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OST Docket Filings for May 9, 2008
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| Applications and Renewals:
2009 US-China All-Cargo - Applications of Evergreen and Kalitta Answers and Replies: 2009 US-China All-Cargo - Answer of Kalitta Air to Petition of FedEx, Northwest, Polar and UPS Reciprocity Confirmations - Confirmation of Austrian Federal Ministry for Transport and German Civil Aviation Authority Notices of Action Taken: IATA - Approvals of Agreements Southern Air - US-Hong Kong Scheduled All-Cargo Renewal Notices and Orders: None |
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2009 US-China All-Cargo Designation and Frequency Allocation Proceeding
May 9, 2008 Evergreen International Airlines submits this application for a certificate of Public Convenience and Necessity, a designation, and the allocation of six all-cargo frequencies to allow it to inaugurate scheduled all-cargo service to China on March 25, 2009. Evergreen proposes to operate six weekly westbound frequencies from New York (JFK) to Shanghai, with a traffic stop at Columbus, Ohio. These flights will return from Shanghai to JFK with intermediate traffic stops at Chicago/O'Hare (four times per week) and Dallas/Ft. Worth (twice weekly). Evergreen will start service with B747-200 aircraft, and in October 2009 will upgrade to B747-400 freighters that it currently has under contract. This case represents an important opportunity for the Department of Transportation to advance its continuing efforts to increase competition and improve service in cargo operations in the U.S.-China markets. At the present time. the four US cargo carriers designated to serve China are underutilizing a valuable set of assets-the all-cargo frequencies for which the United States has painstakingly negotiated in recent years. As the Instituting Order notes [Order 2008-4-22], 17 all-cargo frequencies are available at this time, but are unused. This number seems likely to increase in light of Northwest's recent notice to the Department that it has ceased using a number of its all-cargo frequencies and wishes the Department's approval to suspend cargo service to Guangzhou entirely without risking any loss of those frequencies for dormancy. In contrast, Evergreen is seeking new authority to serve China wherever it is available, and using it to the fullest. Since 2005, it has operated more than 70% of the Zone 1 charter flights available to cargo carriers, as well as charter flights not subject to the 75-flight limit wherever possible. Nonetheless, Evergreen still cannot provide the regular pattern of service the market needs. Shanghai is the largest, fastest growing cargo market in China, and can readily support expanded service when offered by a carrier with Evergreen's experience in the market and commitment. Yet, while Evergreen is pursuing every opportunity to expand service within the artificial limits applicable to charters, 17 scheduled frequencies remain unused, and an incumbent carrier has just asked to be excused from the Department's dormancy policy in part because there are already abundant unclaimed frequencies. Most recently, the entire group of incumbent carriers confirmed to the Department that they will not be seeking additional frequencies in this proceeding. The Department, as it has done in the past, should take the opportunity in this proceeding to redress this imbalance at least in part by selecting an additional carrier for designation and allocating at least six frequencies to that carrier. There is a compelling need for an additional scheduled cargo carrier that is ready to meet the needs of the marketplace. Evergreen is that carrier. Counsel: Squire Sanders, Edward Sauer, 202-626-6641
May 9, 2008 Kalitta has made no secret of its intent to seek the new US carrier designation. It has actively participated in the US‑China negotiating process, and has continued to expand its presence in China through its long‑standing business relationships with some of the largest forwarders in the US‑China market. For a number of years Kalitta Air has met these shippers' needs by uplifting more scheduled freight from Hong Kong to the US than any other US air carrier. The scheduled cargo designation now sought by Kalitta is the logical next step for the carrier, given its deep commitment to the China market. Designating Kalitta, we submit, would be the logical next step for the Department in its efforts to strengthen US carrier freighter operations over the Pacific. Kalitta proposes to operate ten weekly round trips on two routings, involving Shanghai and Guangzhou, using its Boeing 747 widebody freighters. Its proposal is not based solely on an economic analysis, but on its operating experience and knowledge of the air freight business in China. In 2007, Kalitta Air operated 449 flights to the United States from Hong Kong and Shanghai; these flights exclusively carried China‑US cargo. Its total operations in that market over the last five years exceed 1700 flights, with a total uplift of over 363 million pounds. The carrier has a large and experienced sales and customer support staff in Hong Kong, and its proposed new service has received the enthusiastic backing of many of the major shippers in the China‑United States airfreight market. In light of the difficulties affecting the global economy, and particularly the increased cost of jet fuel, Kalitta is better positioned than any other likely applicant to commence and sustain service in this already highly competitive market. Its individually waybilled scheduled airfreight network extends from Hong Kong to the US and on to Europe and the Middle East. It has been on a solid financial footing from its inception nearly eight years ago, with cumulative profits of over $270 million over the last five years. And, it has reinvested those profits in a continual upgrading of its fleet and its maintenance facilities. Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513
May 9, 2008 Answer of Kalitta Air to Petition of FedEx, Northwest, Polar Air Cargo and UPS Kalitta Air wishes to advise the Department that it has no objection to the grant of relief requested by these carriers. As the Department noted in its Notice Shortening the Answer Period, the information requested of the incumbent carriers can be of no use to any applicant in preparing its application and supporting documents, since it would not have been available to them for analysis until the same day that their application and exhibits were to be submitted. Requiring the incumbent carriers to produce this information for the record in this Proceeding, on the other hand, does seem unduly burdensome both to the incumbent carriers and to the Department. It could, we fear, lead to unnecessary delay in the Department reaching a final decision with regard to the new designation award. Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513 International Air Transport Association
Filed March 27, 2008 | Approved May 9, 2008 By: John Kiser
Filed April 28, 2008 | Approved May 9, 2008 By: John Kiser
March 31, 2008 Email Message - Re: Confirmation of Austrian Federal Ministry for Transport On behalf of Mr. Dieter Gaupmann, Acting Director Air Transport Affairs and with reference to the letter of 3 October 2007 (GZ: BMVIT-40.005/0007-II/L2/2007) - Tyrolean Jet Services - I want to confirm that the Reciprocity Statement of the Austrian Civil Aviation Authority has still unchanged validity. I am assuming that with the new EU-US Air Transport Agreement (1st stage) a declaration regarding reciprocity will not be necessary in future. By: Antonia Hatler, antonia.hatler@bmvit.gv.at
May 9, 2008 Re: Confirmation of German Civil Aviation Authority The German Civil Aviation Authority herewith confirms that it will grant, on the basis of reciprocity, to any air carrier designated by the United States of America the right to conduct fifth and sixth freedom non-scheduled (charter) passenger flights and seventh freedom cargo charter flights to/from Germany which are in conformity with the Air Transport Agreement between the Government of Germany and the Government of the United States of America, signed in Washington on July 7, 1955, as amended, respectively the Air Transport Agreement between the United States of America and the European Community and its Member States signed in Washington, DC, on April 25 and 30, 2007, provisionally applied since March 30, 2008. By: Ulrich-Martin Stiehl OST-2006-24703 - Exemption - US-Hong Kong Scheduled All-Cargo Services Filed April 23, 2008 | Issued May 9, 2008 Scheduled foreign air transportation of property and mail between points in the United States, directly or via any intermediate points, and Hong Kong; and between Hong Kong and any third-country points. The applicant also requests to integrate this authority with its existing authority in other markets. The applicant states that it recognizes that any operations serving intermediate or beyond points would be without local traffic rights unless it secures fifth-freedom Hong Kong frequencies for the carriage of local traffic. By: Paul Gretch |
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