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Updated: Friday, July 21, 2006 10:44 AM

OST-2004-17279 - 2004 Hong Kong Fifth Freedom All-Cargo Frequency Proceeding



2004 Hong Kong Fifth Freedom All-Cargo Frequency Proceeding

Order 04-3-3
OST-02-14049
OST-04-17279

Issued and Served: March 9, 2004

Order Instituting Proceeding | Word

We have decided to institute the 2004 Hong Kong Fifth-Freedom All-Cargo Frequency Proceeding to select carriers to operate the available frequencies for weekly Hong Kong fifth-freedom service.  As noted above 16 frequencies become available for U.S.-carrier fifth-freedom services on October 26, 2004.  In addition, on February 20, 2004, Evergreen returned the two frequencies awarded to it by the Department in Order 2003-9-9.  We have decided that the public interest would best be served by including long-term consideration for these two returned frequencies in the proceeding we are instituting in this order.  Thus, in this proceeding, there will be 18 frequencies available for allocation on a long-term basis.

  • Petitions for Reconsideration:    March 16, 2004
  • Applications:   March 23, 2004
  • Direct Exhibits:  April 13, 2004
  • Rebuttal Exhibits:   April 27, 2004
  • Briefs:   May 11, 2004

As to the interim period pending completion of this proceeding, we have decided to allocate the two available frequencies to Polar and Northwest.  We find that those two carriers’ operations most closely correspond to the type of cargo service—i.e., general all-cargo services—that Evergreen would have provided. We believe that this result will best serve the public interest. This interim allocation of the two frequencies will permit Polar and Northwest to operate nine and five Hong Kong fifth-freedom frequencies, respectively.  FedEx and UPS will each retain the 18 and 12 Hong Kong fifth-freedom frequencies, respectively, previously awarded to them.  We emphasize that our determination in the previous proceeding that Seoul-Hong Kong frequencies would be awarded to general all-cargo carriers is subject to reexamination in the new proceeding based upon the record that is developed in that docket.

By: Karan Bhatia


March 23, 2004

Application of Federal Express

To make the new service viable, FedEx Express requires the award of fifth freedom rights between Hong Kong and Seoul. New fifth‑freedom rights would enable FedEx Express to balance the loads so that, for example, it could fill space at Korea after off‑loading U.S. exports destined for Korea. Thus, by awarding FedEx Express the five frequencies it is seeking, the Department could leverage the new opportunities to achieve a significant increase in transpacific cargo capacity.

FedEx Express intends to draw from its fleet of forty‑two MD‑11 aircraft to provide the proposed services. The MD‑11 can carry 200,000 pounds of payload. Typically, the MD‑ 11 carries a mix of forty‑six containers and pallets on two decks for an available cargo volume of nearly 20,000 cubic feet. The MD‑11 has proven repeatedly to be the most efficient and flexible aircraft to meet the demand for transpacific and intra-Asia air services.

Counsel: Federal Express, G. Bailey Leopard, 901-434-6664


March 23, 2004

Application of Northwest Airlines for a Frequency Allocation

Northwest seeks allocation of one of the 18 fifth freedom all‑cargo frequencies which are available for allocation on a long term basis to enable Northwest to conduct weekly all‑cargo service between Hong Kong and Seoul (Incheon) on a flight that also serves Anchorage and Los Angeles. Northwest is currently operating such service under a temporary frequency allocation, and Northwest's proposal will continue valuable Hong Kong‑Seoul service on a permanent, year‑round basis.

Northwest will utilize B747‑200F aircraft from its present fleet, each with a total capacity of 115 short tons. Because Northwest is currently providing the proposed service on a temporary basis, Northwest will be able to implement its proposal immediately upon award of the requested permanent frequency. Further details regarding Northwest's proposed Hong Kong­ Seoul fifth freedom all‑cargo services are set forth in an attachment to this application.

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


March 23, 2004

Application of Polar Air Cargo

Polar requests an allocation of three frequencies. Polar is currently using one of these frequencies between Hong Kong and Seoul on apendente lite basis in support of a roundtrip transpacific operation that allows Polar to provide a six‑day‑per‑week pattern of services between Hong Kong and Seoul. Polar would use the two additional frequencies on flights that operate round‑the‑world in an eastbound direction and provide connections at the Seoul hub between points in Southeast Asia, North Asia, Europe and the U.S. Polar would operate the flights year‑round using Boeing 747 freighter aircraft.

