Tag: North America

ABX Air aims for smaller but more profitable post-DHL future

Posted by | Jul 3, 2008 | |

ABX Air is planning for a post-DHL future based on a smaller but more profitable business with other customers.
Joe Hete, President of the airline’s parent company Air Transport Services Group (ATSG), told analysts and investors in a conference call that the company still believed it could offer DHL a competitive model compared to the planned DHL-UPS cooperation, and warned that the connection of the two global air express networks could prove “expensive and challenging”.
Admitting that the transition from DHL operations would not be easy, Hete commented: “We expect ABX to grow and prosper without DHL.” DHL currently accounts for about 74 pct of ABX Air revenues.
ABX Air had already been diversifying its customer base for several years and was well-positioned to place the B767 fleet with other customers on a wet-lease or dry-lease basis, Hete said. About half of the DHL-dedicated B767s could be placed with other customers, he added. Key customers include USPS, the US military and freight forwarder Schenker BAX.
CFO Quint Turner noted that ABX’s activities for DHL had been “low-margin business” and stressed that the company believed it could generate a higher return on capital from other customers. Although ABX has a ‘put’ option to return aircraft to DHL, the planes have a low book value, and higher prices might be achievable if the planes were sold on the open market, executives noted.
ATSG is also talking with DHL about severance packages for ABX pilots and aircraft mechanics.

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FedEx ranked highest in Customer Service

Posted by | Jul 3, 2008 | |

FedEx Corp. is ranked No 1 in the category of customer service in the esteemed Harris Interactive Reputation QuotientTM (RQ) survey.

The Harris Interactive study confirms that if you work to make every customer experience outstanding, at every point of interaction with your company, your customers will reward you with their trust,” said T. Michael Glenn, FedEx Executive Vice President, Market Development and Corporate Communications. “Reputation is the most precious asset a company has and the 290,000 FedEx team members worldwide strive to build on our strong reputation through each and every customer interaction.

Overall, FedEx ranked No 12 with an RQ score of 78.04. A score of 75 – 79.9 symbolizes a “good-excellent” reputation. This is the ninth consecutive year that FedEx has achieved this rating.

Out of the 60 companies ranked in the survey, FedEx also placed #4 in the category of “practices highest ethical standards.” In the “highest trust” category, or of those saying they would definitely trust the company in the event of a problem, FedEx ranked seventh. FedEx ranked #12 as both a good company to work for and company with good employees.

Not surprisingly, the RQ found that a strong statistical correlation exists between a company’s overall reputation and the likelihood that consumers will purchase, recommend or invest in a company or its products and services.

The RQ surveys more than 20,000 American consumers in a two-step process, through online and telephone interviews, to first identify the 60 most visible companies and then to rank these companies based on their reputation in six different categories: Emotional Appeal, Products & Services, Social Responsibility, Vision & Leadership, Workplace Environment and Financial Performance.

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New owners at the helm of the UPS Store Canadian Network

Posted by | Jul 2, 2008 | |

MBEC Communications Inc. (MBEC), the privately held Canadian company that owns The UPS Store and Mail Boxes Etc. master license in Canada, announced new owners of the company. David Druker, who has been a centre owner and area franchisee in Quebec since 2005, and Larry Plotnick, a seasoned business executive, have acquired the company. This comes as Ralph Askar announces his move into semi-retirement and away from his current role as president and chief executive officer and major shareholder of The UPS Store and Mail Boxes Etc. franchise network in Canada.
“Over the past 10 years,” notes Plotnick, “The UPS Store and Mail Boxes Etc. network has doubled its footprint in Canada, growing to over 330 franchises and truly becoming the leader of our industry. Over the coming decade we are committed to continuing our growth. We believe very strongly in the company and the role The UPS Store brand plays within the small-business market.”
The UPS Store and Mail Boxes Etc. is Canada’s largest franchise network of business service centres in addition to being recognized as the country’s largest chain of franchised print and document centres. The network has been ranked in Entrepreneur magazine’s “Franchise 500” as the number one franchise opportunity in the business services category for 18 consecutive years.
“Our focus and our business strategy will not change,” states Druker, “We will continue to cater to the small and medium-size business sector, adapting our products and services to their changing needs, while at the same time looking at traditional and non-traditional venues such as airports, university campuses and hotels for our expansion. We are also convinced that using our centres as mini-offices for corporate sales reps, and as distribution hubs for many e-commerce and catalogue companies, has strong appeal for larger, national clients.”

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USPS restructures major functions

Posted by | Jul 1, 2008 | |

In a dramatic realignment of several of its core functions, the Postal Service moved to position the organization to capitalize on new competitive opportunities and significantly enhance the vision of its customer outreach.
The realignment creates two new strategic focal points, the first grouping all major shipping and mailing products in one division, and the other, representing the voice of the customer, giving priority to the interests of business and individual mailers. The realignment also consolidates all Intelligent Mail Barcode activities under the chief operating officer to focus on execution in the year ahead.
A law enacted in the closing days of 2006 (the Postal Accountability and Enhancement Act of 2006) streamlined the way the Postal Service sets prices and added certain flexibilities in the pricing of its shipping (package) services enabling it to become more competitive with private shipping companies.
With the changes, Potter today announced the following senior executive appointments:
• A corporate leader with more than 30 years of private sector experience, Robert F. Bernstock, has been brought on to be President of the newly created Shipping and Mailing Services Division. He will serve as Division President. Reporting to him will be a newly created position, Senior Vice President of Mailing Services, as well as the current Vice Presidents of Expedited Shipping, Ground Shipping and Sales.
• Supporting Bernstock will be a new senior Vice President for mailing services, David Shoenfeld, who formerly served as senior Vice President of Worldwide Marketing for Federal Express.
• Stephen Kearney, a current officer, will lead Customer Relations as a senior Vice President. This group will centralize the key consumer and business customer relationships, external and internal communications, as well as integrating pricing into a single unit.

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Union and state officials protest Deutsche Post plans to cut U.S. airlines ties

Posted by | Jul 1, 2008 | |

Deutsche Post World Net’s decision to outsource DHL Express’ domestic U.S. airlift to UPS is drawing fire from a coalition of public officials and union forces – and the state of Ohio.

The 10-year deal, which could bring some USD 10 billion to UPS, will face extensive antitrust scrutiny.

Ohio Gov. Ted Strickland is calling for an investigation into whether DPWN’s plans for DHL would violate U.S. antitrust laws by reducing competition in the express package delivery market.

Facing the legal hurdle and an outcry over the impending loss of thousands of jobs in the state, DPWN board member John Mullen, CEO of DHL Express, and Wolfgang Pordzik, DHL vice president of public policy, met in Washington with Strickland and with Ohio’s congressional representatives.

One of them, Rep. Michael Turner, R-Ohio, is calling for an antitrust investigation that goes beyond the initial UPS-DHL deal, saying there are signs the two companies will forge similar arrangements in Europe and Asia.

Several unions also are threatening to sue to block the agreement with UPS on antitrust grounds.

Deutsche Post’s move would essentially unravel part of DHL’s expansion in the United States, enabling the company to focus on international business as DPWN looks for ways to stem the U.S. operation’s losses, expected to reach USD 1.3 billion this year.

But first, DHL has to sever ties with its current carriers, ABX Air and ASTAR Air Cargo. That’s causing angst for public officials and union leaders, especially those in Wilmington, Ohio, DHL’s main domestic hub.

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