Deutsche Post – Integration Plan On Track; Complaints On DHL Dismissed; DHL Airways could be split into two separate companies

Deutsche Post has reportedly spent about $5 billion over the past two
years or so on acquisitions, including the purchase of U.S.-based Air Express
International Corp. and Switzerland-based Danzas Management AG. The
company also recently raised its stake in DHL International to 51% from 25%.

>>The merger of Danzas and AEI is the biggest challenge in the logistics
>>division, while the creation of harmonized practices is a big challenge in
>>the express division, Zumwinkel said. These projects will be completed
>during the course of next year, he added.
>>
>>”Everything is running as planned,” Zumwinkel said. “The heavy work is in
>the express and logistics areas.”
>>
>>On DHL International, Zumwinkel said Deutsche Post expected to raise its
>51% stake in the Brussels-based company to about 73% sometime over the next
two years.
>>
>>He said the timing of a bigger stake acquisition depended on the readiness
>of investment funds that own about 22% of DHL International to sell their
>>shares. The remaining DHL International owners would be Deutsche Lufthansa
>AG (G.LHA) with a 25% stake and Japan Airlines Co. Ltd. (JAPNY) with a 2%
>stake.
>>
>>Separately, Zumwinkel dismissed a threat to DHL Airways Inc. of the U.S. –
>in which DHL International owns a 23% voting rights stake – resulting from
>>complaints to U.S. regulators by competitors FedEx Corp. (FDX) and United
>>Parcel Service Inc. (UPS).
>>
>>FedEx and UPS have asked the U.S. Department of Transportation to halt the
>>air and freight-forwarding operations of DHL Airways. FedEx claims DHL
>>Airways is essentially controlled by DHL International and Deutsche Post,
>>itself still majority owned by the German government. As a result, FedEx
>>argues, DHL Airways is violating a U.S. rule that foreign entities can own
>no more than 25% of a U.S. airline.
>>
>>UPS argues that Deutsche Post has unfair access to the U.S. freight
>delivery market through a U.S. freight forwarding license granted to a DHL
>>International affiliate. It says the access is unfair because of the
>>possibility that Deutsche Post will fund U.S. expansion through profits
>from its mail monopoly in Germany.
>>
>>”We are not controlling DHL Airways. And for decades a foreign company –
>DHL in Brussels, with shareholders all over the world – has had this 23%
>stake,” Zumwinkel said. “For these two reasons, I am relaxed about the case.”
>>
>>DHL Airways could be split into two separate companies, one small firm for
>>air operations and a second, relatively big firm for ground operations,
>>Zumwinkel indicated.
>>
>>Asked to comment on recent news reports of such a planned split, Zumwinkel
>>said it was a “probability” and wouldn’t be unusual. He declined to
comment further.
>>
>>The reports said the split would enable Deutsche Post to strengthen its
>U.S.ground-delivery services without running afoul of the U.S. restriction on
>>foreign ownership of airlines.]