OST-97-3261 / Federal Express / US-Thailand All-Cargo, Dormancy Provision / April 29, 1998

 

Application of

FEDERAL EXPRESS CORPORATION : Docket OST-97-3261

for grant of an exemption pursuant to : 49 U S.C. § 40109 (Thailand Cargo Service -- Dormancy Condition)

 

APPLICATION OF

FEDERAL EXPRESS CORPORATION

FOR GRANT OF AN EXEMPTION

 

Federal Express Corporation (Federal Express) hereby applies pursuant to 49 U.S.C. Section 40109 and Subpart D of the Rules of Practice of the Department of Transportation (the Department), for grant of a six-month extension of its exemption from the 90-day dormancy condition applicable to its allocation of six (6) U.S.-Thailand all-cargo operating frequencies granted by Order 97-9-20, served September 25, 1997, so as to authorize Federal Express to continue to suspend its utilization of its 6th U.S.-Thailand all-cargo frequency until December 31, 1998.

Federal Express submits that grant of the requested exemption is in the public interest in order to enable Federal Express to operate all-cargo services to Thailand on an economically-sound basis.

 

- 2 - FedEx Exemption Application

 

In further support of this application, Federal Express states as follows:

1. By Order 97-9-20, the Department renewed Federal Express' allocation of six U.S.-Thailand all-cargo frequencies, subject to the Department's standard dormancy condition which provides that any unused frequency "will expire automatically and will revert back to the Department for reallocation" if it is not used for a period of 90 days.

2. Federal Express is currently operating scheduled all-cargo service to Thailand at a frequency of five roundtrips a week. As a result of the continuing troubled state of the Thailand economy, however, Federal Express has experienced insufficient traffic demand to warrant operation of its authorized sixth weekly frequency, and anticipates a continuation of that circumstance for the near-term foreseeable future. In order to accommodate that reduced level of operations without risk of forfeiting its 6th weekly frequency for non-use, Federal Express applied for an exemption from the 90-day dormancy condition applicable to its 6th frequency until June 30, 1998. That application was granted by Notice of Action Taken, dated February 19, 1998, and subsequently confirmed by Order 98-3-1, served March 6, 1998.

3. On the basis of the continuing economic difficulties impacting the level of demand for its U.S.-Thailand cargo service, Federal Express hereby requests a six-month extension of its existing exemption from the 90-day dormancy condition to enable Federal Express to defer the use of its sixth weekly frequency until December

 

- 3 - FedEx Exemption Application

 

31, 1998. Federal Express will, of course, commence utilization of the 6th weekly frequency as soon as traffic conditions warrant.

4. 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 DOT's Special Regulations, 14 C.F.R. § 377 to continue in effect its existing exemption authority at issue until the Department makes a final determination on this Application. In accordance with Section 377.10(c), this renewal application is being filed more than 60 days prior to the expiration date of the temporary authority at issue.

5. Based on the foregoing considerations, Federal Express requests that it be granted a further exemption from the 90-day dormancy condition applicable to its Thailand frequency allocation to enable Federal Express to defer the utilization of its sixth Thailand frequency for an additional six-month period, through December 31, 1998.

WHEREFORE, Federal Express hereby requests the Department to grant Federal Express an exemption from the applicability of the 90-day dormancy condition to its sixth weekly Thailand cargo frequency until December 31, 1998.

 

Respectfully submitted.

Nathaniel P. Breed, Jr.

SHAW, PITTMAN, POTTS & TROWBRIDGE