||ASTAR AIR CARGO
||Currently Not Operational
||+1 (305) 982 0500
||+1 (305) 416 9564
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DHL-2005 9 MTHS
FORMED AND STARTED OPERATIONS IN 1969. AIRPLANES ARE OPERATED ON BEHALF OF DHL WORLDWIDE EXPRESS. DOMESTIC & INTERNATIONAL, SCHEDULED, CARGO, JET AIRPLANE CARRIER.
2 SOUTH BISCAYNE BOULEVARD, SUITE 3663
MIAMI, FLORIDA FL 33131, USA
USA (United States of America) was established in 1776, it covers an area of 9,363,123 sq km, its population is 280 million, its capital city is Washington DC, and its official language is English.
NOVEMBER 1995: JAPAN AIR LINES (JAL) OWNS 25%, LUFTHANSA (DLH) OWNS 25%, NISSHONO IWAI 7.5%. DHL OWNS DHL-EUROPEAN AIR TRANSPORT (EPT).
INVESTED $10 MILLION IN NEW MOSCOW HQ AT SHEREMETYEVO AIRPORT = 100% GROWTH RATE.
MOSCOW - COPENHAGEN, VIA HELSINKI, WITH AN-26 (CARRIES 4 TONS).
NEW INTERNATIONAL GATEWAY, OPENED AT NEW YORK KENNEDY (JFK), FOR EUROPE, AFRICA, & MIDDLE EAST.
1 727-200A (JT8D-17R), EX-MEXICANA (CMA).
DECEMBER 1995: $30 MILLION, 3 YEAR EXPANSION IN LATIN AMERICA IN PANAMA + NEW SUBSIDIARY, DHL AERO EXPRESO (DHA), WITH 727-200F'S OPERATING MIAMI (MIA) - PANAMA CITY (PAN) - (MIA).
FELIX PICARDI, PRESIDENT, OWNS 51%, (DHL) OWNS 49%. OPERATES DOCUMENTS, & SMALL PACKAGES, & GENERAL AIR FREIGHT CARGO, AS PART OF (DHL).
APRIL 1996: USING CONCORDE FOR SAME DAY SERVICE.
1 727-200A (20894) EX-SARO, COOPESA (COO) CONVERTING TO CARGO. 2 DC-8 "D" MAINTENANCE CHECKS BY PEMCO WORLD AIR SERVICES. MIAMI MODIFICATION CENTER DOING "C" MAINTENANCE CHECK, AGING AIRCRAFT INSPECTION ON DC-8-73F (46125). 1 757-200PF (24635), LEASED, EX-GULF AIR (GUL).
AUGUST 1996: DHL OPERATES 50 AIRPLANES ON EUROPEAN (DHL-EUROPEAN AIR TRANSPORT (EPT), CROSS-BORDER NETWORK, INCLUDING 24 727-100/-200F'S, STAGE 3. +2 727-200F'S IN SEPTEMBER 1996.
ROBERT KUIJPERS, CEO, EUROPEAN & AFRICAN OPERATIONS.
LOOKING AT FREIGHTER VERSIONS, OF A300, AND 767, FOR 4 TO 5 ACQUISITIONS, FOR EUROPEAN EXPRESS PACKAGE OPERATIONS.
PLANS TO DEVELOP A NEW $5 MILLION, "SUB-HUB" AT STRASBOURG, FRANCE, OPENING IN OCTOBER 1996 (7TH IN EUROPE).
1 727-200 (JT8D-17R), EX-(AGES).
SEPTEMBER 1996: 1 727-100F, & 1 727-200F, EXPRESS ONE INTERNATIONAL (EOI) WET-LEASED.
OCTOBER 1996: VICTOR GUINASSO, PRESIDENT USA OPERATIONS.
NOVEMBER 1996: RECEIVED (ISO) 9002, INTERNATIONAL QUALITY REGISTRATION, FOR CINCINNATI HUB.
JANUARY 1997: 1996 = 358.2 MILLION (FTM) FREIGHT TRAFFIC (324.4 MILLION).
1 727-200F (JT8D-15H), EX-ISTANBUL AIRLINES (IST).
APRIL 1997: 1ST QUARTER = +$.53 MILLION (+$4.77 MILLION) (NET PROFIT).
TO OPERATE 727-100F FOR GUATEMALA OPERATIONS. PLANS TO PUT 727-100F IN VENEZUELA, WITHIN NEXT 2/3 MONTHS.
MID 1995, TO MID 1996, (DHL) HANDLED 40.7% OF 1.02 MILLION AVERAGE DAILY INTERNATIONAL EXPRESS SHIPMENTS; FEDEX (FED) 20.5%; UNITED PARCEL SERVICES (UPS) 15.2%.
AIRBUS (EDS) MEMO OF UNDERSTANDING (MOU) RE- 7 USED A300B4F FREIGHTERS (CF6-50C2), EX-THAI AIRWAYS (TII) (JULY 1998), FOR USA BUSINESS CENTERS SAN FRANCISCO (SFO), LOS ANGELES (LAX), NEW YORK, MIAMI (MIA), & MEXICO.
3 A300B4-103'S (071; 084; 085) & 4 A300B4-203'S (CF6-50C2) (141; 149; 249; 265) (JULY 1998).
MAY 1997: BILL HAGEDORN, MANAGER QUALTY CONTROL & MAINTENANCE PROGRAMS RESIGNED.
JUNE 1997: MIAMI (MIA) TO SAN PEDRO SULA, HONDURAS, OPERATED FOR ANTILLES AIR, CARGO OPERATOR, NEW YORK.
4 727-200, EX-ANSETT (ANS), FOR (DHL) EUROPEAN DIVISION, TO BE CONVERTED TO FREIGHTERS. 3 ORDERS (OCTOBER 1997) A300B4-200F'S (116, 150, 199), EX-EGYPTAIR (EGP).
JULY 1997: 1996 = +$27.50 MILLION (+$16.79 MILLION) (NET PROFIT). 2ND QUARTER = +$15.85 MILLION (+$6.71 MILLION).
PURCHASED 1 727-100F (18321) OFF-LEASE.
AUGUST 1997: MARK WHITTIER, DIRECTOR QUALITY CONTROL & MAINTENANCE REPLACES BILL HAGEDORN.
SEPTEMBER 1997: 1 727-35F (19066) FOR DHL DE GUATEMALA (DHA).
CINCINNATI - SAN JUAN, PUERTO RICO (727-200F).
AIR CONTRACTORS (HCA) OPERATING 2 +1 ORDER (DECEMBER 1997) A300F'S, CONVERTED BY (DASA), DRESDEN, ON BEHALF OF (DHL), ON OSLO - COPENHAGEN - BRUSSELS, AND STOCKHOLM - COPENHAGEN - EAST MIDLANDS.
2 A300B4-203'S (250; 289), EX-CONTINENTAL AIRLINES (CAL).
OCTOBER 1997: 9,100 EMPLOYEES (AVIATION DIVISION).
3RD QUARTER = -$44.41 MILLION (+$3.32 MILLION).
NOVEMBER 1997: 2 DC-9-15F'S, KITTY HAWK AIR CARGO (KHC) WET-LEASED, FOR LOS ANGELES (LAX) - SAN FRANCISCO (SFO) - SEATTLE (SEA), PORTLAND, SALT LAKE CITY, & DENVER.
DECEMBER 1997: +9 A300B4-200'S CONVERTED TO FREIGHTERS OVER NEXT YEAR. 1ST ONE ARRIVED IN BRUSSELS FOR DHL-EUROPEAN AIR TRANSPORT (EPT).
JANUARY 1998: THROUGH OWNERSHIP IN DHL-EUROPEAN AIR TRANSPORT (EPT), PARTNERSHIP WITH AFFRETAIR (AFF), FOR DC-8F SERVICE, BRUSSELS TO HARARE GATEWAY, TO SOUTHERN AFRICA.
MARK WHITTIER, SENIOR MANAGER QUALITY CONTROL & ENGINEERING.
2 A300B4-203 (250, 289), EX-CONTINENTAL AIRLINES (CAL), LEASED JULY 1998.
FEBRUARY 1998: $170 MILLION FOR HUB & SORT FACILITY, AT CINCINNATI, KENTUCKY AIRPORT ON 150-ACRES, ACCOMMODATES 65 AIRPLANES, & 3 MILLION LBS OF CARGO PER EVENING - COMPLETE BY 2001.
1 A300B4-200 (CF6-50C2) (152), EX-PAN AM (CVL), SOGERMA TO CONVERT TO FREIGHTER IN 2ND QUARTER 1998.
APRIL 1998: 1ST QUARTER MAINTENANCE EXPENSES = $30.29 MILLION (10.03% OF TOTAL OPERATING EXPENSES).
MAY 1998: 1ST 4 MONTHS = 47.57 MILLION (FTK) FREIGHT TRAFFIC (+5.8%).
1 727-200 (20757), SAFAIR (SFA) LEASED, CONVERT TO FREIGHTER BY DATAM (DENEL AVIATION SUBSIDIARY), ITS 1ST 727F CONVERSION, USING AERONAUTICAL ENGINEERS, FLORIDA KIT.
JULY 1998: DEUTSCH POST, GERMANY'S STATE-OWNED POSTAL AUTHORITY, TAKES 22.5% STAKE IN (DHL) INTERNATIONAL GIVING IT JOINT CONTROL WITH LUFTHANSA (DLH), AND JAPAN AIR LINES (JAL), FOR $400 MILLION.
AUGUST 1998: INCDT: (DHL) 727-228F (19861) NO 2 ENGINE FAILED, AND RIGHT MAIN GEAR COLLAPSED AND DETACHED UPON LANDING = 3/2 OK, BUT SUBSTANTIAL DAMAGE BEYOND ECONOMICAL REPAIR, WRITTEN OFF (W/O).
SEPTEMBER 1998: 7 727-200F'S HEAVY MAINTENANCE CONTRACT TO AIR ASIA, TAIWAN.
1 A300B4-203 (259), EX-PAN AM (CVL), TO CONVERTED TO FREIGHTER.
OCTOBER 1998: $83 MILLION GOVERNMENT CONTRACT TO TRANSPORT SMALL PACKAGES INTERNATIONALLY FOR MOST GOVERNMENT AGENCIES, INCLUDING DEFENSE DEPARTMENT, FOR 3 YEARS. HAS HANDLED SENSITIVE GOVERNMENT SHIPMENTS FOR >20 YEARS.
2ND QUARTER = -$11.30 MILLI0N (+$15.85 MILLION). 1997 = -$12.67 MILLION (+$28 MILLION). 3RD QUARTER = +$6.702 MILLION (-$44.409 MILLION): MAINTENANCE COSTS = $32.24 MILLION (10.36% OF OPERATING EXPENSES.
9,869 EMPLOYEES (FULL +1/2 PART).
1 DC-8-73CF (46091), EX-SOUTHERN AIR TRANSPORT (STT), (GEH) LEASED.
NOVEMBER 1998: 727-200F (JT8D-7B) TO AASI.
DECEMBER 1998: 7 ORDERS A300B4'S (071; 084; 085; 141; 149; 249; 265), EX-THAI AIRWAYS (TII). 727-228F'S (19861) PARTED OUT.
JANUARY 1999: (DHL) TAIWAN, PROVIDES ENGLISH/MANDARIN CHINESE PRODUCT NEWS ON (http://www.tw.dhl.com).
FEBRUARY 1999: CONTRACT TO BRITISH WORLD AIRLINES (BAF), FOR PALMA - BARCELONA - MADRID - PALMA (ATP-QC).
2 A300B4-203F'S (249, N366DH; 265, N367DH) DELIVERIES.
MARCH 1999: "STRATEGIC ALLIANCE" WITH USA POSTAL SERVICE, WITH ADDITIONAL INTERNATIONAL AIR EXPRESS OPTIONS, TO PROVIDE 2-DAY, GUARANTEED TRACKABLE EXPRESS DOCUMENTS, FROM 11 USA CITIES, TO WESTERN EUROPE, CALLED "PRIORITY MAIL GLOBAL GUARANTEED."
APRIL 1999: APPLIES FOR ALL-CARGO SERVICE, USA - BAHRAIN, WITH CODE SHARES: CINCINNATI - NEW YORK - BRUSSELS - BAHRAIN (GEMINI AIR CARGO [GMN] DC-10) & - BRUSSELS - BAHRAIN (DHL) INTERNATIONAL, 757 NORDSTRESS WET-LEASED).
