The administrative law judge overseeing the controversial DHL Airways citizenship case has scheduled a pre-hearing conference for May 27. Ronnie L. Yoder, the Department of Transportation’s chief administrative law judge, has to issue a recommended decision by Oct. 31.
Read MoreThe U.S. Department of Transportation announced Monday that it has set Oct. 31 as the deadline for the administrative law judge hearing the DHL Airways ownership case to reach a decision. Chief administrative law judge Ronnie L. Yoder had requested an extension until Nov. 24. The original DOT deadline was set at Sept. 2.
Read MoreA federal judge is seeking a delay of nearly three months in a decision on whether DHL Airways meets the government’s definition of a US-owned company. Administrative Law Judge Ronnie Yoder recommended in a report to the US Department of Transportation that a September 2 deadline for the decision be pushed back to November 24. The department has the final say on moving the date back.
Read MoreDeutsche Post AG Chief Executive Officer Klaus Zumwinkel’s plan to boost earnings by expanding the German postal service in the $65 billion U.S. delivery market may be dealt a blow by United Parcel Service Inc. and FedEx Corp. Zumwinkel, 59, in March offered USD1.05 billion to buy Airborne Inc. to establish a ground network in the U.S. and diversify revenue streams as earnings growth at home slows. The purchase by Deutsche Post, in which the German government has a 70% stake, needs U.S. regulatory approval and comes amid a Department of Transportation inquiry into complaints from rivals United Parcel and FedEx about German control of DHL Airways Inc. `The situation in the U.S is a problem for Deutsche Post,’ said Reinhard Niebuhr, who helps manage the equivalent of about USD5.6 billion at AMB Generali in Cologne, Germany. “The large competitors there are trying to push Deutsche Post out.”
Read MoreDHL Airways Inc., the cargo airline for DHL Worldwide Express Inc., disclosed yesterday during a government hearing that it planned to sell the business to its chairman and chief executive, John Dasburg. The sale of DHL Airways to Mr. Dasburg, the former president of Northwest Airlines, is an attempt to further defend its relationship with DHL Worldwide. However, some legal experts expect that the Department of Transportation’s chief administrative law judge, Ronnie Yoder, may apply another test of foreign ownership or control: the source of DHL Airways’ revenue. If Judge Yoder determines that DHL Airways is controlled by DHL Worldwide by providing it with a majority of its revenue, DHL Airways could be barred from flying, though analysts suggest that such an outcome is highly unlikely. Under the terms of the deal between DHL Airways and Mr. Dasburg outlined yesterday, Mr. Dasburg would acquire DHL Worldwide’s 25 percent stake in DHL Airways and also acquire the remaining 75 percent from William Robinson, a United States citizen.
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