OST-97-3178
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OST-97-3178
United Parcel Service Co. (Exemption, Delay in Start-Up for Thailand All-Cargo Frequencies)
OST-97-3178 | December 1, 1997
Similar extension requests have been made by Polar Air Cargo, Inc., Air Micronesia, Inc., and Northwest Airlines, Inc., and all of the factors cited in those requests, principally the current economic conditions in Thailand, are pertinent to and support the grant of UPS's request. An additional factor which UPS has encountered with its one frequency per week currently being operated is that Thai customs will not clear small packages carried on freighter aircraft, although Thai customs will clear such packages carried on passenger aircraft. UPS is working diligently to resolve this problem.
Answers are due by December 16, 1997
Counsel: UPS and Kelley Drye, David Vaughan, 202-955-9600
United Parcel Service Co. - (New Notice of Action Taken)
OST-97-3178 | Filed December 1, 1997 | Issued December 4, 1997
Exemption from Order 96-9-16; startup deadline: By Order 96-9-16 the Department allocated United Parcel Service six weekly all cargo frequencies for services in the U.S.-Thailand market. That award was subject to the condition that it will expire automatically and the frequencies will revert to the Department for reallocation if they are not used for a period of 90 days. Under the terms of the order UPS' frequency allocation would expire on April 1, 1997, if UPS did not begin service by that date. UPS commenced service with one of the six frequencies by the April 1 startup date. On March 14, 1997, UPS filed for an exemption to extend the startup of five frequencies to September 1, 1997. The Department granted UPS' application by Notice of Action Taken dated March 28, 1997 (see Order 97-5 6). UPS seeks an exemption to the extent necessary to extend its proposed startup date for five frequencies to June 30, 1998. UPS states that because of existing economic conditions in Thailand, the optimum date to commence its operations for the five frequencies is June 30, 1998.
Applicant rep.: Dand L. Vaughan. 202.955.9864
By: Paul Gretch
U.S.-Thailand All-Cargo Frequency Allocation Case / United Parcel Service Co. (Delay in Start-Up)
OST-96-1496 | OST-97-3178 | May 20, 1998
Application of UPS for Grant of an Exemption
United Parcel Service Co. applies for grant of an extension of its exemption from the 90-day dormancy condition applicable to its allocation of U.S.-Thailand all-cargo operating frequencies originally granted to UPS by Order 96-9-16, so as to authorize UPS to continue to suspend its utilization of five of its six U.S.-Thailand all-cargo frequencies until December 31, 1998 with the standard 90 day dormancy condition to commence from that date.
Counsel: UPS and Kelley Drye, David Vaughan, 202-955-9600
United Parcel Service Co. (Notice of Action Taken)
OST-97-3178 | Filed May 20, 1998 | Issued June 15, 1998
UPS is currently operating one frequency and seeks an exemption to the extent necessary to extend its proposed startup date to December 31, 1998, for the remaining five frequencies to December 31, 1998. UPS states that because of existing economic conditions in Thailand, the optimum date to commence its operations for the rive frequencies is December 31, 1998.
Applicant Rep: David Vaughan, 202-955-9864
| OST-96-1496 OST-97-3178 |
October 14, 1998 | Application for Renewal of Exemption |
U.S. - Thailand |
| Service List |
Because of the continuing economic difficulties in Thailand impacting the level of demand for its U.S.-Thailand cargo service, UPS finds it necessary to further defer the commencement of its service and hereby requests an extension of its existing exemption from the 90-day dormancy condition to enable it to defer the use of its Thailand frequencies until December 31, 1999, with the standard 90 day dormancy provision to begin on that date. Should economic conditions in Thailand improve before that date, UPS would commence the service sooner.
| OST-98-4579 | October 14, 1998 | Application for an Exemption |
US-Costa Rica/Dominican Republic |
| Certificate of Service | |||
| Service List |
Exhibits: Added 10/15
Exhibit 1:
U.S. - Costa Rica All-Cargo Service October 14, 1998
U.S. - Dominican Republic All-Cargo Service October 14, 1998
Exhibit 2: Affidavit
UPS will commence service on or about January 1, 1999, with B-757 freighter aircraft having a payload capacity of 86,000 pounds between Orlando and Santo Domingo, and West Palm Beach and San Jose, five days per week. Details regarding UPS's service proposal are set forth at Exhibit I hereto. Because of the large and diverse fleet of 214 large jet freighter aircraft owned by UPS, it could easily increase capacity to a or B-767 should traffic warrant. At Orlando and West Palm Beach, the flights will connect to flights which operate to and from UPS's national and international hub in Louisville, Kentucky. At Louisville, the cargo will be sorted and placed on the extensive system of UPS flights operating throughout the United States and Canada as well as to Asia and Europe.