1ST QUARTER = +$789,000.
MAY 1999: JEFFREY GLADE, DIRECTOR LOGISTICS, LATIN AMERICA & CARIBBEAN.
A300B4-203F (289), EX-CONTINENTAL AIRLINES (CAL), HOUSEHOLD LEASED, OPERATIONS BY AIR CONTRACTORS (HCA).
JULY 1999: ACQUIRES (DHL) INTERNACIONAL, ITS AGENT-RUN ARGENTINA OPERATION, & PLANS TO INVEST $10 MILLION IN ARGENTINE MARKET OVER NEXT 18 MONTHS. PLANS IN MID-2001, TO OPEN $34 MILLION, 100,000 SQ FT HUB AT CHANGI INTERNATIONAL AIRPORT, SINGAPORE, TO HANDLE 180,000 TONNES CARGO/YEAR, AND 18,500 SHIPMENTS/HOUR.
A300B4-203 (149, N365DH) & A300B4-203F (249, N366DH) CONVERTED.
AUGUST 1999: DHL INTERNATIONAL BOARD OK'S $1.3 BILLION PURCHASE, OF 40 TO 45 AIRPLANES FOR EUROPE (EPT) & AFRICA NETWORK, & $200 MILLION INVESTMENTS, IN MANY GLOBAL INFRASTRUCTURE IMPROVEMENTS, INCLUDING $100 MILLION FOR AIR EXPRESS HUB AT COLOGNE/BONN, $17 MILLION AT FRANKFURT, $35 MILLION AT CHANGI, SINGAPORE, & $82 MILLION FOR DHL JAPAN.
NEGOTIATIONS WITH BRITISH AIRWAYS (BAB) RE-757-200 FLEET, & CONVERTED TO F.
RECEIVES SERVICES TO OPERATE BETWEEN CINCINNATI HUB, AND MIAMI.
1ST A300BR'S OF 6 CONVERTED TO FREIGHTER BY BRITISH AEROSPACE AVIATION.
SEPTEMBER 1999: A300B4-203 (71, N361DH) CARGO CONVERSION NOT ECONOMIC, MAY BE BROKEN UP. 727-277F (22644) RETURNED FROM CONTINENTAL MICRONESIA (MCR).
OCTOBER 1999: 2ND QUARTER = +$3.41 MILLION: MAINTENANCE COSTS $36.66 MILLION (11.17% OF DIRECT OPERATING COSTS (DOC).
757-23APF (24635) RETURNED TO ANSETT WORLDWIDE (AWW). 1 A300B4-203 (141, N364DH) DELIVERY. 44 ORDERS 757-236'S, EX-BRITISH AIRWAYS (BAB), TO BE CONVERTED TO FREIGHTER BY BOEING AIRPLANE SERVICES (BAS), FOR $1.3 BILLION. (BAS) WILL PROVIDE ENGINEERING AND MAINTENANCE. 757-236F CAN CARRY 60,000 LBS OF CARGO, AT RANGE >2,000 NM, WITH VOLUME PAYLOAD CAPACITY 8,000 CU FT. AIRPLANES WILL OPERATE FOR DHL UK (DHK)
NOVEMBER 1999: 1998 = -$12.67 MILLION (-$5.16 MILLION): 385.8 MILLION (FTM) (355.3 MILLION), 58.3% LF LOAD FACTOR (-3.4).
PLANS FOR MID-2000, TO OPEN A$7 MILLION, SORTING, & INVENTORY MANAGEMENT FACILITY, IN MELBOURNE, AUSTRALIA.
757-200PF (24635) PURCHASED OFF LEASE. 2 ORDERS (JANUARY 2000) 757-200PF'S (23971, EX-CHALLENGE AIR CARGO (CHA), & 24868, WET-LEASED), (AWW) LEASED. LATTER TO BE USED FOR DUBAI - BAHRAIN.
DECEMBER 1999: 53,222 EMPLOYEES (INCLUDING 403 FLIGHT CREW (FC)).
JAPAN AIRLINES (JAL) SELLS 20% STOCK IN (DHL), BUT RETAINS 6%.
2 A300B4-103'S (84, N362DH; 85, N363DH) DELIVERIES.
JANUARY 2000: VICTOR GUINASSO, CHAIRMAN (DHL) AIRWAYS. AT END OF 2000, PLANS TO MOVE HQ FROM REDWOOD CITY, CALIFORNIA, TO DOWNTOWN SAN FRANCISCO.
FEBRUARY 2000: CODE SHARE WITH GEMINI AIR CARGO (GMN), NEW YORK - BRUSSELS (DC-10). DHL INTERNATIONAL, BRUSSELS - BAHRAIN, WITH NORDSTRESS, AUSTRALIA OPERATIONS, WITH BOEING WET-LEASED 757-200F'S.
MARCH 2000: TO INVEST $20M IN ARGENTINA AIR COURIER SERVICE, INCLUDING 20,000 SQ M, WAREHOUSE, IN BUENOS AIRES, WITH MOBILE UNITS, TECHNOLOGY, AND SYSTEMS. COURIER MARKET CURRENTLY IS $60M/YEAR, WITH (DHL) HAVING 34% MARKET SHARE.
TOP CARGO OPERATORS AT MIAMI IN 1999 TONS 1,000:
1 TLS 260 (+13.7%); 2 AAL 171 (-6.5%); 3 CHA 141 (-1.9%); 4 ARW 119 (+9.4%); 5 TMP 118 (+8.3%); 6 FNE 112 (-29.75); 7 CKF 92 (-34.1%); 8 UPS 70 (+20.3%); 9 UAL 58 (-6.4%); 10 AMJ 44 (-46.5%); 11 LAN 41 (+32.4%); 12 TAC 36 (+100%); 13 DHL 36 (-9.5%); 14 FED 32 (-47%).
LUFTHANSA CARGO (LUB), AND DEUTSCH POST, WILL TAKE OVER (DHL).
APRIL 2000: 1ST 757F CONVERTED AT BOEING AIRPLANE SERVICES (BAS), WICHITA, IN 6/00.
SHAWN FARSHCHI, SENIOR VP INFORMATION SERVICES & CHIEF INFORMATION OFFICER.
MAY 2000: 1 757-236 (9-22172), EX-BRITISH AIRWAYS (BAB).
JULY 2000: 60,000 EMPLOYEES.
1999 TOP WORLD OPERATORS:
EMP (K): 1 UPS 308; 2 FED 150; 3 UAL 96.7; 4 AAL 86; 5 DAL 72; 6 DLH 66.2; 7 DHL 60; 8 AFA 55.2; 9 BAB 53.1.
1999 = +$31.79 MILLION (-$5.16 MILLION): 623.91 MILLION (FTK) (+8.9%); 60,000 EMPLOYEES.
A300B4-103F (85, N363DH), DELIVERED CONVERTED.
SEPTEMBER 2000: DEUTSCHE POST WORLD NET BUYOUT OF DHL, FOR $18.9B, WILL TRANSFORM GERMANY'S NATIONAL POSTAL SERVICE INTO A HEAVYWEIGHT COMPETITOR FOR PRIVATE PARCEL DELIVERIES.
1 727-225F (1685-22438, /80 34 23, N928PG), EX-FRENCH POST OFFICE (FPO), PEGASUS (PSS) LEASED.
OCTOBER 2000: USA POSTAL SERVICE ALLIANCE WITH DHL USING ASTAR AIR CARGO (DHL), INCLUDING INTERNATIONAL TRANSPORTATION, CUSTOMS CLEARANCE & PACKAGE DELIVERY, TO 49 COUNTRIES IN LATIN AMERICA, & 179 COUNTRIES WORLDWIDE. PRIORITY MAIL, GLOBAL GUARANTEED, RENAMED TO GLOBAL EXPRESS GUARANTEED. CUSTOMERS CAN DROP OFF SHIPMENTS AT >20,000 POST OFFICES WORLDWIDE.
1 727-22QC (388-19192) SOLD TO TRANSAFRIK (TCL). 1 A300B4-203F (093), EX-CARNIVAL (CVL), PACE LEASED, CONVERTED TO FREIGHTER BY (EADS). INTENDS TO REPLACE ALL 727'S, AND DC-8-73 FLEET, WITH 757'S.
DECEMBER 2000: PLANS TO ACQUIRE +40 757-200'S FOR USA OPERATIONS. 34 TO REPLACE 9 727-200F'S, AND 25 ADDITIONAL 727-200F'S HGW, TO BE SHORTLY ACQUIRED ON SHORT-TERM LEASES. 11 OF THE INTERIM 25, TO REPLACE 727-100'S. 7 757-200'S WILL REPLACE 7 DC-8-73F'S, ON N AMERICAN & TRANSATLANTIC ROUTES. TO RETIRE ALL 727-100'S, DC-8'S AND ALL 727'S BY END OF 2005. +9 A300F'S BY 2005, FOR TOTAL FLEET OF 15.
JANUARY 2001: IN 2000, INCOME GREW 20% IN VENEZUELA, ALLOWING DHL TO REINVEST $20M IN THE COUNTRY. IN VENEZUELA, (DHL) OPERATES 6 AIRPLANES BY VENZUELAN PILOTS, UNDER THE NATIONAL FLAG. HAS OPERATED IN VENEZUELA, AS CUSTOMS BROKERS, FOR 12 YEARS, AND DEVELOPED CONSIDERABLE EXPERTISE IN EXPORT AND IMPORT REGUALTIONS, & PAPERWORK. EMPLOYS 500 EMPLOYEES IN VENEZUELA, AND ITS EXPORT INDUSTRY, BASED IN VALENCIA, ACCOUNTS FOR +40% OF DHL'S TRAFFIC GROWTH. IT INTRODUCED "IMPORT EXPRESS" WHICH IS ESTIMATED, SOLD AND BILLED BY DHL, IN THE COUNTRY OF DESTINATION, COVERING 90% OF THE CLIENT'S TRANSPORTATION REQUIREMENTS.
UNITED PARCEL SERVICES (UPS) AND FEDEX (FED), BOTH COMPLAINED TO THE DEPARTMENT OF TRANSPORTATION (DOT), CHARGING THAT DHL IS EFFECTIVELY OWNED BY A FOREIGN ENTITY - - DEUTSCHE POST, THE GERMAN, NATIONAL POSTAL MONOPOLY, OWNED & CONTROLLED BY THE GERMAN GOVERNMENT, WHICH HAS GAINED UNFETTERED ACCESS TO THE USA DOMESTIC MARKET - - IN EFFECT "CABOTAGE."
DHL WORLDWIDE, IS 100% OWNED BY DHL INTERNATIONAL, WHICH ALSO OWNS 52% - - PLUS 23% OF VOTING STOCK - - OF DHL AIRWAYS. LUFTHANSA CARGO (LUB) OWNS 25% OF (DHL) INTERNATIONAL; DEUTSCHE POST OWNS 51% OF DHL INTERNATIONAL, & IS IN TURN 67% OWNED BY THE GERMAN GOVERNMENT, FOR GERMAN CONTROL OVER DHL AIRWAYS, A USA CARRIER.
APRIL 2001: 1 727-224F (22252, N746DH) EX-CONTINENTAL AIRLINES (CAL), (PSS) LEASED.
JUNE 2001: SIGNS CARGO ALLIANCE, WITH NORTHWEST AIRLINES (NWA), FOR 747-200F SERVICE, FROM CINCINNATI TO ASIA, INCLUDING BLOCKED SPACE FOR PACKAGE DELIVERY TO TOKYO, OSAKA, HONG KONG, TAIPEI, MANILA, BANGKOK, SINGAPORE, BEIJING, SHANGHAI, KUALA LUMPUR, & SEOUL.
JULY 2001: AFTER GROWING 50% IN 2000, (DHL) PERU IS PROJECTED TO CONTINUE TO GROW 35% IN 2001, BY IMPLEMENTING AN AGGRESSIVE DIVERSIFICATION POLICY. THROUGH ITS NEW SERVICE LINE, (DHL) SERVICIO DE ADUANAS, (DHL) WILL PROVIDE QUICKER, & MORE EFFICIENT, METHODS OF CLEARING IMPORTS, THROUGH CUSTOMS, ACTING AS STRATEGIC PARTNERS, OF MAJOR IMPORTERS, A MEANINGFUL NEW SOURCE OF REVENUE FOR (DHL). PLANS CALL FOR SUBSTANTIAL INCREASE IN IMPORTS, A NICHE, (DHL) WILL NOW DEVELOP EVEN FURTHER, WITH STATE-OF-THE-ART TECHNOLOGY.
