Air Transport World

DHL shifts air lift to rival UPS.(FINANCIAL RESULTS, NEW DEALS, AND REPORTS FROM EVERY CORNER OF THE GLOBE)(Brief article)

DHL on May 28 unveiled a $2 billion restructuring of its loss-making US 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, which currently provide the German express giant's US lift.

Parent Deutsche Post World Net said it no longer can tolerate massive annual losses in DHL's US 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 US, 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 US coverage in favor of higher-yield major markets. …

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