OST-97-3261
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OST-97-3261
Federal Express Corporation (Exemption, Thailand Cargo Service Start-Up Delay)
OST-97-3261 | December 30,, 1997
Northwest Airlines, Inc. ("Northwest") believes the FedEx arguments are sound and supports the FedEx application but urges that relief be granted to all U.S. airlines contemplating new services in the U.S.-Thailand market.
Counsel: Northwest, Megan Rae Poldy, 202-842-3193
Federal Express Corporation (Thailand Cargo Start-Up Delay)
OST-97-3261 | January 2, 1998
Unlike Federal Express, Air Micronesia has dormancy conditions imposed on both its Thailand all-cargo certificate and its frequency allocation. Whatever relief the Department provides with respect to the Federal Express frequency condition should also be applied to the Air Micronesia certificate condition as well as to the frequency allocation conditions of all carriers holding Thailand cargo frequencies.
Counsel: Crowell Moring, Bruce Keiner, 202-624-2500
Polar Air opposes, however, FedEx's request that the 90-day dormancy condition be eliminated entirely and replaced by a notice provision with respect to all of FedEx's U.S.-Thailand frequencies. The use of the U.S.-Thailand frequencies should not be wholly discretionary, as FedEx proposes.' Some carriers that have been allocated frequencies have failed to use them at all and others leave several weekly frequencies underutilized on a regular basis. It would be preferable that such frequencies that remain unused or underutilized for a long term be returned for reallocation at such time as another carrier has an immediate plan to use them.
Counsel: Ginsburg Feldman, Jeffrey Manley, 202-637-9057
Federal Express Corporation (Thailand Cargo Service)
OST-97-3261 | January 8, 1998
Consolidated
Reply of Federal Express
The Federal Express proposal poses no risk of allowing any carrier to "sit on" and retain unused frequencies, if another carrier is ready, willing and able to utilize them, but does allow unused frequencies to remain with the original carrier until another carrier claims, and obtains, their reallocation. That procedure assures the full and effective utilization of valuable operating frequencies just as effectively as the current 90-day dormancy and automatic-forfeiture condition, but it eliminates the necessity for filing and processing repeated exemption requests when temporary market conditions do not support full utilization of some or all currently-allocated frequencies. That is precisely the situation which exists at the moment in Thailand, as evidenced by the recent exemption applications which have been filed by every carrier holding Thailand cargo frequencies.
Counsel: Federal Express and Shaw Pittman, Nathaniel Breed, 202-663-8078
Federal Express Coproration (New - Notice of Action Taken)
OST-97-3261 | Filed December 17, 1997 | Action Taken February 19, 1998
By Order 96-9-16 the Department allocated Federal Express five weekly frequencies to expand its U.S.-Thailand all-cargo operations, in addition to one frequency previously allocated to Federal Express. 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, Federal Express' frequency allocation would expire on April I, 1997, if Federal Express did not begin service by that date. On February 2S, 1997, Federal Express sought an exemption to extend its startup date to September 1. By Notice of Action Taken dated March 21, 1997, the Department granted the extension. (A Order 97-5-ó). Federal Express is currently operating five frequencies, and most recently operated its sixth frequency on November 15, 1997.
Applicant Rep: Nathaniel Breed, 202-663-8078
Order 98-3-1 | Issued March 2, 1998 | Served March 6, 1998
By: Paul Gretch
Federal Express Corporation (Thailand Cargo Service, Dormancy Condition)
OST-97-3261 | April 29, 1998
Application for Grant of an Exemption
Federal Express is currently operating scheduled all-cargo service to Thailand at a frequency of five roundtrips a week. As a result of the continuing troubled state of the Thailand economy, however, Federal Express has experienced insufficient traffic demand to warrant operation of its authorized sixth weekly frequency, and anticipates a continuation of that circumstance for the near-term foreseeable future. In order to accommodate that reduced level of operations without risk of forfeiting its 6th weekly frequency for non-use, Federal Express applied for an exemption from the 90-day dormancy condition applicable to its 6th frequency until June 30, 1998. That application was granted by Notice of Action Taken, dated February 19, 1998, and subsequently confirmed by Order 98-3-1, served March 6, 1998.
