most of you won''t care that Deutsche Post today bought...

Aug 20, 2002
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...the ground operations of Airborne (WSJ page A3).

But you should follow this story with particular interest!

Klaus Zimmer, the Deutsche CEO, is challenging the 25% foreign ownership law. Klaus is no dummy, and he''s sitting atop a mountain of cash.

What scenarios could you envision if foreign carriers could take a large ownership stake in our struggling domestic industry?
 

texflyer

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Feb 26, 2003
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I heard they were looking at buying the ground ops,not that the deal was completed. UPS and FEDEX is going to raise a big stink for sure. DHL is trying to skirt around the 25 percent issue by having Airborne air operations run separately or independently,yet do contract work for DHL. We will see if they can pull this off.
 
OP
whatkindoffreshhell
Aug 20, 2002
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Yes, Fedex & UPS command a 75% marketshare while Airborne only has 6%. Certainly this is not a done deal.

But the issue is now on the table, it is not just speculation.

Also, do you really expect Airborne to keep their wholly-owned fleet in the air? No way. This "arm''s length" relationship will evolve.

Thanks for the post text. I''m not surprised that the other board posters passed over this topic. They would rather #### and moan and rehash rather than recognize the implications of a major foreign operator quietly moving into their market.

The 25% foreign ownership law is not sustainable, just like the current network carriers'' revenue model!
 

texflyer

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The 25% rule protects the US companies,and I would not expect it go away any time soon. That would lead to maintenance being done if faraway,ie. cheaper places,and the like,and the union would not stand for it.

Its been rumored a couple of years now,that DHL wanted Airborne,heck,UPS even thought about it. Airborne has some of the lowest costs in the business(and some would say service),and with some more capital could really be a bigger thorn in UPS and Fedex side.

DHL already has a hub in Cinnci,but I am not sure if it is as big as Airbornes in the middle of nowhere Ohio. Does anyone have the numbers?