UPS attacks airborne deal
United Parcel Service accused Deutsche Post of further violating foreign ownership laws after the German postal operator struck a deal to buy Seattle-based Airborne’s ground operations for $1.05bn.
The complaint, filed with the Department of Transportation, calls for further widening a federal examination into whether Deutsche Post is flouting laws forbidding foreign companies from owning more than 25 per cent of US airlines. UPS claims Deutsche Post is in direct control of Chicago-based DHL Airways, a cargo carrier, via its subsidiary, DHL Worldwide.
In the same way, UPS accuses Deutsche Post of exerting control over Airborne’s air carrier company. Under the deal, Airborne spun off its air operations into a new independent company, ABX Air, to skirt such regulations. Airborne and DHL Worldwide executives have said the deal clearly separates ownership.
Copyright © 2003: Financial Times Group
