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Thu, May 01, 2003

DHL Airways to Sell Itself to Chairman

This Might Satisfy FedEx, UPS Argument

Laws aren't made to be broken; they're made to be complied with -- and it may a testimony to the strength of law that DHL Airways is being sold to the former president of Northwest Airlines, John Dasburg. Dasburg more-recently became the chairman and CEO of DHL Airways, a position he still holds.

FedEx and UPS have been working hard to take US military business away from DHL, citing a law that requires such transport to be carried in US-resident company aircraft. DHL is 25% foreign-owned.

Even with DHL's recent purchase of the ground delivery part of Airborne, the relationship of DHL to "foreign ownership" is a matter for the courts. If rivals UPS and FedEx continue to push for exclusion of DHL, they have one more card to play: "control." Since a large portion (possibly a majority) of DHL Airways' revenues come through DHL Worldwide (a German company), the "control" argument could still be a factor, in the country's unpredictable courts.

FMI: www.dhl.com

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