Polar will start Hong Kong-Seoul fifth-freedom services on its two eastbound round-the-world routings on Sunday, October 31, 2004, the first day of the IATA Winter 2004 traffic season. Those flights are currently being operated between Hong Kong and Seoul on a blind-sector basis. As noted previously, Polar is currently operating roundtrip transpacific services with fifth-freedom traffic between Hong Kong and Seoul under a pendente lite award and will continue to do so without interruption pursuant to a long-term allocation of that frequency.

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


March 23, 2004

Application of United Parcel Service

UPS requests that the Department grant it six (6) fifth freedom frequencies I between Hong Kong and UPS' Asian hub at Diosdado Macapagal International Airport (the former Clark Air Force Base), with an intermediate stop in each direction at Singapore so that it may begin service on October 26, 2004.

The Department has already acknowledged, in the context of Hong Kong, the importance of enabling double daily operations to hubs to improve and expand service options and promote competition. Thus, the Department granted Federal Express twelve (12) Hong Kong‑Subic Bay frequencies to operate double daily service between Hong Kong and its major Asian hub. In this Application, UPS seeks the same opportunity to provide a double daily service between Hong Kong and its major Asian hub at Clark. UPS' proposal adds the important benefit of providing daily service to Singapore‑a country whose focus on high‑value manufacturing makes it a hub for regional warehousing and logistics operations that require the full range of competitive, high quality air distribution services that UPS offers.

Counsel: Kelley Drye, David Vaughan, 202-955-9864


March 24, 2004

Motion of United Parcel Service for an Immediate Allocation and Dismissal from the Proceeding

Respectfully moves that the Department of Transportation issue an order allocating UPS the six (6) Hong Kong-Singapore-Clark frequencies requested in its March 23, 2004 Application, relieving UPS from any further procedural and evidentiary requirements of this proceeding, and dismissing UPS from the proceeding. In accordance with Rule 11 of the Department's procedural regulations (14 C.F,R. § 302.11), UPS submits the following:

Under the 2002 Memorandum of Understanding between the United States and Hong Kong, there are presently eighteen (18) fifth freedom frequencies available for allocation. Yesterday, four carriers applied for a total of seventeen (17) frequencies‑of which only eleven (II) are capable of being allocated as requested. UPS applied for six (6) frequencies over Singapore and Clark. FedEx Express, Polar and Northwest applied for five (5), three (3), and one (1), respectively, over Seoul, Korea. Only five (5) Hong Kong‑Seoul frequencies are available for allocation.

Because the applications present a situation in which (i) the total available frequencies are under‑subscribed and (ii) UPS' request for Hong Kong‑Singapore‑Clark authority is uncontested and frequencies are available for that service, UPS believes that it is in the public interest, as well as that of the Department and the other parties, to immediately grant UPS its requested authority' and to release it from the remainder of this proceeding. 2 No other application is mutually exclusive with that of UPS.

Counsel: UPS and Kelley Drye, David Vaughan, 202-955-9864


OST-04-17279 - 2004 Hong Kong Fifth Freedom All-Cargo

March 24, 2004

Re: Errata Letter of Northwest Airlines

The enclosed attachment was inadvertently omitted from the version of the application filed by Northwest Airlines, Inc. yesterday in the 2004 Hong Kong Fifth-Freedom All Cargo Frequency Proceeding, Docket OST-2004-17279. We are serving this errata letter and the attachment on all parties.

To the extent deemed necessary, Northwest moves for leave to file the attachment.

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


OST-04-17279 - 2004 Hong Kong Fifth Freedom All-Cargo

March 29, 2004

Supplement to Motion of United Parcel Service

By this filing, United Parcel Service Co. supplements its March 24, 2004 Motion requesting that the Department of Transportation issue an order allocating UPS the six (6) Hong Kong-Singapore-Clark frequencies requested in its March 23, 2004 Application, relieving UPS from any further procedural and evidentiary requirements of this proceeding, and dismissing UPS from the proceeding.

