DOT Supports Package Deliverer DHL
The Transportation Department on Friday rejected efforts by FedEx Corp. and United Parcel Service to strip competitor DHL Worldwide Express and DHL Airways of the licenses they need to deliver packages in the United States.
UPS said DHL, with its parent company 51 percent owned by the German post office, could provide unfair competition. In a separate complaint, both FedEx and UPS claimed that DHL Airways would be foreign owned, and therefore ineligible to fly routes between U.S. cities.
Transportation Secretary Norman Y. Mineta said there was no evidence to act against DHL, but the situation would be watched. Likewise, Mineta said the department would continue its ongoing informal investigation of DHL Airways’ ownership to make sure the airline remains U.S.-owned.
“We have an affirmative responsibility to make sure that competition continues to protect the interests of consumers,” Mineta said Friday. “While we are denying these petitions, we will continue to ensure that competition in our aviation markets remains fair.”
UPS asked the Transportation Department to revoke the license that a foreign owned company needs in order to put cargo on U.S. airlines. Besides companies like FedEx and DHL, passenger airlines also carry cargo. Separately, a ruling that DHL Airways was foreign owned would have prevented the airline from flying routes between two U.S. cities.
“DHL is delighted with the ruling,” said Sheila Cheston, an attorney for the company. “DHL hopes it can put the proceedings in Washington behind it and focus on competing in the marketplace and serving its customers.”
UPS spokesman Tad Segal said the company was disappointed with the decision, although “it does move in the right direction in that it leaves the door open and in fact welcomes future filings by us or anyone when and if there are specific abuses by DHL.”
The dispute pitted two of the most generous campaign contributors to Congress against a company that brought in three heavyweight lawyer-lobbying firms to make its case.
Among the lobbyists for DHL was Anthony Podesta, brother of the former White House chief of staff; Daniel Mattoon, former executive director of the National Republican Congressional Committee; and the law firm of Wilmer, Cutler and Pickering, home of C. Boyden Gray, White House counsel under President George H.W. Bush, and Lloyd Cutler, former special counsel to President Clinton (news – web sites).
FedEx and UPS contributed $3 million between them to federal candidates last year, and another $2.3 million in unregulated soft money contributions to the political parties.
Of the 165 lawmakers who wrote to the Transportation Department in support of the companies’ request, 133 of them had received campaign contributions from the political action committees of FedEx, UPS or both during the 2000 election.
Segal said the donations had nothing to do with the outpouring of support.
“When you go and ask for a letter of support, it’s just a simple decision by the member whether or not to write one,” he said.
