DHLs deal with UPS gets green light

MUCH to the anger of employees of ABX Air and Astar, the US Department of Transportation has ruled that it will not block DHL’s proposed deal to appoint UPS to transport its domestic air cargo.

Despite strong protestations from trade unions and Ohio’s state officials, the home state of DHL’s Wilmington hub, Transportation Secretary Mary Peters, concluded that DPWN’s proposal to restructure its US business, did not breach any of its competition laws.

Senior Ohio state officials expressed disappointment in the ruling, adding that upwards of 8,000 jobs are likely to be lost when Wilmington closes.

“While I understand your concerns over Deutsche Post AG’s proposed restructuring of DHL, it is our view that this restructuring would not constitute an unfair or deceptive practice or an unfair method of competition. The department’s regulations do not impose restrictions on a foreign airfreight forwarder’s choice of US carrier to transport its cargo.”

For full story see September 5 issue of Air Cargo News.

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