In UPS March 24 Motion, UPS requested that the other applicants respond to the Motion by Friday, March 26th and that the Department issue its decision on the Motion by Wednesday, March 31st, so that UPS could determine whether it should prepare direct testimony and exhibits in this proceeding. To that end, UPS polled the other applicants: Federal Express, Northwest and Polar. None of the applicants object to UPS' Motion.

Counsel: Kelley Drye, David Vaughan, 202-955-9864, dvaughan@kelleydrye.com


OST-04-17279 - United Parcel's Motion for Immediate Allocation and Dismissal from Proceeding

Filed March 24, 2004 | Supplemented March 29, 2004 | Issued March 31, 2004

Notice of Action Taken (UPS)

By Order 2004-3-3 we instituted the 2004 Hong Kong Fifth-Freedom All-Cargo Frequency Proceeding to select carriers to operate fifth-freedom frequencies available for U.S. carrier services in the Hong Kong fifth-freedom market. There are 18 fifth-freedom frequencies available for allocation. We received applications from four carriers, UPS, Federal Express, Northwest, and Polar, seeking a total of 15 frequencies. Federal Express, Northwest, and Polar all seek to use these frequencies at Seoul, a total of nine requested, which because of the city-pair cap will require us to engage in carrier selection as to those carriers. However, UPS is requesting to use all six of its requested frequencies for a routing of Hong Kong-Singapore-Macapagal starting in October 2004. In its Motion, UPS states that since the total available frequencies (i.e., non-Seoul) are undersubscribed, and its request for Hong Kong-Singapore-Macapagal authority is uncontested, the Department should immediately grant it six frequencies in the Hong Kong-Singapore-Macapagal market, and allow it to withdraw from the remainder of the proceeding. UPS states that by granting its Motion the Department would be streamlining the remaining proceeding-allowing it to focus solely on which carrier would best serve the Hong Kong-Korea fifth freedom market with the five available Hong Kong-Seoul frequencies-and would also enable UPS to begin to address operational issues related to starting its service in October 2004. In its March 29 Supplement, UPS states that it polled the other three applicants in the proceeding and that none objects to its Motion.

By: Paul Gretch


OST-04-17279

April 2, 2004

Joint Motion for Allocation of Frequencies and Suspension of Procedural Timetable

Federal Express Corporation, hereby files this joint motion on behalf of itself, Polar Air Cargo, Inc., and Northwest Airlines, Inc. for allocation of the Hong Kong fifth-freedom all-cargo frequencies that are the subject of the Department's March 9, 2004 order instituting this proceeding, The Joint Movants have conducted negotiations regarding the settlement of this proceeding and the consequent distribution by the Department of the five Hong Kong-Seoul frequencies in a good faith effort to: (1) preserve the valuable resources of the Department, (2) avoid any unnecessary and protracted proceeding, (3) promote competition in the Hong Kong all-cargo market, and (4) provide the Department with a mutually agreed upon proposal that will best serve the public interest.

Counsel: FedEx, Nancy Sparks, 202-756-2461, nssparks@fedex.com


OST-04-17279

Served April 6, 2004

Notice | Word

By Order 2004-3-3 the Department instituted the 2004 Hong Kong Fifth-Freedom All-cargo Frequency Proceeding, to select carriers to operate 18 available fifth-freedom frequencies for U.S. carrier service in the Hong Kong fifth-freedom market. Applications were received from four carriers: United Parcel Service, Federal Express Corporation, Northwest Airlines, and Polar Air Cargo, seeking a total of 15 frequencies. Federal Express, Northwest, and Polar filed applications seeking a total of 9 frequencies for Seoul-Hong Kong service. The Memorandum of Understanding permits only 12 weekly fifth-freedom frequencies in the Seoul-Hong Kong market. The Department has allocated 7 of those 12 frequencies on a permanent basis, and thus, only 5 frequencies are available for Seoul-Hong Kong services.