1 ORDER (9/01) 727-2M7 (21951), EX-QATAR AIRWAYS (QTA), PEGASUS (PSS) LEASED.
AUGUST 2001: 1 727-225F (22440), (PSS) LEASED.
OCTOBER 2001: BOB SCHLASINGER, MANAGER POWERPLANT. TOM DOWD, MANAGER AIRFRAME ENGINEERING (firstname.lastname@example.org).
NOVEMBER 2001: 757-236F (22181, G-BIKJ) CONVERTED, OPERATES FOR (DHL) UK (DHK).
DECEMBER 2001: DHL WORLDWIDE EXPRESS, AWARDS 15-YEAR, $400 MILLION CONTRACT TO (GE) ENGINE SERVICES, CARDIFF, WALES, FOR REPAIR & OVERHAUL OF 68 (RR) ENGINES FOR 34 757SF AIRPLANES. 1 727-22C (19191) & 2 727-30C (19011; 793) WFU, AT KINGMAN, AND TUCSON. 1 757-236 (86-22400), EX-BRITISH AIRWAYS (BAB), FOR (DHL) UK (DHK).
JANUARY 2002: DHL AIR (UK) (DHK) WILL BE OPERATED AS A SEPARATE COMPANY, AND NOT AS PART OF AIR CONTRACTORS (HCA). 6 OF 23 PLANNED 757-200F'S WILL BE IN SERVICE, BY 3/02. ALL A300F'S, WILL BE TRANSFERRED TO DHL-EUROPEAN AIR TRANSPORT (EPT), IN A DEAL INVOLVING (HCA)'S PARENT, SAFAIR (SFA). ALL 727'S, WILL BE PHASED OUT, OVER AT LEAST A YEAR.
HUGH FLYNN, MANAGING DIRECTOR, REPLACES TREVOR JONES, WHO RETURNED TO DHL.
APRIL 2002: RESUMES CONSTRUCTION, OF $213M SORTING FACILITY AT CINCINNATI/NORTHERN KENTUCKY AIRPORT, AIMING FOR COMPLETION BY 06/03.
727-223F (22466, N709AA), EX-(AAL)/(CCA), AMERICAN CAPITAL GROUP LEASED.
June 2002: 1 727-223F (22008, N892AA), Aviation Capital leased.
July 2002: Deutsche Post acquires Lufthansa (DLH) 25% stake in DHL International for $598 Million/EUR610 Million, boosting its total share to 75.6%. Deutsche Post's Klaus Zumwinkel, CEO, stated the intention is to take over DHL completely.
2001 = -$251.87 Million (-$66.98 Million): 622.3 Million (FTK) (freight traffic) (-6.7%).
727-225F (21857, N755DH), American Capital Group leased.
ACCDT: A DHL UK (DHK) 757-200F (24635, APC-DHL) collided with a Bashkirian Airlines Tu-154M (1006, RA-85816) at 36,000 ft over Southern Germany near Lake Constance on Swiss border = all 2 (FC) fatalities on the 757-200F, and all 12 (FC) - (CA)/57 passenger fatalities on the Tu-154M. It was suspected there was Air Traffic Control (ATC) mishandling switching from German to Swiss control. Official German Federal Bureau of Accident Investigations report issued in 2004-05, lays blame largely owing to operational and systemic failures by Skyguide, a privatized Swiss (ATC) organization, as well as incomplete integration of (ACAS)/(TCAS II) into the aviation safety infrastructure. The first immediate cause of the collision was that the imminent separation infringement between the airplanes was not observed by the Skyguide controller on duty in time. As a result, the instruction for the Tu-154M to descend was given at a time when the prescribed separation to the 757-200 could not be ensured anymore. The second immediate cause was that the pilot-in-command of the Tu-154 followed the (ATC) instruction to descend even after his (TCAS) instructed him to climb. This decision put the TU-154 on a collision course with the 757, which was descending in response to an instruction from its own (TCAS). Full accident report: http://www.bfu.admin.ch and Skyguide's response at http://www.skyguide.ch
Later, a German court ruled that the government was partly liable in the 2002 midair collision between a (DHK) 757 freighter and a BAL Bashkirian Airlines Tu-154M that killed 71 people, as the government had granted Swiss Air Traffic Control (ATC) firm Skyguide control over a portion of German airspace, according to press reports. The court has yet to decide how much compensation is due Bashkirian, which reportedly is seeking $3.3 million. Other civil lawsuits are pending.
August 2002: Joe O'Gorman, Chairman, President & CEO, DHL Airways, 59, died suddenly of a massive heart attack. Vicki Bretthauer, acting CEO. Gary Hammes, Director Maintenance & Engineering, ex-Evergreen International (EVR).
727-200F (22466, N752DH), ex-American Airlines (AAL), Aviation Capital leased. DC-8-73F (46091), AeroUSA leased.
September 2002: FedEx (FED) and United Parcels Services (UPS) have continued their allegations to the Department of Transportation (DOT), that rival DHL, is controlled by the German post office (Deutsche Post World Net), and should not be classified as a USA certificated carrier.
DHL Worldwide Express, is expanding its parts logistics capacity, with the opening of an expanded, express, logistics center, in San Francisco, serving the USA and Canada. It joins 2 USA-based logistic operations at Cincinnati, and Miami. Another center, is scheduled to open in 10/02, in Tokyo, adding to worldwide centers, in Brussels, Bahrain, Johannesburg, Hong Kong, Sydney, and Singapore, which serve particular regions, and also serve as warehouses, for the network of strategic parts centers. DHL is planning operations of 55 strategic parts centers in the USA, and 330 around the world, by the end of 2002, for 24-hour deliveries to customers.
October 2002: Cathay Pacific (CAT) sells 30% stake in its freight subsidiary, Air Hong Kong (AHK), to DHL. This will help DHL gain a presence in Asia, a market dominated by (UPS), and FedEx (FED). DHL will develop and operate the Express Cargo Terminal, at Hong Kong International Airport, which will serve as DHL's state-of-the-art, Central Asia Hub. These ventures will create a total of 700 new jobs, in Hong Kong, before 2004.
November 2002: 757-236F (23710, G-BMRA), ex-(BAB), bought from Boeing (TBC).
December 2002: Deutsche Post World Net acquires the final 24.4% of DHL International, and now owns 100%.
727-22C (19191) and 727-155C (19618) WFU at Kingman.
January 2003: 727-227F (21886, N781DH), Wells Fargo leased.
March 2003: John Dasburg, 60, Chairman & CEO, ex-Burger King & (NWA). He's expected to invest in the air cargo operator, taking as much as 5% share of its common stock.
DHL Worldwide Express bought Airborne Inc's ground shipping operations for $1.05B cash (at a premium over the Seattle company's stock price), for all assets except its ABX Air (ABX) fleet of about 116 owned and leased airplanes. DHL's parent, Deutsche Post, hopes to obtain a bigger share of the USA air cargo and express markets. As non-USA entities, Deutsche Post and DHL International are barred by USA law from owning more than 25% voting control of a USA airline/operator. DHL Airways is affiliated with DHL International but the (DOT) has determined that it does conform with a USA-owned entity, in face of challenges by Fedex (FED) and (UPS).
A300B4-622R (659, TF-ELB), Islandsflug (ISF) wet-leased for Paris operations.
April 2003: Vicki Bretthauer, President & COO, DHL Airways, Chicago, Illinois. Steve Rossum, Executive VP-General Counsel & Head of Business Transactions. Ray Lutz, VP Business Development & Strategic Planning. Phil Wegescheide, VP Finance & Controller.
(DOT) intends to conduct a public hearing to determine whether DHL Airways, an affiliate of DHL Worldwide, qualifies under USA citizenship status. To qualify, it must be incorporated in the USA, its President and two-thirds of its board of directors must be USA citizens, and at least 75% of its voting stock must be owned by USA citizens. DHL plans to sell the company to its new CEO, John Dasburg.
May 2003: To end questions over its citizenship, DHL stated it has been acquired by John Dasburg, Chairman & President and 2 other investors for $57 Million. When the sale is completed, DHL Airways will change its name to "Astar Air Cargo" (pronounced A-Star) to distance itself from partial owner, Deutsche Post.
Moves its HQ and 22 employees from Chicago to Miami.
A300B4-203F (207, N368DH), ex-Tradewinds Airlines (TWX), S-C Domestic Holdings leased.
July 2003: 10,200 employees. SITA: BAHOWER.
An investment group led by John Dasburg, Chairman & CEO, completed the acquisition of DHL Airways, in a transaction previously valued at $57 Million. Has now renamed "DHL Airways" as "ASTAR Air Cargo," and reached agreement to purchase or lease +10 727-200's, ex-ATA (AAT), from an affiliate of BCC. ASTAR Air Cargo (DHL) will continue to focus on its core "wholesale overnight small package business, while at the same time, looking for attractive opportunities to expand its charter, Dept of Defense, and Postal Service business."
ASTAR (DHL) has an 11-year contract to provide air cargo services for DHL Worldwide Express.
Meanwhile, Deutsche Post World Net 1st 6 months = +EUR 650 Million/+$747 Million, forecasting +EUR 2.9 Billion for 2002. The multifaceted integrated global logistics provider, early thus year, merged its not-yet profitable DHL Worldwide Express division with Deutsche Post Euro Express and freight forwarder Danzas, now renamed DHL Danzas Air & Ocean. Klaus Zumwinkel, CEO, of corporate parent Deutsche Post AG, said Deutsche Post World Net expects its controversial express-shipment expansion in the USA market to be completed in the 3rd quarter. The company is spending "a lot of money in legal costs" to defuse regulatory challenges by rivals (UPS) and Federal Express (FED).
October 2003: The European Commission (EC) asked the Danish government to investigate the ties between (UPS) and Star Air (SDK). This was instigated by a complaint from Deutsche Post. It wants the Danish authorities to make sure (SDK) is a European-controlled entity. Although (SDK) is a subsidiary of Danish shipping group, Moeller-Maersk, the (EC) cites complaints claiming almost all of its economic activities are generated by (UPS), which allegedly is responsible for (SDK)'s fleet, crews, technical support and maintenance. Should the Danish government or the (EC) decides this relationship constitutes effective control, the authorities could revoke (SDK)'s operating license. The Deutsche Post action is viewed as retaliation for efforts by (UPS) and FedEx (FED) to have Astar Air Cargo (DHL), formerly DHL Airways, de-certified as a USA carrier because all of its flying is done on behalf of Deutsche Post's DHL Worldwide Express unit, which used to own 25% of DHL. The USA Department of Transportation (DOT) is still in the midst of the investigation to determine whether Astar (DHL) complies with USA citizen requirements.
DHL already represented in China by 42 offices, 160 stations and 700 trucks in 318 cities, plans to triple capacity in the country by investing $200 Million in its delivery business over 5 years. The move is predicated on an expected 35% to 45% annual growth in volumes and increasingly strong regional trade. The vehicle for the company's growth scenario, proceeding within what observers consider a problematic regulatory environment for foreign operators, is DHL Sinotrans. This 50-50 joint venture links Deutsche Post AG's DHL Worldwide Express and China National Foreign Trade Transportation Co, a state-owned logistics firm based in Beijing. It is better known simply as Sinotrans, in which DHL acquired a 5% stake in 2003-02. (DHL) is not without competition. Rival FedEx (FED) will increase its presence in China from 220 cities to 100 more, over the next 5 years and will open a new HQ in the Pudong area of Shanghai in 2003-12. DHL CEO, Uwe Doerken, stated that the (DHL) Sinotrans venture will have "true national coverage" after the broad expansion and increasingly will target more sophisticated logistics issues than document delivery.
November 2003: INCDT: (DHL-European Air Transport (EPT) A300B4-203F (093, OO-DLL) was hit by an SA-7 missile while passing 8,000ft, 6nm after takeoff from Baghdad. The missile impacted with the leading edge slat, resulting in the loss of some hydraulics and a fire. After returning, 3 circuits of the airport were made while the landing gear was deployed and the airplane overran on landing because of the lack of brakes. The 3 crew members (FC) were OK and unharmed.
(EPT) will expand its European express-delivery network in 1/04 with 6 weekly flights between its Munich hub and Istanbul for package items weighing up to 2,500 kilos.
727-264F (23014, N765AT), BATA Leasing leased.
December 2003: The USA (DOT) rules that Astar Air Cargo (DHL) complies with USA citizenry requirements.
