OST-97-2611 / Federal Express / June 11, 1997

NOTICE: Any person wishing to support or oppose this Application must file an answer with the DOT's Documentary Services Division by June 26, 1997. A copy of such answer must be served upon Federal Express and its counsel and all persons named on the attached Service List.

June 11, 1997

Application of :

for renewal of a frequency allocation pursuant to 49 U.S.C. § 40109 (Hong Kong 5th Freedom Cargo Frequencies)

Federal Express Corporation (Federal Express) hereby applies, pursuant to 49 U.S.C. § 40109 and Part 302.400 of the Procedural Regulations of the Department of Transportation (Department), for renewal of its allocation of five (5) weekly frequencies to carry 5th freedom cargo traffic in scheduled all-cargo air transportation operations between Hong Kong, on the one hand, and Subic Bay, Philippines, on the other hand, pursuant to the September 29, 1995 United States-Hong Kong Memorandum of Understanding (the September 1995 MOU).

Federal Express hereby requests that the foregoing frequency allocation be renewed for a period of two years, through August 29, 1999, or until two years after the service date of a final order granting this application, whichever is later.

In accordance with Section 302.402, Federal Express submits the following information in support of this application.

1. Federal Express was initially granted the Hong Kong 5th freedom cargo frequency allocation at issue by Order 96-8-35, served August 29, 1996, for a period of one year, through August 29, 1997. Order 96-8-35 made final the Department's tentative findings and conclusions in Show Cause Order 96-7-36, served July 26, 1996 in the Hong Kong Fifth-Freedom All-Cargo Proceeding, Docket OST-95-764.

2. Federal Express hereby invokes and relies upon the provisions of Section 558(c) of the Administrative Procedure Act, 5 U.S.C. § 558(c), as implemented by Part 377 of the Department's Special Regulations, 14 C.F.R. § 377, to continue in effect its frequency allocation authority to provide Hong Kong-Subic Bay service with 5th freedom traffic rights until the Department makes a final determination of this Application. In accordance with Section 377.10(c), this renewal application is being filed more than sixty (60) days prior to the expiration date of the temporary authority at issue.

3. Federal Express currently provides all-cargo service utilizing 70,000-pound payload Airbus A-310 freighter aircraft between Hong Kong and Subic Bay five days a week in accordance with the flight schedule set forth in Exhibit FX-100, infra. The annual operating statistics and total annual fuel consumption attributable to the Hong Kong-Subic Bay service operated by Federal Express are set forth in Exhibit FX-101, infra.

As the Department has previously determined (Order 96-7-36, p. 1), the 5th freedom operations at issue are consistent with the terms of the September 1995 MOU between the U.S. and Hong Kong. Accordingly, renewal of the frequency allocation at issue is consistent with the public interest.

5. Federal Express has been found to be fit, willing and able to perform the air transportation applied for herein and to conform to the provisions of the Act and the rules, regulations and requirements of the Department thereunder. The air transportation service which Federal Express proposes to render is consistent with the public convenience and necessity.

6. Federal Express requests that the exemption authority at issue be renewed for a two-year period, through August 29, 1999, or until two years after the service date of a final order granting this application, whichever occurs later. Grant of a two-year extension is consistent with the practice of the Department in numerous comparable exemption proceedings involving limited-entry international route authority.

WHEREFORE, Federal Express respectfully requests the Department to renew its frequency allocation granted by Order 96-8-35, served August 29, 1996, permitting Federal Express to carry 5th freedom cargo traffic on scheduled all-cargo flights between Hong Kong, on the one hand, and Subic Bay, Philippines, on the other hand, for a period of two years, through August 29, 1999, or until two years after final action granting this renewal application,

whichever occurs later.

Respectfully submitted,

Nathaniel Breed of Shaw Pittman for FedEx

1. Doyle Cloud, Jr. of FedEx