Dayton b2b

Join Today More...

Join our Business Directory

Add your business listing for free right now!

Get the B2B magazine — FREE!

Apply for a print subscription

Sign up for our Business e-mail

Get Local Business and Breaking News Alerts

Business update by e-mail

Video Business News

Airport is Wilmington's past, present and future

DHL's willingness to donate the 2,200-acre site is a big step in helping region recover from an economic disaster.

By John Nolan

Staff Writer

Sunday, November 16, 2008

The Wilmington airport, site of a pending economic disaster with the pending loss of thousands of jobs at DHL's U.S. freight hub there, could also be the centerpiece of the region's long-term economic recovery.

DHL is preparing to drastically reduce operations at the airport after Jan. 30 and prompt the elimination of at least 7,000 jobs with a plan to reduce operations in the United States and transfer the remaining cargo sorting and flying work to rival United Parcel Service in Louisville, Ky.

But, DHL's stated willingness to consider donating the airport to a public entity for redevelopment is becoming Ohio's best hope for a stressed community, where DHL and its two cargo-flying contractors collectively represent the region's biggest jobs source.

"I am hopeful, as we talk with DHL over the coming days and weeks, that they will be willing to put substantial resources behind helping the community recover from their loss," said Ohio Lt. Gov. Lee Fisher, co-leader of a task force planning for the region's economic future. "It starts with being able to re-utilize the airport, which will be a focus of our discussions."

John Mullen, global chief executive officer of DHL Express, said he hasn't forgotten his company's promise to consider donating the airport.

"We've said that we are more than willing to do that," Mullen said.

The Clinton County Auditor's Office puts the assessed value of the airport at $62.2 million.

Ohio officials describe the 2,200-acre airport at the outskirts of Wilmington as the nation's largest in private ownership. It has two runways from where DHL's contractors, ABX Air and ASTAR Air Cargo, launch nightly flights to deliver DHL express packages around the country. It has a control tower and dozens of buildings, including more than 1 million square feet of cargo-sorting space.

It was an Air Force base until the 1970s, when local public officials persuaded the government to make the property available. It was later operated by Airborne Express, which DHL acquired in 2003.

Public control of the airport is critical to being able to guide its development, retain jobs and bring in new employers, task force leaders said.

They want to diversify the airport's use. That could include keeping ABX Air there to continue providing aircraft maintenance and charter services, retaining ASTAR to offer cargo hauling services, pursuing an aircraft manufacturer or perhaps a company that could offer passenger flight service, said Wilmington Mayor David Raizk, also a co-leader of the task force.

"Personally, I'd go after Airbus," said Ned Hill, Cleveland State University's vice president for economic development, referring to the Paris-based aircraft manufacturer. "They do have a North American presence ... They need a place where they could land planes, fix them, park them."

Wilmington recovered after the Air Force vacated the property, and can do so again, said Joan McCarren, a resident.

"This town is going to make it," she said.

What's next?

The regional economic development task force has received federal funding to hire a coordinator to write an economic redevelopment plan for the region, including the Wilmington airport. The task force also is inviting companies nationwide to provide information about how they could help market the airport.

DHL says it still hopes to negotiate a cost-cutting agreement that would allow UPS, by year's end, to begin taking over sorting and flying of DHL's U.S. shipments. Ohio and federal authorities are assessing whether a DHL-UPS agreement would violate antitrust law by reducing competition in the express delivery business.

Timeline of prior developments

2003: DHL, hoping to challenge U.S. express delivery market leaders Federal Express and United Parcel Service, buys the Airborne Express company and, as part of that deal, acquires the Wilmington airport.

2004: DHL announces its decision to consolidate air hub operations from Greater Cincinnati/Northern Kentucky International Airport into a primary facility at DHL's Wilmington Air Park as part of a $1.2 billion investment in the company's North American operation.

May 28, 2008: DHL announces a restructuring plan that will include hiring out its U.S. air cargo sorting and flying to United Parcel Service, to be done at the UPS hub in Louisville, Ky. Ohio officials said that will wipe out at least 8,200 jobs by the end of 2009 at DHL's Wilmington hub, from where ABX Air and competitor ASTAR Air Cargo fly DHL's U.S. freight.

Aug. 25, 2008: ABX Air said it was giving 60-day notifications to 235 ABX Air employees losing their jobs because of cutbacks by DHL. ABX Air has since said it has lost more than 1,300 jobs at Wilmington since May, including the DHL-related reductions and other departures.

Nov. 10, 2008: DHL, citing its mounting U.S. operating losses and the global economic slump, said it will cut its U.S. service to cross-border deliveries after Jan. 30, close its ground freight operations, further slash its U.S. network and cut thousands more jobs.

Staff writer Tim Tresslar contributed to this story.

Copyright © 2009 Cox Ohio Publishing, Dayton, Ohio, USA. All rights reserved.

By using this site, you accept the terms of our Visitors Agreement and Privacy Policy. You may wish to note our other business policies.