2002 = +$9.19 Million (-$251.9 Million).
April 2004: The European Commission (EC) OK's grant by the German government to DHL European Air Transport (EPT) of EUR 70.8 Million/+$85 Million to help fund a new logistics center at Leipzig/Halle. The grant represents 28% of the total investment of EUR 253 Million to create the new facility.
727-264F (22984, N764AT), BATA leased.
May 2004: DHL will become the 1st international provider to launch a domestic express service in mainland China, to be called "China Domestic." It will establish 3 new express logistic centers and 16 spare parts centers in China. John Mullen, CEO, DHL Asia-Pacific said although it is expected that there will be competition from local players, the "market is big enough for all."
June 2004: Astar Air Cargo (DHL) will consolidate its domestic hub in Wilmington, leaving uncertain the long-term fate of its Erlinger operation and >1,800 local jobs, Kentucky and airport officials disclosed. Wilmington is about 50 miles northeast of Cincinnati.
727-2B7 (22162, N762AT), BATA Leasing leased.
July 2004: DHL-European Air Transport (EPT) will decide before end of 2004 to maintain its hub at Brussels or relocate to the all-cargo Vatry Airport in France or Leipzig in Germany. The relocation of (EPT)'s Brussels hub would include relocation of its Brussels-based airline (EPT). Speculation has grown over the past months that DHL (EPT) might leave Brussels as pressure mounts to introduce a night flight ban there. "The fact of having to deal with different regional authorities as well as the federal goverenment has not helped the cause" stated John Hogan, CEO, UK & Ireland.
2003 = +$8.43 Million (+$9.19 Million): 481.48 Million (FTK) freight traffic (+53.3%).
727-30C (19011) sold to Air Trading International.
September 2004: Ted Mallory, Senior VP Flight Operations, ex-(FAA) aviation safety inspector and retired captain & Chief Pilot, Northwest Airlines (NWA).
727-22F (18321, N707DH), 727-25F (18275, N708DH), & 2 727-228's (19862, N724DH; 20409, N726DH), sold to Air Trading International.
October 2004: 727-2B7F (21953, N770AT), BATA Leasing leased.
A300B4-203 (207, N368DH), returned to C-S Aviation Services (CSV).
March 2005: 727-214F (21692), ex-ATA (AAT), after conversion to freighter.
June 2005: Astar Air Cargo (DHL) provides cargo, charter services to over 40 USA and international airports from its hub at Cincinnati/North Kentucky International airport.
(IATA) Code: ER - 423. (ICAO) Code: DHL (Callsign - DHL).
Parent organization/shareholders: John Dasburg (37%); Richard Blum (33%); & Michael Klein (30%).
Main Base: Cincinnati/Northern Kentucky International airport (CVG).
Domestic, freight destinations: Albany New York; Abuquerque; Appleton; Atlanta; Austin; Bakersfield; Birmingham; Bloomington-normal; Boston; Burlington Vermont; Calexico; Carson City; Ceadr Rapids; Charleston South Carolina; Chicago; Cincinnati; Cleveland; Corpus Christi; Dallas /Fort Worth; Denver; Des Moines; Detroit; Dothan; El Paso; Eugene; Fargo; Fort Myers; Fresno; Grand Rapids; Harlingen; Harrisburg; Hartford; Houston; Huntsville; Jackson Mississipi; Jacksonville Florida; Kansas City; Kinston; Knoxville; La Crosse; Lafayette; Lake Charles; Lansing; Laredo; Las Vegas; Little Rock; Los Angeles; Madison; Medford; Memphis; Miami; Midland/Odessa; Milwaukee; Minneapolis/St Paul; Moline; Nashville; New Orleans; New York; Norfolk; Oklahoma City; Pmaha; Ontario; Orlando; Oxnard/Ventura; Pensacola; Philadelphia; Phoenix; Pittsburgh; Raleigh/Durham; Reno; Richland; Richmond; Roanoke; Rochester New York; Rockford; Sacramento; Salt lake City; San Diego; San Francisco; Santa Barbara; Santa Maria; Savannah; Seatlle; Shreveport; Sioux Falls; South Bend; Spokane; Springdale; Springfield Missouri; St Louis; Tallahassee; Tampa; Tr-Cities Regional; Tucson; Tilsa; Victoria; Washington; Wausau; Westchester County; Wichita; Wilkes-Barre; Wilmington; Wilmington North Carolina; & Yakima.
International, freight destinations: Bahrain; Barcelona; Belfast; Brussels; Calfary; Cologne; Copenhagen; Dublin; Edinburgh; Frankfurt; Glasgow; Gothenburg; Guadalajara; Halifax; Helsinki; Kingston; London; Madrid; Malmo; Malta; Mexico City; Milan; Montreal; Nottingham; Oslo; Ottawa; Panama City; Porto; Saltillo; San Juan; Shannon; St Croix Island; St Thomas Island; Stockholm; Toronto; Vancouver; & Winnipeg.
727-247F (21393, N793DH), Boeing (TBC) leased.
December 2005: 727-225F (21857), returned to Aviation Capital Group, leased tp express.net (TCN).
January 2006: DHL, a global express delivery and logistics company, announced plans to expand its operations in Salt Lake City and construct a new service center facility at the Salt Lake City International Airport. The $4.3 Million investment includes construction of a 62,000-square-foot facility at the airport to serve Salt Lake City and surrounding areas for pickup, delivery and sorting operations.
DHL currently has a "pass-through" ramp operation at the airport, where packages are off-loaded from its dedicated airplanes and shuttled to its existing service center in West Valley City, Utah. Construction started this month on a larger service center that will consolidate both facilities, strategically located at the airport, which will result in earlier delivery times and later drop off cut-off times for local customers. "By expanding the size of our current service center, DHL will be positioned to accommodate a decade of growth in the Salt Lake City area," said Michael Epeneter, Senior VP Operations at DHL. "We are continually looking for ways to improve and enhance service through investments in our USA operations, and DHL is pleased to provide enhanced services to one of the fastest growing metropolitan areas in the United States."
The new state-of-the-art facility will handle a wide variety of shipments - - including domestic and international parcels as well as palletized and container freight - - and initially employ 142 (DHL) employees and associates when fully operational on August 1, 2006.
May 2006: ABX Air (ABX) posted a +14.3% profit increase, in the first quarter to +$8.1 million, rebounding from a difficult 2005, that saw profits drop, as primary customer, DHL Worldwide Express struggled to compete against FedEx (FED) and (UPS) in the USA market. The carrier earned +$7.1 million in the year-ago period. "Our operating results reflect the success of our initiatives to drive down costs, and improve productivity in our sort, line-haul and air operations for DHL," President & CEO, Joe Hete said.
(ABX), which was spun off from Airborne Express when the delivery company's ground operations were acquired by DHL in 2003, is the largest airline serving DHL's express operations in the USA. DHL lost a combined -$950 million in 2004 and 2005, on USA operations and (ABX) suffered as a result. DHL's troubled integration of two USA air hubs into one site at the (ABX) base Wilmington, Ohio, was cited as a big driver of USA losses.
(ABX) said first-quarter revenues grew +6.5% to $369.2 million, with non-DHL 767 charter revenues jumping +78% to $3.9 million. Operating expenses rose +6.5% to $359.4 million, and operating income improved +6.6% to $9.8 million. While the carrier has said it plans to build up non-DHL operations, DHL contracts accounted for $360.8 million of the revenues. (ABX) said it worked with DHL to optimize airplane routing and remove costs from ground operations.
DHL, hugely profitable in most of the world, projects that it will lose another -$360 million in the USA this year, but hopes to break even in the market by the second half of 2007.
June 2006: DHL signed a long-term "strategic network alliance" with Malaysian cargo carrier Transmile (TML). DHL recently spent $1.3 million upgrading its facility at Subang, and now will offer 10 weekly flights from the airport to its main Asia/Pacific hub in Hong Kong aboard Transmile (TML) airplanes. It previously reserved block space for cargo on Transmile (TML) flights, but said the expanded agreement will allow for more regular service and cut delivery time for Malaysian customers by a half-day for shipments to other countries in Asia, Europe and the USA West Coast.
The initial five-year agreement will allow DHL the flexibility to add new air services or upgrade existing service offerings to its customers.
Through the partnership, both parties will work closely on the strategic development of both intra-Asia and inter-continental air services, to meet the booming trade within the region and beyond. According to the World Trade Organization (WTO) International Trade Statistics 2005, intra-Asia trade in 2004 totaled US$1.2 trillion. In terms of intra-continental trade, this is second only to intra-Europe trade. Trade between Asia and Europe was worth about US$725 billion, while trade between Asia and North America recorded US$782 billion.
DHL has invested US$1.6 billion in Asia Pacific in the last few years to strengthen its network infrastructure, to meet the evolving demands of customers.
DHL opened an expanded facility in Denpasar's cargo terminal, consolidating its sales, service, warehousing and administration functions under one roof and extending cut-off times for shipments.
A German court ruled that the government was partly liable in the 2002 midair collision between a (DHK) 757-200F freighter and a (BAL) Bashkirian Airlines Tu-154M that killed 71 people, as the government had granted Swiss Air Traffic Control (ATC) firm, Skyguide control over a portion of German airspace, according to press reports. The court has yet to decide how much compensation is due Bashkirian, which reportedly is seeking $3.3 million. Other civil lawsuits are pending.
August 2006: DHL signed a multimillion-dollar, two-year agreement with Electrolux, a leading producer of powered appliances, to serve as the company's exclusive global air express services provider.
DHL will increase its capacity into New York (JFK) by 8 tons per day with new twice-daily flights from Hong Kong, and daily flights from Bangkok, Singapore, and Taipei.
October 2006: Atlas Air Worldwide Holdings (AAWH) has reached agreement to sell a 49% equity interest and a 25% voting interest in its (PAO) Polar Air Cargo subsidiary to DHL for $150 million cash, the companies announced.
(AAWH) said the deal includes a 20-year blocked-space arrangement with potential revenues of $3.5 billion that "will ensure DHL access to airplane capacity in key global markets, while providing the (AAWH) companies with a valuable, long-term customer."
DHL, which said it was especially interested in Polar (PAO)'s Asian routes, will have access to its six 747-400Fs, as well as available wet-lease (ACMI) airplanes from Atlas Air (TLS). Because DHL is a non-USA owned company, it cannot acquire more than a 25% interest in Polar (PAO) under USA law and the deal likely will be subject to review by the USA Department of Transportation.
(AAWH) announced a second-quarter profit of $10.7 million, down -33% from the year-ago quarter. DHL will pay $75 million upon the transaction's closing and the remaining $75 million in installments scheduled for January 15 and November 17, 2008.
"Our strategy has been to maximize the value and potential of our scheduled-service business, and this transaction accomplishes that goal," (AAWH) President and CEO, William Flynn said, adding that the deal "provides our company with a significant increase in our cash liquidity and a very attractive long-term revenue stream."
DHL Express CEO, John Mullen said the transpacific route "is one of the most rapidly growing and competitive trade lanes globally, and adding capacity through an even stronger presence in the USA is a crucial factor in supporting our dynamic Asian business."
Polar (PAO) will continue to operate independently and there will be no integration with DHL or its subsidiaries, the German company said.
November 2006: DHL relocated its office and warehouse facilities in Charlotte to a 52,000 sq ft site near Charlotte International Airport, that is twice the size of its previous location. The facility will include 38,000 sq ft of warehouse space and is aimed at expediting air and ocean shipping by taking advantage of proximity to the airport and its customs facilities.
December 2006: A bipartisan group of USA House of Representatives members who sit on transportation and aviation committees, launched a preemptive strike last week, urging the White House not to push forward plans that would allow foreign investors to own majority shares in or control USA airlines.
A November 28 letter to White House Chief of Staff, Josh Bolten said, "Making the rule final in the face of bipartisan Congressional opposition would be a very poor start to the 110th Congress, in which we hope that Congress and the Administration will be able to work together for the good of the American people." It continued, "We can see no basis for an argument that the (DOT)'s proposed interpretation of 'actual control' is consistent with the plain meaning of these words. We are confident that if the proposed interpretation goes forward it will be challenged in court."
The letter was signed by Representatives Frank Lobiondo (Republican -New Jersey), Ted Poe (Republican - Texas), Jerry Costello (Democrat -Illinois) and James Oberstar (Democrat - Minnesota), who likely will become Chairman of the House Transportation Committee in January. They also stated that any major changes to current law "should be accomplished by Congressional action, not unilaterally imposed by the Executive Branch."
