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OST-1996-2018

http://www.fedex.com/


Federal Express Corporation

OST-1996-2018 - Russia All-Cargo Frequency Dormancy Condition October 15, 1998 Application for Renewal of an Exemption and Allocation of All-Cargo Frequencies US-Russia All-Cargo
    Service List  

At the present time, Federal Express operates five weekly roundtrip frequencies between the U.S. and Russia over varying routines, all of which are operated on a change-of-gauge basis via Federal Express' European cargo hub at Paris, France. Eastbound, four weekly frequencies are operated on a Paris-Copenhagen-Stockholm-Moscow routing. The fifth weekly eastbound frequency is routed Paris-Stockholm-Moscow. Westbound, four frequencies are operated Moscow-Frankfurt-Paris, and the fifth westbound frequency is operated Moscow-Paris. All of the foregoing flights are operated using the 53,000-pound payload B-727 freighter aircraft, and all of those flights connect on a change-of-gauge basis at Paris to daily line-haul services operated by Federal Express in both directions between Paris and Memphis or Newark utilizing the 190,000-pound payload MD-11 freighter aircraft.

Counsel:  Federal Express and Shaw Pittman, Nathaniel Breed, 202-663-8078



OST-96-2018 Filed October 15, 1998
Action Taken November 3, 1998
Notice of Action Taken NY, NY - Memphis, Tennessee and Moscow

FedEx is renewed for two years to provide scheduled foreign air transportation of property and mail between New York, New York, and Memphis Tennessee, on the one band, and Moscow, on the other, via any point or points in Europe contained in Federal Express' certificates for Route 119 and Route 472.

Applicant Rep.:  Nathaniel Breed, Jr., 202.663.8078

By:  Paul Gretch



OST-96-2018 December 17, 1999 Application for Grant of an Exemption of Waiver Russia All-Cargo Frequency Dormancy Condition
    Service List  

For a number of years, Federal Express has utilized the foregoing authority to provide air express and expedited all-cargo service between the United States and Russia at a frequency of five roundtrip flights a week. That service has been operated on a change-of-gauge basis via Federal Express' major cargo hub at Paris, France. All flights serving Russia have been operated between Paris and Moscow utilizing 53,000-pound payload B-727 freighter aircraft, connecting at Paris with 190,000-pound payload MD-11 freighter flights operated by Federal Express between Paris and Newark or Memphis. On November 1, 1999, after an extended period of insufficient traffic demand necessary to support the five-day-a-week operations which are essential for air express services, Federal Express suspended its direct flight operations serving Moscow. Federal Express is continuing to provide daily air I express and general air freight service between the U.S. and Russia through the utilization of interline and other second-carrier transportation arrangements, and Federal Express will continue and increase its efforts to promote and develop the U.S.-Russia air express and cargo market. At this time, however, Federal Express is not able to make a definitive prediction as to when traffic volumes will warrant a resumption of direct service by Federal Express with its own aircraft. In that circumstance, Federal Express is constrained to request a one-year exemption from, or waiver of, the 90-dormancy condition applicable to its U.S.-Russia frequency allocation, in order to enable Federal Express to suspend its direct service to Russia for up to one year without forfeiting its Russia frequency allocation. Federal Express will, of course, resume its U.S.-Russia direct service as soon as traffic conditions warrant.

Counsel:  Federal Express and Shaw Pittman, Nathaniel Breed, 202-663-8078



OST-96-2018 Filed December 17, 1999
Issued December 24, 2000
Notice Of Action Taken New York/Memphis- Moscow

By Order 96-2-17 the Department granted Federal Express exemption authority to provide scheduled allcargo service in the New York/Memphis-Moscow market and allocated it five weekly all-cargo frequencies for this service. That award was subject to the condition that the frequency allocation will expire automatically and the frequencies will revert to the Department for reallocation if they are not used for a period of 90 days. On November 16, 1999, Federal Express temporarily suspended its direct flight operations serving Moscow. Federal Express seeks a waiver from the dormancy condition for all five of its frequencies until November 1, 2000. Federal Express states that insufficient traffic demand does not support the five-day-a-week operations which are essential for air express services, and further states that it will resume its U.S.-Russia direct service as soon as traffic conditions warrant.

