DHL axes Brussels as intercontinental hub

The negotiations between DHL and the Belgian regional and federal authorities broke down in acrimony this week, as DHL announced that it saw no long term future for Brussels airport as its intercontinental hub. This will mean significant job losses – some put them as high as 1,700 – when a new hub is developed elsewhere in 2008. This could well be either at Vatry in France of Leipzig in Germany.

Following the decision by DHL to shelve its plans, workers went on strike and for a time blocked the ring road around Brussels. Expansion would have led to a 1,400 increase in work force, and this was one of the main reasons why the federal government had promoted the plan. However the extra night flights which this would have meant were fiercely opposed by residents and local government. It is believed that DHL wanted to increase night flights from 13,400 to as many as 30,000 per year.

The negotiations had taken on a wider political significance with bitter disagreement between the federal Belgium government and the powerful Flemish-speaking and French-speaking authorities, splitting communities and almost bringing down the Belgian Prime Minister Guy Verhofstadt. Following other substantial job losses in the country, the government had been desperate to prevent DHL from leaving the capital. However finally even it removed its backing stating that DHL had made too many conditions. DHL on the other hand blamed the authorities for insisting on the use of quieter aircraft and said that it had been forced to pull out when it became obvious there was no political support.

DHL’s other activities in Belgium, such as the coordination centre, the ground express, logistics and forwarding companies of DHL will not be affected by the decision.