FedEx to buy DHL

[highriser]

Talks are currently underway between FedEx and DHL. DHL has been losing money in America by the tune of one billion dollars this year. Their XO also has been caught in a tax scandal that goes back for 20 years where he hasn't been paying his taxes and has been funneling his funds through foreign banks illegaly. FedEx may be buying their U.S. Express business as well as entering into a partnership in Europe, which would be an amazing proposition for the company. In a meeting with Dave Bronzack today, he said, "we are going to take it easy on DHL this week, but next week we are going to take all of their business."

Also, FedEx is considering basing all of their pilots out of Memphis. How do you like those beans??

[Clobber]

I've heard the rumors before, but is there a source for the current news?

[highriser]

I've heard the rumors before, but is there a source for the current news?

[jmduke]

Hmmm...FedEx is currently working on opening pilot domiciles in Paris and Guangzhou (CAN) in addition to their other domiciles of Anchorage and Los Angeles. FedEx spends a lot on airfare getting crews into position in Europe, thus the need for a Paris crew base. Not that many crewmembers live in SE Asia near their current Subic Bay hub, and they are having a hard time filling slots for CAN as living arrangements are not easy to make.

ANC is a fairly large trip origination base for their MD11s while LAX is mostly used to deadhead MD11 crews into Asia or cover MD10/11 trips starting on the west coast. I'm surprised IND is not already a domicile given its large operation, but I guess FedEx still thinks it's cost-effective to DH crews into position.

Still, at least 3000 of the 4500 FedEx pilots are based in Memphis, but probably fewer than 1000 of them actually live here. Most commute to Memphis with Florida, the Atlanta area, Texas, and the west coast as the prime places for most pilots to live.

[northernbizzkit1]

Also, FedEx is considering basing all of their pilots out of Memphis. How do you like those beans??

[paribasomw]

This "rumor" is really nothing new -- it has actually been circulating for a couple of months and has been covered in the general business press.

I've heard no recent updates, but as with any sort of corporate merger & acquisition, anything is possible.

Yep.

[Clobber]

Yep.

[Rural King]

Is that first hand information or second for the quote from Bronzack ? If it's second hand then I will need a citation in order to allow that quote to remain part of your post.

[highriser]

Yet you won't cite it? I find it odd you'd quote Bronzcak w/o attribution, even if it's first-hand observation.

[Rural King]

Well I think that probably tells us what we need to know on the citation in a in-direct non-incremenating manner.

It will be interesting to see how all this turns out with DHL. I am not really up on the industry, but I would think this would be a sizable acquistion with some big implications for the industry.