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DOT Approves DHL-UPS Deal  
User currently offlineLAXintl From United States of America, joined May 2000, 25406 posts, RR: 49
Posted (6 years 3 weeks 1 day 20 hours ago) and read 2610 times:

I never saw the legal ground in what Ohio or ABX were crying foul about anyhow. All DHL is doing is shifting its contract flying from one US airline, to another.

Quote:
DOT Refuses to Stop DHL Move

The U.S. Department of Transportation will not block DHL in its attempt to hire UPS to handle its domestic air cargo.

Transportation Secretary Mary E. Peters informed Ohio Governor Ted Strickland that the German-owned express carrier's attempt to restructure does not constitute an unfair or deceptive practice or an unfair method of competition.

"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 an 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."

http://www.aircargoworld.com/break_news/08272008a.htm


From the desert to the sea, to all of Southern California
8 replies: All unread, jump to last
 
User currently offlinePITrules From United States of America, joined Jun 2000, 3203 posts, RR: 5
Reply 1, posted (6 years 3 weeks 1 day 20 hours ago) and read 2563 times:

I'm not sure on what grounds the DoT can influence this deal. The Dept. of Justice is what really matters on anti-trust regulations. The rest of the article:

"Ohio has also asked the Department of Justice to investigate the move on the grounds it may violate anti-trust regulations. However, Justice cannot investigate prior to a finalized agreement between DHL and UPS."

http://www.aircargoworld.com/break_news/08272008a.htm



FLYi
User currently offlineCMHSRQ From United States of America, joined Feb 2004, 993 posts, RR: 4
Reply 2, posted (6 years 3 weeks 23 hours ago) and read 2255 times:

8500 jobs in the Wilmington area gone.


The voice of moderation
User currently offlineLAXintl From United States of America, joined May 2000, 25406 posts, RR: 49
Reply 3, posted (6 years 3 weeks 15 hours ago) and read 2089 times:



Quoting PITrules (Reply 1):
I'm not sure on what grounds the DoT can influence this deal.

Very much so.

First they review the proposed DHL-UPS deal to ensure DHL can indeed llegaly enter into agreement and its proposed terms being a foreign held company, and secondly all wet lease agreement in the US are reviewed and blessed by the DOT.

Quoting CMHSRQ (Reply 2):
8500 jobs in the Wilmington area gone.

Sad for those folks in Ohio, but good for UPS ones and other American workers.

Quoting PITrules (Reply 1):
he Dept. of Justice is what really matters on anti-trust regulations.

Which there is really no concerns here. After all its not as if competition for the consumers is being reduced, as DHL will still very much exist, it simply has chosen to use a more competitive means to transport its shipments within the US.

Anyhow at the end of the day, there is nothing the DOT or DOJ can really say that forces DHL to maintain a hugely loss making enterprise it has in the US with ABX/Astar. The loss of DHL entirely if it cannot restructure its US ops, that would hurt US consumers.



From the desert to the sea, to all of Southern California
User currently offlineAA61Hvy From United States of America, joined Nov 1999, 13977 posts, RR: 57
Reply 4, posted (6 years 3 weeks 14 hours ago) and read 2026 times:



Quoting LAXintl (Reply 3):
Anyhow at the end of the day, there is nothing the DOT or DOJ can really say that forces DHL to maintain a hugely loss making enterprise it has in the US with ABX/Astar.

Lets not get ahead of ourselves here, the deal still has not been signed by DHL or UPS...Kind of a major hurdle.



Go big or go home
User currently offlinePITrules From United States of America, joined Jun 2000, 3203 posts, RR: 5
Reply 5, posted (6 years 3 weeks 14 hours ago) and read 2026 times:

Quoting LAXintl (Reply 3):
First they review the proposed DHL-UPS deal to ensure DHL can indeed llegaly enter into agreement and its proposed terms being a foreign held company, and secondly all wet lease agreement in the US are reviewed and blessed by the DOT.

All of which was done once already when DHL originally contracted with Astar and ABX. When reviewed again, except with UPS being the contractor, why would it be any different; this is only a change in US contract carrier as you point out in your opening post. Therefore, based on past precedent, I don't see why the DoT would influence this deal. In fact, they haven't as per the linked news clip.

In the context of some kind of anti-trust/competition issue the State of Ohio hopes to bring to light (or fabricate), it's for the DoJ to decide, not the DoT.

[Edited 2008-08-31 17:19:08]


FLYi
User currently offlineFloridaflyboy From United States of America, joined Jun 2006, 2015 posts, RR: 0
Reply 6, posted (6 years 2 weeks 6 days 23 hours ago) and read 1816 times:



Quoting LAXintl (Reply 3):
Quoting CMHSRQ (Reply 2):
8500 jobs in the Wilmington area gone.

Sad for those folks in Ohio, but good for UPS ones and other American workers.

You are clearly VERY mis-informed about this if you think it's a wash. Where the contract eliminates 8500 jobs at ABX/Astar, it will create less than 2000 additional jobs at UPS. That's a net loss of well over 6500 jobs. Nothing good about that.



Good goes around!
User currently offlineLAXintl From United States of America, joined May 2000, 25406 posts, RR: 49
Reply 7, posted (6 years 2 weeks 6 days 22 hours ago) and read 1740 times:



Quoting Floridaflyboy (Reply 6):
You are clearly VERY mis-informed about this if you think it's a wash

No I'm not misinformed at all.

I know its not a wash, so yes while one set of employees at ABX/Astar take it in the pants, another set at UPS benefits, while hopefully helping DHL right their hugely loss making North America operation.

Thats all.



From the desert to the sea, to all of Southern California
User currently offlineMillwallSean From Singapore, joined Apr 2008, 1246 posts, RR: 6
Reply 8, posted (6 years 2 weeks 6 days 16 hours ago) and read 1599 times:

This jobloss is the result of a moneyloosing operation.
DHL, a company that are market leaders everywhere except North America isnt generating profit in North America. They need to reduce costs.
This was they way they chose to do it. Good business rationale.

Lets not forget that DHL bought ABX but werent allowed to take ownership of the aircarrier due to US laws. Had it been an inhouse organisation the obstacles for DHL to switch would have been far greater. So 8500 jobs in Ohio lost due to airownership laws.
Someone has to question what management at ABX were doing. They manage to piss off their number one customer and minority owner. That in itself is a feat and what they thought they could achieve by that is anyones guess.
The result was 8500 unemployed persons in Ohio though. Great work - not...

Personally i feel sorry for Astar who didnt piss off DHL but still get the chop.
ABX, well dont bite the hand that feeds you...



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