ost983435

OST-98-3435

Federal Express Corporation (US-Japan All-Cargo Service)

OST-98-3435 | February 5, 1998

Application for Amendment of Certificate Authority

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Federal Express anticipates that it will make immediate changes in its existing U.S.-Japan flight schedules to operate new services beyond Japan to points in Indonesia and Macau, and will begin carrying local 5th freedom traffic on its existing "blind-sector" operations between Tokyo and points in China.

FX-100: Certificate of Public Convenience for Route 205-F and Amendment

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

All Nippon Airways Co., Ltd. / Federal Express Corporation / Japan Airlines Company, Ltd. / Nippon Cargo Airlines Co., Ltd. / United Air Lines, Inc. (US-Japan)

OST-98-3424 | OST-98-3435 | OST-98-3436 | OST-98-3449 | OST-98-3484 | OST-98-3475 | OST-96-1131 | February 20, 1998

Consolidated Answer of Northwest Airlines

Northwest believes for several reasons that this "blanket authority" approach is preferable to granting authority to the incumbent carriers on a market-by-market basis, and has followed that approach in its own recently filed certificate application in Docket OST-98-3441. First, this approach is consistent with the broad language of the MOC provisions relating to the incumbent U.S. and Japanese carriers. Second, it reduces the volume of paperwork that the incumbent carriers otherwise would have to prepare (and that DOT decision makers would have to address) if a separate application had to be filed for each pair of countries or cities. Third, because it reduces the volume of such application paperwork, this approach enables the incumbents to continuously revise their routes and schedules in response to changes in consumer demand without having to continuously return to DOT to secure the necessary authority.

Counsel: Northwest, Megan Rae Poldy, 202-842-3193

Northwest Airlines, Inc. / Federal Express Corporation (US-Japan)

OST-98-3441 | OST-98-3435 | March 5, 1998

Consolidated Answer of United Air Lines

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If the Department is prepared to grant specific new route authority involving services to unnamed points in all third countries in conjunction with service to Japan, as implicitly requested by both Fed Ex and Northwest for all-cargo services, then United seeks the same flexibility. If, on the other hand, the Department will only authorize services to named intermediate, beyond and behind points to be served in conjunction with U.S.-Japan service, then the applications of Fed Ex and Northwest for all-cargo authority may be deemed overly broad. In that case, United urges that the broad-based right to serve Japan in conjunction with third countries intermediate to or beyond Japan or behind the U.S. be accomplished through route integration such as United has requested.

Counsel: United and Ginsburg Feldman, Joel Burton, 202-637-9130

Federal Express Corporation - (Certificate Amendment, US-Japan All-Cargo)

OST-98-3435 | March 12, 1998

Reply of Federal Express and Motion for Leave to File

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United's expressed concern about route integration appears to be principally related to United's perception of the circumstances of its own certificate and exemption authority (United Answer, p. 4). That concern does not appear to be applicable to Federal Express, which holds an exemption granting Federal Express broad world-wide operating flexibility to provide services between points on all of its certificate and exemption authorizations, subject to specificapplicable bilateral agreements (Order 98-1-23, served January 29, 1998). Federal Express respectfully requests that the Department issue an order amending Federal Express' Certificate for Route 205-F authorizing Federal Express to provide scheduled foreign air transportation of property and mail between points in the United States and points in Japan, via intermediate points and beyond Japan, as requested in its application, as modified in this Reply.

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

Applications of Continental Micronesia, Inc., Federal Express Company, Northwest Airlines, Inc., Polar Air Cargo, Inc., United Air Lines, Inc. and United Parcel Service Co. - (For US-Japan Certificates of Public Convenience and Necessity)

Order 98-6-22 | OST-96-1200 | OST-96-1201 | OST-98-3435 | OST-98-3441 | OST-98-3491 | OST-96-1131 | OST-98-3477 | Issued June 14, 1998 | Served June 25, 1998

Order Issuing Certificates

By this order we issue certificate authority to Continental Micronesia, Federal Express Corporation, Northwest Airlines, Polar Air Cargo, United Airlines, and United Parcel Service to provide combination and/or all-cargo service between the United States and Japan consistent with the new U.S.-Japan agreement.

By: Charles Hunnicutt

Federal Express Corporation

OST-98-3435	December 19, 2002	Application for Renewal of Certificate of Public Convenience and Necessity	US-Japan All-Cargo Service
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FedEx Express respectfully requests that the Department renew segment 4 of its Certificate of Public Convenience and Necessity for Route 205-F, authorizing FedEx Express to provide scheduled foreign air transportation of property and mail between points in the United States, on the one hand, and points in Japan, on the other hand, via intermediate points to FedEx Express for an additional five-year period, through June 19, 2008, or such longer period as the Department may deem appropriate.

Counsel: Federal Express

Federal Express Corporation / Northwest Airlines, Inc.

OST-98-3435 OST-98-3441	January 9, 2003	Consolidated Answer of United Air Lines	US-Japan - Certificates of Public Convenience and Necessity
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The captioned applications include requests to renew authority granted pursuant to the 1998 U.S.-Japan Memorandum of Understanding that substantially expanded operating rights to serve Japan for the "incumbent U.S. carriers," as well as non-incumbent carriers. Under the 1998 MOU, the "incumbent" U.S. carriers are United, Northwest and Federal Express. Like Northwest and Federal Express, United timely filed to renew its certificate of public convenience and necessity for Route 130, including its U.S.-Japan and beyond operating rights under the 1998 MOU.

United is concerned that, because its renewal application was filed earlier and had not been acted on prior to the termination date of certain authority, the U.S.Japan authority of its incumbent carrier competitors might be renewed in advance of United's own related authority. Although the Administrative Procedure Act will automatically extend United's authority for Route 130, United nevertheless requests the Department to approve its pending Application for Renewal in its entirety at the same time it renews the authority of the other "incumbent U.S. carriers," Northwest and Federal Express. United's Application for Renewal, despite combining its 1998 MOU authority to serve Japan with other limited-entry authority, does not substantially differ from those of its competitors and was not opposed by any party. There is no reason in these circumstances for the Department to continue to delay its decision on United's May 7, 2002, renewal application.

Application of United Air Lines, Inc. for Renewal of a Certificate of Public Convenience and Necessity, dated May 7, 2002, in Dockets OST-96-1873, 96-1248, and 96-1131.

Counsel: Wilmer Cutler, Jeffrey Manley, 202 663-6670