DPWN Grows U.S. Air Express Network?
DPWN Grows U.S. Air Express Network?
October 18, 2001 — Paul Needham, Reuters: “Deutsche Post World Net is looking at strengthening its presence in the U.S. air express market to complete the formation of its global express network, a board member told Reuters on Thursday. ‘We cannot operate this worldwide air express network without a strong U.S. presence. How this can be organised is something we are looking into,’ said Peter Kruse, board member for European express services while at the German logistics conference in Berlin. Kruse declined to comment on reports in German media that Deutsche Post was interested in acquiring listed transport company Airborne Express , the third-largest domestic air express transport operator in the U.S. after UPS and FedEx . Earlier on Thursday Deutsche Post CEO Klaus Zumwinkel described the reports as ‘speculation’ which had been circulating for 12 months or more. Airborne Express has also declined to comment on possible Deutsche Post interest. This week German magazine Focus Money reported that the acquisition of Airborne Express had been due for announcement in early October but the two companies were still negotiating over the price. Loss-making Airborne Express is seen as a potential target for Deutsche Post as it operates cargo planes to fly parcels and freight overnight between U.S. cities, has been hit by the economic downturn of the past year and has seen its share price fall, industry sources said. DHL Airways, the U.S.-based express company in which Deutsche Post indirectly owns 25 percent through Brussels-based DHL International, is a major competitor to UPS and FedEx in the U.S. for international services but has only a small share of the domestic market, they added. The combination of DHL Airways with a large domestic air express company could create a strong rival to UPS and FedEx and allow the Deutsche Post group to offer global express distribution to, from and within the world’s largest express market, the sources said.” (Source: Reuters, Paul Needham reporting)
