United Air Lines, Inc.

OST-04-17889 - Designation Under the US-Vietnam Bilateral Air Services Agreement and for Frequency Allocation Under the US-Hong Kong Bilateral Air Services Agreement

May 14, 2004

Application for Designation and Frequency Allocation

Requests (1) designation as a U.S. flag combination carrier to operate services between the U.S. and Vietnam pursuant to the U.S.-Vietnam bilateral air services agreement of 2003 and (2) allocation of seven weekly combination frequencies for fifth-freedom services between Ho Chi Minh City, Vietnam, and Hong Kong under the U.S.-Hong Kong bilateral air services agreement of 1997, as amended. United requests these authorizations in order to start scheduled combination services between San Francisco and Ho Chi Minh City, Vietnam, via Hong Kong. United requests that its designation be effective immediately for an indefinite period and its frequency allocation be effective December 10, 2004 and remain in effect for an indefinite period subject to the usual conditions.

United plans to operate services between its hub at San Francisco, CA and Ho Chi Minh City, Vietnam, via Hong Kong. United will begin these services by extending an existing San Francisco-Hong Kong nonstop flight to Ho Chi Minh City. These Hong Kong-Ho Chi Minh City services will also connect to United's daily Chicago-Hong Kong nonstop flights, offering convenient onestop online services between Vietnam and United's largest hub. These services will be operated in B747-400 equipment configured in 347 seats (14 F, 73 C, 260 Y). Those aircraft are currently available and are used for United's existing San Francisco-Hong Kong nonstop services. United will operate these services on a daily basis and will sell its services to local passengers between Hong Kong and Ho Chi Minh  City. Such fifth-freedom sales are essential to the economic viability of these services and, as noted above, are consistent with the provisions of the U.S. agreements with both Hong Kong and Vietnam.

Counsel: United and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmer.com

June 8, 2004

Re: US-Vietnam Designation and Hong Kong Frequency Allocation Supplement

United Air Lines, Inc. herewith supplements its above-referenced application by submitting the attached exchange of letters between United and the Civil Aviation Administration of Vietnam in which the latter agrees to advance the effective date for the exercise of fifth-freedom rights on services between Vietnam and Hong Kong. As indicated in the CAAV's letter of March 16, 2004, they have agreed to allow such fifth-freedom rights to be exercised as early as June 2004, and United's proposed December 10, 2004, startup date for San Francisco-Hong Kong-Ho Chi Minh City services is consistent with CAAV's decision.

Counsel: Wilmer Cutler, Jeffrey Manley, 202-663-6670, jeffrey.manley@wilmerhale.com

Filed June 8, 2004 | Issued June 9, 2004

Notice of Action Taken | Word

Allocation of 7 combination frequencies for fifth-freedom U.S.-Hong Kong services in connection with United’s plans to provide daily scheduled combination services between San Francisco and Ho Chi Minh City, Vietnam via Hong Kong.

By: Paul Gretch

OST-04-17889 - San Francisco-Ho Chi Minh City

Filed May 14, 2004 | Supplemented June 8, 2004 | Issued June 14, 2004

Corrected Notice of Action Taken | Word

Corrects Notice of Action Taken dated June 9, 2004, to reflect correct docket number (OST-2004-17889).

By: Paul Gretch