Deutsche Post World Net CEO Frank Appel has rejected growing US political criticism of DHL’s plansto close its air hub at Wilmington, Ohio, with the likely loss of some 8,000 jobs, and to switch
airlift operations to rival UPS.The plans have drawn criticism from US presidential candidates Barack Obama and John McCain,the region’s members of Congress and local politicians. The US Congress plans two hearings on theproposed DHL-UPS deal in September.
DHL Express had to shut the hub as part of its restructuring programme in order to reduce itsheavy US losses, Appel told German newspaper Frankfurter Allgemeine Zeitung in an interview,echoing his similar comments at the company’s recent half-year financial press conference.
“There is no real alternative. Otherwise we would endanger our entire express business in theUSA, and at the end of the day far more jobs would be threatened,” Appel declared. DHL Express USAis currently losing about $5 million a day, he pointed out.
Under the restructuring plan, DHL Express will transfer the existing sub-contracted airliftoperations from Wilmington-based ABX Air and Astar to UPS under a ten-year, $1 billion-a-yearcontract, and downsize its ground network in remote areas. It aims to reduce this year’s expected$1.3 billion loss to about $300 million in 2011.
“Any delay of the restructuring plan could have far-reaching consequences and in the worstcase could lead to even more dramatic cuts,” Appel said. “Politicians should think about that whenthey set dates for hearings or demand a potentially lengthy anti-trust investigation.”
The DPWN chief again stressed that UPS would remain a competitor to DHL despite supplying aservice, and pointed out that a similar deal between the USPS and FedEx had been approved, despitebeing much larger in volume.
Appel added that the company was ready to set up a support programme for affected employeesand the region to help people find new jobs, but he had no plans to travel to the USA, asRepublican candidate John McCain had proposed.