Jim Berard, Democratic spokesperson for the Transportation Committee, said "We are thinking the (DOT) may try to sneak this in and get it done, and by the time we find out about it, it would be too late." In the past, Congress has refused to pass legislation allowing foreign interests to control USA airlines, he noted. Currently, USA citizens must control 75% of the voting stock of a USA carrier. A proposed rule change would allow up to 49% to be controlled by foreign investors.
Berard explained that the objection to a proposed change is based on both policy and the process: "If the administration thinks it's a good idea, they should come to Congress and explain it. This is not the way to make this kind of change. Let's hold hearings, vote on it and see where it goes."
Later, Bowing to domestic political pressure exacerbated by the Democrats' rise to power in last month's midterm elections, the USA Dept of Transportation (DOT) abandoned its 13-month effort to ease restrictions on foreign control of domestic airlines, delivering a setback to a potential "open skies" agreement with the (EU).
One week after a group of House aviation and transportation committee members sent a letter to the White House warning that imposing the rule "in the face of bipartisan Congressional opposition would be a very poor start to the 110th Congress," new Transportation Secretary, Mary Peters announced withdrawal of the proposal, which she said "would have allowed international investors more input in the marketing, routing and fleet structures of USA airlines while retaining current domestic ownership and labor protections."
Peters added that the USA remains committed to completing an open aviation agreement with the (EU), but the European Commission issued a statement yesterday in which VP Transport, Jacques Barrot "expressed disappointment and regretted this decision." Barrot said the (DOT) proposal, which was released November 1, 2005, and amended last spring, "was an essential element in order to conclude the comprehensive first step Air Transport Agreement with the United States."
Peters offered to send negotiators to Brussels "on an urgent basis" early next year "to review the situation and discuss the way forward," the (EU) said. The two parties appeared to have reached an accord in May but Congress erected a financial stumbling block in response, passing legislation forbidding (DOT) from spending any money on implementing its proposal.
"It was clear from reviewing the comments [to the (NPRM)] that the Department needs to do more to inform the public, labor groups and Congress about the benefits of allowing more international investment. We need a stronger national consensus about the best means of achieving that objective," Peters said. "Today's announcement in no way deters us from our goal of giving USA airlines complete access to the world's capital markets."
The Air Line Pilots Association welcomed the withdrawal of the (NPRM), stating that "any policy change that holds the potential to dramatically influence the USA airline industry must be part of a full Congressional public process, rather than a unilateral action by the Administration."
Atlas Air (TLS) Worldwide Holdings (AAWH) and DHL announced the finalization of DHL's acquisition of a 49% stake in (AAWH) subsidiary Polar Air Cargo (PAO) and a 20-year blocked-space agreement announced in October. The stock purchase agreement was executed November 28.
January 2007: DHL said it will invest an additional $35 million in its Hong Kong operation to increase ground handling capabilities in the growing market, lifting its total investment in the city to $645 million, which includes a $400 million investment in Air Hong Kong (AHK) made in conjunction with Cathay Pacific Airways (CAT).
March 2007: Boeing (TBC) said it reached agreement with express cargo operator DHL on an order for six 767-300ER freighters valued at $894 million. It chose GE (CF6-80C2B7F)s valued at more than $120 million to power the airplanes. DHL Express, CEO, John Mullen said the airplanes will be delivered beginning in 2009 and likely will be dedicated to USA routes. A DHL spokesperson said it is undecided which of the company's affiliated contract carriers will operate the freighters. Astar Air Cargo (DHL) and (ABX) Air are its largest USA subservice carriers and it is the process of finalizing a deal to acquire a 49% equity interest and a 25% voting interest in Polar Air Cargo (PAO).
DHL is inaugurating a new USA West Coast international gateway at March Air Reserve Base in Riverside, California, promoting the facility as a hub at which transpacific airfreight can be sorted quickly for delivery in the western USA. The site has been used as a domestic West Coast distribution complex since DHL invested $70 million in 2005 in the lease and development of the dual-use facility that is shared with the USA Air Force Reserve. A $3 million upgrade and this planned arrival of a freighter from Hong Kong will mark Riverside's launch as an international site. The $3 million was directed toward adding on-site offices for customs processing and clearance functions related to international shipments. DHL said it will operate two daily Hong Kong - Riverside freighter flights as well as daily all-cargo flights to the facility from Bangkok, Singapore and Taipei.
April 2007: DHL-European Air Transport (EPT) is ramping up operations at Leipzig/Halle (LEJ), to which it started flying in 2005, and intends to turn it into a European hub with an investment of €300 million. It currently operates 14 daily frequencies at (LEJ), most recently to Hamburg and Ljubljana, and handles approximately 160 tons of freight per day. Next year, it plans to land 50 airplanes at the airport each night. It said the expansion will create around +3,500 jobs by 2012.
May 2007: USA State Dept, Deputy Assistant Secretary Transportation Affairs, John Byerly said offering cabotage rights to (EU) carriers for cargo flights is under consideration and could be in play during the next round of (EU)-USA "open skies" talks. While noting that no consensus administration policy has been developed, the USA's lead air services negotiator said cargo cabotage is "less threatening" and may not encounter the strong opposition from labor and Congress that passenger cabotage will. "'Cargo first' is a way of approaching changes in our laws," he said, emphasizing that he was expressing a personal opinion and not USA policy. "Whether that will take the form of direct cabotage or DHL having outright ownership of [its USA subservice operator] Astar [Air Cargo] (DHL), I don't know."
DHL is launching a 10-times-weekly service connecting Qingdao and Hangzhou with its Hong Kong hub. The route, to be operated by a Yangtze River Express Airlines (YTH) 737-300F, is part of DHL's commitment to invest an additional $110 million in the Chinese market over "the next few years" through its DHL-Sinotrans joint venture with China National Foreign Trade Transportation Corp. It already has opened a 2,000-sq-m facility at Hangzhou.
June 2007: Four years after DHL parent, Deutsche Post World Net (DPWN) sold its 25% stake in Astar Air Cargo (DHL) to ease concerns that the carrier was in violation of USA foreign ownership rules, DHL announced it has acquired a 49% minority equity interest and a 24.9% voting interest in Astar (DHL), one of its primary USA subservice fliers.
"Our investment in Astar (DHL) signals another major commitment to the USA market," DHL Express, CEO, USA, Hans Hickler said. DHL, whose largest USA subservice flier is (ABX) Air, reached an agreement last October to acquire a 49% equity interest and a 25% voting interest in Polar Air Cargo (PAO). Dominant in much of the world, it is seeking to break (UPS)'s and FedEx (FED)'s grip on the USA express cargo market.
The USA Dept of Transportation (DOT) held hearings in 2003 to 2004 to consider claims by (UPS) and FedEx (fed) that Astar (DHL), formerly known as DHL Airways, was under the control of Germany's (DPWN) and not a legitimately owned USA carrier. Former Northwest Airlines (NWA) President, and current Astar (DHL) Chairman, President & CEO, John Dasburg joined the carrier in the midst of the regulatory battle in March 2003 and quickly put together a group of USA investors that purchased 100% of the cargo airline, including (DPWN)/DHL's stake. He changed its name to Astar (DHL) and (DOT) eventually ruled that it was USA-owned, ending a prolonged legal clash between DHL and a rarely united (UPS) and FedEx (FED).
Astar (DHL) generates the vast majority of its revenue from a wet-lease (ACMI) agreement with DHL, which was extended to 2019. With its corporate headquarters in Miami, and flight operations based in Wilmington, Ohio, it operates a fleet of 29 727-200Fs, nine DC-8Fs and six A300B4-200Fs. Dasburg and other senior Astar (DHL) executives will continue in their current positions and Hickler has joined the Astar (DHL) board of directors.
DHL's purchase of a stake in Astar (DHL) may signal a change in the USA market, since the controversy earlier in the decade. USA State Dept, Deputy Assistant Secretary Transportation Affairs, John Byerly recently said the USA would consider relaxing foreign ownership rules in the next round of (EU) - USA "open skies" negotiations, adding that "cargo first" could be a "less threatening" way of changing USA laws. "Whether that will take the form of direct cabotage or DHL having outright ownership of Astar (DHL), I don't know," he said.
DHL said it officially completed the previously announced transaction to form a strategic partnership with Atlas Air Worldwide Holdings (TLS)/(PAO) subsidiary, Polar Air Cargo (PAO). DHL is investing $150 million for a 49% stake and 25% of voting rights in Polar (PAO).
Astar Air Cargo (DHL) Chairman, President & CEO, John Dasburg said that (ABX) Air has not yet responded to Astar (DHL)'s "indication of interest" in acquiring its fellow DHL subservice carrier for $450 million in cash, and set a deadline of the close of business July 18 for a response. In a letter sent to the (ABX) board, Dasburg noted that the formal indication of interest sent late last month came after a number of informal discussions between himself and (ABX) President & CEO, Joe Hete about a potential merger and that (ABX) should be able to issue a "meaningful response" soon. He added that Astar (DHL) would withdraw its indication of interest, absent a reply.
Later, (ABX) Air "unanimously rejected" Astar Air Cargo (DHL)'s proposal to acquire it for more than >$450 million in cash. (ABX) and Astar (DHL) are DHL's primary subservice carriers in the USA and the latter, late last month, issued an "indication of interest" to purchase the former and merge their air operations, which both are based at (DHL)'s Wilmington, Ohio, hub. In a letter to Astar (DHL) Chairman, President & CEO, John Dasburg, (ABX) President & CEO, Joe Hete wrote that the board had examined Astar (DHL)'s proposal and "decided to reject your overture, as it would not deliver adequate value to our stockholders, relative to the value creation opportunity in the company's business plan."
August 2007: Astar Air Cargo (DHL) reached agreement to purchase two DC-8-73F freighters in its current fleet, that it had been leasing from Bank of America. The airplanes are dedicated to Astar's (DHL) operation.
November 2007: 1st 6 months = 172.48 million (FTK)s (-23.26%).
Having rejected a takeover offer from Astar Air Cargo (DHL) just a little more than three months ago, Ohio-based (ABX) Air became the acquirer, reaching a deal to purchase Cargo Holdings International (CCA) of Orlando in a transaction valued at approximately $350 million. (ABX) described (CCA) as "a leading provider of air cargo transportation and related services to domestic and foreign air carriers, and other companies that outsource their air cargo lift requirements." (CCA) and its Cargo Aircraft Management, Capital Cargo International Airlines (CCA), LGSTX Group and Air Transport International (TIN) subsidiaries, operate 32 freighter airplanes, and currently are converting five 767-200s and one 757-200. It also provides airplane leasing, fuel management and air charter brokerage services, and expects 2007 revenue of $300 million.
(ABX), which flies primarily as a wet-lease (ACMI) partner of (DHL), and reported a +$8.8 million profit, through the first six months of this year, said the combined company eventually will operate more than 135 airplanes, including the world's largest 767-200F freighter fleet (48). "The acquisition will create one of the world's leading diversified providers of integrated air cargo services," (ABX) President & CEO, Joe Hete said, adding that (CCA) has "an attractive fleet profile, long-term relationships with [customers], an exceptional ontime delivery and safety record, significant cash flow, and an experienced management team."
(CCA)'s customers include the USA government, (BAX)/Schenker, (DHL), USA Postal Service, and (UPS). Upon conclusion of the transaction, expected this year, (ABX) Air and (CCA) will be wholly owned subsidiaries of (ABX) Holdings. Final equity purchase price is expected to be $260 million, accounting for an adjustment based upon (CCA)'s net assets. The transaction will be financed with the issuance of 4 million shares of (ABX) common stock, and cash from a $345 million senior secured credit facility, led by SunTrust Financial and Regions Bank, (ABX) said.
(ABX) Air declared that DHL is "in default" of its contracts with the Ohio-based airline, that transports cargo throughout the USA for the express giant. (ABX) has both an (ACMI) wet-lease and a hub and line-haul service agreement with DHL, under which the latter reimburses the former for many of the expenses incurred while conducting DHL business. But the contracts stipulate that the reimbursements are reduced substantially if (ABX)'s total revenue from non-DHL operations exceeds 10%, and DHL claims that threshold has been topped. (ABX) said in a statement that DHL's calculation is flawed, insisting revenue generated from non-(DHL) operations is below <10%. President & CEO, Joe Hete added that the decision to file documents formally with the USA Securities & Exchange Commission alleging contract default, "was taken only after intensive efforts on our part to resolve this issue directly with DHL." Despite the dispute, he said (ABX) "is today and intends to remain DHL's principal USA business partner."
