OST-95-657 / Federal Express / US-Saudi Arabia Cargo Service / Answer of Saudi Arabian Airlines / October 1, 1997
Application of :
FEDERAL EXPRESS CORPORATION
for an exemption pursuant to 49 U.S.C. Sec. 40109 (U.S.-Saudi : Arabia Cargo Service)
ANSWER OF
SAUDI ARABIAN AIRLINES CORPORATION
Saudi Arabian Airlines Corporation ("Saudia") hereby submits this answer to the
Application of Federal Express Corporation ("Federal Express") for a renewal of its exemption authority. Saudia does not, at this time, object to the renewal of Federal Express's exemption authority as set forth in Para. 1 of its Application but does question the legitimacy of the operation of "feeder" flights operated for Federal Express on a contract basis by Falcon Express, Inc., a foreign charter air carrier, from Dubai to Riyadh and Jeddah and back to Dubai as described in Para. 2 of the Application.Although the relationship between Federal Express and Falcon, and the nature of the operation, is somewhat sketchy, it has the earmarks of a third-country code sharing arrangement. If this is in fact such a code sharing arrangement, then such operation is not permitted by the current U.S.-Saudi Arabian Bilateral Agreement.
Saudia therefore requests that the Department defer approval of the Application of Federal Express pending receipt of a more detailed explanation of the arrangement between Federal Express and Falcon Express, Inc.
Respectfully submitted,
William A. Nelson
Attorney for Saudi Arabian
Airlines Corporation
Dated: 1 October 1997