By:  Paul Gretch



OST-96-2018 August 28, 2000 Application for Renewal of a Dormancy Condition Waiver U.S.- Russia All-Cargo Frequency Dormancy Condition
    Service List  

Counsel:  Shaw Pittman, Nathaniel Breed, 202-663-8078

OST-96-2018 August 28, 2000 Application for Renewal of an Exemption U.S.- Russia All-Cargo Frequency Dormancy Condition
    Service List  

Counsel:  Shaw Pittman, Nathaniel Breed, 202-663-8078



OST-96-2018 Filed August 28, 2000
Issued October 10, 2000
Notice of Action Taken New York/Memphis- Moscow

By Order 96-2-17 the Department granted Federal Express exemption authority to provide scheduled all-cargo service in the New York/Memphis- Moscow market and allocated it five weekly all-cargo frequencies for this service. That award was subject to the condition that the frequency allocation would expire automatically and the frequencies would revert to the Department for reallocation if they were not used for a period of 90 days.  By Notice of Action Taken dated January 24, 2000, the Department granted Federal Express a waiver of the 90-day dormancy condition through November 1, 2000. Under the terms of the waiver, the 90-day dormancy period would run from November 1, 2000 forward. Thus, absent a further waiver, the frequencies will revert automatically to the Department on January 30, 2001, unless Federal Express begins service by that date.  

Federal Express now seeks a further waiver from the dormancy condition for all five of its frequencies until November 1, 2001. Federal Express states that insufficient U.S.-Russia traffic volumes have led it to suspend its services, and that it will resume its U.S.-Russia direct service as soon as traffic conditions warrant.  The Department has granted Federal Express waivers of the dormancy condition since January 24, 2000. The Department's dormancy condition is grounded on the policy that carriers seeking limited-availability authority in Department proceedings exercise that authority, or else that such authority will revert to the Department so that the rights will then be readily available for award to other interested carriers with firm plans to use the rights. While the Department has by its present action further extended until November 1, 2001, the dormancy waiver of Federal Express with respect to the unused service frequencies at issue here, we believe that the grant of dormancy waivers on an ongoing basis could, in the absence of countervailing circumstances, undermine the policy goal on which our dormancy condition rests. We thus advise Federal Express that, in future circumstances, we may no longer find that the public interest warrants a further extension of this dormancy waiver in the event that Federal Express continues to have no immediate plans to use its frequencies.

By:  Paul Gretch



OST-96-2018 Filed August 28, 2000
Issued October 10, 2000
Notice of Action Taken New York/Memphis- Moscow

Renew for two years exemption to provide service scheduled foreign air transportation of property and mail between New York, New York, and Memphis, Tennessee, on the one hand, and Moscow, on the other hand, either directly or via intermediate stops at a point or points in Europe contained in the certificates of Federal Express for Route 119 and 472

By:  Paul Gretch



OST-96-2018 August 31, 2001 Application for Renewal of a Dormancy Condition Waiver U.S.- Russia All-Cargo Frequency Dormancy Condition
    Service List  

For a number of years, Federal Express utilized the foregoing authority to provide air express and expedited all-cargo service between the United States and Russia at a frequency of five roundtrip flights a week. That service was operated on a change-of-gauge basis via Federal Express' major transshipment and flight operations hub at CDG International Airport in Paris, France. All flights serving Russia were operated between Paris and Moscow utilizing 53,000-pound payload B-727 freighter aircraft, connecting at Paris with 190,000-pound payload MD-11 freighter flights operated by Federal Express between Paris and Newark or Memphis.

