Ups/dhl
#93
Retired Doug herder
Joined APC: Mar 2005
Position: Former DC8 73 Capt DHLAirways/Astar. Retired
Posts: 424
#95
Retired Doug herder
Joined APC: Mar 2005
Position: Former DC8 73 Capt DHLAirways/Astar. Retired
Posts: 424
United States Department of Justice Antitrust Division - Wikipedia, the free encyclopedia
And, here's a cut and paste of the correspondence as well:
August 1, 2008
The Honorable Thomas Barnett
Assistant Attorney General
Antitrust Division
United States Department of Justice
950 Pennsylvania Avenue, N.W.
Washington, D.C. 20530
The Honorable William E. Kovacic
Chairman
Federal Trade Commission
600 Pennsylvania Avenue, N.W.
Washington, D.C. 20580
Dear Assistant Attorney General Barnett and Chairman Kovacic:
On May 28, 2008, DHL Express US (“DHL”) and United Parcel Service, Inc. (“UPS”) announced their intention to enter into a contract where UPS will become, for ten years, the exclusive provider of air transportation for DHL’s North American package delivery service. As the Chairman and Ranking Republican Member of the Senate Antitrust Subcommittee, we believe that this proposed agreement raises important antitrust and competition issues that should be examined carefully by the Department of Justice (“Department”) or the Federal Trade Commission (“Commission”).
UPS and DHL are, respectively, the second and third largest overnight package delivery services in the United States. Therefore, if consummated, DHL will become reliant for air transportation on one of its two major competitors. This raises the question if DHL will still be able to effectively compete against UPS, since UPS will now have a large role in determining the cost and quality of DHL’s services. In addition, we presume that such a relationship would also require DHL to adopt UPS’s package tracking, labeling and hub distribution systems. Whether, and how, DHL packages will receive priority should UPS planes fill to capacity is another concern raised by this deal. As a result, some critics of the proposed agreement contend that DHL will become a captive of UPS, rather than an independent competitor. Further, having only two airlines providing national airlift capacity for overnight package delivery could raise the risk of serious economic disruption should service on one of these two airlines be reduced due to unforeseen difficulties, such as a strike, maintenance issues, weather disruptions or other similar disruptive events.
It has been reported that the parties are close to finalizing this agreement. The prospect of a quick ratification is equally disconcerting since the proposed contract will have a devastating financial impact on DHL’s current air transport providers, ABX Air and ASTAR and these airlines’ base of operations, southern Ohio.
It should be noted that we have not reached a conclusion as to the legality of this proffered transaction under the antitrust laws. However, due to the issues raised above and urgency of this matter, we respectfully request that the antitrust agencies initiate an investigation into this arrangement immediately.
Thank you for your consideration of this matter.
Sincerely,
______________________***********************
HERB KOHL ORRIN G. HATCH
Chairman, Subcommittee on Ranking Member, Subcommittee on
Antitrust, Competition Policy Antitrust, Competition Policy, and
and Consumer Rights Consumer Rights
#96
Gets Weekends Off
Joined APC: Mar 2007
Position: No more APC 4 me. Quit because of moderation.
Posts: 134
My mother-in-law lives in Columbus, Ohio, and we asked her last night if she has heard anything about the DHL/UPS deal devastating Ohio. She didn't know anything about it.
I'm not saying she is the world's biggest news junkie or anything, but she is usually up on most current events.
My point is that I don't think that it is as a big of a deal to most people outside of the two companies. Nobody cares - except UPS people and DHL/ABX/ASTAR people.
I'm not saying she is the world's biggest news junkie or anything, but she is usually up on most current events.
My point is that I don't think that it is as a big of a deal to most people outside of the two companies. Nobody cares - except UPS people and DHL/ABX/ASTAR people.
#98
My mother-in-law lives in Columbus, Ohio, and we asked her last night if she has heard anything about the DHL/UPS deal devastating Ohio. She didn't know anything about it.
I'm not saying she is the world's biggest news junkie or anything, but she is usually up on most current events.
My point is that I don't think that it is as a big of a deal to most people outside of the two companies. Nobody cares - except UPS people and DHL/ABX/ASTAR people.
I'm not saying she is the world's biggest news junkie or anything, but she is usually up on most current events.
My point is that I don't think that it is as a big of a deal to most people outside of the two companies. Nobody cares - except UPS people and DHL/ABX/ASTAR people.
-Fatty
#99
Gets Weekends Off
Joined APC: May 2006
Position: DC-8 756/767
Posts: 1,144
Sorry, but you are mistaken. The Senators who wrote the request are the Chair and Ranking Member of the Senate Subcommittee on Anti-trust Issues. They wrote asking the FTC and DOJ to conduct an investigation. There are no elected representative functions after that step. Hence my previous statement. Here's a simplified wikipedia explanation of anti-trust, that might help you:
United States Department of Justice Antitrust Division - Wikipedia, the free encyclopedia
And, here's a cut and paste of the correspondence as well:
August 1, 2008
The Honorable Thomas Barnett
Assistant Attorney General
Antitrust Division
United States Department of Justice
950 Pennsylvania Avenue, N.W.
Washington, D.C. 20530
The Honorable William E. Kovacic
Chairman
Federal Trade Commission
600 Pennsylvania Avenue, N.W.
Washington, D.C. 20580
Dear Assistant Attorney General Barnett and Chairman Kovacic:
On May 28, 2008, DHL Express US (“DHL”) and United Parcel Service, Inc. (“UPS”) announced their intention to enter into a contract where UPS will become, for ten years, the exclusive provider of air transportation for DHL’s North American package delivery service. As the Chairman and Ranking Republican Member of the Senate Antitrust Subcommittee, we believe that this proposed agreement raises important antitrust and competition issues that should be examined carefully by the Department of Justice (“Department”) or the Federal Trade Commission (“Commission”).
