Government Denies FedEx, UPS Petition

In a setback for FedEx Corp. and UPS Inc., the Bush administration supported an administrative judge’s decision that a Miami-based cargo airline is a U.S. company and not illegally controlled by overseas interests.

In its final say on the matter, the Transportation Department denied a petition from the two cargo giants to review the administrative finding on the closely watched and hotly contested international ownership dispute involving Astar Air Cargo, formerly DHL Airways.

FedEx and UPS can appeal the decision in federal court but FedEx said it was unlikely to do so. A spokesman for UPS could not be reached for comment.