By Joint Motion, filed April 2, 2004, FedEx, Northwest, and Polar have proposed that the Department now allocate the five remaining Hong Kong-Seoul frequencies as follows: Northwest, 1 frequency; Polar, 1 frequency; and FedEx, 3 frequencies. The joint movants state that such allocation will preserve the valuable resources of the Department, will avoid any unnecessary and protracted proceeding, will promote competition in the Hong Kong all-cargo market, and will provide the Department with a mutually agreed upon proposal that will best serve the public interest. The joint movants also request that the Department suspend the procedural timetable set forth in the Order instituting the proceeding until the Department rules on the joint motion.

In view of the circumstances presented and pending our resolution of the joint motion for allocation, we are suspending until further notice the procedural dates established in Order 2004-3-3. Therefore, acting under authority assigned in 14 CFR 385.3, we suspend the remaining procedural dates established in Order 2004-3-3 until further notice.

By: Paul Gretch


OST-04-17279

April 15, 2004

Application of United Parcel Service

Based upon the applications received for the eighteen (18) available Hong Kong fifth freedom frequencies, there will be seven (7) remaining unallocated at the end of this proceeding. UPS was awarded six (6) to the Diosdado Marcapagal International Airport (formerly known as Clark Air Force Base, "Clark"), with an intermediate stop in Singapore, and all the other applicants applied for Hong Kong‑Korea frequencies where only five (5) can be allocated. Thus, the total number of frequencies that can be granted is eleven (11)‑leaving seven (7) unallocated.

In the captioned proceeding UPS was awarded six (6) Hong Kong‑Clark round‑trip frequencies with an intermediate stop in Singapore. UPS intends on one of these weekly round‑trip frequencies to overfly Singapore and fly non‑stop in both directions between Hong Kong and Clark. In order to maintain a six (6) day per week Hong Kong‑Singapore service, UPS will use the Singapore frequency requested herein to operate a Hong Kong‑Singapore service one day a week utilizing a B‑757 freighter aircraft. In the Hong Kong‑Bangkok market, UPS plans to institute service, again utilizing a B‑757 freighter aircraft, from Bangkok to Hong Kong with a Sunday morning arrival in Hong Kong, and from Hong Kong to Bangkok with a Monday morning departure from Hong Kong.

Counsel: Kelley Drye, David Vaughan, 202-955-9864, dvaughan@kelleydrye.com


OST-04-17279 - 2004 Hong Kong Fifth Freedom All-Cargo

Served April 19, 2004

Notice Shortening Answer Period

On April 15, 2004, United Parcel Service Co. filed in the captioned docket an application for three weekly all-cargo Hong Kong fifth-freedom frequencies made available effective October 26, 2004, by the 2002 Memorandum of Understanding between the United States and Hong Kong. UPS states that it will use two of the frequencies in the Hong Kong-Bangkok market and one in the Hong Kong-Singapore market in October 2004.

Under the Department's regulations (14 CFR 302.307), answers to this application would be due April 30, 2004. In order to be in a position to act on the application expeditiously, we have decided to shorten the comment period and to request comments on the UPS application by Thursday, April 22, 2004. We request reply comments by Friday, April 23, 2004.

By: Paul Gretch


April 22, 2004

Motion of Federal Express for Extension of Time

FedEx Express respectfully requests that the Department grant this motion and reinstate the April 30, 2004 deadline for filing comments to the April 15, 2004 Application of United Parcel Service Co. Furthermore, FedEx Express respectfully requests that the Department grant the Joint Motion for Allocation of Hong Kong Fifth-Freedom All-Cargo Frequencies and Suspension of Procedural Timetable as soon as possible and that the Department not allow the Application to further delay a ruling on such joint motion.

FedEx Express is currently considering whether it may be interested in one or more of the limited fifth-freedom frequencies UPS has requested in the Application, and FedEx Express needs additional time to make this determination and, thus, to decide whether a comment on the Application is necessary. Especially considering the fact that the Application was filed twenty-three days late and that UPS had withdrawn from the proceeding fifteen days before filing the Application, fundamental fairness dictates that FedEx Express's request for additional time should be granted. Furthermore, granting such request will not prejudice UPS and will preserve the Department's valuable resources, especially if FedEx Express determines that comments on the Application are unnecessary.