Later, (ABX) Air posted third-quarter net income of +$2.4 million, down -63.4% from a net profit of +$6.6 million in the year-ago quarter, and said it has agreed to arbitration to resolve its dispute with DHL over reimbursement of expenses, related to its contract flying for the express delivery giant. The Wilmington, Ohio-based cargo airline, which earlier this month agreed to acquire Orlando-based Cargo Holdings International (CCA), is trying to grow its non-DHL business, while still generating the vast majority of its revenue from transporting DHL cargo in the USA. That balancing act has led to a clash with DHL over $8.8 million in overhead expense reimbursements and to unexpectedly high costs in launching Asia-based 767-200F operations on behalf of (ANA). "Overall, the third-quarter results were disappointing," President & CEO, Joe Hete said, conceding that "margins during the quarter were hurt by high airplane crewing (FC) expenses in our Asia startup operations."
(ABX) said that it agreed with DHL to resolve their dispute over expenses via arbitration. (ABX)'s (ACMI) wet-lease and hub services contracts with DHL call for the latter to reimburse the former, for overhead expenses related to DHL operations, but the requirement becomes void, if (ABX)'s non-DHL business generates more than >10% of its total revenue. DHL claims that threshold has been topped, but (ABX) insists it still generates more than >90% of its revenue from DHL operations, and that the express operator is "in default." Hete said the arbitration agreement "is a positive step, one that demonstrates that our mutual interest in DHL's success can be achieved only by working more closely together."
Meanwhile, (ABX) is moving forward with its planned acquisition of (CCA) for $350 million. It said the transaction, aimed at growing non-DHL operations, likely will close before year end, and that at closing (CCA) "will have eight airplanes in the process of being converted into cargo configuration, including five 767-200s and three 757-200s." It will operate (CCA) as a wholly owned subsidiary of to-be-established (ABX) Holdings.
Third-quarter revenue rose +1.6% to $285.96 million, while expenses increased +1.9% to $281.47 million, producing pre-tax earnings of +$4.7 million, down -28.5% from +$6.57 million last year. Pre-tax earnings from DHL operations, declined -12.2% to +$3.16 million on a -3.4% drop in DHL-related revenue to $260.56 million. Non-DHL revenue jumped +119% to $25.4 million, comprising 8.9% of total revenue.
DHL announced that it will establish a $175 million "Express North Asia Hub" at Shanghai Pudong. "Hubs like Shanghai are optimally positioned to reduce transit times and distances within the region [and] also ensure that the region is better connected with the rest of the world," DHL said, adding that the new hub will allow it to provide guaranteed time definite morning delivery "to more major cities in North Asia." The facility's peak sorting capacity will be up to 20,000 parcels and 20,000 documents per hour. The express cargo operator already operates or uses space on 500 weekly flights to or from Shanghai, Beijing, Guangzhou and Shenzhen.
December 2007: Astar Air Cargo (DHL) is accepting resumes. Applicants can send resumes via the mail or email them to email@example.com.
January 2008: 2007 Performance Statistics: 339.3 million (FTK)s (-19.46%) freight traffic. SEE ATTACHED - - "DHL-2007-STATS."
(ABX) Air, the Wilmington, Ohio-based airline primarily focused on transporting DHL cargo around the USA, said it completed the previously announced $332 million purchase of Cargo Holdings International (CCA), the Orlando-based, outsourced air cargo services provider, that counts global logistics firm BAX/Schenker as its main client. (ABX) created a new holding company, (ABX) Holdings, of which (ABX) Air and (CCA) are now separate wholly owned subsidiaries. The buy is part of (ABX)'s strategy to diversify its business beyond DHL. "We don't want to be in a position where we have 90% of our business from one customer," President & CEO, Joe Hete said. He said DHL revenue will go from making up 92% of (ABX) Holdings' business to just over >70%, owing to the (CCA) acquisition.
Lufthansa (DLH)/(LUB) and DHL Express announced that their 50/50 joint venture (JV) cargo airline, "AeroLogic" will be based at Leipzig/Halle Airport and have a fleet comprising 11 leased 777Fs by 2012. The first eight airplanes will be leased from Deucalion Capital VII, which is managed by Germany's DVB Bank. Boeing (TBC) said the 777Fs, valued at $2 billion, originally were ordered by Iceland's Avion Group in 2005 and were "picked up" by Deucalion in late 2007 after Avion terminated its order. Boeing (TBC) will deliver the first four to AeroLogic next year, ahead of the carrier's summer 2009 launch, and four more will be delivered in 2010. AeroLogic, which will paint its airplanes gray and yellow, plans to take delivery of two more in 2011 and one in 2012. No purchase/lease agreement was announced regarding the remaining three airplanes.
Lufthansa Cargo (LUB) Chairman & CEO, Carsten Spohr said the (JV) airline "is the culmination of a successful partnership that has existed for many years between DHL Express and Lufthansa Cargo (LUB)." The venture first was announced four months ago. The new carrier will be guided by co-Managing Directors, Thomas Papke (from (DLH)) and Thomas Pusch (from DHL). Papke said it aims to rank "among the top five cargo carriers in Europe." Pusch added that AeroLogic plans "to fly a route network which, in addition to the major Asian cities, includes exciting destinations across North America." The company did not provide specifics of the route network. It officially started business with 20 employees and plans to hire +250 more, including 200 pilots (FC). (LUB) and DHL/(EPT) will be responsible for sales and warehouse handling for the new carrier. "For customers of the parent companies, AeroLogic will mean more capacity, more flexibility, an expanded network and improved operating times," (LUB) and DHL said.
February 2008: DHL Express said it will reduce its workforce in the USA by -600 employees, part of an ongoing effort by the German delivery giant to cut costs in its money-losing USA business. The reduction will be achieved through layoffs, attrition and the suspension of some existing open positions. "This action is one of several measures we are taking to improve our competitive position in the USA market, which is strategic to our global growth plan," (DHL) Express USA, CEO Hans Hickler said. "These changes will help us better align our cost structure."
Astar Air Cargo (DHL) and the Air Line Pilots Assn (ALPA) reached a tentative agreement on a new four-year labor contract. The parties have been negotiating since January 2005. Astar (DHL) pilots (FC)'s pay will increase more than >20% over the course of the contract. "In addition, the pilots (FC) will receive furlough protections and a commitment by the company to secure new airplanes," (ALPA) said, adding that an undisclosed amount of "retro compensation" will be paid out to pilots (FC). The contract is subject to ratification by the pilots (FC). A series of "road shows" to explain the new agreement will take place over the next couple of weeks, (ALPA) said. Astar (DHL) generates the vast majority of its revenue by providing lift for DHL in the USA.
Deucalion Aviation Funds signed a Letter of Intent (LOI) with Air France (AFA) to acquire six 747-400 passenger airplanes for conversion and subsequent delivery in 2009 and 2010. Deucalion will convert the airplanes to full freighters at the (IAI)/Bedek conversion facility, with the first expected to be available in September 2009. Marketing of the freighters is being undertaken by DVB Bank, which manages Deucalion. It is likely that the converted airplanes will operate for "Aerologic," the new cargo joint venture (JV) between (LUB) and DHL.
March 2008: Astar Air Cargo (DHL) pilots (FC) "overwhelmingly ratified" a new four-year labor contract, the airline said. "The contract provides increased wages, benefits and security for our pilots (FC), while also providing Astar (DHL) with a platform for future business growth in an increasingly competitive marketplace," Chairman, CEO & President, John Dasburg said.
Russian authorities extended Lufthansa Cargo (LUB)'s overflight rights through March. They were scheduled to expire at the end of this month, according to press reports. Russia temporarily suspended (LUB)'s rights in a dispute over the location of its hub. The carrier bases in Astana, but Russia prefers that it hub out of Krasnoyarsk.
Later, Germany and Russia reached an agreement on moving Lufthansa Cargo (LUB)'s regional transit hub from Astana in Kazakhstan to Krasnoyarsk in Siberia, ending a dispute that had resulted in the temporary cessation of (LUB)'s Russian overflight rights. "Our overflight rights via Russia are now granted," (LUB) Chairman & CEO, Carsten Spohr said, adding that (LUB) will move to Krasnoyarsk, once operational and commercial conditions are met and modernization projects at the airport are completed. He expects the earliest possible date to be sometime in 2009. (LUB)'s overflight rights had been granted on a temporary basis through this month. The routing via Siberia saves 30 minutes of flying time between Europe and the Far East. Nevertheless, weekly frequencies via Astana will be reduced from 49 to 35 within the next year, as more flights to Asia operate nonstop. Test flights from Krasnoyarsk will begin in June, Spohr said, adding that he does not anticipate (LUB) incurring extra costs as a result of the transfer.
The decision came on the heels of (LUB)'s announcement that it increased its full-year 2007 operating profit to +€135.6 million/+$87.3 million, up +66.4% from the €81.5 million posted in 2006. The operating improvement came despite a -3.8% decrease in revenue to €2.74 billion. (LUB) transported 1.8 million tons of freight and mail last year, up +2.6%, and load factor climbed +1.4 points to 69.1% LF, a company record. It operates 22 MD-11Fs, including three leased from World Airways (WLD), and uses belly capacity on Lufthansa (DLH)'s passenger fleet.
Spohr said the company is seeking to overcome concerns about overcapacity, particularly in Asia, by integrating the cargo operations of (LUB)'s various ventures. "That's why we work in a global group and spend a lot of effort to combine our group on a single intelligent platform," he said. The Lufthansa (DLH) Group includes (LUB), AeroLogic (the joint venture with DHL), Swiss Cargo (CSR), Jade Cargo international (JDC) and (LUB) Charter. (LUB) holds a 7.5% global market share and "with Jade Cargo (JDC), AeroLogic and so on, this level will grow in the future," Spohr predicted. SEE ATTACHED "(DLH)-(LUB)-AEROLOGIC-MAR08."
May 2008: DHL-European Air Transport (EPT) opened its new €300 million/$473 million European airfreight hub at Leipzig/Halle, officially relocating its air operations base from Brussels. The new hub "is situated at a crossroads to provide direct North-South and East-West access to Europe and connects both established and emerging markets in Central and Eastern Europe and Asia," (EPT) said, adding that it has "comprehensive authorization for night-time flights" at the airport. It will employ 2,000 initially and expects that to rise to 3,500 by 2012.
Astar Air Cargo (DHL) is interviewing and hiring to fill 727 Flight Engineer (FE) positions. Applicants can fax their resumes to (937) 302-5512 or email them to firstname.lastname@example.org. Astar (DHL) will be recruiting pilots (FC) at the FLTops.com "Pilot Job Fair" in Las Vegas on May 16, 2008.
DHL unveiled a $2 billion restructuring of its loss-making USA express business that includes shifting its air lift capacity in the market to rival (UPS), a potentially devastating blow to (ABX) Air and Astar Air Cargo (DHL), which currently provide the German express giant's USA lift. Parent, Deutsche Post World Net (DPWN) said it no longer can tolerate massive annual losses in DHL's USA business, which it estimates will post negative (EBIT) of -$1.3 billion in 2008. While DHL's signature yellow ground delivery vehicles still will operate in the USA, its airport-to-airport flying will be handled by (UPS) Airlines, beginning later this year, (DPWN) said. Additionally, it will close 34% of its package sorting facilities, particularly those in smaller markets, relinquishing blanket USA coverage in favor of higher-yield major markets. The USA restructuring is expected to generate cost savings of -$800 million in 2010 and around -$1 billion annually going forward from 2011, (DPWN) said. A finalized DHL-(UPS) contract will be signed later this year, the companies said.
The fate of (ABX) and Astar (DHL) is unclear, but DHL air hub activities presumably will be shifted from Wilmington, Ohio, to Louisville, where (UPS)'s WorldPort sorting facility is undergoing a $1 billion expansion to be completed in 2010.
(ABX) President & CEO, Joe Hete said DHL has informed it that (UPS) likely will take over "substantially all of the services that (ABX) Air currently provides to DHL," adding: "We are disappointed that DHL has chosen not to pursue alternative means to improve its competitive position in the USA." (ABX) generates about 75% of its revenue from DHL operations. Astar (DHL) did not comment.
