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Bob Shallit: Any sale of DHL may hurt Mather

By Bob Shallit - bshallit@sacbee.com

Published 12:00 am PST Saturday, January 26, 2008
Story appeared in BUSINESS section, Page D1

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Is the air cargo business at Mather Airport about to crash?

That question arises following published reports that the German owner of cargo carrier DHL, which operates out of Mather, might sell its ailing U.S. operations to competitor FedEx.

If it were to acquire DHL, FedEx would likely consolidate its local business at Sacramento International Airport where it currently operates, says local trade consultant Jock O'Connell.

"It would have a devastating impact on (Mather's) balance sheet," says O'Connell, who says the former military base has been running in the red even with its DHL presence.

Rob Leonard, Sacramento County's economic development director, agrees that the loss of DHL would be "a setback." But Mather still has United Parcel Service as a tenant and could land another cargo operator to replace DHL, he says.

It's even possible, he says, that FedEx would consolidate its cargo operations at Mather – even though FedEx is said to prefer Sac International's high-level "instrument approach system" that allows jets to land when visibility is poor.

The possibility of DHL's sale to FedEx was reported Friday in London's Financial Times, which says DHL owner Deutsche Post is considering a turnaround plan that includes selling its air cargo subsidiary. Sales talks supposedly are under way with FedEx CEO Frederick Smith.

A DHL spokesman tells us he can't comment on "rumor and speculation." But he does say the company doesn't intend to "exit" the U.S. market.

If DHL ultimately leaves Mather, O'Connell thinks the county should consider shifting all cargo operations to Sac International and convert Mather's real estate to office and housing developments.

But Leonard says there's still plenty of demand for cargo operations at Mather.

"I wouldn't see (a DHL departure) as a catalyst for taking Mather in a different direction," he says.

* * *

Back to the future: Sacramento-based Quest Technology is raising some eyebrows with a recent marketing mailing.

Inside each of the 6,000 or so envelopes sent to potential customers is a … floppy disk.

"The idea is to get people's attention," says marketing boss Barbara Klide. "We expect them to say, 'I haven't seen one of these in, well, forever.' "

Most recipients had just that reaction, she says, then headed to the "YesterdayIsOver" Web site listed on the disk's cover. There they could view a video pitching Quest technology to help companies prepare for emergencies.

But Klide admits that not everybody got it.

"We've had a few calls from people saying, 'Hey, I don't have the equipment anymore' " to play a floppy. "They want us to tell them what's on it."

And what is on it?

Nothing. "It's a real floppy but it's blank," Klide says. Then pauses. "It better be."

* * *

Turning the tables: The pressure is on Sacramento Theatre Company's Peggy Shannon.

She's been organizing a tribute for Sacramento event planner extraordinaire Sharon Gerber. "It's really stressful to organize an event for an event organizer," Shannon says.

Still, it appears she's got it together for STC's inaugural "Muse Awards" event Monday night, honoring Gerber as a "creative genius in business."

Shannon is being coy about the activities. "They're top secret," she says.

But she does promise performances from the STC-2 Youth Professional Company and "funny, tongue-in-cheek tributes" to Gerber from some of the region's top business leaders.

Gerber has made her reputation getting business people to do silly things for charity – like engaging in cereal-eating contests or having breakfast in bed with top bidders. Maybe Shannon's got some payback planned.

The event, which is open to the public, starts at 5:30 p.m. at STC's Wells Fargo Pavilion with a live auction. Tickets, at $50 per person, are available at the door.

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