birdstrike

Please don't shoot the messenger...
Washington rejects Ohio bid to halt DHL-UPS deal

The U.S. Department of Transportation has rejected Ohio's request that the department block DHL's plan to hire United Parcel Service to handle DHL's domestic air cargo sorting and flying.
Transportation Secretary Mary E. Peters rejected Ohio's contention that a DHL-UPS agreement would be unfair competition in the U.S. air shipping industry, or would amount to an unfair or deceptive practice under federal law.
DHL, owned by Germany's Deutsche Post World Net, said it wants to hire UPS as part of a restructuring DHL hopes will reduce its $1 billion annual losses in the U.S. market, where it trails rivals UPS and Federal Express.
Ohio officials have said that DHL's plan to move its air cargo operations from DHL's Wilmington freight hub to UPS' Louisville, Ky., hub will wipe out at least 8,200 jobs at Wilmington. DHL decided in 2004 to consolidate its air freight operations at Wilmington, with the help of tax breaks and grants from the state.
DHL currently employs two airlines, ABX Air Inc. and ASTAR Air Cargo, to fly its packages nationwide from Wilmington. ABX also runs the hub for DHL and sorts the cargo.
Ohio Gov. Ted Strickland and Lt. Gov. Lee Fisher wrote to Peters in July, asking that the U.S. Department of Transportation investigate the proposed DHL-UPS deal and move to stop it.
"While I understand your concerns over Deutsche Post AG's proposed restructuring of DHL, it is our view that this restructuring would not constitute an unfair or deceptive practice or an unfair method of competition," Peters wrote in her Aug. 15 letter to Strickland and Fisher. "The department's regulations do not impose restrictions on a foreign air freight forwarder's choice of U.S. carrier to transport its cargo."
State officials were disappointed with Peters' response, said Amanda Wurst, a spokeswoman for the governor.
"We were obviously hoping that the U.S. Department of Transportation could provide us with a way to keep those jobs in Ohio," Wurst said Tuesday, Aug. 26.
Peters suggested that Ohio take its concerns to the U.S. Department of Justice, which has authority to determine whether corporate actions would violate antitrust laws by reducing market competition. Ohio and its congressional delegation have already urged the Justice Department to commence an antitrust investigation. Government officials have said they cannot do so, however, until DHL and UPS have an agreement in place.
DHL and UPS have said they see no need for government approval of what the companies say would be a customer-vendor agreement. DHL and UPS said they would continue to compete for customers.
Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.

jungle

As predicted, no surprise here. Never shoot the messenger, it won't change the message.

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Just another slave on the Marxist plantation.

FlyAstarJets

Well, we all knew that this would be the DOT's position. But at least Mary had a pair and openly suggested that this case should be reviewed by the DOJ as an anti-trust issue.

FAJ

jungle

"Ohio and its congressional delegation have already urged the Justice Department to commence an antitrust investigation. Government officials have said they cannot do so, however, until DHL and UPS have an agreement in place."

__________________
Just another slave on the Marxist plantation.