DOT judge sides with Astar in citizenship case
Astar Air Cargo should be allowed to continue operating as a U.S. domestic flag carrier because evidence does not support allegations that the company is indirectly controlled by foreign interests in violation of U.S. law, Department of Transportation Administrative Law Judge Burton Kolko said Thursday.
'Astar Air Cargo Inc. is a citizen of the United States,' Kolko said in a 38-page recommendation sent to Secretary of Transportation Norman Mineta, who must make a final ruling in the case.
The decision is a setback for express delivery companies UPS Inc. and FedEx Corp., who pressed for a public inquiry into whether Astar, previously known as DHL Airways, was owned and controlled by express carrier DHL and its parent, German postal service and logistics conglomerate Deutsche Post. UPS and FedEx say it is unfair to allow DHL access to the U.S. aviation market when the German government is helping to subsidize Deutsche Post's competition with the delivery companies.
'We disagree with this decision, but understand that the Department of Transportation will now review the matter,' UPS said in a statement. 'We urge a careful analysis.'