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R C H I V E S
At The Throat Of DHL
the most exciting story in air cargo right now.
No, it’s not the surprising strength
in the Euro, that has turned revenue from outbound U.S. freight a
player once again.
After two years of truly rotten business,
that development is certainly welcome.
Of course when it comes to shell-shocked
U.S. cargo, the unknown factor is how soon air cargo people in the
lower 48 will figure out which end is up and from what direction money
can be made and ramp-up the business.
But now with an outcome, subject to
a judge’s decision later this fall, the hot stuff story to just sit
back and be amazed at, is the full blitz campaign by FedEx and UPS—a
gang-up really, to halt DHL’s bid to buy Airborne Express.
U.S. integrator giants are apoplectic at the prospect that DHL, the
international small package giant, will gain a significant foothold
The Fed/UPS should be.
DHL does more business in high-yield
express cargo around the world than both FedEx and UPS combined.
Put another way, globally, DHL hands
both U.S. integrators their collective heads wherever and whenever
In the Memphis and Atlanta board rooms,
DHL with 15,000 Airborne trucks on the ground across the U.S., driving
down prospects for FedEx and UPS on main street America, is a must
Don’t blame either UPS or FedEx for
screaming bloody murder.
Monopolies die hard.
Also don’t feel bad for either or both
of them if the U.S. Department of Transportation allows DHL into the
ground delivery business here either.
In America, the Fed/UPS controls the
In fact, both have as near as it gets,
an excuse to print their own money.
Last week, one of the beefs made by
the Fed/UPS against the deal was probably taken out, now that former
Northwest Airlines chief executive John Dasburg, will buy DHL from
Deutsche Post and investor William Robinson for $57 million.
FedEx and UPS had been running around
saying that Robinson is little more than a shill for Deutsche Post.
That seems unkind, even unfair, but
at the very least a stupid and uninformed label to pin on the guy.
So let’s set the record straight. Here’s
to you Mr. Robinson, a full-blooded U.S. citizen who has been connected
to the DHL organization for over 30 years.
By our count, 30 years is a lifetime,
and maybe longer than the Fed/UPS have even been in the air cargo
business, for crying out loud.
Also, Mr. Robinson owns 75% of the company
to the German’s 25%, hey, hey, hey.
The question, (paraphrased here) was
put very well by a reporter in the Washington Post:
“Does a cargo airline owned by a U.S.
citizen, whose principal customer is a German company owned by the
German postal system, qualify as an American-controlled entity?”
DOT, whenever it makes its final determination,
could unleash a furor.
If DOT says OK to DHL, watch the fun,
as the Fed/UPS, lobby from one end of Capitol Hill to the other, calling
If DOT says no to DHL, then our trading
partners might rightfully see this incident as another example of
the new PaxAmericana Bush Doctrine of “Do It Our Way or It’s the Highway.”
Actually the highway, specifically down
on the ground is where DHL is trying to get some juice in the U.S.
But all of this must seem at least a
little bit strange to a European visiting the U.S. and mailing a letter
from a USPS Post Office with its FedEx box in the lobby, raising the
“What’s the big deal that DHL is hooked
up with Deutsche Post? Isn’t FedEx and the U.S. Post?” could be the
Sure, it is not the same—or is it?
To date, DOT has rejected protests by
FedEx and UPS about DHL Airways.
For the record, DHL operates its major
U.S. package hub at Cincinnati/Northern Kentucky International Airport,
a place that could lose jobs, if the DHL deal for free market entry
Stay tuned . . .
Eats Cake As DNATA
Celebrates 100th Flight
Jean Pierre L. (JD) De Pauw
Cargo, cargo handler extraordinaire at Dubai International Airport,
recently celebrated the first 100 flights through Dubai by UPS.
That milestone was enough to have
Ismail Ali Al Banna, Director, Airport Services, host a cake-cutting
ceremony at Dnata’s Freezone Logistic Center (FLC), attended
by senior management from both UPS and Dnata Cargo.
Ali Al Banna, said:
“We are very pleased and honored
that UPS has chosen Dubai International Airport as its main
base of operations in the Middle East.
“Dnata is fully prepared to continue
meeting the high service standards of UPS in the future.”
For the record, UPS in Dubai moved
volume of over 1,100 tons handled during their first year of
operations via Dubai International Airport.