Counsel: Federal Express, G. Bailey Leopard, 901-434-6664, gbleopard@fedex.com


April 23, 2004

Answer of United Parcel Service to Motion for Extension of Time

UPS objects to the characterization of its April 15, 2004 Application as being "late" and takes issue with any implication of gamesmanship contained in FedEx Express' Motion. UPS also take issue with FedEx Express' implication that UPS is delaying the Department's decision process, while, by its Motion, it is asking that the process be delayed.

Counsel: Kelley Drye, David Vaughan, 202-955-9864, dvaughan@kelleydrye.com


Served April 27, 2004

Notice Extending Answer Period | Word

On April 22, 2004, Federal Express filed a motion for extension of time to comment on the UPS application until April 30, 2004. FedEx states that it is considering whether it may be interested in one or more of the limited frequencies in the subject UPS application. FedEx also requested that the Department grant its previous Joint Motion for allocation (filed with Northwest and Polar) and that the UPS application not delay ruling on the Joint Motion.

On April 23, 2004, UPS filed an answer to the motion for extension of time, noting that no carrier other than FedEx had filed a response to the UPS application and no carrier had objected to the UPS application. UPS requests that its application (as well as the Joint Motion of FedEx, Northwest, and Polar for Hong Kong-Korea frequencies) be ruled on favorably by the Department.

In the circumstances presented and in order to have a complete record of positions on the subject application, we have decided to grant the FedEx motion for extension of the answer period and to reinstate April 30, 2004, as the answer period for the subject application.

By: Paul Gretch


April 22, 2004

Re: Email from Federal Express to Linda Senese (Intend to Poll Parties)

Please be advised, we will begin polling the parties served with the attached Mot:on for Extension of Time on the following questions:

  • 1. Do you object to the motion?
  • 2. If so, do you object to a shortening of the answer period to April 27, 2004?


April 23, 2004

Re: Email from Federal Express to Linda Senese (Polling Results)

Please be advised that I have consulted with Megan Rosia on behalf of Northwest, and Kevin Montgomery on behalf of Polar, and they have no objection to our Motion for Extenion of Time, which was filed yesterday in the above‑referenced docket. In fact, they concur with our position that UPS's pending application should not further delay a ruling on our pending joint motion.

Additionally, I have consulted with Dan Tenfelde on behalf of UPS, and he has advised that UPS will be filing its response to our Motion for Extension of Time today without the necessity of the full response period.

Therefore, the only party to this proceeding that wishes to respond to our Motion for Extension of Time will have done so by today, and the issues raised by our motion will be properly joined for the Department's consideration without the necessity of allowing the full response period to run.

Counsel: Federal Express, G. Bailey Leopard, 901-434-6664, gbleopard@fedex.com


April 30, 2004

Joint Answer of Polar Air Cargo and Northwest Airlines to UPS Application for Frequency Assignment

If the Department decides to reach the merits of the UPS late-filed application and potentially, other new applications, it should do so only in a separate proceeding in which such applications are timely filed. And before reaching those late-filed applications, the Department should allocate the frequencies for which the parties timely applied pursuant to the instituting order. The motion of FedEx, Northwest and Polar is unopposed and should be granted promptly. These three carriers have compromised their timely applications in order to facilitate an expedited decision in this proceeding without the need to resort to a time-consuming carrier selection process. The Department should grant their Joint Motion in this case immediately and can consider how best to distribute the seven unallocated frequencies in a separate proceeding, just as it does each time a carrier files an application for the assignment of available rights in a limited-entry market. There is certainly no need to await the submission of additional late-filed applications or responsive pleadings relating to any late-filed applications before taking final action on the Joint Motion.

Polar and Northwest urge the Department to consider UPS's late-filed April 15, 2004 application and any others that might be filed in response to UPS in a separate docket to be opened for that purpose. Finally, and most importantly, the Department should immediately grant the unopposed Joint Motion of FedEx, Northwest and Polar for an allocation of five Hong Kong‑Korea frequencies and not allow that action to be further delayed by untimely submissions such as that of UPS.

