DHL’s use of Astar Air Cargo and ABX Air heading for US approval

DHL’s use of AStar Air Cargo and ABX Air to carry freight in North America appears to be headed for Department of Transportation approval, clearing the way for the European express giant to compete head-to-head with FedEx and UPS in the United States.

DOT administrative Law Judge Burton Kolko’s recommended decision in the AStar citizenship case leaves little room for DOT decision makers to maneuver. To declare Miami-based AStar as non-U.S. controlled would require an unlikely complete reversal of Kolko’s recommendation and a total rejection of the judge’s reasoning.

FedEx and UPS, which have led the charge to have AStar’s operating certificate revoked, can appeal the DOT’s decision to federal courts. DHL parent Deutsche Post World Net expects an appeal; FedEx and UPS say they leave the option open but have made no decision.

DPWN USA President Wolfgang Pordzick says the company will now make a serious push into the U.S. and plans a full-scale marketing campaign to raise DHL’s name recognition among Americans. “You’ll start seeing a lot more DHL-painted trucks around,” Pordzick said at a recent luncheon on Capitol Hill, where he is lobbying for support from U.S. lawmakers.

DPWN U.S. spokeswoman Holly Arthur said the Kolko decision should serve notice that “DHL is here to stay” and is prepared to become the third major competitor in the world’s largest express market.