Deutsche Post welcomes US judge's decision on DHL and ASTAR
Deutsche Post World Net AG has welcomed the decision of a US federal judge that the cooperation between Post subsidiary DHL and US airline ASTAR Air Cargo is legal.
According to a press release from ASTAR, US Department of Transportation (DOT) administrative law judge Burton Kolko ruled that ASTAR is indeed owned and controlled by US citizens and can continue to operate. Under US law, US certified airlines must be ‘citizens of the United States’.
Shipping giants United Parcel Service Inc and FedEx Corp had contended that Deutsche Post controls ASTAR, partly because it generates almost all of the airline’s revenue. ASTAR contends that it is completely independent, and UPS and fedEx are simply trying to quash new competition.
Deutsche Post, which was not party to the proceeding, said the ruling was welcome and expected.
The ruling is a ‘recommended decision’, meaning all parties will be given the chance to petition DOT for a discretionary review.
ASTAR said DOT must issue a final decision, which is likely to come sometime next year.
