Judge Finds Astar Cargo Meets U.S. Citizenship Test
n a ruling against United Parcel Service and FedEx Corp., a Department of Transportation judge ruled Astar Air Cargo Inc. meets U.S. citizenship standards, news services reported.
Judge Burton Kolko wrote in his decision Miami-based Astar "is a citizen of the United States," Dow Jones said.
"We disagree with this decision, but understand that the Department of Transportation will now review the matter," UPS spokesman David Bolger said in a statement. "We urge a careful analysis."
Astar, known as DHL Airways until earlier this year, gets 90% of its business from DHL Worldwide, a unit of Deutsche Post AG, Europe’s biggest postal service. UPS and FedEx argued Deutsche Post controls Astar by supplying almost all of the freight carrier's revenue and financing.
Astar does has an 11-year agreement to carry DHL Worldwide's cargo, but argued the company is controlled by U.S. citizens headed by John Dasburg, who bought Astar in July.
However, Kolko wrote that neither DHL Worldwide Express nor the DHL network are in actual control of Astar in any relevant or meaningful sense, Bloomberg reported.
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