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Press Release

Committee to Hold Hearing on UPS-DHL

Air cargo carriers’ ‘strategic alliance’ to be reviewed

August 8, 2008

 

By Jim Berard, 202-226-5064,

WASHINGTON—A "strategic alliance" announced earlier this year between air cargo giants UPS and DHL will be the subject of a hearing before the House Committee on Transportation and Infrastructure when Congress returns in September.

The hearing was announced today by Committee Chairman James L. Oberstar (Minn.), and was requested by the Ohio Congressional delegation.

"Just as I have opposed additional consolidation in air passenger service, I have serious concerns about the UPS-DHL alliance. My concerns include the transaction’s effects on service, costs, consumer choice, and jobs," Oberstar said. "This alliance is likely to eliminate two cargo air carriers, ABX and ASTAR, which now serve DHL and compete with UPS. This would lessen, or even eliminate, competition between UPS and DHL in providing overnight package delivery services."

The letter requesting the hearing, signed by all 18 Members of Congress from Ohio, said that the alliance could cost as many as 8,000 jobs in their state.

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