United Parcel Service Co.

OST-2008-0146 - Exemption - Additional Point in Japan - Nagoya

April 22, 2008

Application for an Exemption

UPS hereby applies for an exemption authorizing it to provide foreign air transportation between any point or points in the United States and a third point in Japan and beyond that point to and from any two points.

On September 14, 2007, the governments of the United States and Japan signed a Record of Discussions which, among other things, granted UPS new authority to serve Japan. The Record of Discussions allows UPS to serve a third point in Japan and beyond that point to and from any two points. (UPS is currently authorized to serve only two points in Japan.) The purpose of this Application is to enable UPS to take advantage of this expanded authority. Simultaneously herewith, UPS is filing an Amendment No. 1 to the Application for Renewal of its Public Certificate of Convenience and Necessity for Route 581 requesting that the DOT renew and amend UPS' certificate authority to serve Japan to reflect the new authority permitted by the Record of Discussions.

See Amendment No. 1 to Application of United Parcel Service Co. For Renewal of Certificate Authority, OST-1998-3477, Apr. 22, 2008.

UPS proposes to operate the service to Nagoya, Japan with an MD-11 freighter aircraft with a payload capacity of 207,895 pounds that is currently in UPS' fleet. Initially, UPS will operate beyond Nagoya to Shanghai. Details regarding the service are set forth in Exhibit A. UPS wishes to commence service to Nagoya on May 18, 2008.

Counsel: Kelley Drye, David Vaughan, 202-342-8452, dvaughan@kelleydrye.com

May 9, 2008

Re: Polling Results

On April 22, 2008, United Parcel Service Co. filed an Application for Exemption Authority authorizing it to provide foreign air transportation between the United States and a third point in Japan. No parties upon whom service was required by DOT regulations objected to UPS' Application. Accordingly, UPS requests that the Department grant its Application as soon as possible.

Counsel: Kelley Drye, David Vaughan, 202-342-8452, dvaughan@kelleydrye.com

Filed April 22, 2008 | Issued May 13, 2008

Notice of Action Taken

Scheduled foreign air transportation of property and mail between any point or points in the United States and a third point in Japan and beyond that point to and from any two points.

Under the terms of the U.S.-Japan Air Transport Agreement, UPS may operate between any point or points in the United States and any three points in Japan, and beyond each point in Japan to and from any two points, with full traffic rights between all points on the route. UPS is currently authorized to serve only two points in Japan (see Order 1998-6-22) but seeks to expand its authority to serve a third point in Japan, and has identified Nagoya for this purpose.

By: Paul Gretch