Kelley Drye Represents UPS in Critical Aviation Dispute

As reported in an article in The Washington Post, Air Freight’s Pecking Order Hinges on DOT Ruling,” Kelley Drye is representing UPS in a significant administrative litigation matter before the Department of Transportation (DOT) that could determine the future competitive balance in the worldwide, multibillion-dollar package-delivery business.” UPS and other companies including Federal Express are claiming that rival DHL Airways (now renamed ASTAR Air Cargo, Inc.) does not fulfill the requisite citizenship criteria for operating as a U.S. air carrier; therefore, DHL does not have the right to haul freight between any two U.S. cities, and must receive government permission to pick up or drop off freight at a single U.S. location in international service.

A DOT administrative law judge will hear evidence on whether DHL Airways meets the citizenship criteria, and a decision will ultimately be issued later this year.