Tag: DHL Airways

DHL streamlining to impact ABX Air revenues

ABX Air, the one-year-old air cargo airline spun off from courier Airborne Express following the merger with DHL in 2003, said it expects to lose USD86 million to USD96 million in gross revenue in 2005 as a result of route restructuring by primary customer DHL. Airborne was forced to spin off its in-house airline to comply with U.S. corporate citizenship laws for owning domestic airlines. DHL retained ABX as its main air carrier, along with Astar Air Cargo, formerly DHL Airways. DHL notified ABX that it no longer would require airlift on 22 routes provided by 26 aircraft. Seven of the 26 aircraft are to be removed from service in January, with the remaining 19 aircraft removed by the end of 2005. The projected revenue reductions include money the airline made from marking up expenses to operate its planes. ABX said annual net income would take a hit in the range of USD800,000 to USD1.5 million.

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

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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DHL ordered to hand over documents in U.S. probe

A judge has ordered DHL Worldwide Express, the U.S. arm of DHL Express, to hand over documents requested by FedEx Corp. and United Parcel Service in the investigation into the ownership of Astar Air Cargo, formerly DHL Airways. Some of the documents sought by FedEx and UPS involve the financial relationship between Brussels-based DHL International, and William Robinson, the former principal owner of DHL Airways.

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US review of air ownership case to be secret

A government case testing U.S. airline ownership limits that was prompted by complaints from UPS and FedEx has become so bitter and entangled that a judge is taking the matter behind closed doors, officials said on Monday.
Transportation Department Administrative Law Judge Ronnie Yoder has ordered that the Aug. 19 hearing on the ownership structure of Astar Air Cargo, formerly DHL Airways, be conducted in secret. A preconference hearing to set out a schedule for evidence and testimony for the upcoming proceeding will be held on Wednesday and will be open to the public, according to Yoder’s order issued late on Friday.

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Former DHL Airways owner refuses to testify in DOT probe

As expected, William A. Robinson, the former principal owner of DHL Airways, now Astar Air Cargo, failed to appear at a deposition hearing in Los Angeles Thursday in the federal probe into the ownership of DHL’s all-cargo airline. In a letter to attorneys for FedEx Corp. and United Parcel Service, whose complaint sparked the Department of Transportation probe, Robinson’s attorney, Philip Le B. Douglas, said the deposition will not go forward because Robinson believes his testimony is no longer relevant in light of the airline’s sale Monday to an investor group led by John Dasburg, its chairman and chief executive. Robinson had previously agreed to testify.

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