UPS: No 'significant' cargo flights from DHL until 2009

[PreRVSM]

Once UPS starts to spool up for PEAK season in the fall of 2008 I don’t see them making any “significant” changes till after peak season is over. You would have to understand UPS attitude regarding peak season to understand the weight of my statement. I could see UPS have the change over between January 09 and peak 09.

Of course my statement is also based on the fact the my new job prospects will be a lot better in 2009 then they currently are so we tend to believe what make us feel better.

 

[nitefr8dog]

Reminds me of the movie "Fatal Attraction". You Astar pilots are going to court to force your ex-girlfriend to still be your sweetheart?

What if you're successful? I can't imagine DHL continuing to accept $1 BILLION in losses annually in the US. I'd guess their Plan B is to fold their US operation and by default forfeit all their US business to FedEx and UPS. If so, how do the Astar pilots come out any better?

Because you idiot, ABX has given DHL a plan for well under the 1 BILLON they are going to pay UPS. Its not about the flying cost it is the ground operation. The pickup and delivery is still goig to be all dicked up!

 

[EMBPILOT1]

When all said and done, this is no different from what FedEx and UPS have done with the postal contract. With the exception of the number of jobs lost, it almost the same type of deal. The USPS changed venders providing transportation of packages, not delivery of packages. There is a difference, and DHL and UPS will argue this point. This is not a merger, but a change of vendor. And I don't think you will find anyone in government who is going to force DHL to continue to take the losses they are taking. Either the jobs get lost to UPS, or they get lost.

 

[AV8OR]

When all said and done, this is no different from what FedEx and UPS have done with the postal contract. With the exception of the number of jobs lost, it almost the same type of deal. The USPS changed venders providing transportation of packages, not delivery of packages. There is a difference, and DHL and UPS will argue this point. This is not a merger, but a change of vendor. And I don't think you will find anyone in government who is going to force DHL to continue to take the losses they are taking. Either the jobs get lost to UPS, or they get lost.

Last time I checked...UPS and FedEx don't truly compete with the USPS. Same cannot be said for the UPS and DHL. Big friggin difference. And if they're gonna be lost, then they get lost....not this dressed up pile of bull butter!!!

 

[EMBPILOT1]

Last time I checked...UPS and FedEx don't truly compete with the USPS. Same cannot be said for the UPS and DHL. Big friggin difference. And if they're gonna be lost, then they get lost....not this dressed up pile of bull butter!!!

Actaully, when I worked at UPS in the hub a few years back, the USPS was a bigger competitor than FedEx. And yes, they still offer the same services as any other delivery company. The only difference is the USPS is helped along by all of us, the tax payer.

 

[Publishers]

DHL already gave up the US. They are only trying to keep it going to the extent of international relationships and customers. If they shut down completely, it would hurt the international customer base.

 

[b707guy]

The only difference is the USPS is helped along by all of us, the tax payer.

It's always been my impression that the USPS is the only government entity that is wholly self-sufficient, with no reliance on taxpayers for its revenue. Which would make it a competitor, at least in a part of the market.

 

[Airbus300]

Google search USPS and anti-trust immunity... Here is just one of the many articles pointing out that the USPS is not subject to anti-trust laws.

The Postal Service also enjoys exemption from most taxes and the ability to borrow from the Treasury at below-market rates. It also gets cushy legal perks - like immunity from antitrust prosecution, truth-in-advertising laws, SEC transparency requirements, and parking tickets.

 

[Fly Astar Jets]

When all said and done, this is no different from what FedEx and UPS have done with the postal contract. With the exception of the number of jobs lost, it almost the same type of deal. The USPS changed venders providing transportation of packages, not delivery of packages. There is a difference, and DHL and UPS will argue this point. This is not a merger, but a change of vendor. And I don't think you will find anyone in government who is going to force DHL to continue to take the losses they are taking. Either the jobs get lost to UPS, or they get lost.

EP1,

You can't use the FDX/USPS arrangement when talking about the proposed DHL/UPS deal. It's apples and oranges. By law, the USPS being a part of the federal government is immune from antitrust violations.

UPS argued vehemently against the FDX/USPS deal on antitrust issues in '01 and had got the DOJ to investigate it. Ultimately the complaint was dropped due to the inherent antitrust protection the USPS enjoys.

FAJ

EDIT: If I would have read the thread to it's end, I would have seen that others have already pointed out the antitrust immunity the USPS enjoys.

 

[shooter]

Political pressure is officially out of just Ohio lawmakers hands.

http://www.thespectrum.com/apps/pbcs.dll/article?AID=/20080804/NEWS01/80804014

August 4, 2008



[FONT=Times New Roman, serif]Senators express concern over delivery srevices' agreement[/FONT]
WASHINGTON – Today, Sen Orrin Hatch, R-Utah, and Herb Kohl, D-Wis, called for federal review of a proposed arrangement between United Parcel Service and DHL Express US, the second and third largest overnight package delivery services in the United States.
In a letter to Assistant Attorney General Thomas Barnett of the U.S. Department of Justice’s Antitrust Division and U.S. Federal Trade Commission Chairman William Kovacic, Kohl and Hatch stated the 10-year contract for UPS to become the exclusive provider of air transportation for DHL’s North American package delivery service raises important antitrust and competition issues.
Their letter is published below:

Dear Assistant Attorney General Barnett and Chairman Kovacic:

On May 28, 2008, DHL Express US (“DHL”) and United Parcel Service, Inc. (“UPS”) announced their intention to enter into a contract where UPS will become, for ten years, the exclusive provider of air transportation for DHL’s North American package delivery service. As the Chairman and Ranking Republican Member of the Senate Antitrust Subcommittee, we believe that this proposed agreement raises important antitrust and competition issues that should be examined carefully by the Department of Justice (“Department”) or the Federal Trade Commission (“Commission”).

UPS and DHL are, respectively, the second and third largest overnight package delivery services in the United States. Therefore, if consummated, DHL will become reliant for air transportation on one of its two major competitors. This raises the question if DHL will still be able to effectively compete against UPS, since UPS will now have a large role in determining the cost and quality of DHL’s services. In addition, we presume that such a relationship would also require DHL to adopt UPS’s package tracking, labeling and hub distribution systems. Whether, and how, DHL packages will receive priority should UPS planes fill to capacity is another concern raised by this deal. As a result, some critics of the proposed agreement contend that DHL will become a captive of UPS, rather than an independent competitor. Further, having only two airlines providing national airlift capacity for overnight package delivery could raise the risk of serious economic disruption should service on one of these two airlines be reduced due to unforeseen difficulties, such as a strike, maintenance issues, weather disruptions or other similar disruptive events.

It has been reported that the parties are close to finalizing this agreement. The prospect of a quick ratification is equally disconcerting since the proposed contract will have a devastating financial impact on DHL’s current air transport providers, ABX Air and ASTAR and these airlines’ base of operations, southern Ohio.

It should be noted that we have not reached a conclusion as to the legality of this proffered transaction under the antitrust laws. However, due to the issues raised above and urgency of this matter, we respectfully request that the antitrust agencies initiate an investigation into this arrangement immediately.

Thank you for your consideration of this matter.

Sincerely,

Herb Kohl and Orrin Hatch