DHL, a unit of Germany’s Deutsche Post, is the dominant express and parcel company in Europe and…

DHL, a unit
of Germany’s Deutsche Post, is the dominant express and parcel company in
Europe and also the leader in crossborder air express in Asia. In the United
States, though, DHL is still tiny compared with market leaders UPS and FedEx.
Deutsche Post chairman Klaus Zumwinkel is trying to change that, in part by
acquiring Airborne and merging it with DHL. Mr. Zumwinkel aims to be the
transportation services “Mercedes” in the U.S. market. But gaining ground in
the United States is proving tougher than expected. DHL announced that it won’t
break even in the United States until 2009,
»

DHL, a unit
of Germany’s Deutsche Post, is the dominant express and parcel company in
Europe and also the leader in crossborder air express in Asia. In the United
States, though, DHL is still tiny compared with market leaders UPS and FedEx.
Deutsche Post chairman Klaus Zumwinkel is trying to change that, in part by
acquiring Airborne and merging it with DHL. Mr. Zumwinkel aims to be the
transportation services “Mercedes” in the U.S. market. But gaining ground in
the United States is proving tougher than expected. DHL announced that it won’t
break even in the United States until 2009, instead of 2006 as planned. This is
partly because DHL was held up by a regulatory battle after rivals complained
that the air fleet used under contract by the German outfit constituted illegal
foreign control of an airline. DHL prevailed in the dispute earlier this year.
Still, many analysts doubt whether even the revised profit goal is realistic.
Zumwinkel, who has overseen transformation of the G erman postal service into a
global express-courier and logistics company, remains determined. He spoke
recently with BusinessWeek about how DHL will prove the doubters wrong.

»

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