Will DHL target ABX’s DC9 aircraft for cuts?

[shooter]

UPS and Fedex's growth for the last several years has come from international. DHL gives up the US and they are done.

Once the rest of the world gets a taste of what "express" truly is(read Fedex and UPS), DHL is done. DHL didn't have to compete until they came to the US, and they failed, miserably.

Well we can hope they understand the business a little better. We will find out the 28th. If they plan on a reduction in service I will agree that they are done. If you don't have a product, what will they have to sell?

DHL: I can take your $#!^ to New York City or Los Angeles, but nothing to Knoxville or Spokane until 3 days later.

Customer: Hello, FedEx?

 

[shooter]

To paraphrase Ulysses Everett McGill: Well, ain't DHL a geographical oddity. Two weeks from everywhere!

http://www.tnmc.org/dp/pics/gclooney.jpg

Aahhh, now the beer is getting funny with the situation. I guess we just gotta laugh. :laugh: It's better than crying. :crying:

 

[fob727]

No Shooter, I comprehend quite well. Believe it or not, I can read too.

One thing I can't comprehend is the air of superiority that some of the "Airborne" employees have.

 

[abxdx]

Lets see.. Spend 1 Billion on Airborne Express, then spend another couple hundred million adding to the infrastructure if ILN and other regional hubs. Then lose another 1+ billion trying in three years trying to break into the market...... Naaahhhh, lets just be a "niche" carrier and control 5% of the market. So what if we have already gone through almost 3 billion dollars, our investors will be happy with our 5% market share for the next 30m yrs. I am sure we will make that 3 billion back in about 300 yrs. They will wait...

Do you really think that DHL is going to be niche carrier after all the money they have spent?

I got news for you, they might be on the retreat right now, but they are not just going to give up. I have no doubt they will scale back somewhat, but give them a few years to figure it out. Like you guys said they are the big boys on the block everywhere else, and while they might not ever be #1 I highly doubt they are going to settle for 5% of the market.

How much of the market share do FDX/UPS have in Europe/ MIddle East or Asia? How long have they been at it? How much money have they spent?

It appears DHL wants to go back to the previous way of operating before coming to ILN, focus on International freight and high dollar/low volume type clients. This goes back to the "niche" market that they were fairly successful at (and now I'll expect to see post after post of how they were losing money at that, which is not true).

I also suspect the smaller rural destinations will be serviced by USPS just as it were pre-ILN. DHL will focus on major cities with smaller feeders flying out from there.

Before you start a flame war this is just my observation from what I have seen. In my 20+ years of flying for DHL I have heard time and time again of our demise. What most fail to recognize is you don't have to be FDX or UPS to survive the freight market, but rather find a niche and go from there.

 

[rotor&wing]

Lets see.. Spend 1 Billion on Airborne Express, then spend another couple hundred million adding ...................

Must be dispatcher night at the local bar I see........

 

[abxdx]

No, just got out of anger management group therapy. Everyone said to say Hi! they miss you....

Must be dispatcher night at the local bar I see........

 

[hvydriver]

Lets see.. Spend 1 Billion on Airborne Express, then spend another couple hundred million adding to the infrastructure if ILN and other regional hubs. Then lose another 1+ billion trying in three years trying to break into the market...... Naaahhhh, lets just be a "niche" carrier and control 5% of the market. So what if we have already gone through almost 3 billion dollars, our investors will be happy with our 5% market share for the next 30m yrs. I am sure we will make that 3 billion back in about 300 yrs. They will wait...

Do you really think that DHL is going to be niche carrier after all the money they have spent?

I got news for you, they might be on the retreat right now, but they are not just going to give up. I have no doubt they will scale back somewhat, but give them a few years to figure it out. Like you guys said they are the big boys on the block everywhere else, and while they might not ever be #1 I highly doubt they are going to settle for 5% of the market.

How much of the market share do FDX/UPS have in Europe/ MIddle East or Asia? How long have they been at it? How much money have they spent?

I agree with your assessment generally dx, though the losses since integration have been on par with 7 Billion. Not 3. As far as market shares go, DHL, everywhere else in the world, IS UPS/FedEx in the states. We'll all be dust in the ground before Purple and Brown close that gap, even if DHL does nothing but scale back to pre-integration levels in the US.

 

[shooter]

No Shooter, I comprehend quite well. Believe it or not, I can read too.

One thing I can't comprehend is the air of superiority that some of the "Airborne" employees have.

:erm: umm, well then your last post I was referring to made absolutely no sense whatsoever.

BTW it's air superiority if someone understands the business and wants to see it run right for the better of ALL involved? While I do not have the keys to this machine I assure you I can run it and do a heck of a lot better job at it. Don't be offended.

 

[shooter]

I agree with your assessment generally dx, though the losses since integration have been on par with 7 Billion. Not 3. As far as market shares go, DHL, everywhere else in the world, IS UPS/FedEx in the states. We'll all be dust in the ground before Purple and Brown close that gap, even if DHL does nothing but scale back to pre-integration levels in the US.

Lets slow down a bit hvy and see if we can on the same page.

I do not doubt DHL is #1 across the rest of the world. But the US market is the #1 express market in the world. The two big players are now expanding into the global market with full force. Deutsche Post no longer has the German monopoly stuffing their coffers so they need the US express market to remain competitive in the world market. I assure you FedEx and UPS will start to bring pressure to the DHL world market position. If DHL does not get a foot hold in the US market to provide the service the customers look for, they will just turn to UPS or FedEx. Dr.Z understood this and that is why he was smart enough to buy DHL to assure it will provide service to gain those customers. This is the exact reason they will not, can not, reduce their service to what they were before the Airborne purchase. If they do, they will be finished because the international market is being invaded by our US giants.

 

[rotor&wing]

This is the exact reason they will not, can not, reduce their service to what they were before the Airborne purchase. If they do, they will be finished because the international market is being invaded by our US giants.

As much as anyone would like to say over and over "they cannot reduce their service to pre Airborne purchase" you better get ready. The writing is pretty much on the wall, whether any of us like it or not.