DHL is under investigation following claims that it has been granted a €7 million illegal training subsidy by the German government.

The European Commission has opened a formal inquiry into why this state aid has been allocated to a training project at DHL¡¯s new Leipzig-Halle airport facility.

The subsidy is not compatible with EC Treaty rules, says the Commission which alleges that DHL would have had to conduct training with its employees without the subsidy, as the company needed to train new workers to start operations.

The grant would have contributed about 60 per cent of the total costs of the training project.

Competition commissioner, Neelie Kroes said: ¡°I have concerns that DHL would have carried out this training project in any event, and therefore does not need the aid.¡±

DHL is constructing a new airfreight centre at the airport, which is due to open in late October 2007.