEX have their own air carriers. If was cheaper and easier to use multiple ACMI carriers they would be doing it too. After all DHL's USA model is not do different. Just they cannot own an air carrier. Just food for though.......

Just my opinion.......Time will tell!

 

[UPSer]

As far as DHL in europe, the network was created long before the EU. So look at the America's. Astar cannot fly domestically in Canada and Mexico. Same in europe prior to EU. Uk airline could not fly domestically in Germany. Obviously, now with the EU things changed, but that is why so many european carriers.


Just my opinion.......Time will tell!

Why then did DHL create a completely new airline, DHL UK to fly the converted 757s? They already owned EAT, why not just grow them instead? We already know what DHL thinks of Astar's scope language. It will be really interesting when DHL starts to consolidate their sytem later this year or early next year.

Over time DHL will grow domestically, but in the short term with the combined fleets of ABX and Astar, the capacity will be too large, expect to see downsizing and rationalizing of fleets on both sides, mainly ABX. I've heard from management contacts at ABX that they might park as many as 30 DC-9s and probably the remaining DC-8s. ABX already lost the SJU trip to Astar and expect ABX to pull out of ANC soon to be replaced by the NWA 747 that currently flies the trip out of CVG.

 

[Bitter]

Yes consolidation will be interesting, and inevitable. Abx management has stated to the pilot group that Astar and Abx overlap with only 15 or so aircraft. As far as SJU DHL has not parked that aircraft, they are to re deploy it on another route. I realize that the Abx 9's and 8's are worth squat, but none the less DHL has too buy any aircraft removed completely from service. My guess is that their will be quite a shake up, but very few aircraft will actually be parked, may be 5 or so. Parking 30 9's and 16 8's would be quite a loss of lift and cities served. That is 46 aircraft, 6 more than the entire Astar fleet! Does not make much sense. Where would all that freight go? Astar could not move it? So who do you think would?

As for Abx management, they are guessing to. They will know what is going on when DHL tells them and not a moment sooner.

My opinion only, for what it is worth. Again time will tell.

As far as setting up DHL UK, instead of growing EAT.....don't know the answer to that one.Might be something to do with the fact that the wanted to grow their Manchester hub, and having EAT base aircraft in england was not logistically feasable. Just guessing.

 

[Bitter]

Also UPSer you say.....

"but in the short term with the combined fleets of ABX and Astar, the capacity will be too large"

Well from what I am told, Abx is at capacity on some routes and flying near 85% system wide. Don't know about Astar, but unless they are flying around practically empty, which I doubt, where is your overcapacity coming from?

DHL intends to grow, shrinking your lift right out of the trap so to speak, when your are pouring cash into hubs and advertising seems fairly contracdictory.

Are you guessing or making predictions on fact? Or is it wishful thinking?

 

[ABXbooger]

UPSer,
Sounds to me like you are either a former ABX pilot or know a little bit about the company. If you have left to go brown, congrats, I would too. But, face it. Competition is coming and I think UPS and Fedex are eventually going to feel it. No, you say? What where all of those lawsuits with DHL America/ Astar about? My dog is in this hunt and I hope that ABX-Astar or a combination of the two will be around when I am 60. I don't care if I fly to SJU or CLE, the pay is good, the schedule is good and the retirement is good.

Oh, yeah...an investment of over a billion dollars last week and over a billion dollars to buy Airborne? No one puts that kind of money into something that isn't going to be big.

No harm, really don't want to start a fight, there is room for all.

 

[flyinboxes]

Just wait till you are spun off to become an ACMI carrier. It won't be long. The future is here unfortunately. Also, we will be bringing our crew vans with us. I've been on yours and they are AWESOME! Fast, quite, and downright roomy. Do you guys have bunk rooms?