McCain calls for government probe of DHL-UPS deal
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Thursday, August 07, 2008
WILMINGTON — Republican presidential candidate John McCain said Thursday, Aug. 7, that he wants the government to investigate whether DHL's proposal to hire United Parcel Service to fly its packages nationwide would violate laws intended to encourage market competition.
"I support a federal antitrust review of this case. I do not prejudge its disposition," the Arizona senator said.
McCain read from a prepared statement immediately after his 45-minute private meeting with community activists who are trying to save 8,000 to 10,000 jobs that could be lost at DHL's Wilmington air freight hub if the company's deal with UPS goes through. UPS would sort and fly DHL's cargo from the UPS hub in Louisville, Ky., replacing the cargo flying that ABX Air and ASTAR Air Cargo do for DHL from Wilmington now. The DHL hub is the Wilmington region's biggest employer.
McCain said he thinks that Frank Appel, chief executive officer of Deutsche Post, the German company that owns DHL, should come to Wilmington and explain to local people the German company's decision to reach a deal with UPS.
In an interview earlier Thursday with the Dayton Daily News, McCain said he would also tell the Wilmington activists that it may not be possible to stop the DHL-UPS deal and save the Wilmington jobs.
U.S. Rep. Mike Turner, R-Centerville, who attended the meeting with McCain at Wilmington College, also is pushing for a Justice Department antitrust investigation. Turner said he welcomes McCain's support for the probe.
"He knows, if this goes through, there's no going back," Turner said after the meeting.
Turner said he is concerned that a DHL deal could reduce competition in the express delivery market by effectively leaving UPS and Federal Express as the unquestioned market leaders.
"He did say that he was going to do everything he can to challenge this deal," Joe Teuchert, an ASTAR Air Cargo pilot, said of McCain after the meeting.
Wilmington's mayor, Clinton County commissioners and Joe Hete, chief executive officer of the parent company of ABX Air, were also in the private meeting with McCain. The senator emerged from the meeting in the college's Kelly Center, a religious studies building, to shake hands with activists outside who oppose a DHL deal with UPS. The companies are still trying to negotiate an agreement.
Teuchert said he hopes to also interest the Democratic presidential candidate, Sen. Barack Obama of Illinois, in coming to Wilmington to discuss the DHL issue. Obama met with the Wilmington activists on July 11 during his campaign visit to Dayton.
Obama campaign spokesman Isaac Baker said that Obama is monitoring the Wilmington situation, but has no plans at present to visit there as he focuses on the Democratic National Convention in Denver Aug. 25-28 when he expects to become the party's presidential nominee.
Contact this reporter at (937) 225-2242 or jnolan@DaytonDailyNews.com.