UPS and DHL are, respectively, the second and third largest overnight package delivery services in the United States. Therefore, if consummated, DHL will become reliant for air transportation on one of its two major competitors. This raises the question if DHL will still be able to effectively compete against UPS, since UPS will now have a large role in determining the cost and quality of DHL’s services. In addition, we presume that such a relationship would also require DHL to adopt UPS’s package tracking, labeling and hub distribution systems. Whether, and how, DHL packages will receive priority should UPS planes fill to capacity is another concern raised by this deal. As a result, some critics of the proposed agreement contend that DHL will become a captive of UPS, rather than an independent competitor. Further, having only two airlines providing national airlift capacity for overnight package delivery could raise the risk of serious economic disruption should service on one of these two airlines be reduced due to unforeseen difficulties, such as a strike, maintenance issues, weather disruptions or other similar disruptive events.
It has been reported that the parties are close to finalizing this agreement. The prospect of a quick ratification is equally disconcerting since the proposed contract will have a devastating financial impact on DHL’s current air transport providers, ABX Air and ASTAR and these airlines’ base of operations, southern Ohio.
It should be noted that we have not reached a conclusion as to the legality of this proffered transaction under the antitrust laws. However, due to the issues raised above and urgency of this matter, we respectfully request that the antitrust agencies initiate an investigation into this arrangement immediately.
Thank you for your consideration of this matter.
Sincerely,
______________________***********************
HERB KOHL ORRIN G. HATCH
Chairman, Subcommittee on Ranking Member, Subcommittee on
Antitrust, Competition Policy Antitrust, Competition Policy, and
and Consumer Rights Consumer Rights
United States Department of Justice Antitrust Division - Wikipedia, the free encyclopedia
And, here's a cut and paste of the correspondence as well:
August 1, 2008
The Honorable Thomas Barnett
Assistant Attorney General
Antitrust Division
United States Department of Justice
950 Pennsylvania Avenue, N.W.
Washington, D.C. 20530
The Honorable William E. Kovacic
Chairman
Federal Trade Commission
600 Pennsylvania Avenue, N.W.
Washington, D.C. 20580
Dear Assistant Attorney General Barnett and Chairman Kovacic:
On May 28, 2008, DHL Express US (“DHL”) and United Parcel Service, Inc. (“UPS”) announced their intention to enter into a contract where UPS will become, for ten years, the exclusive provider of air transportation for DHL’s North American package delivery service. As the Chairman and Ranking Republican Member of the Senate Antitrust Subcommittee, we believe that this proposed agreement raises important antitrust and competition issues that should be examined carefully by the Department of Justice (“Department”) or the Federal Trade Commission (“Commission”).
UPS and DHL are, respectively, the second and third largest overnight package delivery services in the United States. Therefore, if consummated, DHL will become reliant for air transportation on one of its two major competitors. This raises the question if DHL will still be able to effectively compete against UPS, since UPS will now have a large role in determining the cost and quality of DHL’s services. In addition, we presume that such a relationship would also require DHL to adopt UPS’s package tracking, labeling and hub distribution systems. Whether, and how, DHL packages will receive priority should UPS planes fill to capacity is another concern raised by this deal. As a result, some critics of the proposed agreement contend that DHL will become a captive of UPS, rather than an independent competitor. Further, having only two airlines providing national airlift capacity for overnight package delivery could raise the risk of serious economic disruption should service on one of these two airlines be reduced due to unforeseen difficulties, such as a strike, maintenance issues, weather disruptions or other similar disruptive events.
It has been reported that the parties are close to finalizing this agreement. The prospect of a quick ratification is equally disconcerting since the proposed contract will have a devastating financial impact on DHL’s current air transport providers, ABX Air and ASTAR and these airlines’ base of operations, southern Ohio.
It should be noted that we have not reached a conclusion as to the legality of this proffered transaction under the antitrust laws. However, due to the issues raised above and urgency of this matter, we respectfully request that the antitrust agencies initiate an investigation into this arrangement immediately.
Thank you for your consideration of this matter.
Sincerely,
______________________***********************
HERB KOHL ORRIN G. HATCH
Chairman, Subcommittee on Ranking Member, Subcommittee on
Antitrust, Competition Policy Antitrust, Competition Policy, and
and Consumer Rights Consumer Rights
That's great!! And I am not mistaken. The two senators ARE ON VACATION!! CALL THEM!!! MY POINT WAS ONLY TO SAY THEY ARE ON VACATION. NOT IN OHIO, NOT IN DC, BUT ON VACATION. I DON'T CARE ABOUT ANTI-TRUST. THEY ARE ON VACATION, 5 WEEKS OF IT.
#100
Retired Doug herder
Joined APC: Mar 2005
Position: Former DC8 73 Capt DHLAirways/Astar. Retired
Posts: 424
>They said the exact same thing when XM and Sirius planned a merger. Nothing will ever come of it. Oh, they just took a 5 week vacation. See ya on the beach.<
Which any reasonable person would have taken to mean that nothing will be done for 5 weeks on the request, since they are on vacation. My reply to you was that it is not relevant that they are now on vacation, as they have made the request to DOJ and FTC to initiate an investigation. Congress is now out of the picture. It's ok to be mistaken. Everyone's human. Digging your hole deeper however, is most unwise.