Tag: Astar Air Cargo

DHL buys stake in Astar Air Cargo

Posted by | Jun 12, 2007 | |

DHL on Tuesday announced it has acquired a minority stake in Miami’s Astar Air Cargo for an undisclosed amount.

DHL acquired a 49 percent equity interest and a 24.9 percent voting interest in Astar — just under federal thresholds that restrict foreign ownership of U.S. airlines. DHL is an arm of Germany’s Deutsche Post.

Jonathan Baker, a DHL spokesman, said the transaction was reviewed by the U.S. Department of Transportation.

The deal comes four years after the airline, then known as DHL Airways, was sold by DHL and a private investor to a group led by former Burger King boss John Dasburg for USD 57 million.

DHL has recently targeted aviation investments to support its operations in the United States. It recently invested in New York’s Polar Air Cargo, which offer delivery services between the United States and Asia.

DHL relies on Astar to handle about a third of its U.S. express domestic air services, Baker said.

The transaction “signals DHL’s confidence in the capabilities of Astar,” said Dasburg, Astar’s chairman, president and CEO.

Federal law prohibits foreign ownership of any U.S. airline to 49 percent and voting interest to 25 percent. The law dates back to 1926.

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DHL founder pleads ignorance in sworn testimony

Posted by | Nov 28, 2004 | |

William Armsted Robinson founded Document Handling Limited, one of the nation’s first courier services, and sold it for USD57 million last year. Competitors United Parcel Service and Federal Express, which fought the sale, wanted Robinson to testify that he was merely a financial front for the minority owner, Germany’s Deutsche Post. The US Department of Transportation eventually ruled against their claim and allowed the sale. In a transcript of his sworn confidential deposition, obtained by The Associated Press, Robinson said he had no idea how he came up with his USD60 million asking price for the company. But when he was offered $37 million, he said he responded, “Just forget it, we’re going fishing.” He testified he disregarded a financial analysis that valued the company at up to USD118 million _ more than double its ultimate sale price. And Robinson couldn’t explain why he was paid USD51 million for his 55 percent share of the company, while Deutsche Post was paid USD6 million for the remaining 45 percent.

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Deutsche Post cleared to expand: UPS, FedEx ponder appeal to block rival

Posted by | May 14, 2004 | |

United Parcel Service and FedEx have lost a bid to overturn a ruling that may aid Deutsche Post’s U.S. expansion efforts, which included the acquisition of ground-based operations from Seattle-based Airborne last year. The Transportation Department said yesterday it won’t review an administrative law judge’s Dec. 19 decision that German postal service Deutsche Post doesn’t control Miami-based Astar Air Cargo. UPS and FedEx, the largest U.S. package-delivery companies, argued that the German company’s DHL unit controlled Astar in violation of U.S. law. They can appeal in federal court. The two U.S. companies have sought to block DHL’s expansion in the USD 50.2 billion U.S. ground and air parcel-delivery market, analysts have said. Closely held Astar, the former DHL Airways, carries air cargo linked to DHL’s U.S. ground-delivery network, purchased in 2003 from Airborne.

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Astar asks DOT to toss latest challenge

Posted by | Feb 10, 2004 | |

Astar Air Cargo Inc. urged the Department of Transportation to throw out a request by rivals FedEx Corp. and United Parcel Service to review a ruling that found Astar is owned and controlled by U.S. citizens.

In a filing, Miami-based Astar accused FedEx and UPS, which carry nearly 75 percent of U.S. air and ground shipments, of “sour grapes.” Astar said the department” should let the parties compete in the marketplace” and reject moves by FedEx and UPS to reopen the case.

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

Posted by | Feb 4, 2004 | |

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.

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