X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.
German post and parcel company Deutsche Post AG claimed to be scratching its corporate head Wednesday after American competitors FedEx Corp. and United Parcel Service Inc. petitioned the U.S. government to investigate its stake in DHL Airways Inc. The two U.S. forwarders asked the Department of Transportation to ground the U.S. air and freight-forwarding operations of DHL WorldwideExpress — the trade name of both DHL International and DHL Airways. The Wall Street Journal reported that the FedEx filing stated Deutsche Post and DHL International had, in effect, taken control of their U.S. affiliate, putting it in violation of a federal law banning foreign companies from holding more than 25 percent of a U.S. air carrier. UPS claimed Deutsche Post was getting unfair access to the U.S. market. Deutsche Post spokesman Norbert Schaefer said its lawyers had learned of the petition Tuesday, and the company’s legal department is looking at the details. “But right now, we are not clear what they’re after,” he said. The essence of the complaint, as far as the Bonn, Germany-based former government monopoly understands it, is that its share in DHL Airways breaks the 25 percent foreign ownership threshold, but the spokesman said the argument was factually wrong. “Our first impression is that we are under that threshold, and we have no plans to go over it,” Schaefer said. He said Deutsche Post owns 51 percent of Brussels, Belgium-based DHL International, having increased its stake from 25 percent last year. DHL International, in turn, owns only 23 percent of Redwood City, Calif.-based DHL Airways. The DOT is investigating whether Deutsche Post owns more than it is allowed under U.S. law, a spokesman said. “We can’t answer that right now,” said Bill Mosley, DOT spokesman. “Carriers don’t have to report percentages to us, just major changes in ownership. FedEx claims that the foreign ownership is greater than it should be. We’ll have to look into it with the forms before us.” Schaefer could not say why UPS and FedEx would think it worthwhile bringing a complaint if it appeared so blatantly incorrect. But he said: “It is no surprise that they want to carry on with this campaign of legal harassment.” Copyright (c)2001 TDD, LLC. All rights reserved.

This content has been archived. It is available exclusively through our partner LexisNexis®.

To view this content, please continue to Lexis Advance®.

Not a Lexis Advance® Subscriber? Subscribe Now

Why am I seeing this?

LexisNexis® is now the exclusive third party online distributor of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® customers will be able to access and use ALM's content by subscribing to the LexisNexis® services via Lexis Advance®. This includes content from the National Law Journal®, The American Lawyer®, Law Technology News®, The New York Law Journal® and Corporate Counsel®, as well as ALM's other newspapers, directories, legal treatises, published and unpublished court opinions, and other sources of legal information.

ALM's content plays a significant role in your work and research, and now through this alliance LexisNexis® will bring you access to an even more comprehensive collection of legal content.

For questions call 1-877-256-2472 or contact us at [email protected]

 
 

ALM Legal Publication Newsletters

Sign Up Today and Never Miss Another Story.

As part of your digital membership, you can sign up for an unlimited number of a wide range of complimentary newsletters. Visit your My Account page to make your selections. Get the timely legal news and critical analysis you cannot afford to miss. Tailored just for you. In your inbox. Every day.

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.