FedEx, UPS ask gov't to suspend DHL flights
FedEx, UPS ask gov’t to suspend DHL flights -WSJ NEW YORK, Jan 24 (Reuters) – FedEx Corp. (NYSE:FDX – news) and United Parcel Service Inc. (NYSE:UPS – news), two longtime rivals in the delivery business, have asked the U.S. government to suspend the flights and freight-forwarding operations of DHL Worldwide Express after Deutsche Post AG took a stake in the company, the Wall Street Journal reported in its online edition on Wednesday.
FedEx and UPS made the requests last week to the U.S. Department of
Transportation after Deutsche Post became a public company and bought majority share in DHL International Ltd., the paper said, citing filings
>>with the government agency.
>>
>>FedEx in its filing alleges DHL International and Deutsche Post have taken
>>control of DHL Airways Inc., DHL International’s U.S. affiliate, the paper
>>said.
>>
>>FedEx contends that the situation violates rules prohibiting foreign
>>ownership of more than 25 percent of a U.S. air carrier, the paper said.
>>
>>UPS’s complaint is that Deutsche Post is getting unfair access to the
U.S.,
>>the Journal reported.
>>
>>A Deutsche Post spokesman said the company thinks UPS “once again fears
>>competition in the marketplace” and is trying “their luck with a legal
or
>>governmental authority by falsely accusing and discrediting our listed,
>>independently acting company,” the paper said.
>>
>>FedEx shares closed up $1.61 at $42.84 in Tuesday trading on the New York
>>Stock Exchange, while UPS shares finished up 5/8
>>
>>at $60-15/16.