“We are delighted to be celebrating
our first 100 flights at Dubai International Airport, which
serves as UPS hub in the Middle East,” said Dave Worth, Gateway
Manager of UPS.
“Today UPS operates seven-flights
a week westbound and one-flight a week eastbound feeding Asia-Pacific,
Europe and fly onwards to the USA using Boeing 767-300 freighters.”
At DXB, FLC is fully owned operated
and managed by Dnata Cargo and is gaining popularity largely
because of its no-frills and low cost operational concept.
The facility’s capabilities to
provide tailor-made, flexible and specialized solutions for
individual customers are supplemented with rapid handling and
The facility currently covers
about 19,000 square meters of warehousing and 3,300 square meters
Since its launch in 1999, FLC
has seen the number of new air carriers operating through the
facility steadily on the increase, demonstrating its successful
formula in this heavily contested share of the freighter market
in the region. The number of carriers now using FLC has now
reached 30 including Azerbaijan Airlines, Russian carrier East-Line,
along with scheduled and charter cargo carriers serving Russian,
CIS, African and the Indian subcontinent market. The latest
additions include MASkargo, MK Airlines-Panalpina and UPS who
utilize the terminal’s flexible, efficient and regionally competitively
priced service facilities.
Commenting on the significance
of the event, Mr. Jean Pierre L.(JD) De Pauw, Senior General
Manager, Dnata Cargo said: “Dnata and Dubai International Airport
have worked very hard to establish themselves as the premier
hub for the region.”
“We have created the right infrastructure,
introduced the right services and priced them competitively.
It is extremely rewarding that this is recognized by major companies
such as UPS choosing Dubai and Dnata, knowing the multitude
of alternatives available in the region.”
Charter Service, based in UK moved three elephants from South
Africa via Malpensa to Prague utilizing an Antonov 12 cargo lifter
for the portion of the journey from Italy to the Czech Republic.
“Nice flight,” proclaimed one of
the three young ladies who flew aboard the charter. Now there
is one group of passengers who think peanuts in cabin service
are swell. www.aircharterservice.co.uk.
Brinkley, the great broadcast newsman of ABC News, and NBC News
before that, died Thursday June 12 at age 82 from complications
after a fall.
We always liked David Brinkley, especially
his clipped staccato delivery of the news.
Late in his career, on a Sunday program
titled, “This Week with David Brinkley,” he had the opportunity
for a number of years to talk about what he thought was important.
He was smart and funny and no-nonsense.
But now at the time of his sad passing,
we want to share personal encounter we had with Mr. Brinkley.
To set the table, we tell you dear
reader, that often the “media guy” is not the same individual as
the “in person guy.
”One day, about five years ago we
ducked downstairs from our offices here in the Marine Air Terminal
at LaGuardia Airport, which also serves as home to the Delta Shuttle,
an air service between New York and Washington.
There standing alone at Rocco’s restaurant
in the lobby eating a hot dog, was David Brinkley.
Mr. Brinkley was gracious and forthcoming.
He seemed to know that we had saved the giant James Brooks WPA mural,
“Flight” in the lobby of the MAT.
We mentioned that the mural had been
painted over by the Port Authority in 1952 at the height of the
anti-Communist McCarthy era.
During that time, in early 1950’s,
a Wisconsin Senator named Joseph McCarthy had conducted what amounted
to a witch-hunt as he and his right-wing Senate cohorts held up
artists and writer, painters and movie stars for their liberal beliefs,
and in the process ruined many careers and lives.
As we spoke, Mr. Brinkley’s face suddenly
looked quite cross.
He spoke in a low measured voice that
fairly spit out the words:
“I knew Senator Joseph McCarthy. I
covered that story.
He was a son of a bitch then, and
I tell you wherever he is right now, he still is a son of a bitch.
“We can never allow a situation like
that to happen again.”
Later we thought, David Brinkley is
exactly who we always thought he was, somebody who spoke his mind
and told the truth as he knew it without reservation.
Here was this man that we once watched
and listened to every night reading the news, now older and slightly
stooped, but with clear sharp eyes, still on the story.
We have never forgotten those few
moments and think of David Brinkley’s words, and wonder what he
might have told us of the current situation in America after the
That’s our problem now.
Good night, David.