Counsel: Kelley Drye, David Vaughn, 202-955-9864
| OST-97-3178 | Issued November 13, 1998 | Notice of Action Taken |
U.S.-Thailand (All-Cargo) |
By Order 96-9-16 the Department allocated United Parcel Service six weekly all-cargo frequencies for services in the U.S.-Thailand market. That award was subject to the condition that it will expire automatically and the frequencies will revert to the Department for reallocation if they are not used for a period of 90 days.- Under the terms of the order UPS' frequency allocation would expire on April 1, 1997, if UPS did not begin service by that date. UPS commenced service with one of the six frequencies by the April 1 startup date. Since then, the Department has granted extensions of the startup date for the remaining frequencies through December 31, 1998. (See Orders 97-5-6 and 9-1-6 and Notice of Action Taken dated June 15, 1998.) UPS states that because of the continuing economic difficulties in Thailand impacting the level of demand for its U.S.-Thailand cargo service, it seeks an exemption to the extent necessary to extend its proposed startup date to December 31, 1998, for the remaining five frequencies to December 31, 1999. UPS indicated that should economic conditions in Thailand improve before that date, it would commence service sooner.
Applicant Rep.: David Vaughan, 202.955.9864
By: Paul Gretch
United Parcel Service Company / U.S.-Thailand All-Cargo Frequency Allocation Case
| OST-96-1496 OST-97-3178 |
February 1, 2000 | Application for Renewal of an Exemption | U.S.-Thailand All-Cargo |
| Service List |
Counsel: UPS and Kelley Drye, David Vaughan, 202-955-9600
| OST-97-3178 | Filed February 1, 2000 Issued March 27, 2000 |
Notice of Action Taken | U.S.-Thailand (All-Cargo) |
By: Paul Gretch
U.S.-Thailand All-Cargo Frequency Allocation Case; United Parcel Service Company
| OST-96-1496 OST-97-3178 |
July 21, 2000 | Application for Renewal of an Exemption | U.S.- Thailand All-Cargo |
| Service List |
Because of the continuing economic difficulties in Thailand impacting the level of demand for its U.S.-Thailand cargo service, UPS finds it necessary to further defer the . commencement of its service and hereby requests an extension of its existing exemption from the 90-day dormancy condition to enable it to defer the use of its Thailand frequencies for another 6 months, with the standard 90 day dormancy provision to begin on April 1, 2001. Should economic conditions in Thailand improve before that date, UPS would commence the service sooner.
Counsel: Kelley Drye, David Vaughan, 202-955-9600
| OST-97-3178 | Filed July 21, 2000 Issued September 13, 2000 |
Notice of Action Taken | US-Thailand All-Cargo |
By Order 96-9-16 the Department allocated U.S.-Thailand all-cargo frequencies to the following carriers: United Parcel Service - 6, Air Micronesia - 5, Polar Air Cargo - 2, Northwest - 3 (in addition to 2 previously awarded), and Federal Express - 5 (in addition to 1 previously awarded). Under the terms of the Department's order, the frequency allocations would expire automatically on April 1, 1997, and revert to the Department for reallocation, if the carriers did not begin service by that date.
Federal Express has instituted service with all six of its frequencies; Northwest with four of its five frequencies (one frequency has reverted to the Department); and United Parcel Service with one of its six frequencies. Air Micronesia never instituted service and did not request an extension of its startup date; thus, its five frequencies have reverted to the Department. Polar also never instituted service (one frequency reverted to the Department), and Polar has informed us that it will not be requesting an extension of its startup date for its remaining one frequency; thus, its one frequency will revert to the Department on September 30, 2000.
The Department's startup condition is grounded on the policy that carriers seeking authority in Department proceedings to exercise rights of limited availability are expected to use those rights, or to have their authority revert to the Department so that the rights will then be readily available for award to other interested carriers. The Department has granted UPS waivers of the startup date since March 1997. In light of the policy underlying our startup conditions and taking into account the amount of time that has elapsed since we awarded UPS its five frequencies and the fact that UPS continues to have no immediate plans to institute service with these frequencies, we have decided that it is no longer in the public interest to grant UPS an extension of its startup date. UPS may apply for an allocation when it has definite plans to operate.
By: Paul Gretch
| OST-96-1496 OST-97-3178 |
June 25, 2002 | Application for Temporary Waiver of Dormancy Conditions | U.S.- Thailand All-Cargo Service |
| Service List |
UPS opened its intra-Asia hub at the former Clark Air Force Base in the Philippines on April 1, 2002. This new hub required a complete restructuring of UPS' intra-Asia air operations. With the opening of this hub, UPS reduced its own operations to Thailand to one day per week. UPS is now evaluating the most cost-efficient, optimal routing for its aircraft, including how best to connect Thailand to this network. In further support of this application, UPS notes that there are unused Thailand frequencies available. Currently, five (5) of the twenty-one (21) frequencies are unallocated. Also, in February of this year, Evergreen International Airlines, Inc. filed for waiver of the dormancy condition for its U.S.-Thailand authority, and, subsequently, the Department granted Evergreen a one-year waiver. See Notice of Action Taken, Docket OST-01-8879, March 22, 2002. UPS seeks the same consideration in this Application.
Counsel: Kelley Drye, David Vaughan, 202.955.9864, dvaughan@kelleydrye.com
Notice of Action Taken Dismissing Applications - Various Dockets
Issued May 1, 2003
OST-95-928 - American Airlines, Inc.
OST-96-1109 - American Airlines, Inc.
OST-96-1039 - Arrow Air, Inc.
OST-00-7525 - Emery Worldwide Airlines, Inc.
OST-99-5286 - Federal Express Corporation
OST-00-8551 - Southern Air, Inc.
OST-97-3178 - United Parcel Service Co.
By: DOT
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