	

                    UNITED STATES OF AMERICA

            DEPARTMENT OF TRANSPORTATION

                    OFFICE OF THE SECRETARY

                             WASHINGTON, DC

Issued by the Department of Transportation on September 25, 2003

NOTICE OF ACTION TAKEN—DOCKET OST-95-838 

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______________

This serves as notice to the public of the action described below, taken
by the Department official indicated (no additional confirming order
will be issued in this matter).

Application of      Federal Express Corporation (Federal Express)    
filed   8/14/03   to:

XX  Renew exemption pursuant to 49 U.S.C. §40109 to:

Integrate its certificate authority on Routes 119, 205-F, 451, 472, 473,
553, 568, 638, 748, 787, and 793, and all other international route
authority held by Federal Express by exemption to permit Federal Express
operating flexibility to provide around-the-world scheduled all-cargo
air transportation via various points named in its certificates and
exemption authority, and other inter-regional and intra-regional
all-cargo services, subject to applicable bilateral, certificate, and
exemption restrictions.  Federal Express requests that the integration
authority be granted on an indefinite basis or, in the alternative, for
a two year period, through October 24, 2005.

Applicant rep:   David E. Short  (901) 434-8584    DOT Analyst:  Linda
L. Lundell (202) 366-2336

D I S P O S I T I O N

XX   Granted in part (subject to conditions, see below).

XX   Balance dismissed (i.e., for longer term authority).

The above action was effective when taken:   September 25, 2003, through
  October 24, 2005.

Action taken by:   Paul L. Gretch, Director	

		      Office of International Aviation	

Except to the extent exempted or waived, this authority is subject to
the terms, conditions, and limitations indicated:                       
    

 	      XX  Holder’s Certificates of Public Convenience and Necessity

	      XX  Standard Exemption Conditions (attached Appendix A)

________________________

Conditions:  The route integration authority granted is subject to the
condition that any service provided under this exemption shall be
consistent with all applicable agreements between the United States and
the foreign countries involved.  Furthermore, (a) nothing in award of
the route integration authority granted should be construed as
conferring upon Federal Express rights (including fifth-freedom
intermediate and/or beyond rights) to serve markets where U.S. carrier
entry is limited unless Federal Express notifies the Department of its
intent to serve such a market and unless and until the Department has
completed any necessary carrier selection procedures to determine which
carrier(s) should be authorized to exercise such rights; and (b) should
there be a request by any carrier to use the limited-entry route rights
that are included in Federal Express' authority by virtue of the route
integration exemption granted here, but that are not then being used by
Federal Express, the holding of such authority by route integration will
not be considered as providing any preference for Federal Express in a
competitive carrier selection proceeding to determine which carrier(s)
should be entitled to use the authority at issue.

Dismissal:  Consistent with our standard practice for this type of
application, we renewed Federal Express’ exemption for a period of two
years, and dismissed its request for longer-term authority.

________________________________________________________

On the basis of data officially noticeable under Rule 24(g) of the
Department’s regulations, we found the applicant qualified to provide
the services authorized.

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) our action was consistent with Department
policy; (2) grant of the exemption was consistent with the public
interest; and (3) grant of the authority would not constitute a major
regulatory action under the Energy Policy and Conservation Act of 1975. 
To the extent not granted or dismissed, we denied all requests in the
referenced Docket.  We may amend, modify, or revoke the authority
granted in this Notice at any time without hearing at our discretion. 

Persons entitled to petition the Department for review of the action set
forth in this Notice under the Department’s regulations, 14 CFR §
385.30, may file their petitions within seven (7) days after the date of
issuance of this Notice.  This action was effective when taken, and the
filing of a petition for review will not alter such effectiveness.

An electronic version of this order is available on the World Wide Web
at: 

http://dms.dot.gov//reports/reports_ aviation.asp								APPENDIX A

U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier
applicant(s) shall:

(1)  Hold at all times effective operating authority from the government
of each country served;

(2)  Comply with applicable requirements concerning oversales contained
in 14 CFR 250 (for scheduled operations, if authorized);

(3)  Comply with the requirements for reporting data contained in 14 CFR
241;

(4)  Comply with requirements for minimum insurance coverage, and for
certifying that coverage to the Department, contained in 14 CFR 205;

(5)  Except as specifically exempted or otherwise provided for in a
Department Order, comply with the requirements of 14 CFR 203, concerning
waiver of Warsaw Convention liability limits and defenses;

(6)  Comply with all applicable requirements of the Federal Aviation
Administration and with all applicable U.S. Government requirements
concerning security.  To assure compliance with all applicable U.S.
Government requirements concerning security, the holder shall, before
commencing any new service (including charter flights) to or from a
foreign airport, contact its Principal Security Inspector (PSI) to
advise the PSI of its plans and to find out whether the Transportation
Security Administration has determined that security is adequate to
allow such airport(s) to be served; and

(7)  Comply with such other reasonable terms, conditions, and
limitations required by the public interest as may be prescribed by the
Department of Transportation, with all applicable orders and regulations
of other U.S. agencies and courts, and with all applicable laws of the
United States.

The authority granted shall be effective only during the period when the
holder is in compliance with the conditions imposed above.

										8/2003

   In this regard, the two-year duration of this exemption will be
through October 24, 2005, the alternate date requested by Federal
Express in this proceeding.

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