ALPA Calls Upon Congress to Hold New Hearings on DHL-UPS Deal

Thu Oct 23, 2008 11:49am EDT

* Reuters is not responsible for the content in this press release.

UPS website to lure DHL customers contradicts UPS testimony at congressional
hearings

WASHINGTON, Oct. 23 /PRNewswire-USNewswire/ -- ASTAR pilots, represented by
the Air Line Pilots Association Int'l (ALPA), today called on Congress to
further investigate the DHL-UPS merger in light of the latest attempt by UPS
to openly raid DHL's customer base through its corporate website:
http://switchnow.ups.com. The site explains how DHL customers can ensure that
their packages will get to their destinations by switching now to UPS, a pitch
that is especially effective in light of the fact that DHL will now depend on
UPS for transportation and processing of all of its products.

"This website reveals the true nature of this deal, which was never designed
to provide better package delivery services to the North American public,"
said Capt. John Prater, president of ALPA. "Congress needs to get to the
bottom of this deal, which is bad for the already struggling U.S. economy."

The statements on this website run contrary to UPS and DHL's testimony before
Congress during a September 16 hearing before the U.S. House Transportation
and Infrastructure Committee, where UPS and DHL executives reassured members
of Congress that this deal was not a merger and did not violate antitrust
laws. UPS further claimed that individual salespeople, acting independently of
the company, held the responsibility for any effort to lure customers away
from DHL.

When Rep. Steven C. LaTourette (R-OH) questioned Burt Wallace, UPS president
of corporate transportation, about the guerrilla marketing tactics, he
presented a marketing card
(http://www.astarlabortalks.com/congress/upscard.pdf) to Wallace, asking,
"Have you seen it before?" On the congressional record, Wallace denied having
seen the card and suggested it was the work of "local people who are always
trying to compete and grow our business." He emphatically denied that UPS
authorized this tactic, and DHL CEO John Mullen asserted that his company
would continue to compete aggressively against UPS (see Congressional video:
mms://airlinepa.wm.internapcdn.net/airlinepa_vitalstream_com/CapitolHillTestimony/hearing(5).wmv).

The agreement between DHL and UPS would give all of DHL's North American cargo
air transport operations to UPS, one of its main competitors, effectively
closing two companies with a substantial presence in Ohio: ASTAR Air Cargo and
Airborne Express (ABX). Should this deal go through, 10,000 American workers
will lose their jobs, and entire communities in southern Ohio will be
devastated. 

This deal is taking place even though DHL has a 49% stake in ASTAR and paid
over $1 billion in 2005 to acquire Airborne and its air cargo facility and
airport in Wilmington, where most of DHL's freight is sorted and shipped to
North American destinations. More information can be found at
www.stopDHL-UPS.com.

Founded in 1931, ALPA is the world's largest pilot union and represents 53,000
pilots at 37 airlines in the U.S. and Canada, including more than 500 pilots
at ASTAR Air Cargo, formerly DHL Airways. Visit the ALPA website at
http://www.alpa.org. 


SOURCE  Air Line Pilots Association, International

Captain Pat Walsh, chair of the ASTAR unit, +1-508-776-2819, or Arthur Luby,
+1-571-236-3523, or Jen Lofquist, +1-703-481-4459, all of ALPA
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