Answers are due by May 14, 1998
Counsel: Federal Express and Shaw Pittman, Nathaniel Breed, 202-663-8078
Federal Express Corporation / Air Micronesia, Inc. / Northwest Airlines, Inc. (US-Thailand Start-Up Delay)
OST-97-3261 | OST-97-2825 | OST-97-2209 | May 15, 1998
Consolidated Answer of Polar Air Cargo
Polar Air is concurrently filing an exemption renewal and amendment application in Docket OST-97-31 62 seeking the same relief as that requested by the Applicants. Polar has no objection to grant of the Applicants' requests so long as Polar's application for renewal and amendment of the exemption applicable to its two U.S.-Thailand all-cargo frequencies is granted concurrently.
Counsel: Polar and Ginsburg Feldman, Jeffrey Manley, 202-637-9057
Federal Express Corporation (Notice of Action Taken)
OST-97-3261 | Filed April 29, 1998 | Issued June 15, 1998
Federal Express seeks an exemption from the 90-day dormancy condition so as to delay startup of its sixth frequency until December 31, 1998. Federal Express states that because of Thailand's current troubled economy, the optimum date to commence its operations for the sixth frequency is December 31, 1998. Federal Express is currently operating five frequencies, and most recently operated its sixth frequency on November 15, 1997.
Applicant Rep: Nathaniel Breed, 202-663-8078
| OST-97-3261 | October 7, 1998 | Application for Renewal of an Exemption |
Thailand Cargo Serice- Dormancy Condition |
| Service List |
Federal Express requests that it be granted a further exemption from the 90-day dormancy condition applicable to its Thailand frequency allocation to enable Federal Express to defer the utilization of its sixth Thailand frequency for an additional one-year period, through December 31, 1999.
| OST-96-1918 | October 7, 1998 | Application for Renewal of an Allocation of All-Cargo
Frequencies |
US-China All-Cargo |
| Service List |
At the present time, Federal Express operates four scheduled all-cargo flights a week between the United States and China utilizing the 170,000-pound payload MD-ll freighter aircraft, operating over a routing San Francisco (SFO) - Tokyo (NRT) - Beijing (PEK) - Shanghai (SHA) - Subic Bay (SFS) westbound, and over a routing Subic Bay (SFS) - Shanghai (SHA)- (Tokyo (NRT) - Anchorage (ANC) - Newark (EWR) eastbound.
| OST-96-1688 | October 7, 1998 | Application for Renewal of an Exemption |
US-New Zealand All-Cargo |
| Service List |
Federal Express has operated scheduled all-cargo services between the U.S. and Auckland, New Zealand, in the past, utilizing B-747 freighter aircraft operated over a Los Angeles-Honolulu-Nadi-Aukland-Sydney routing. At this time, Federal Express is not operating regularly-scheduled service to New Zealand, but plans to resume scheduled service when traffic conditions warrant.
Counsel: Federal Express and Shaw Pittman, Nathaniel Breed, 202-663-8078
| OST-96-1918 | November 2, 1998 | Notice of Action |
U.S. - China |
Renew for two years allocation of four weekly frequencies to provide scheduled all-cargo service in the U.S.-China market.
| OST-97-3261 | November 2, 1998 | Notice of Action |
U.S. - Thailand (Cargo) |
Federal Express seeks an exemption from the 90-day dormancy condition so as to delay startup of its sixth frequency until December 31, 1999. Federal Express states that because of the continuing economic difficulties impacting the level of demand for its U.S.-Thailand cargo service, the optimum date to commence its operations for the sixth frequency is December 31, 1999. Federal Express indicated that it would commence utilization of the sixth frequency as soon as frame conditions warrant.