On November l, 1999, after an extended period of insufficient traffic demand necessary to support the five-day-a-week operations essential for air express services, Federal Express suspended its direct flight operations serving Moscow. When it became evident that the adverse economic conditions in Russia which forced Federal Express to suspend its Moscow service appeared likely to continue, Federal Express applied to the Department for two successive one-year waivers of the dormancy condition applicable to its U.S.-Russia frequency allocation. Those waiver applications were granted by Notice of Action Taken dated January 24, 2000, through November 1, 2000, and by Notice of Action Taken dated October 10, 2000, through November 1, 2001.

At this time, U.S.-Russia air cargo traffic continues to be severely depressed. Federal Express is, however, actively studying several alternative operating scenarios in which Federal Express would resume its use of all five Russia frequencies in the relatively near future, but Federal Express is not yet able to state a definitive date on which its Russia service will be resumed. Therefore, Federal Express is compelled to request a further one-year waiver of the 90-dormancy condition applicable to its U.S.-Russia frequency allocation, in order to enable Federal Express to continue to suspend its direct service to Russia for up to one additional year, through November 1, 2002, without forfeiting its Russia frequency allocation. Federal Express will, of course, resume its U.S.-Russia direct service as soon as economically feasible.

At the present time, pursuant to the January 22, 1999 Memorandum of Consultations between the U.S. and Russia (the 1999 MOC), a total of 23 weekly frequencies are currently available for U.S. carrier all-cargo service between the U.S. and Russia. Of that total, 11 frequencies are currently allocated to three U.S. carriers (Polar Air-3, Federal Express-5, and Evergreen-3), and 12 frequencies are unassigned and available for allocation. To the best of Federal Express' knowledge, no other U.S. carrier is currently seeking U.S.-Russia all-cargo frequencies at this time.

Counsel:  Shaw Pittman, Nathaniel Breed, 202.663.8078



OST-96-2018 March 19, 2002 Motion for Department Action and Motion to Shorten Answer Period U.S.- Russia All-Cargo Frequency Allocation
    Service List  

Federal Express Corporation respectfully requests that the Department act on the balance of its pending Application for Renewal of a Dormancy Condition Waiver filed on August 31, 2001. FedEx plans to begin operating one of its five U.S.­Russia all-cargo frequencies upon receipt of all Russian government approvals. Unfortunately, operation of the other four frequencies remains uneconomical despite FedEx's active pursuit of opportunities to resume their use.  Accordingly, FedEx asks that the Department waive the 90-day dormancy condition that applies to one of its five U.S.-Russia frequencies for ninety days to enable it to complete its startup plan. FedEx also asks the Department to grant the balance of its August 31 application, which was for a one-year waiver, for the other four frequencies.

Unfortunately, U.S.-Russia air cargo traffic continues to be depressed, although business conditions are changing. FedEx therefore plans to use one of its five frequencies to provide one weekly round trip between Memphis and Moscow via Paris. FedEx has applied to the Russian government for the necessary approvals for this flight and will initiate service as soon as it receives all such approvals.

Counsel:  FedEx, Melissa Paul, 901.434.8580



OST-96-2018 Filed August 31, 2001
Issued March 27, 2002
Notice of Action Taken U.S.- Russia All-Cargo Frequency Dormancy Condition

Federal Express states that it intends to begin one weekly round trip flight between Memphis and Moscow, via Paris, and thus, seeks a waiver until June 30, 2002, for one of its frequencies. Federal Express states that it will initiate service as soon as it receives all the necessary government approvals for this flight. With respect to the remaining four flights, Federal Express stated that it would resume its U.S.-Russia direct service as soon as traffic conditions warrant.

By Order 2001-11-15, following the events of September 11, 2001, the Department granted all U.S. carriers a blanket waiver from the dormancy conditions related to their international route authorities through March 31, 2002. The Department stated that it would entertain applications to extend the dormancy waiver beyond March 31 for specific city-pair, limited-entry services where carriers can demonstrate that circumstances warrant. While we have granted Federal Express' amended request here, as in the public interest, based on the circumstances stated in the request, there should be no expectation that an additional request will similarly be granted. Any future requests to extend the dormancy waiver for the frequencies at issue here will have to be considered in light of the specific arguments offered in support of the request and any comments that might be filed in response, and in the context of the circumstances present at that time. Furthermore, should another carrier seek to use the frequencies at issue here, we reserve the right to reexamine whether the waivers granted here continue to be in the public interest.

