Decision Allows DHL to Fly in US

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The U.S. Department of Transportation has rejected efforts by FedEx and United Parcel Service to deny DHL Worldwide Express the right to fly U.S. routes.


FedEx and UPS had argued that DHL should not be eligible to fly between U.S. cities because it is foreign-owned. Deutsche Post, the German post office, owns 51 percent of DHL.


Transportation officials said there was no evidence to act against DHL.


UPS, in a separate complaint, said DHL would provide unfair competition because it said Deutsche Post had a history of abusing its monopoly through cross subsidies. The DOT ruled that there was no evidence Deutsche Post was subsidizing DHL activities.


UPS said it was disappointed with the DOT's ruling but noted that it had succeeded in its goal of bringing Deutsche Post's unfair business practices to light.


DHL applauded the decision and said it would be in the best interests of consumers and its estimated 11,000 U.S. employees. DHL said its presence in the United States would benefit U.S. consumers by providing more opportunities and choices.


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