FedEx and UPS are facing a court hearing later in Jan-2011 regarding claims they colluded to prevent shipping consultants from negotiating lower rates on behalf of their clients (Post And Parcel, 11-Jan-2011). The civil antitrust lawsuit was initially filed with the US District Court in Los Angeles in Aug-2010 by lawyers on behalf of shipping consultancy AFMS Logistics Management Group, with additional allegations added in Oct-2010. A UPS statement issued on 10-Jan-2011 confirmed the antitrust division of the Department of Justice had requested information on 19-Nov-2010, as part of a “preliminary investigation of UPS’s policy for interacting with third-party negotiators”. A court date has been set for a judge in the US District Court to hear UPS and FedEx submissions to dismiss the case on 31-Jan-2011. If the judge rules not to dismiss the case, a trial would be held in Sep-2011.
FedEx and UPS involved in federal antitrust inquiry
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California's Ontario International Airport Part 1: Change of ownership allows it to compete with LAX
Ontario International Airport has languished in the shadow of Los Angeles’ LAX for many years, prompting a growing call for separation from Los Angeles World Airports. At last the umbilical cord is about to be cut, and local city councils will be in control of its destiny.
But the difficulties that OIA has had to face will not all go away. They include a huge urban catchment area, where industry was hit hard by the recession and wages are low and, above all, an image that it is no more than a low cost facility without any real gravitas.
The ownership change opens the door, at least potentially, to private sector investment and management in the long run, but costs must be reined in and the bottom line improved first.
This report looks at present and future growth trends at the airport, local economic and airport statistics, how it matches up to competing airports across a range of metrics, at construction activities and in detail at the ownership issue.
Challenges to airline liberalisation. Mindset changes needed: CAPA Americas Summit (VIDEO)
Tentative approval was finally granted by the Us DoT for Norwegian Air International to introduce long haul, low cost service from Europe to the US. Even though the opponents have successfully lobbied legislators to introduce prohibiting legislation, this was a milestone in the contentious debate about open skies agreements, as well as the intricacies of labour law and foreign ownership requirements. There was a lively debate on this topic at CAPA's Americas Aviation Summit, under the guidance of CNN anchor, Richard Quest.
However, in the larger scheme of liberalisation Norwegian’s victory is a small step in what appears to be a long journey for a mindset change: to create new paradigms in the rapidly changing global aviation industry. In the US aviation landscape the easing of foreign ownership restrictions remains a non-starter, which means that joint ventures will continue to serve as stand-ins for cross-border ownership. As the status quo remains, and members of large global alliances holding anti-trust immunity dominate markets such as the trans-Atlantic, Norwegian’s ability to inject low cost competition is welcome, and a logical development.