UPS to buy into Deutsche Post?

[oldawg]

UPS expresses interest in Deutsche Post

24-Aug-2007 : RUMOURS are rife that UPS and private-equity firm Apax Partners Worldwide may bid for a stake in Deutsche Post.

The operator’s share value rose on the back of the speculation and 2Q results. “Deutsche Post are boosted by the rumor Apax and UPS might bid 28 euros a share for about 30 per cent in the company,” said Thomas Nagel, a trader at Equinet AG in Frankfurt.

2Q profit rose 13 per cent as the DHL express division increased package volumes in Asia and earned more per shipment in the US.

Net income rose to 285 million euros, from 252 million euros, or 21 cents, a year earlier.

 

[GoABX]

interesting. It works Ex-America via a Euro-Asia codeshare for boxes, but how in the hell would you make it work domestically?

Unless you shutdown DHL Express?! Due to FredEx's larger express market share and DHL's minimal ground ops, it would probably pass DOJ anti-trust.

UPS could probably deliver here with minimal excess lift.

 

[SkyMiles]

Ruh-Roh! If this goes through, goodnight abx/astar. Das will receive a nice acmi buyout, abx's acmi will wither on the vine and not be renewed, and the big brown army will absorb the dhl air freight like a fresh sheet of Bounty absorbs a spill, no problem.

 

[shooter]

Ruh-Roh! If this goes through, goodnight abx/astar. Das will receive a nice acmi buyout, abx's acmi will wither on the vine and not be renewed, and the big brown army will absorb the dhl air freight like a fresh sheet of Bounty absorbs a spill, no problem.

Ruh-Roh is right! UPS could take the DHL domestic market share without blinking on the air side and just add a few more trucks on the ground side.

ABX would run as a 767 ACMI only. ABX=the new Gemini/World? I really don't see Das running an ACMI airline outside DHL, but I could be wrong. It would be just another contract buyout for Das. I think Polar would survive all this for the US/Asia market with the 7478's. Funny I heard rumors about UPS buying Polar for the Boeing slots a while back. I wonder if that rumor will re-surface?

I hope this is all just industry rumor....but thats what we all said about DHL/Airborne for YEARS.

This is not good for ABX and ASTAR AT ALL.

p.s. brown/yellow....sounds like a dirty diaper.

 

[shooter]

interesting. It works Ex-America via a Euro-Asia codeshare for boxes, but how in the hell would you make it work domestically?

Unless you shutdown DHL Express?! Due to FredEx's larger express market share and DHL's minimal ground ops, it would probably pass DOJ anti-trust.

UPS could probably deliver here with minimal excess lift.

It works domestically with the USPS selling express mail and it rides on FedEx aircraft. We (ABX) sort it for the USPS and just drive it back across the field in IND to the FedEx hub to be flown back out. Maybe thats how UPS got the idea to go after German delivery for UPS boxes and they would just handle all yellow boxes here. I could see how it could work, just don't like it.

 

[GoABX]

It works domestically with the USPS selling express mail and it rides on FedEx aircraft.

There is a huge difference. The Post Office doesn't have a fleet of aircraft. True they both sell it at retail, it flies on FDX and it could really be delivered by either party. That model works ex-USA. But here we both have airlines. How do you get the freight into and out of separate systems for international. Yes it can be done physically, but how are you partners in some markets and competitors in others. They'd probably kill Astar/ABX (maybe keeping the 76s).

We all know UPS doesn't have the best track record with other airlines it touches.

 

[shooter]

There is a huge difference. The Post Office doesn't have a fleet of aircraft. True they both sell it at retail, it flies on FDX and it could really be delivered by either party. That model works ex-USA. But here we both have airlines. How do you get the freight into and out of separate systems for international. Yes it can be done physically, but how are you partners in some markets and competitors in others. They'd probably kill Astar/ABX (maybe keeping the 76s).

We all know UPS doesn't have the best track record with other airlines it touches.

they did...they had a dedicated 727/DC-8 fleet with Emery operated by Ryan pilots (on the 72's). They dumped the airline and now put the USPS express on FedEx aircraft. If this goes through, I don't doubt DHL would dump ABX and ASTAR and fly it on UPS aircraft. It would not shake out well I bet.

p.s. Express One had 5 dedicated 727-200 on the same contract.

For what its worth...I LOVED the USPS painted aircraft. Blue USPS eagle on the tail....sharp looking and always turned heads at airshows. TV commercials had the "Fly like an Eagle" Steve Miller tune.

 

[b707guy]

I'm certainly no economist or business planner, but maybe Brown simply wants a 30% cut on an extremely profitable business, at least for now. Having said that, though, this could go just about anywhere eventually, and both Astar and ABX may look quite different afterwards.

Gotta go with Shooter on the old USPS paint scheme on the Ryan-operated 72s, second only of course to that fabulous blue and white on the beauty you see below.

 

[hvydriver]

I'm certainly no economist or business planner, but maybe Brown simply wants a 30% cut on an extremely profitable business, at least for now. Having said that, though, this could go just about anywhere eventually, and both Astar and ABX may look quite different afterwards.

I'm not an economist either 707, but I agree with the ABX boys here. IFthis goes through (which I hope is a long shot) I don't think there would be an ABX or an Astar to work for anymore. The most logical reason that I can see for UPS to express an interest in this is a code share for boxes. UPS could absorb the DHL material in the US with hardly a burp. Just another scenario for all of us to consider. Like we weren't busy enough with that already.

 

[JohnnyCash]

is this why they are expanding the ramp 3 wing?

(really does it matter that you can't see F, or 29 from the tower?)