Originally Posted by
GliderCFI
I believe the lawsuit involves a law something like you cannot legally carry US mail or packages if you are based in another country, as DHL is by some accounts. I think UPS and Fedex both were going after them. I could be wrong though, not real educated on that topic...
It involved a law which prohibits a foreign corporation from owning more than 25% of the voting equity of a U.S. air carrier. The issue is control. A foreign entity is not permitted under U.S. law to control a U.S. carrier. Fedex's Fred Smith persuaded Alaska Senator Ted Stevens to attach a rider to a bill forcing the DOT to hold "de novo" (sp?) hearings on the issue. This is a latin term used in law meaning "new". The hearings, which had to be held in front of an administrative law judge, challanged the right of the former DHL Airways (which be the time the hearings began had changed ownship and its name to Astar Air Cargo) to hold an U.S. air carrier certificate and its right to operate in the U.S. The judge ruled in Astar's favor. Little known is the fact a similar suit was filed against ABX Air, Inc, the now publically held former wholly owned subsidiary of Airborne, Inc. The suit against ABX became moot when UPS/Fedex lost against Astar.