Federal Express' waiver from the dormancy condition is effective through June 30, 2002, or until the date on which Federal Express begins service with its frequency, whichever occurs earlier. The 90-day dormancy period will begin on the date Federal Express begins service. If Federal Express does not begin service by June 30, 2002, this frequency allocation expires automatically.  Federal Express' waiver from the dormancy condition with respect to these four frequencies is effective through November 1, 2002, or until the date on which Federal Express begins service with each of the frequencies, whichever occurs earlier. The 90-day dormancy period will begin on the date Federal Express begins service. As to any frequency with which Federal Express does not begin service by November 1, 2002, its frequency allocation with respect to that frequency expires automatically.

By:  Paul Gretch



OST-96-2018 May 7, 2002 Application for Renewal of Dormancy Waiver U.S.- Russia All-Cargo Frequency Allocation
    Service List  

Federal Express Corporation hereby requests that the Department continue to waive the 90-day dormancy condition for its five U.S.-Russia all-cargo frequencies until April 11, 2004, the date when the current annexes expire. Currently, the Department has waived the dormancy condition applicable to four of FedEx's five U.S.-Russia frequencies through November 1, 2002 and that applicable to one frequency through June 30, 2002. FedEx had planned to begin service using one of its frequencies on or before June 30, 2002. However, negotiations this month between the United States and Russia resulted in the suspension of key U.S. traffic rights between European points and Russia until April 11, 2004.' Because the use of European hubs was essential to FedEx's plans to resume U.S.-Russia service, this provision makes it impossible for FedEx to implement these plans. Therefore, FedEx asks the Department to extend the dormancy waiver for all five frequencies to April 11, 2004.

FedEx had planned to use one of its five frequencies to provide one weekly round trip between Memphis and Moscow via Paris. It had applied to the Russian government for the necessary approvals for this flight and expected to begin service on or before June 30, 2002. However, U.S.-Russia negotiations on April 9-11, 2002 resulted in several revisions to the Annexes of the 1994 U.S.-Russia Air Transport Agreement. Included among the revisions was the elimination of all U.S. traffic rights between European points and Russia for the duration of the annexes, which expire April 11, 2004. Because the U.S.-Russia air express/cargo market is underdeveloped, FedEx can only undertake a commercially viable operation if it can combine U.S.-Russia traffic with Europe-Russia traffic at its European hubs. The revisions to the Annex now make it impossible for FedEx to use these frequencies as planned. Therefore, FedEx asks the Department to extend its dormancy waiver for all five frequencies until April 11, 2004.

Counsel:  FedEx, Melissa Paul, 901.434.8580



OST-96-2018 Filed May 7, 2002
Issued June 21, 2002
Notice of Action Taken U.S.- Russia All-Cargo Frequency Allocation

By Order 96-2-17 the Department granted Federal Express exemption authority to provide scheduled allcargo service in the New York-Memphis-Moscow market and allocated it five weekly all-cargo frequencies for this service. That award was subject to the condition that the frequency allocation would expire automatically and the frequencies would revert to the Department for reallocation if they were not used for a period of 90 days.

On November 1, 1999, Federal Express temporarily suspended its direct flight operations serving Moscow. By Notices of Action Taken dated January 24, 2000, and October 10, 2000; Order 2001-11-15; and Notice of Action Taken dated March 27, 2002, the Department granted Federal Express waivers of the 90-day dormancy condition. The latest waiver is through June 30, 2002, for one frequency, and through November 1, 2002, for four frequencies.

