NYTimes.com Article: U.S. Will Pursue Investigation on Air Cargo

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U.S. Will Pursue Investigation on Air Cargo

July 31, 2003
 By REUTERS






WASHINGTON, July 30 (Reuters) - The Transportation
Department rejected a request today by Astar Air Cargo,
formerly DHL Airways, to drop an investigation into its
ownership structure, but it also said the inquiry should be
kept short and narrowly focused.

Whether Astar violates a law limiting foreign ownership of
United States airlines is still at issue, even though the
company was sold to a group of American investors this
month, the department said.

The department sided with Astar on one significant point,
however, instructing the administrative judge not to extend
the investigation into past ownership.

The department is under orders from Congress to investigate
complaints by United Parcel Service and FedEx that Astar
was effectively controlled by Deutsche Post, even though
DHL technically met United States ownership restrictions.

DHL Airways was partly owned by a unit of Deutsche Post
before a group of American investors bought it for $57
million and renamed it.

http://www.nytimes.com/2003/07/31/business/31CARG.html?ex=1060659408&ei=1&en=2d4ee3f04cd76337


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