ABX Air, Inc.

OST-2007-29319 - Exemption - Los Angeles-Mexico City All-Cargo

September 21, 2007

Application for Exemption and Designation

ABX hereby requests an exemption and designation permitting it to engage in scheduled foreign air transportation of property and mail between Los Angeles and Mexico City.

ABX understands that five carriers are currently designated to provide scheduled all-cargo service to Mexico City (Amerijet, UPS, ASTAR Air Cargo, Centurion Air Cargo and FWIA) and that three carriers (ASTAR, Centurion and FWIA) are currently designated to provide scheduled all-cargo service in the Los Angeles-Mexico City city-pair market. However, by letter dated September 13, 2007, counsel for FWIA advised the Department that FWIA was foregoing its effort to institute scheduled all-cargo service between the US and Mexico and that it was returning its authority to provide such service to the DOT for reallocation (See letter from Charles F. Donley, dated September 13, 2007, filed in Dockets OST-2005-22151 and OST-2006-24671). This decision by FWIA makes available one designation for a US carrier.

ABX intends to commence scheduled all-cargo service between Los Angeles and Mexico City within 90 days of its receipt of authority from the Department to conduct such operations. or as soon as it is able to obtain authority from the Mexican Government to conduct scheduled all-cargo operations.

ABX intends to operate between Los Angeles and Mexico City seven days per week on a year-round basis. ABX may, however, reduce its operations to Mexico City to six days per week during periods of low demand.

ABX will use Booing 767-200SF freighter aircraft to conduct the operations set forth in Exhibit 1 . The aircraft that ABX will use for these operations is already in the ABX fleet as it is the same aircraft with which ABX currently conducts its charter operations on behalf of Aeromexpress.

ABX has been operating all-cargo charter flights between Los Angeles and Mexico City and Guadalajara under a charter agreement with Aeromexpress. S.A. de C.V., a foreign air freight forwarder since September 2006. ABX now desires to operate similar service on a scheduled basis.

Counsel: Silverberg Goldman, Robert Silverberg, 202-944-3300, rsilverberg@sgbdc.com

OST-2007-29318 - Exemption - Los Angeles-Guadalajara All-Cargo
OST-2007-29319 - Exemption - Los Angeles-Mexico City All-Cargo

Filed September 21, 2007 | Issued October 15, 2007

Notice of Action Taken

OST-2007-29318: Scheduled foreign air transportation of property and mail between Los Angeles, California, and Guadalajara, Mexico.

OST-2007-29319: Scheduled foreign air transportation of property and mail between Los Angeles, California, and Mexico City (Benito Juarez Airport), Mexico.

ABX attached a proposed flight schedule to each application showing a Los Angeles-Guadalajara/Mexico City service with stops in both Guadalajara and Mexico City and service to points beyond. ABX notes that it would not carry local traffic between Guadalajara and Mexico City and that the United States has "open-skies" aviation agreements with all of the countries to which it proposes beyond service.

By: Paul Gretch