Federal Express now seeks a further waiver from the dormancy condition for all five of its frequencies until April 11, 2004, when the Annexes to the U.S.-Russia agreement will expire. Federal Express stated that it had planned to provide one weekly round trip between Memphis and Moscow via Paris, before June 30, 2002, but during U.S.-Russia negotiations in April 2002, revisions to the Annexes made it impossible for Federal Express to use the frequencies as planned.

Federal Express' waiver from the dormancy condition is effective through April 11, 2004, or until the date on which Federal Express begins service with each of the frequencies, whichever occurs earlier. The 90day dormancy period will begin on the date Federal Express begins service. As to any frequency with which Federal Express does not begin service by April 11, 2004, its frequency allocation with respect to that frequency expires automatically.

By:  Paul Gretch



OST-96-2018 August 7, 2002 Application for Renewal of Exemption U.S.- Russia All Cargo 
    Service List  

Until November l, 1999, FedEx Express provided air express/cargo service between the United States and Moscow five days a week. The service operated on a change-of-gauge basis over the trans-shipment and flight operations hub of FedEx Express at Charles De Gaulle International Airport in Paris, France. FedEx Express suspended direct service to Moscow on November 1, 1999 after an extended period of low load factors and uneconomic flight operations, resulting from the serious and continuing economic difficulties in Russia that have severely depressed air express and air freight traffic between the U.S. and Russia. FedEx Express planned to resume one weekly round trip flight between Memphis and Moscow via Paris before June 30, 2002. However, during U.S.-Russia negotiations in April, 2002, the United States and Russia agreed to revise the 1994 U.S.-Russia Air Transport Agreement, resulting in the temporary suspension of all U.S.-carrier traffic rights between European points and Russia until April 11, 2004.5 Although FedEx Express is actively studying alternative operating scenarios that would allow it to use its five U.S.-Russia frequencies, FedEx Express is not yet able to make a definitive prediction as to when it will resume U.S.-Russia air express/cargo service.

Counsel:  FedEx, Bailey Leopard, 901.434.8586



February 5, 2004

Application for Renewal of a Dormancy Waiver

Preliminary negotiations in December 2003 between the United States and Russia revealed that Russia is firmly inclined to prolong the existing moratorium against exercise by U.S. carriers of key traffic rights between European points and Russia in the near future.' Because making a traffic stop at a point in Europe is essential to FedEx Express' plans for resuming U.S.-Russia scheduled all-cargo service, this limitation will make it commercially impossible for FedEx Express to reinstitute such service at this time.

FedEx Express previously made full use of its authority to provide five weekly round trips between the United States and Russia. That service was operated on a change-of-gauge basis via FedEx Express' transshipment and flight operations hub at Paris, France. All flights serving Russia operated between Paris and Moscow using 53,000-pound payload B-727 freighter aircraft, connecting at Paris with 190,000-pound payload MD-11 freighter flights operated by Federal Express between Paris and Newark or Memphis. On November 1, 1999, FedEx Express suspended direct flight operations to Moscow due to insufficient traffic demand.

When it became clear that the adverse business conditions causing insufficient traffic demand were likely to continue, FedEx Express applied for, and was granted by the Department, two successive one-year waivers of the dormancy condition applicable to its U.S.-Russia frequencies. Despite the obstacle presented by the Russian Government's insistence on a moratorium on the exercise of Fifth Freedom traffic rights, FedEx Express has retained a significant presence in the Russian market, and is well positioned to reinstitute service as soon as practical.

Counsel: Federal Express, David Short, 901-434-8584, dshort@fedex.com



Filed February 4, 2004 | Issued April 9, 2004

Notice of Action Taken

By Order 96-2-17 the Department granted Federal Express exemption authority to provide scheduled all-cargo service in the New York/Memphis-Moscow market and allocated it five weekly all-cargo frequencies for this service. That award was subject to the condition that the frequency allocation would expire automatically and the frequencies would revert to the Department for reallocation if they were not used for a period of 90 days.

