DHL Plan to Hire UPS Puts Jobs at Risk for Wilmington Employer

By John Nolan Staff Writer

DHL’s plan to hire United Parcel Service for domestic airlift services poses a threat to the business of ABX Air, the cargo airline that runs DHL’s Wilmington air freight hub and is that city’s biggest employer.

DHL said on Wednesday, May 28, that it would restructure its U.S. cargo delivery operations — which lost $900 million last year — by outsourcing its air cargo deliveries to UPS, and eliminating 30 percent of DHL’s domestic network capacity.

Deutsche Post World Net, the Germany-based owner of DHL, said the $1 billion-per-year, 10-year contract it expects to conclude within months with UPS would cover airport-to-airport cargo deliveries only. DHL said it will still compete with UPS as an air delivery company in the United States.

Unions representing the more than 1,000 pilots of ABX Air and rival ASTAR Air Cargo, which each make daily cargo flights for DHL’s Wilmington operation across the United States, said DHL’s plan to hire UPS threatens the jobs of the Wilmington-based pilots. ABX Air employs about 7,000 people in Wilmington and, despite efforts to diversify its business during the past year, is heavily dependent on DHL’s business.

"The ABX family — and this community — have been dealt a major blow today," said David Ross, president of Airline Professional Association/Teamsters Local 1224, representing ABX Air’s 650 pilots. "We are asking all public officials at the local, state and national levels to pursue all available means to prevent this potential massive job loss in a state already hit hard by recession, high fuel prices and unemployment."

Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.

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