By: Paul Gretch
| OST-97-3261 | October 18, 1999 | Application for Renewal of an Exemption | Thailand Cargo Service - Dormancy Condition |
| Service List |
Federal Express is currently operating scheduled all-cargo service to Thailand at a frequency of five roundtrips a week. As a result of the continuing troubled state of the Thailand economy, however, Federal Express has experienced insufficient traffic demand to warrant operation of its authorized sixth weekly frequency, and anticipates a continuation of that circumstance for the near-term foreseeable future. In order to accommodate that reduced level of operations without risk of forfeiting its sixth weekly frequency for non-use, Federal Express has applied for a series of exemptions from the 90-day dormancy condition applicable to its sixth frequency. The most recent of those exemptions, which was granted by Notice of Action Taken, dated November 2, 1998, extended the effective date of the 90-day start-up condition until December 31, 1999. On the basis of the continuing economic difficulties impacting the level of demand for its U.S.-Thailand cargo service, Federal Express hereby requests a further six-month extension of its existing exemption from the 90-day dormancy condition to enable Federal Express to defer the use of its sixth weekly frequency until July 1, 2000. Federal Express will, of course, commence utilization of the sixth weekly frequency as soon as traffic conditions warrant, and will advise the Department when it has commenced utilization of the sixth frequency.
Counsel: Federal Express and Shaw Pittman, Nathaniel, 202-663-8078
| OST-97-3261 | Filed October 18, 1999 Issued November 10, 1999 |
Notice of Action Taken | U.S.- Thailand |
By Order 96-9-16 the Department allocated Federal Express five weekly frequencies to expand its U.S.-Thailand all-cargo operations, in addition to one frequency previously allocated to Federal Express. That award was subject to the condition that it will expire automatically and the frequencies will automatically revert to the Department for reallocation if they are not used for a period of 90 days. Under the terms of the order Federal Express' frequency allocation would expire April 1, 1997, if Federal Express did not begin service by that date. Since then, the Department has granted waivers of the dormancy condition for the sixth frequency through December 31,1999. (See Orders 97-56 and 98-3-1 and Notices of Action Taken dated June 15 and November 2, 1998.) Federal Express is currently operating five frequencies.
Federal Express seeks a further exemption from the 90-day dormancy condition so as to delay startup of its sixth frequency until July 1, 2000. Federal Express states that because of the continuing economic difficulties impacting the level of demand for its U.S.-Thailand cargo service, the optimum date to commence its operations for the sixth frequency is July 1, 2000. Federal Express indicated that it would commence utilization of the sixth frequency as soon as traffic conditions warrant.
Federal Express' waiver from the dormancy condition is effective until July 1, 2000, or until the date on which Federal Express resumes service with its sixth frequency, whichever occurs earlier. Once the waiver ceases to be effective, the 90-day dormancy condition applies from that point forward.
By: Paul Gretch
| OST-97-2685 OST-97-3261 |
March 14, 2000 | Re: FedEx to Begin using Suspended All- Cargo Frequencies | U.S.- Thailand All-Cargo Frequency Allocations |
| Exhibit: Notice of Action Taken | |||
| Service List |
This letter is submitted on behalf of Federal Express Corporation for the purpose of advising you that Federal Express plans to begin using its currently-suspended sixth weekly U.S.-Thailand all-cargo frequency on or about September 1, 2000. As you know, Federal Express has been utilizing five of its six allocated Thailand cargo frequencies, but has deferred the activation of its sixth frequency due to prolonged adverse economic conditions affecting U.S.-Thailand cargo traffic demand. The most recent exemption from enforcement of the 90-day dormancy condition applicable to that sixth frequency was granted to Federal Express on November 10, 1999 and expires on July 1, 2000 (see attached Notice of Action Taken, dated November 10, 1999). Under the terms of the foregoing exemption, the now-deferred 90-day dormancy period would begin to run on July 1, 2000, and would not run out until September 29, 2000, which is later than the date on which Federal Express plans to begin using its sixth Thailand frequency. For that reason, Federal Express does not currently plan to apply for a further extension of its existing dormancy condition exemption, but Federal Express reserves the right to apply for renewal of that exemption if unforeseen changed conditions require it to do so.
Counsel: Federal Express and Shaw Pittman, Nathaniel Breed, 202-663-8078
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