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OST-2005-22571 - 2005 US-Hong Kong-Korea Fifth-Freedom All-Cargo Frequency Proceeding
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2005 US-Hong Kong-Korea Fifth-Freedom All-Cargo Frequency Proceeding / Federal Express Corporation / Polar Air Cargo, Inc. / United Parcel Service Co. Order 2005-9-27 Issued and Served September 30, 2005 Order to Show Cause - Bookmarked | Word We have tentatively decided that the result that best serves our stated policy goals, and thereby best serves the public interest, is an allocation of one frequency to each of the three applicants. We tentatively find that each applicant brings its own attributes to the market and can respond to a different aspect of shipper needs. Allocating one frequency to FedEx will permit it to strengthen its AsiaOne network and provide greater shipping and competitive options for U.S. shippers worldwide, particularly those having need for express cargo carriage. Allocating one frequency to Polar will address the needs of general freight shippers and will permit the carrier to enhance its Seoul hub operations and system network overall. Allocating one frequency to UPS will bring a new entrant into the Hong Kong-Korea fifth-freedom market, and one that would provide a new option for both express and general freight shippers. In short, we tentatively conclude that our proposed result would further our objective of strengthening U.S. carrier competition and enhancing service options. Consistent with prior allocation of U.S.-Hong Kong fifth-freedom frequencies, “the totality of our proposed selections in this proceeding will promote the overall enhancement of competition in the marketplace. Each applicant has shown that its use of one frequency will benefit the public interest. Each carrier already provides service in the market (although one of the applicants, UPS, is currently limited to blind sector traffic only) and can make immediate use of the additional frequency. By: Karan Bhatia OST-2005-22571 - 2005 US-Hong Kong Fifth-Freedom All-Cargo Frequency Proceeding October 7, 2005 Joint Answer to Order to Show Cause Polar Air Cargo, Inc., Federal Express Corporation and United Parcel Service Co. jointly file this Answer in response to the Department of Transportation's Order to Show Cause, which tentatively distributed three Hong Kong-Korea fifth-freedom frequencies equally among Polar, FedEx Express and UPS. The Joint Parties accept the Department's allocation of the frequencies and request that the Department immediately issue a Final Order to allow the Joint Parties to employ these frequencies in the Hong Kong-Korea market as soon as possible. With great difficulty, the Joint Parties have decided not to challenge the decision of the Department in the interest of avoiding a prolonged proceeding that will further delay the use of the rights in question. By filing jointly, it was also determined by each applicant that the urgency of our request for the immediate issuance of a Final Order would be more effectively conveyed and prompt action by the Department more easily taken. The Department's immediate adoption of a Final Order for the distribution of the frequencies as tentatively decided will ensure the earliest possible use of these valuable bilateral rights. The Joint Parties, therefore, urge the Department to issue a Final Order allocating one frequency each to Polar, FedEx Express and UPS in order to allow the carriers to satisfy all preliminary operational and foreign regulatory requirements and to employ these rights during the peak cargo season already underway. The Joint Parties appreciate the Department's consideration of their respective applications and, although none concurs with the tentative decision, each has agreed to accept the tentative decision to allocate the frequencies equally between the Joint Parties. Counsel: Polar - Kevin Montgomery, kevin.montgomery@polaraircargo.com 2005 US-Hong Kong-Korea Fifth-Freedom All-Cargo Frequency Proceeding / Federal Express Corporation / Polar Air Cargo, Inc. / United Parcel Service Co. Order 2005-10-21 By Order 2005-9-27, in the above-captioned dockets, we tentatively allocated to Federal Express Corporation, Polar Air Cargo, Inc., and United Parcel Service Co. one weekly roundtrip frequency each to conduct all-cargo services in the U.S.-Hong Kong-Korea fifth-freedom market. Objections to the Department's tentative decision were due no later than October 11, 2005, with answers due no later than October 18, 2005. FedEx, Polar, and UPS filed a joint answer in response to the Department’s tentative decision in Order 2005-9-27, stating that they accept the Department’s tentative decision. In light of the fact that no objections were filed to our show-cause order in this proceeding, we have decided to proceed to final order in this matter. By: Michael Reynolds October 27, 2005 Re: Polar Air Cargo Inauguration of Service Hereby notifies the Department and all parties to this proceeding that Polar shall inaugurate service using the newly awarded fifth-freedom frequency on November 2, 2005. Counsel: Polar, Kevin Montgomery, 202-828-1002 OST-2005-22571
October 27, 2005 Re: FedEx Inauguration of Service Federal Express Corporation hereby advises the Department and the parties that its proposed inaugural date for the awarded service (one Hong Kong/Seoul fifth-freedom frequency) is no later than November 8, subject to obtaining all necessary approvals from the Hong Kong government. Counsel: FedEx, Bailey Leopard, 901-434-6664, gbleopard@fedex.com
October 27, 2005 Re: UPS Inauguration of Service United Parcel Service, Inc. hereby notifies the Department that it will commence using the newly awarded Hong Kong-Korea fifth freedom frequency immediately. UPS appreciates the Department’s consideration of its application and its final decision to allocate one frequency to UPS. Counsel: Kelley Drye, David Vaughan, 202-955-9864, dvaughan@kelleydrye.com |
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