The DHL-(UPS) announcement marks a stark contrast from 2004, when DHL entered the USA market, following a lengthy regulatory battle in which (DPWN) and (UPS) exchanged heated public barbs. DHL has been unable to gain more than a 6% share of the USA express delivery market. (DPWN) CEO, Frank Appel said it was time to take "a more pragmatic approach . . . to be a smarter player in the challenging USA express market."
(UPS) said the contract with DHL is expected to last 10 years and will produce up to $1 billion in annual revenue. The deal, however, is not a cease-and-desist between the longtime global rivals, COO, David Abney said, explaining that it "would be a relatively straightforward air lift agreement and that (UPS) and DHL will continue to compete."
DHL's plan to shift its USA air lift from (ABX) Air and Astar Air Cargo (DHL) to rival (UPS) leaves the fate of both airlines and the DHL-owned Wilmington, Ohio, air hub in limbo, with thousands of job losses and dozens of airplane sales possible. The transition from (ABX) and Astar (DHL) to (UPS) likely will take 12 to 18 months. DHL hopes to finalize a contract with (UPS) within the next three months and likely won't be able to make any definitive moves until the exact language is determined. Ohio's "Wilmington News Journal" reported that (ABX) has informed its 10,000 employees that more than >6,000 could lose their jobs. David Ross, President of Airline Professional Assn/Teamsters Local 1224 representing (ABX) pilots (FC), said management "was caught flat-footed by DHL's decision" and warned that "massive job loss" is possible.
But (ABX) spokesperson Beth Huber said, "We don't know how the [DHL-(UPS)] negotiations will come out. Until we know, it's business as usual. We still have planes coming in tonight." (ABX) already had been moving to diversify its business, forming a new parent holding company, Air Transport Services Group (ATSG), following its acquisition last year of several smaller cargo operators. "We don't want to be in a position where we have 90% of our business from one customer," (ATSG) President & CEO, Joe Hete said last year. Still, DHL-related business comprised $280.8 million of its total $382.1 million in revenue for the first quarter.
DHL Americas Communications Director, Jonathan Baker confirmed that all USA air package sorting would be handled by (UPS) at its Louisville hub and that Wilmington would cease to be used "as a domestic air hub." He left open the possibility that DHL could operate international flights to the airport, which it owns. Its largest USA ground sorting facility is adjacent to the airport and "we'll need that going forward," he said.
(ABX) operates 55 DC-9Fs and 30 767Fs on DHL services, with 11 additional 767Fs used for its other operations, including two that support (ANA) cargo operations in Asia. (ABX) said its agreement with DHL includes a provision that would allow it "to sell back to DHL any airplanes removed from DHL's network at . . . fair market value." It values its DC-9Fs at $19 million each.
As for Astar (DHL), DHL last year acquired a 49% minority equity interest and a 24.9% voting interest in the airline. Baker confirmed that all of Astar (DHL)'s air lift would be moved to (UPS), but said that no decision "as yet" has been made regarding DHL's stake. Astar operated 29 727-200Fs, nine DC-8Fs and six A300B4-200Fs, as of year-end 2007.
June 2008: (ABX) Air parent, Air Transport Services Group said that it has received formal notice from DHL that the express delivery giant will remove -39 of (ABX)'s 55 DC-9Fs dedicated to DHL USA air lift over the next 12 to 18 months. DHL is negotiating with (UPS) on details of an agreement reached last month to transfer its USA air lift from (ABX) and Astar Air Cargo (DHL) to its rival (UPS).
Astar (DHL) is accepting Flight Crew (FC) applications.
August 2008: The Air Line Pilots Association (ALPA) filed a lawsuit on behalf of Astar Air Cargo (DHL) pilots (FC) against DHL for "breach of contract and fraudulent inducement" relating to the delivery giant's decision to shift its USA flying from Astar (DHL) and (ABX) Air to (UPS). "By proposing to shift its North American flying work away from [Astar (DHL)] to (UPS), DHL is breaching job security commitments it agreed to provide to Astar (DHL) pilots (FC) in return for various benefits it received under the current labor contract," (ALPA) said. It is asking the court to enjoin DHL from moving its USA air lift to (UPS) and also is seeking compensatory and punitive damages.
USA Senator, John McCain (Republican-Arizona), the Republican presidential candidate, called the proposed (UPS) takeover of DHL's North American air lift a "train wreck" and vowed to "do everything in my power to avert it," while two prominent senators raised antitrust concerns with the USA Department of Justice (DOJ). DHL and (UPS) are negotiating the final details of a proposed agreement reached in May in which the German delivery giant would shift all of its USA air lift from (ABX) Air and Astar Air Cargo (DHL) to its USA rival. The deal, which (UPS) estimates could generate +$10 billion in revenue over 10 years, effectively would shut down DHL's USA air hub in Wilmington, Ohio, since its USA air cargo operations would move to (UPS) Airlines' Louisville hub. (ABX) has warned the deal could force it to cut up to -6,000 jobs in Wilmington, and another -2,000 workers employed in Ohio by Astar (DHL) and DHL also are in jeopardy. McCain met with thousands of (ABX) and Astar (DHL) workers in a town-hall meeting. "I am deeply troubled by the specter of job losses," he said. McCain's comments came just days after Senators Herb Kohl (Democrat-Wisconsin) and Orrin Hatch (Republican-Utah), Chairman and ranking member of the Senate antitrust subcommittee, jointly wrote to the (DOJ) stating that a shift of DHL's USA air lift to (UPS) "raises the question if DHL will still be able to effectively compete against (UPS) . . . some critics of the proposed agreement contend that DHL will become a captive of (UPS) rather than an independent competitor." The deal, they added, essentially cedes the USA air package delivery market to just (UPS) and FedEx (FED). "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," they wrote, calling for an immediate antitrust review.
August 2008: DHL Express appointed Jose Pereira as VP Technical Strategy & Services, Air Fleet Management.
September 2008: Astar Air Cargo (DHL) is accepting Flight Crew (FC) resumes. The carrier may possibly be hiring 727 Flight Engineers (FE)s in the future.
Astar (DHL) is not accepting Flight Crew (FC) resumes.
October 2008: DHL Express named George Kerschbaumer, Executive VP Commercial Division. He formerly served as Deutsche Post World Net's Executive VP Corporate Development.
November 2008: 1st 6 months = 147.23 million (FTK)s freight traffic (-14.64%).
Deutsche Post AG will close all of its DHL Express service centers, cut -9,500 jobs in the United States and eliminate USA-only domestic shipping by land and air, the company said, citing heavy losses and fierce competition. The Bonn-based company said that new round of cuts are on top of another -5,400 job cuts it already announced, and blamed heavy losses at the unit, which competes with rivals (UPS) Inc and FedEx (FED) Corp. The cuts are part of a wider plan to curtail operations in the USA, including domestic ground and delivery services, though its international shipping won't be affected. The express unit currently employs some 18,000 workers. Part of the plan calls for the halt to domestic shipping by January 30, the company said after it closes all of its ground hubs.
"The retained USA international express network with a total of 3,000 to 4,000 employees will be tailored to the needs of the group's international express service customers," the company said in a statement. "All international shipments into the USA will still be delivered, while 99 percent of the outbound shipments will be picked up." The move is expected to reduce operating costs at the USA Express unit from $5.4 billion/4.2 billion euros to less than $1 billion/770 million euros. "The international express offering in the USA will be maintained on today's levels and the region will remain an integral part of DHL's global Express network," the company added.
Shares of Deutsche Post were up +4.2% at 9.77 euros/$12.60 in Frankfurt trading.
Later, DHL pulled the plug on its five-year push to become the "third alternative" to (UPS) and FedEx (FED) in the USA express shipping market, announcing that all domestic USA services will cease early next year, as it focuses exclusively on international operations to/from 15 - 20 USA metropolitan areas. "The basic reason is that the USA is a highly concentrated duopoly market and the reality is . . . (UPS) and FedEx (FED)'s scale, market reach and brand awareness have made it impossible for us to make it economically viable," DHL Express CEO, John Mullen told reporters in a conference call.
Mullen estimated that DHL lost around -$10 billion over the last five years on its USA venture, including its original investment in purchasing Airborne Express (ABX) and its Wilmington, Ohio, air hub. The company estimates it lost about -$1.3 billion annually on USA operations, "a level of loss that cannot be sustained," he said. He explained that Airborne (ABX) was a "small niche player of low quality," and despite DHL's best efforts, it "never became big enough and never had enough reach to be able to compete with the two incumbents." DHL is "more than willing" to donate the Wilmington airport to the state of Ohio, he added.
The German delivery giant still is conducting negotiations with (UPS) to turn over the domestic line-haul flight portion of its international shipments to/from the USA to its rival. But the volume carried by (UPS) will be far lower than what originally was envisioned when the two announced their intent last spring to negotiate an agreement under which (UPS) would take over DHL's US air lift from (ABX) Air and Astar Air Cargo (DHL), dropping from about 1.2 million daily shipments to 100,000.
Mullen said he hoped the DHL-(UPS) deal will be finalized by year end. Total job losses at (ABX), Astar (DHL) and DHL owing to the domestic services shutdown are expected to top -9,500. Those cuts are in addition to -5,400 DHL USA jobs already slashed this year.
DHL envisions operating international flights into five USA gateways, likely including New York, Los Angeles and Louisville, and using line-haul contract flights operated by (UPS) Airlines to reach 15 to 20 markets that cover about 80% to 90% of its international shipping in the USA. It will contract smaller cargo operators to reach the remaining 10% to 20%, Mullen said. DHL generates about $4.5 billion annually in USA revenue, about $1 billion of which comes from international services.
May 2009: 727-2B7 (21953), 727-223F (22006); & 727-264F (22982) WFU at Kingman.
July 2009: 727-2Q9F (21931, N741DH), 727-214F (21691, N785AT), 727-223F (22008, N754DH), 727-227Fs (21998, N782DH; 21999, N783DH); 727-264F (22984, N764AT), and 6 A300B4-203Fs (084, N362DH; 085, N363DH; 141, N364DF; 149, N365DH; 249, N366DH; 265, N367DH), WFU at Kingman.
October 2009: Astar Air Cargo (DHL) is now operating only DC-8 airplanes. (DHL) plans to retain approximately 120 of the 500 pilots (FC) on the seniority list.
November 2009: 727-224F (22252, N746DH), sold to Kalitta Charters (KFC). 727-227F (21996, N781DH), sold to DHL International for Vensecar (VEC) operations.
January 2010: Astar Air Cargo (DHL) announced that it will reduce its pilot (FC) workforce by -303 to just 153 this year. (DHL)'s business has been reduced dramatically owing to DHL's withdrawal from the US express delivery market. Astar (DHL)'s primary business was serving as a DHL subservice airline in the USA. The furloughs will begin on March 6 and be completed by July 1, the cargo carrier said. "As you know, our primary customer, DHL, has significantly reduced its airlift requirements and Astar (DHL) has been forced to significantly reduce its flying capacity," it said.
February 2010: The European Commission (EC) said it issued charges against "a number of companies concerning their alleged participation in price-fixing cartels in the airfreight forwarding business" and major air cargo players including (UPS) and (DHL) confirmed they were included. Other companies confirming receipt of a formal "statement of objections" from the (EC) included Panalpina, Kuehne & Nagel, and (DSV).
(DHL) claimed it has been granted immunity by the (EC) in exchange for cooperating with the probe. (UPS) said it would "vigorously defend ourselves in this proceeding against any allegations of wrongdoing."
The (EC), the USA Department of Justice and other regulators around the world have been probing price-fixing in the air cargo industry for several years and a host of carriers have pled or been found guilty and paid fines. The (EC)'s latest charges appear to open a new front by implicating the forwarding side of the business.
"The (EC) is investigating allegations that these companies fixed prices by colluding on the imposition, level, timing and application of various surcharges," the (EC) said. "The allegations concern four separate infringements involving the provision of freight forwarding services from the UK to outside the [European Economic Area (EEA)], from the (EEA) to the USA, from China to the (EEA), and from southern China/Hong Kong to the (EEA)."
Companies receiving a statement of objections can reply in writing or request an oral hearing. The (EC) emphasized that the issuing of formal charges does not "prejudge" whether findings of guilt will be rendered.
January 2012: ASTAR Air Cargo (DHL) is now operating only DC-8 airplanes. About 230 pilots (FC) are on furlough. See FltOps.com and FAPA.aero.
