Order 2006-7-9 - 2007 US-China Combination and All-Cargo Frequency Allocation Proceeding - Instituting Proceeding and Inviting Applications

Order 2006-7-9
OST-2006-25275 - 2007 US-China Combination and All-Cargo Frequency Allocation Proceeding

On June 18, 2004, representatives of the United States and the People’s Republic of China initialed a protocol amending the U.S.-PRC aviation agreement, greatly expanding opportunities in the U.S.-China market through 2010. The amended agreement phases in rights for the respective parties according to an agreed schedule. In light of that schedule, we have already awarded rights in several previous proceedings. Under the phase-in schedule, the amended agreement provides, effective March 25, 2007, for an increase of seven combination and 15 all-cargo frequencies for U.S. carriers to serve points in either China Zone 1 or China Zone 2. The new agreement also provides, effective March 25, 2007, for seven additional frequencies for combination or all-cargo services specifically limited to serving points in China Zone 2. Since the amended agreement does not provide for a new U.S. carrier designation until 2008, only incumbent U.S. carriers that are currently designated to operate combination and/or all-cargo services to China are eligible for these additional frequencies.

See Orders 2004-10-8, dated October 13, 2004, 2005-3-24, dated March 15, 2005, and 2005-3-40, dated March 29, 2005.

As defined by the amended agreement, China Zone 1 consists of Beijing, Shanghai, and Guangzhou. China Zone 2 consists of Anhui, Fujian, Guangdong (except Guangzhou), Hebei, Henan, Hubei, Hunan, Jiangsu, Jiangxi, Shandong, Shanxi, Tianjin, and Zhejiang.

The incumbent combination carriers are Northwest Airlines, Inc., United Air Lines, Inc., Continental Airlines, Inc., and American Airlines, Inc. The incumbent all-cargo carriers are Northwest Airlines, Inc., Federal Express Corporation, United Parcel Service Co., and Polar Air Cargo Inc.

The Agreement provides valuable new frequencies for currently designated U.S. carriers to serve China effective March 25, 2007. We believe that it is in the public interest to select carriers on a timetable that will allow the selected carriers to enjoy the maximum benefit of these frequencies as soon as they become available. To this end, we are establishing the following procedural schedule for submissions in this case:

Petitions for Reconsideration:	July 17, 2006
Answers to Petitions:	July 24, 2006
DOT Information Responses:	August 10, 2006
New Applications:	August 17, 2006
Direct Exhibits:	September 25, 2006
Rebuttal Exhibits:	October 16, 2006
Briefs:	October 31, 2006

By this order we (1) institute the 2007 U.S.-China Combination and All-Cargo Frequency Allocation Proceeding and (2) invite incumbent U.S. carriers to file applications for allocation of frequencies that become available effective March 25, 2007.