US judge seeks to extend deadline for DHL ruling
A federal judge is seeking a delay of nearly three months in a decision on whether DHL Airways meets the government’s definition of a US-owned company.
Administrative Law Judge Ronnie Yoder recommended in a report to the US Department of Transportation that a September 2 deadline for the decision be pushed back to November 24. The department has the final say on moving the date back.
Last month Congress ordered Yoder to address long-standing complaints from rival carriers, FedEx and UPS, that Chicago-based DHL is effectively controlled by Germany’s Deutsche Post in violation of US law limiting foreign ownership of domestic airlines. DHL has denied that its ownership structure under Deutsche Post and the German DHL Worldwide Express unit violates American law. Deutsche Post owns 25 percent of DHL Airways.
On April 29, DHL Airways moved to counter the ownership complaints by announcing that a group led by the cargo carrier’s new chairman and chief executive had agreed to buy the company in a deal that would strip Deutsche Post of its 25 percent voting stake in the company.
The case is being closely watched because of its potential impact on Deutsche Post’s plans to acquire the ground operations of Seattle-based Airborne Inc for more than US$1 billion and spin off its air operations.
UPS had proposed moving the deadline for the ownership ruling back to December 23. DHL had countered with an October 31 deadline, telling the judge that dragging the case out would hurt DHL’s business.