On November 1, 1999, Federal Express temporarily suspended its direct flight operations serving Moscow. By various Notices of Action Taken the Department granted Federal Express waivers of the 90-day dormancy condition for all five frequencies. We granted the most recent of these waivers (see Notice of Action Taken dated June 21, 2002, in this Docket) because revisions to the Annexes to the U.S.-Russia agreement had made it impossible for Federal Express to use its frequencies as desired. The waiver runs through April 11, 2004, the date to which the Annexes to the U.S.-Russia agreement had provisionally been extended. As U.S.-Russian negotiations on the provisions of the Annexes are ongoing, Federal Express now seeks a further waiver from the dormancy condition for all five of its frequencies until April 11, 2006, the date to which Federal Express understands the Annexes are expected to be extended.

Federal Express’ waiver from the dormancy condition is effective through April 11, 2006, or until the date on which Federal Express begins service with each of the frequencies, whichever occurs earlier. The 90-day dormancy period will begin on the date Federal Express begins service. As to any frequency with which Federal Express does not begin service by April 11, 2006, its frequency allocation with respect to that frequency expires automatically.

By: Paul Gretch



February 9, 2006

Application for Indefinite Waiver - Bookmarked

Federal Express Corporation hereby requests that the Department waive the 90-day dormancy condition applicable to its five U.S.-Russia all-cargo frequencies for an indefinite period. Alternatively, FedEx Express asks that the Department renew the waiver for an additional two years, i.e., until April 11, 2008.

FedEx Express made full use of its authority to provide five weekly round trips between the United States and Russia until 1999. FedEx Express' direct service operated on a change-of-gauge basis via FedEx Express' transshipment and flight operations hub at Paris, France. All flights serving Russia operated between Paris and Moscow using 53,000-pound payload B-727 freighter aircraft, connecting at Paris with 190,000-pound payload MD-11 freighter flights operated by Federal Express between Paris and Newark or Memphis. Subsequently, FedEx Express applied for, and was granted, successive waivers of the dormancy condition, which now expires April 11, 2006.

Russia has insisted on a Moratorium on critical fifth-freedom opportunities for six years. Because the moratorium makes the frequencies commercially unusuable, the Department should waive the dormancy condition for and indefinite period. FedEx Express remains keenly interested in, and committed to, reinstituting scheduled all-cargo service as soon as regulatory and economic conditions permit. FedEx Express expended considerable resources in developing the market during the period it was able to operate its five weekly scheduled flights. FedEx Express has served the market in cooperation with interline partners since operations with its own aircraft were suspended. The Company continues to maintain a fully staffed office in Moscow, and provides service to all major Russian cities. FedlEx Express provides a full range of international express International Priority services in Russia both inbound and outbound, as well as International Economy and Saturday services. In addition, the Company operates ad hoc cargo charter flights in response to shipper requirements.

Counsel: FedEx, David Short, 901-434-8584, dshort@fedex.com



OST-1996-2018 - FedEx - Russia All-Cargo Frequency Dormancy Condition
OST-1996-2025 - Evergreen - US-Russia All-Cargo

Filed February 9 and 14, 2006 | Issued March 29, 2006

Notice of Action Taken | Word

We grant in part the applications filed by FedEx Express and Evergreen for waivers of the dormancy condition for their U.S.-Russia all-cargo frequencies.  We have decided to grant the waivers through March 25, 2007, the expiration date of the Annexes to the October 5, 2005 Protocol Between the Government of the United States of America and the Government of the Russian Federation to Amend the January 14, 1994 Air Transport Agreement Between the Government of the United States of American and the Government of the Russian Federation.

With respect to the request for an indefinite waiver, FedEx Express and Evergreen both cite other waiver cases involving Russia. (See Notice of Action Taken, dated February 8, 2005, in Docket OST-2005-20116 and Notices of Action Taken, dated December 3, 2004 and January 3, 2005, in Docket OST-2004-19375). However, we view those cases as inapposite.  First, the requests for waiver in those cases were not based on any temporary suspension of rights scheduled to end on an established date.  Also, those other requests involved cases of partial rather than complete suspension of use of certain frequencies

By: Paul Gretch



December 15, 2006

Application for Renewal of Waiver

Federal Express Corporation hereby requests that the Department waive the 90-day dormancy condition applicable to its five US-Russia all-cargo frequencies which is currently set to expire on March 25, 2007, for an additional two-year period, through March 15, 2009.