June 2012: Astar Air Cargo (DHL) has lost its biggest customer DHL with almost no advance notice. It has now retired all of its remaining 8 DC-8-73F freighters and will have to lay off up to -200 of its staff. Astar (DHL), however, plans to continue operating at least one of its airplanes on a contract for the USA government. DHL will replace some of the flying done by Astar (DHL) on its behalf with a new agreement with Atlas Air (TLS) that will operate five 767-200F airplanes on its behalf. (ABX) Air also now operates an additional 767-200F and an additional 767-300F on behalf of DHL. Atlas Air (TLS) now operates nine 747-400F freighters on behalf of DHL.
Click below for photos:
DHL-DC-8 - 2012-08
0 727-100F (JT8D-7B HK) (19191; 19618; WFU AT KINGMAN 2002-12), INCL 1 (EOI) WET-LSD, 3 FOR (DHA) (CENTR AMER). 19401 ST AIR TRADING INTNL 2004-03. 19011 ST AIR TRADING INTL 2004-07. 18321; 18275; ST AIR TRADING INTL 2004-09. FREIGHTER.
0 727-2B7F (JT8D HK) (1516-21953, N770AT, 2004-10; 1524-21954, /79 N760AT; 1717-22162, /81 N762AT, 2004-06), BATA LSG LSD. 21953; WFU AT KINGMAN 2009-05. 22162; WFU AT KINGMAN 2009-09. FREIGHTER.
0 727-2M7 (JT8D-17R HK) (1680-21951, /80 N750DH), EX-(QTA), (PSS) LSD 2001-09. WFU AT KINGMAN 2009-05. FREIGHTER.
0 727-2Q9F (JT8D-17R HK) (1508-21930, /79 N740DH; 1531-21931, /79 N741DH), 21930; WFU AT KINGMAN 2009-05. 21931; 2009-07. FREIGHTER.
0 727-200F (JT8D-7B HK) (20204), (EOI) WET-LSD, 19861 PARTED OUT 1998-12. 20204 WFU AT KINGMAN. FREIGHTER.
0 727-214F (JT8D-7B HK) (1480-21691, /79 N785AT; 1482-21692, /79 N786AT; 1533-21958, /79 N788AT), EX-(AAT), AFTER CONV TO F 2005-03. 21692; 21958; WFU AT KINGMAN 2009-05. 21691; 2009-07. FREIGHTER.
0 727-223F (JT8D-15 HK) (1636-22006, /80 N780DH; 1646-22008, /80 N754DH), EX-(AAL), AV CAPITAL LSD 2002-06. 22006; WFU AT KINGMAN 2009-05. FREIGHTER.
0 727-223F (JT8D-15 HK) (1659-22013, /80 N749DH), EX-(AAL), (PSS) LSD 2001-09. WFU AT KINGMAN 2009-05. FREIGHTER.
0 727-223F (JT8D-15 HK) (1763-22466, /81 N752DH; 1766-22468, /81 N753DH), EX-(AAL) 2002-08, AV CAPITAL LSD 2002-08. 22466; 22468; WFU AT KINGMAN 2009-05. FREIGHTER.
0 727-224F (JT8D HK) (1149-20665, /75 N745DH; 1697-22252, /81 N746DH; 1702-22253, /81 N747DH), EX-(CAL), (PSS) LSD 2001-04, CONV TO F, BY HAMILTON AVIATION, AZ. 20665; 22252; 22253; WFU AT KINGMAN 2009-05. 22252; ST (KFS) 2009-12. FREIGHTER.
0 727-225F (JT8D-15 HK) (825-20382, /70 EI-HCA), EX-(EAL)/(AAV), RF (HCA) 1998-07, (SFA) LST (DHL) EUROPE (DHK). FREIGHTER.
0 727-225F (JT8D-15 HK) (1238-21290, /76 N742DH), WFU AT KINGMAN 2009-09. FREIGHTER.
0 727-225F (JT8D-15 HK) (1539-21857, /79 N755DH), AV CAPITAL GRP (CGP) LSD 2002-07. RTND, LST (TCN) 2005-12. FREIGHTER.
0 727-225F (JT8D-15 HK) (1685-22438, /80, N743DH), EX-(FPO), (PSS) LSD (1692-22440, /80 N748DH). 22440; WFU AT KINGMAN 2009-09. FREIGHTER.
0 727-227F (JT8D-17A HK) (1571-21996, /80 N781DH), WELLS FARGO LSD 2003-01. ST DHL INTERNATIONAL 2009-08, OPS FOR VENSECAR (VEC). FREIGHTER.
0 727-227F (JT8D-17A HK) (1577-21998, /80 N782DH; 1581-21999, /80 N783DH; 1585-22001, /80 N784DH, 2003-06), EX-(AAT), BCC LSD. 22007; WFU AT KINGMAN 2009-05. 21998; 21999; 2009-07. FREIGHTER.
0 727-228F (JT8D HK) (685-19862, N724DH; 845-20409, N726DH), 19862 WFU AT KINGMAN 2002-12. 20409 WFU AT KINGMAN 2004-06. ST (TFL) 2005-03. FREIGHTER.
0 727-247F (JT8D-15A HK) (1307-21393, /77 N793DH), EX-(AAT), (TBC) LSD 2005-06. 21393; WFU AT KINGMAN 2009-05. FREIGHTER.
0 727-264F (JT8D-15 HK) (1802-22982, /82 N751DH; 1806-22983, /82 NN763AT; 1813-22984, N764AT; 1816-23014, /83 N765AT), EX-(DAW), (PSS) LSD. 22982; WFU AT KINGMAN 2009-05. 22984; 2009-07. 22983; 23014; 2009-09; FREIGHTER.
0 727-281F (JT8D-15 HK) (865-20466, /71 EI-LCH), EX-(ANA)/(PSS), RF (HCA) 1998-07, (SFA) LST (DHL) EUROPE (DHK). FREIGHTER.
0 747-4B3BC (CF6-80C2B1F) (864-24155, /91 F-GEXB), BF (AFA) BY DEUCALION AVIATION 2008-02 FOR CONV BY (IAI) TO F FOR "AEROLOGIC" OPS. (DVB) BANK LSD. FREIGHTER.
0 757-236 (RB211-535E4), EX-BAB, CONV TO F BY (BAS) (2001-01), (9-22172, 2000-05). +40 ORDERS FOR US OPS. (29-22181, G-BIKJ, ALL 44 OPS FOR (DHK) 2001-11). FREIGHTER.
0 757-200PF (24971, EX-(CHA); & 24868 WET-LSD), (AWW) LSD. RTND. FREIGHTER.
11 ORDERS (2009-02) 777F, (DVB) BANK LSD, FOR "AEROLOGIC" (AGC) OPS. - SEE PHOTO. FREIGHTER.
0 DC-8-73CF (CFM56-2C) (431-46033, /69 N801DH - SEE PHOTO - "DHL-DC-8-73F-2008-03"; 511-46124, /70 N804DH), BANK OF AMERICA LSD, WET-LST DHL EXPRESS. RTRD. FREIGHTER.
0 DC-8-73F (CFM56-2C) (375-45590, /68 N807DH; 375-46002, /68 N806DH; 447-46047, /69 N809DH, 2003-06; 451-46076, /69 N802DH; 508-46123, /70 N803DH; 515-46125, /70 N805DH). ALL 6 RTRD. FREIGHTER.
0 DC-8-73F (CFM56-2C) (519-46091, /70 N873SJ "BILLY J BENSON"), EX-(STT), (GEH) LSD 2002-08. RTRD. FREIGHTER.
0 DC-9-15F, (KHC) WET-LSD. RTND. FREIGHTER.
0 A300B4-203 (CF6-50C2) (084, /79 N362DH; 085, /79 N363DH), 1999-12. 084; 085; WFU AT KINGMAN 2009-07. FREIGHTER.
1 A300B4-203 (CF6-50C2) (093), EX-(CVL), (PIE) LSD, CONV TO F BY DASA.
FOR SALE (CAROLINA CORPORATE SALES TEL: (704) 662-8680). FREIGHTER.
0 A300B4-203 (CF6-50C2) (141, /81 N364DH; 149, /81 N365DH), EX-(TII), CONV TO F. 141; 149; WFU AT KINGMAN 2009-07. FREIGHTER.
0 A300B4-203F (CF6-50C2) (207, /82 N368DH), EX-(TWX), C-S DOMESTIC HOLDINGS (CSV) LSD 2003-05. RTND 2004-10, LST (TWX). FREIGHTER.
0 A300B4-203 (CF6-50C2) (250, 289), EX-(CAL), CONV TO F, DASA DRESDEN. FREIGHTER.
0 A300B4-203 (CF6-50C2) (259), EX-(PAA), TO CONV TO F. FREIGHTER.
0 A300B4-203F (CF6-50C2) (249, /83 N366DH; 265, /83 N367DH), 1999-02, EX-(TII). 249; 265; WFU AT KINGMAN 2009-07. FREIGHTER.
0 A300B4-200F (CF6-50C2) (116; 150; 199), EX-(EGP). FREIGHTER.
0 A300B4-200 (CF6-50C2) (152), SOGERMA CONV TO F FOR DASA, 208; 234; 236; (SFA) 6 YR LSD 2002-01. RTND. FREIGHTER.
0 A300B4-622R (659, TF-ELB), (ISF) WET-LSD 2003-03 FOR PARIS OPS. RTND. FREIGHTER.
10 FAIRCHILD EXPEDITERS.
1 LEARJET 35A.
Click below for photos:
FRANK APPEL, CHIEF EXECUTIVE OFFICER (CEO), PARENT, DEUTSCHE POST WORLD NET.
JOHN DASBURG, CHAIRMAN, & PRESIDENT & (CEO), EX-(NWA).
BOB KUIJPERS, (CEO), DHL INTERNATIONAL.
UWE DOERKEN, (CEO), DHL WORLDWIDE EXPRESS.
JOHN MULLEN, (CEO), DHL EXPRESS.
HANS HICKLER, (CEO), DHL EXPRESS USA.
PATRICK LUPO, CHAIRMAN DHL BRUSSELS.
VICTOR GUINASSO, CHAIRMAN DHL AIRWAYS, PRESIDENT & (CEO) (2000-01).
VICKI BRETTHAUER, PRESIDENT & CHIEF OPERATIONS OFFICER (COO) DHL AIRWAYS, CHICAGO, IL (2003-04).
KLAUS ZUMWINKEL, (CEO), DHL BRUSSELS.
HUGH FLYNN, MANAGING DIRECTOR, DHL AIR (UK) (2002-01).
STEVE ROSSUM, CHIEF FINANCIAL OFFICER (CFO), EXECUTIVE VP-GENERAL COUNSEL (2003-04).
GEORGE KERSCHBAUMER, EXECUTIVE VP COMMERCIAL DIVISION, DHL EXPRESS (2008-10).
TED MALLORY, SENIOR VP FLIGHT OPERATIONS, EX-(FAA)/(NWA) (2004-09).
GARY HAMMES, (COO) & SENIOR VP, EX-(EVR), (email@example.com).
SHAWN FARSHCHI, SENIOR VP INFORMATION SERVICES & CHIEF INFORMATION OFFICER (CIO) (2000-04).
RAY LUTZ, SENIOR VP & CHIEF ADMINISTRATION OFFICER.
MICHAEL EPENETER, SENIOR VP OPERATIONS.
GREG GUILLAUME, VP FINANCE.
JOHN SHILDROTH, SENIOR DIRECTOR MAINTENANCE & ENGINEERING & VP AIRLINE OPERATIONS.
CAPTAIN PETE BLESSING, DIRECTOR FLIGHT OPERATIONS (firstname.lastname@example.org) (2007-07).
PATRICK MCQUIDDY, DIRECTOR SAFETY (email@example.com).
JEFFREY GLADE, DIRECTOR LOGISTICS, LATIN AMERICA & CARIBBEAN (1999-05)
JAMES KENNEDY, SENIOR MANAGER MAINTENANCE (firstname.lastname@example.org).
JOE SPIELMAN, SENIOR MANAGER QUALITY CONTROL (QC) (2001-03).
TOM DOWD, SENIOR MANAGER ENGINEERING (email@example.com) & PROGRAMS,
OZ OSTROZNY, MANAGER AIRLINE SAFETY.
LARRY WEIGEL, MANAGER QUALITY CONTROL (QC) (2000-02).
ROBERT SCHLASINGER, MANAGER POWERPLANT ENGINEERING,
POCHOLO CRUZ, MANAGER AIRFRAME ENGINEERING & RELIABILITY (firstname.lastname@example.org) (2002-12).
MARTIN PEREZ, SUPERVISOR HEAVY MAINTENANCE (MIA).