U.S. Lawmakers Raise Concerns on UPS-DHL Air Deal
Ohio officials told federal lawmakers they have been rebuffed in their efforts to persuade DHL to consider alternatives to its proposed agreement to have UPS Inc. carry its North American air packages, the Associated Press reported.
The proposed deal is the most complex transaction in 30 years of aviation deregulation and may violate federal antitrust law, House Transportation and Infrastructure Committee Chairman James Oberstar (D-Minn.) said at a hearing Tuesday in Washington, the Columbus Dispatch reported.
Oberstar characterized the deal as more an acquisition than a merger, the Dispatch said.
Up to 8,000 jobs could be lost at DHL’s air cargo facility in Wilmington, Ohio, if the agreement for UPS to handle DHL’s North American air cargo goes through, AP said.
Sen. Sherrod Brown (D-Ohio) criticized the deal, which he said would be an “economic disaster” for affected Ohio communities, the Dispatch reported.
DHL Express Global Chief Executive Officer said in testimony that “customers will see no difference as DHL will continue to pick-up and deliver packages as well provide customer service just as we do today. The exchange of information between DHL and UPS will only provide data necessary for transportation from point A to point B.”
A UPS spokesman said that a formal agreement is expected by the end of the year, AP reported. It is expected to add up to $1 billion in annual revenue to UPS.
UPS is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers, while DHL Americas is ranked No. 3.