In 2002, the Route Annex to the U.S.-Russian Federation bilateral agreement was revised to suspend European Fifth Freedom rights. This moratorium against the exercise of Fifth Freedom rights at European points was retained in the latest revision to the Route Annex, negotiated in October 2005. Although the October 2005 agreement is formally set to expire on March 25, 2007, FedEx Express is not aware of any negotiations having been scheduled between the Governments of the United States and the Russian Federation, and understands that the Russian Federation is not prepared to allow U.S. carriers to resume the exercise of Fifth Freedom rights at European points until and unless expressly agreed with the U.S.

FedEx Express can undertake a commercially viable operation only if it can combine U.S.-Russia traffic with Europe-Russia traffic at its European hub in Paris. The moratorium imposed by the Russian Federation makes it impossible for FedEx Express to use its frequencies as planned, thus warranting extension of the current dormancy waiver.

Counsel: FedEx, David Short, 901-434-8584, dshort@fedex.com



OST-1996-2018 - FedEx - Russia All-Cargo Frequency Dormancy Condition
OST-1996-2025 - Evergreen - US-Russia All-Cargo

Filed December 15, 2007 and February 22, 2007 | Issued March 19, 2007

Notice of Action Taken

We grant in part the applications filed by FedEx Express and Evergreen for waivers of the dormancy condition for their U.S.-Russia all-cargo frequencies. We have decided to grant the waivers for a one-year period. In taking this action, we find that grant of the requested waivers is in the public interest in the circumstances presented; namely, the suspension per the terms of the Annexes of the U.S. carrier fifth-freedom rights between points in Europe and points in the Russian Federation, negotiated in the revision of the Route Annex on October 2005. We have granted prior waivers for one-year periods, and in doing so here acknowledge the need to reassess these waivers within that time-frame. Moreover, no party has opposed the respective waiver requests here.

On October 5, 2005, the United States and Russia expressed their intent to implement the provisions of the Annexes on the basis of comity and reciprocity until both governments take the actions to bring the Annexes into force.

By: Paul Gretch



January 17, 2008

Application for Renewal of Waiver

In 2002, the Route Annex to the U.S.-Russian Federation bilateral agreement was revised to suspend those Russia/Europe fifth-freedom rights, Negotiations since that time between the United States and the Russian Federation, including the most recent round which took place in May 2007, failed to result in a lifting of the suspension. Because connectivity between Russia and Europe is essential to FedEx Express' plans for resuming U.S.-Russia scheduled all-cargo service. this ongoing limitation makes it commercially impossible for FedEx Express to reinstitute such service at this time.

FedEx Express remains interested in, and committed to, reinstituting scheduled all-cargo service as soon as regulatory and economic conditions permit. FedEx Express expended considerable resources in developing the market during the period it was able to operate its five weekly scheduled flights. FedEx Express has served the market in cooperation with interline partners since operations with its own aircraft were suspended. The Company continues to maintain a fully staffed office in Moscow, and provides service to all major Russian cities.

Renewal of this waiver of the dormancy condition would not deprive any other U.S. carrier of the opportunity to provide U.S.-Russian all-cargo service, since the supply of frequencies exceeds demand. The existing Annexes allow U.S. airlines to operate twenty-three weekly all-cargo frequencies between the United States and Russia. Many of these frequencies remain open and available to U.S. carriers. FedEx Express therefore seeks a further waiver of its dormancy condition for one year.

Counsel: Federal Express, David Short, 901-434-8584



Filed January 17, 2008 | Approved March 18, 2008

Department Action on Application for Renewal of Waiver

We will require that the carrier institute service no later than March 20, 2009.

By: Robert J. Finamore


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