US FedEx and UPS fight ruling on ownership of airline

FedEx and United Parcel Service are asking the Department of Transportation to reject a federal administrative law judge’s ruling that Astar Air Cargo is owned and controlled by an American citizen, not a German company. FedEx and U.P.S. made the request in a filing that served as a response to the Dec. 19 ruling. At issue is Astar’s ability to do business in the United States. FedEx and U.P.S. say the Miami-based Astar, which was called DHL Airways under former ownership, should be disqualified because of its ties to the German government. The two companies contend that Astar Air Cargo is controlled by Deutsche Post, which owns the DHL network of delivery companies. It is illegal for foreign companies to own more than 25 percent of a domestic air carrier.