Dhl

[freightdogfred]

Sounds like Astar wants ABX to "team up" on DHL to put pressure on them. Do you really thing DHL gives a hoot? really? If anything is a threat I think it would be that if open skies becomes a reality, ABX and Astar will both be out of jobs since it would be legal for DHL's own airline to operate point to point within the U.S. and do it cheaper. Seems like teaming up on Congress is the path to what should be the goal.

That's exactly what they need to do, sooner than later...As tough as it may be for the individual pilot, allowing the "Customer" (DHL) to pit one group against the other will eventually lead to the demise of both, as each group fights for table scraps thrown to them by DHL. This scenario is right out of EWW's playbook up the road in DAY, where it was about six contractors lowballing the bid to secure a contract. In the end the only real winner is DHL. While they can, they need to get their groups together to FORCE a scope clause on DHL now, while they are strong, and before DHL can start securing other lift. The only card they have in their hand is time. DHL can't replace all that lift in a month or two. A year or two it may be a different story.

 

[goastar]

"DHL's own airline to operate point to point within the U.S. and do it cheaper."

My bet is on the mexicans from El Crapo, with the support of FEMA, before its DHLs own airline.

 

[big_al]

doesnt DHL do the same thing in Europe? They have European Air Transport do their flying, but with British and Belgium registered aircraft

 

[Whistlin' Dan]

Can you give me an example when you felt DHL treated you, or Astar as an employee since the integration? From the ABX side of the fence I haven't seen anything that would make me feel that way. DHL has definitely made numerous requests of ABX and Astar (schedule changes ad naseum) which they seem happy to oblige but at no time did I ever feel that I was an employee, in fact, just the opposite!

Every time they change your schedule, add or drop a stop, or ask that a different type of equipment be substituted, they're acting like an employer, because that's what employers do...they tell you what to do, and (more often than not), how to do it. In fact, that's one of several tests the IRS uses to determine whether an individual is an employee or a private contractor. Basically, when a company ASKS another company to do something, they're a customer. When they TELL another company to do something, they're an employer.

We're a little of both...neither fish nor foul, cock nor bull. "Flying Hermaphrodites," if you will.

Additionally, why do you feel that I should be concerned by who signs my jumpseater's paycheck?... I am trying to understand where you are coming from. Feel free to PM me if you need. Thanks

I don't feel we need to...that was my point. ASTAR could change their name back to "Drugs, Handguns and Liquor Airways" and ABX to "We Don't Need No Stinkin' Cargo Door! Global Logistics" and we'd all be doing the same job, on the same schedule, every night. I.E., Flying yellow airplanes full of yellow freight on "Yellow's" schedules.

The employer/contractor model that DHL uses in most of the world puts our jobs and any hope for long-term prosperity in jeopardy. It is that model that we should be concerned with, not what some guy on a jumpseat says (or doesn't say) about who owns certificate he operates under.

 

[Bitter]

Scope

The employer/contractor model that DHL uses in most of the world puts our jobs and any hope for long-term prosperity in jeopardy. It is that model that we should be concerned with, not what some guy on a jumpseat says (or doesn't say) about who owns certificate he operates under.

Could not agree more.........But how with scope, do we tie ourselves (Abx and Astar) to freight that is not reallly ours? It is DHL's freight, how do we force them to contract with us and no one else?

I agree it needs to be done, I am just lost as how to do it.

Thoughs?

 

[shooter]

That's exactly what they need to do, sooner than later...As tough as it may be for the individual pilot, allowing the "Customer" (DHL) to pit one group against the other will eventually lead to the demise of both, as each group fights for table scraps thrown to them by DHL. This scenario is right out of EWW's playbook up the road in DAY, where it was about six contractors lowballing the bid to secure a contract. In the end the only real winner is DHL. While they can, they need to get their groups together to FORCE a scope clause on DHL now, while they are strong, and before DHL can start securing other lift. The only card they have in their hand is time. DHL can't replace all that lift in a month or two. A year or two it may be a different story.

also, keep in mind that DHL is in the express business. It was possible to get the scum-bag bids in DAY because they were not tied to performance.

p.s. lovin' the fun bag avitar

 

[Bitter]

also, keep in mind that DHL is in the express business. It was possible to get the scum-bag bids in DAY because they were not tied to performance.

I am not convinced yet that they (DHL) completely get the Express concept in the US. They seem determined to learn the hard way.

Loosing roughly 50% of your express business, in 3 months takes some german ingenuity!!(sp?)

They have not impressed me yet......I believe they are just smart enough to have a corrosion corner in KILN......!!

 

[erichartmann]

I don't know how one goes about tying DHL to our respective companies. I am under the impression it cannot be done under U.S. law so long as DHL does not own any portion of either company, and it may require controlling interest, which is for now prohibited under U.S. law.

At this point all we can do is make ourselves:

1) indespensible by - providing a quality service. This presumes they understand the nature of the U.S. market. There are some hopeful signs in this area.

2) independent - we need to have enough outside business to survive if DHL decides to go with a less reliable cheaper operator.

 

[GoABX]

The other way of making oneself indespensible is through "size" and "mutual assured destruction". Presently DHL cannot move the freight without ABX. Due to our size, even forgetting the reliability factor, we could not be replaced overnight with a slew of third tier carriers. So to survive we (Hete) must not allow a slow migration to other parties. We would have to have the stones to play the 'All or None' game of cat and mouse. Granted you don't want to pi$$ off you only customer, but if he gives you the choice of cutting of your fingers all at once or one at a time...does it really matter that he gave you a choice?

If there were 4 carriers each with 25% then the throat cutting would commence and there would be no turning back for anyone.

 

[Whistlin' Dan]

Could not agree more.........But how with scope, do we tie ourselves (Abx and Astar) to freight that is not reallly ours? It is DHL's freight, how do we force them to contract with us and no one else?

I'm not sure that it can be done, unless there's some way of forcing them to designate an "agent" of sorts, to handle their intra-U.S. shipping requirements.

DHL still has an advantage in many foreign markets. It may be that at some point, they (DHL) will enter into an agreement with either UPS or FedEx whereby they focus primarily on deliveries in foreign countries, while their partner emphasizes service here. A DHL/UPS alliance could make further penetration into foreign markets very difficult for our friends in Memphis. Likewise, a collaboration between FedEx and DHL. Of course, either one would likely make ASTAR and ABX redundant.

There are currently three players in the international express business. Each can be identified by a different aspect of how they conduct their business. FedEx seems to put a great deal of focus on their employees, paying them well for doing whatever is necessary to see that their customers needs are met. UPS puts the emphasis on service, holding their employees to a very high standard of performance, for which they too are well-compensated. DHL puts their emphasis on employee cost, apparently in the belief that paying less money to them somehow translates into making their service more attractive to their customers.

With DHL's substantial losses in the U.S. (both financial and in market-share), I think it's becoming obvious which strategies work, and which ones do not.