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home : headlines : headlines July 29, 2010

6/20/2008 1:00:00 AM Email this articlePrint this article 
DHL urged to discuss terms with ABX, ASTAR

GARY HUFFENBERGER
Staff Writer

Ohio legislators have called on DHL’s German-owned parent company to hold talks and discuss terms with ABX Air and ASTAR Air Cargo on the airlines’ proposals to remain DHL’s air carriers in the United States.

The June 16 letter, signed by both of Ohio’s U.S. senators plus eight Ohio members of Congress, presses Deutsche Post World Net (DPWN) in the final paragraph to give “genuine consideration” to proposals from current carriers ABX and ASTAR.

DPWN announced in late May it plans to contract with United Parcel Service (UPS) as the lone air carrier to transport DHL packages in North America. If the plan is carried out, it’s expected to directly cause the loss of at least 7,000 jobs at the Wilmington Air Park where ABX and ASTAR are based.

The focus of the letter to Jurgen Weber, chairman of the Deutsch Post Supervisory Board, centers on what the legislators apparently view as a lack of interest or effort by DPWN to enter into the bargaining process with DHL’s existing air carriers.




“We understand that you gave a proposal from ABX Air some consideration, but to our knowledge there was no negotiation over that proposal,” says the letter from the Ohio lawmakers.

“We also understand that ASTAR is prepared to present a proposal that would be competitive with the proposed UPS arrangement, and still keep jobs in Ohio,” the letter continues. “… we believe the company has a moral obligation as a good corporate citizen to undertake a meaningful assessment of that proposal before taking an action that will affect the livelihoods of tens of thousands of our citizens.”

Similarly, the letter’s first paragraph says, “… we ask that you allow incumbent carriers to present alternative proposals to DPWN before making a final decision.”

The letter concludes that the lawmakers would welcome an opportunity to help facilitate presentations of ABX’s and ASTAR’s proposals.

Wilmington Mayor David Raizk said Thursday evening it is his understanding from ABX Air President John Graber that ABX made a proposal to DHL earlier in the year — he believes in March — that did not yield a later substantive comment from DHL or lead to give-and-take negotiations.

According to Raizk, a Monday phone call between Ohio Lt. Governor Lee Fisher and DPWN Chief Executive Officer Frank Appel included an indication by Appel they are moving forward with the planned UPS deal. But in reply to a specific question concerning how DPWN would react to being presented a business proposition that’s competitive to the UPS proposal but which involves the Wilmington air hub, Appel said they would take it under consideration, according to Raizk’s understanding.

Referenced in the Ohio lawmakers’ letter is a possible direct loss of more than 8,000 jobs. The same sentence says there could be “an additional 30,000 downstream jobs” indirectly lost in southern Ohio.

The letter was released by U.S. Sen. Sherrod Brown’s office.

Those signing the letter are Brown, U.S. Sen. George V. Voinovich, and U.S. representatives Michael Turner, Jean Schmidt, Zack Space, Betty Sutton, Tim Ryan, Jim Jordan, Steven C. LaTourette and Charles A. Wilson.





Reader Comments


Posted: Thursday, August 28, 2008
Article comment by: Steve Edmonson

The proposal from ASTAR sounds like a good avenue.Maybe ASTAR will buy ABX and operate as one airline,providing that ABX could accept it this time. Perhaps, if it is not considered, we can start using some of our elected officials power and attemopt to influence UPS to reconsider thier negotiations with DHL. >

Posted: Thursday, June 26, 2008
Article comment by: Dorinda Hudepohl

My husband has been employed by ASTAR Air Cargo since 2000. We made the decision three years ago to move to Wilmington despite a recent purchase of a home in Florence KY to be closer to CVG. This decision was not made lightly. Outside of purchasing our home in Kentucky just 8 weeks before the announcment that DHL was moving to Wilmington, both of our families are from Cincinnati and Northern KY. We knew that we would be leaving the security of our families and an area from which we had many ties. It was quite difficult for me to find employment in the area and we made many sacrafices. My husband has been very loyal to ASTAR. We even relocated our entire family(the two of us and our three young children) to Germany in 2003. Our youngest was just six weeks old. Now settled in the Wilmington area we have developed many realtionships, the kids are settled in schools and we own a lovely home. I am currently working for a local non-profit and do not make enough to support our family on my own. There are no opportunites locally for my husband. We have discussed moving back to Cincinnati or Northern KY but, we have a house that we need to sell. This puts us in a horrible situation. I would like for DHL to understand the impact they have had on our family and all of the other families that they are affecting by thier decisions. Sincerely, Dorinda Hudepohl Wife of a Loyal ASTAR Employee

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