On May 28, 2008, DHL announced a plan to restructure its U.S. Express business to reduce losses. Last year DHL lost about a billion dollars in the U.S. and in 2008 DHL estimates losses to exceed 1.3 billion dollars. DHL is taking drastic action to stem those losses in the short term they intend to park 55 DC-9s, provided by ABX Air, by the end of the second quarter of 2009.

In addition to parking DC-9s, DHL announced it is in negotiations with UPS to have UPS do all its flying and express sort work. If the two companies sign a contract, DHL said it intends to transition all of ABX Air’s and ASTAR’s flying, as well as ABX Air’s express sort operations, to UPS by the end of 2009.

ABX Air currently holds two contracts with DHL. Its ACMI (aircraft, crew, maintenance and insurance) contract provides DHL with airlift and all the support to move packages tendered to DHL to locations across the country.

Through the Hub Services Contract, ABX Air staffs and manages the main sort facility in Wilmington, Ohio, as well as 15 regional sort facilities around the country.

The change would not be completely effective for some months, but if DHL is successful, and nothing else changes, thousands of jobs over the next year will be lost.