Counsel: Wilmer Cutler, Jeffrey Manley , 202-663-6670, jmanley@wilmer.com for Polar / Megan Rae Rosia, 202-842-3193, megan.rosia@nwa.com for Northwest


April 30, 2004

Answer of Federal Express to Application of United Parcel Service and Motion to Defer Department Action

Fundamental fairness requires the Department to consider and act upon FedEx Express's Joint Motion before considering the Application. UPS has already received several frequencies under this docket and was, at UPS's request, dismissed entirely from this docket. UPS filed its initial application for six weekly all-cargo Hong Kong-Singapore-Macapagal frequencies on March 23, 2004. The following day, UPS moved for immediate allocation and dismissal from the proceeding so that the Department could, in UPS's words, "focus solely on its analysis of which carrier will best serve the Hong Kong fifth freedom market with the five available Hong Kong-Seoul frequencies…

Roughly seven days later, the Department granted UPS's initial application and dismissed it from the docket, citing this very language. To afford UPS essentially what would amount to fast‑track status and decide the Application before, or concurrently with, the Joint Motion would be fundamentally unfair and contrary even to UPS's stated position with respect to the deference the Department should give the Hong Kong‑Seoul matter.

The Joint Motion is based on a settlement proposal with respect to frequency applications filed six weeks ago on March 23, 2004. The Joint Motion has not been contested by UPS or anyone else. Further, resolution of the Joint Motion will streamline the proceeding and allow the Department to focus its attention on the Application once the Joint Motion is resolved.

Counsel: FedEx, G. Bailey Leopard, Jr., 901-434-6664, gbleopard@fedex.com


Filed April 2, 2004 | Issued May 11, 2004

Notice of Action Taken | Word

Allocation of Hong Kong-Seoul all-cargo frequencies: 3 to FedEx, 1 to Northwest, 1 to Polar.

The Department’s instituting order in the 2004 Hong Kong Fifth-Freedom All-Cargo Frequency Proceeding called for applications on March 23, 2004, and made no provision for supplemental applications. While we view the joint motion filed by FedEx, Northwest, and Polar as a supplement to their originally filed applications, we will nevertheless entertain it in the public interest in the circumstances presented. This supplement modifies the three carriers’ original requests so that FedEx now only seeks three Seoul frequencies; and Northwest and Polar only seek one frequency each for Seoul-Hong Kong service. We have reviewed the carriers’ joint request and find that grant of this request will provide public interest benefits and will provide U.S. carrier service with all of the Seoul-Hong Kong frequencies permitted under the MOU. It is our policy to seek to maximize use of valuable route rights, and we have determined that the allocations we are making here promise to promote that objective and will enhance the service options available to the shipping public. The three frequencies for FedEx will enable the carrier to use local traffic rights between Seoul and Hong Kong as part of its U.S.-Hong Kong services, as will the one frequency for Northwest and the one frequency for Polar. Thus, the carriers will enhance the diversity of service in the area. We note that no party has shown any reason why we should not grant the joint request of FedEx, Northwest, and Polar and award these carriers the Seoul frequencies they seek. In these circumstances, we will award these carriers frequencies for Hong Kong-Seoul service. We may amend, modify, or revoke the authority granted in this Notice at any time without hearing at our discretion.

By: Susan McDermott


Filed April 15, 2004 | Issued May 11, 2004

Notice of Action Taken | Word

UPS - Allocation of 3 frequencies: 2 for Bangkok-Hong Kong all-cargo service and 1 for Singapore-Hong Kong all-cargo service.

The Department’s instituting order in the 2004 Hong Kong Fifth-Freedom All-Cargo Proceeding called for applications on March 23, 2004, and made no provision for supplemental applications. While UPS requested and was granted on March 31, 2004, dismissal from the balance of the proceeding, we will accept its application as a supplement to its previous application (as amended by its motion for immediate action subsequently granted on March 31, 2004), and will entertain it in the public interest in the circumstances presented. This supplement seeks allocation for frequencies for services to points sought by no other party (i.e., two frequencies for Hong Kong-Bangkok service and one frequency for Singapore service). We have reviewed the carrier’s request and find that grant of this request will provide public interest benefits. It is our policy to seek to maximize use of valuable route rights. In these circumstances, we will award UPS the frequencies it seeks for Bangkok-Hong Kong and Singapore-Hong Kong service. We note that with this action there are no other frequencies available at Singapore. We may amend, modify, or revoke the authority granted in this Notice at any time without hearing at our discretion.

