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. 

FMI: http://dms.dot.gov