AV8OR
Well-known member
- Joined
- Dec 2, 2001
- Posts
- 696
Outstanding. DHL's timing is impeccable. They sit on their rear ends during one of the greatest periods of economic growth...the 90's, then right about the time it peters out, they build a brand new 250Mil superhub, buy Airborne, fire all the former DHL drivers in order to get the absolute cheapest labor force they can, while leading to piss poor service, then punt the 250Mil superhub for a different, 300Mil superhub in Wilmington. Now that the economy is headed back in the right direction, after having their luch handed to em, and while UPS and FedEX march onward, DHL decided to pull back. Unbelievable. I guess we'll have to wait till the next recession to get new aircraft. Ought to make the next year interesting...
DHL Reins In Ambitions In US Market -FT
Tuesday May 17, 6:19 PM EDT
NEW YORK -(Dow Jones)- DHL, the package delivery arm of Deutsche Post AG ( DPW.XE), has said it doesn't want to chase U.S. market share from United Parcel Service Inc. (UPS) and FedEx Corp. (FDX), signaling a reining in of the company's ambitions, the Financial Times reports in an article on its Web site Tuesday.
According to the FT, John Mullen, joint chief executive of DHL Express, characterized the company's plans in the U.S. as "realistic and modest," insisting it wasn't "setting out to create another UPS or FedEx."
His comments, at a Bear Stearns investor conference in New York, eased concern that DHL might spark a price war in the U.S. package delivery market after two years of heavy investment.
Mullen said the company's most urgent objective in the U.S. was to improve service quality, which he described as having been "horrendous" last year. Once service improved, DHL would seek to increase prices closer to those of UPS and FedEx rather than cut them, he said, according to the FT.
"We're not driven by market share gains," Mullen said. "We want to get more value out of the volume we have rather than chase more volume."
Mullen said the company would lose up to EUR300 million this year but aimed to break even in the fourth quarter of 2006. DHL had no plans for further investment in the U.S., he said, according to the FT.
DHL Reins In Ambitions In US Market -FT
Tuesday May 17, 6:19 PM EDT
NEW YORK -(Dow Jones)- DHL, the package delivery arm of Deutsche Post AG ( DPW.XE), has said it doesn't want to chase U.S. market share from United Parcel Service Inc. (UPS) and FedEx Corp. (FDX), signaling a reining in of the company's ambitions, the Financial Times reports in an article on its Web site Tuesday.
According to the FT, John Mullen, joint chief executive of DHL Express, characterized the company's plans in the U.S. as "realistic and modest," insisting it wasn't "setting out to create another UPS or FedEx."
His comments, at a Bear Stearns investor conference in New York, eased concern that DHL might spark a price war in the U.S. package delivery market after two years of heavy investment.
Mullen said the company's most urgent objective in the U.S. was to improve service quality, which he described as having been "horrendous" last year. Once service improved, DHL would seek to increase prices closer to those of UPS and FedEx rather than cut them, he said, according to the FT.
"We're not driven by market share gains," Mullen said. "We want to get more value out of the volume we have rather than chase more volume."
Mullen said the company would lose up to EUR300 million this year but aimed to break even in the fourth quarter of 2006. DHL had no plans for further investment in the U.S., he said, according to the FT.