By: Susan McDermott


OST-04-17279 - 2004 Hong Kong Fifth Freedom All-Cargo

November 4, 2004

Re: Intention of United Parcel Service to Amend Routing

By this letter, United Parcel Service Co. notifies the Department of Transportation of its intention to amend the routing of one of its fifth freedom flights between Hong Kong and the Philippines.

UPS is authorized to serve Hong Kong and various intermediate and beyond points under Department Orders 1999-12-7 and 2003-9-9, and Notices of Action Taken dated March 31, 2004 and May 11, 2004. Included in the route authorities is an award to UPS for six (6) weekly frequencies to serve Hong Kong-Singapore-Philippines (Clark). Due to changes in market growth and network demands since this award, UPS believes that it is in the best interest of the shipping public to change the routing of one of these frequencies to Hong Kong-Philippines (direct). This change would mean omitting the traffic stop in Singapore once per week, thereby increasing non-stop service between UPS’ intra-Asia hub in the Philippines and Hong Kong from six to seven days per week.

Under the 2002 Memorandum of Understanding between the United States and Hong Kong, designated U.S. carriers such as UPS may omit intermediate points such as a single Singapore stop without loss of any right to uplift or discharge traffic otherwise permissible. (Appendix 2, para. 3). Please let us know if there are any questions or concerns regarding this notice.

Counsel: Kelley Drye, David Vaughan, 202-955-9864, dvaughan@kelleydrye.com


OST-2004-17279

March 11, 2005

Re: Return of Frequency Allocation

By this letter, United Parcel Service Co. returns two (2) Hong Kong-Bangkok fifth freedom frequencies that it was awarded by Notice of Action Taken, Docket OST-2004-17279, dated May 11, 2004.

Counsel: UPS, Michael Francesconi


U.S.-Hong Kong Fifth-Freedom Frequencies

Served March 24. 2005

Notice | Word

By letter dated March 11, 2005, UPS returned its two Bangkok-Hong Kong frequencies. Consequently, there are now six frequencies available for U.S. all-cargo carriers to operate fifth-freedom Hong Kong services.

We invite carriers interested to file exemption applications and frequency applications for use of any of these six frequencies. Except for the procedural dates, exemption/frequency applications should conform to Part 302, Subpart C of our regulations (14 CFR Part 302). All applications and other related requests should be filed with the Department of Transportation (Room PL-401, 400 Seventh Street SW, Washington DC 20590), and should include at a minimum and as applicable, proposed startup date(s); routings from origin to destination of all proposed flights; days scheduled; frequencies requested per market; and the duration of service in each market, if not provided on a year-round basis; route integration authority, if desired; equipment types; and existing authority held to conduct the operations. Carriers may also present any additional information which they feel will facilitate a decision in this matter.

Applications should be filed no later than 14 calendar days from the date of service of this notice; answers should be filed 7 calendar days thereafter. Should comparative selection among the applicants be necessary, we will establish further proceedings to handle the requests.

We will authorize service of documents by facsimile and by electronic email. Carriers that are interested in such service, however, should state if they want service by email or fax and should provide interested parties with their fax number and/or email address.

By: Paul Gretch


OST-2004-17279

May 17, 2005

Re: Northwest Airlines to Return One Frequency

Northwest Airlines, Inc. hereby returns to the Department one U.S.‑Hong Kong fifthfreedom all‑cargo frequency that the Department originally granted to Northwest on an interim basis for operation between Hong Kong and Seoul, Republic of Korea. See Notice of Action Taken in Docket OST‑2004‑17279, dated May 11, 2004.

As Northwest returns this one frequency for Hong Kong‑Seoul all‑cargo service, the carrier is separately applying for allocation of two new U.S.‑Hong Kong fifth‑freedom all‑cargo frequencies, not limited to operations to and from Seoul, so that Northwest may expand its existing fifth‑freedom freighter operations between Hong Kong and Manila.

OST-2005-21285 - Northwest Airlines - US-Hong Kong Fifth-Freedom Frequencies

Counsel: Northwest, Ronald Brower, 202-842-4184, ron.brower@nwa.com

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