Mon, Apr 21, 2003
DOT To Hold Hearing on DHL Citizenship
The US
Department of Transportation (DOT) says it will conduct a public
hearing, as required by law, to determine whether DHL Airways is a
US citizen under law applying to US air carriers.
A DOT administrative law judge will conduct the hearing and
issue a recommended decision on whether DHL is a US citizen under
the law, a qualification necessary to operate as a US airline. DOT
directed the judge to submit the recommended decision to the
department by Sept. 2. The department will review the recommended
decision before issuing a final decision.
In late 2000, DHL Airways reported to the department its plans
to undergo a reorganization and substantial change in ownership
under which it would split into two separate companies: an
air carrier, DHL Airways, and a foreign air freight forwarder, DHL
Holdings. Subsequently, Federal Express Corporation, United Parcel
Service and Lynden Air Cargo asked the department to review
DHL’s citizenship.
At the time DOT was examining these petitions and
DHL’s responses, DOT Inspector General Kenneth M. Mead sent a
March 4 letter to Rep. Don Young, chairman of the House
Transportation and Infrastructure Committee, regarding procedures
to determine the citizenship of DHL. The department asked for
and received public comment on the letter. Subsequently, Congress
enacted supplemental appropriations legislation, which was signed
by President Bush on April 16, directing the department to hold a
formal proceeding on DHL’s citizenship with the assistance of
an administrative law judge.
For a carrier to qualify as a US citizen, it must be
incorporated in the United States, its president and two-thirds of
its board of directors must be US citizens, and at least 75 percent
of its voting stock must be owned by US citizens. In addition, the
department must find that the carrier is effectively controlled by
US citizens.
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