Posted: 10/24/2002

10:45am

	                   UNITED STATES OF AMERICA

            DEPARTMENT OF TRANSPORTATION

                    OFFICE OF THE SECRETARY

                             WASHINGTON, DC



                                              Served: October 29, 2002

	

           2002/2003 U.S.-HONG KONG SERVICE OPPORTUNITIES

	

                        





NOTICE INVITING APPLICATIONS

By this Notice, we invite all U.S. carriers interested in making use of
new service opportunities in the U.S.-Hong Kong aviation market to file
applications as set forth below, no later than seven calendar days after
the service date of this Notice.

Background

On October 19, 2002, the United States and the Hong Kong Special
Administrative Region of the People’s Republic of China (Hong Kong),
signed a Memorandum of Understanding (MOU) authorizing new services in
the U.S.-Hong Kong market.  The agreement between the United States and
Hong Kong represents a significant expansion of opportunities for U.S.
carriers and the traveling and shipping public.  

The agreement provides for 28 additional weekly flights for U.S.
combination services between Hong Kong and third countries, including
Japan.  With respect to all-cargo services, the new agreement provides
for an increase of 56 weekly all-cargo flights by U.S. carriers between
Hong Kong and third countries.  Additionally, the new agreement provides
for first-time code-sharing for U.S.-Hong Kong services.  Finally, the
new agreement provides that both U.S. and Hong Kong combination and
all-cargo carriers may fly between Hong Kong and any U.S. city.

In light of the fact that certain of these new route opportunities have
limitations, restrictions, and/or phase-in clauses, and in the interest
of convenience to interested parties, we have attached a copy of the
U.S. carrier combination and all-cargo route schedules and related notes
as set forth in Appendices 1 and 2 of the MOU.



Applications

In order to ensure that U.S. carriers are given the opportunity to use
these valuable new route rights, we invite interested carriers to file
exemption applications, designation requests, and frequency
applications, as well as, where applicable, third-country code-share
authorization applications and requests for statements of authorization.
 By this notice, we are soliciting applications and requests for all of
the new U.S. carrier rights set forth in the MOU that are
frequency-limited, with the exception of those all-cargo frequencies
that do not become available until the third year of the phase-in.  We
shall award these rights subsequently.

Except for the procedural dates, exemption/frequency applications should
conform to Part 302, Subpart C of our regulations (14 CFR Part 302). 
All applications and other related requests should be filed with the
Department of Transportation (Room PL-401, 400 Seventh Street, SW,
Washington, DC  20590), and should include, at a minimum and as
applicable, the proposed startup date(s); routings from origin to
destination of all proposed flights; days scheduled; frequencies
requested per market, and the duration of service in each market, if not
provided on a year-round basis; route integration authority, if desired;
equipment types (including seating configuration—first, business, and
economy); and existing authority held to conduct the operations.  In
cases where the U.S. carrier proposes to conduct code-share operations
involving fifth-freedom traffic rights, applications should include, at
a minimum, the code-share partner(s) involved; which carrier(s) would be
operating the flights; and the country and specific intermediate
point(s) over which the services would be provided.  In addition, unless
previously filed and approved by the Department, the carriers must
provide as part of their applications, copies of any relevant
cooperative service arrangements.  Applicants are also free to submit
any additional information that they believe will help us in making our
decisions here.

In view of the immediate availability of the majority of the new rights,
we will request that these applications, etc., be filed no later than
seven calendar days from the service date of this Notice.  We intend to
award the available opportunities based on the applications filed in
response to this notice.  Should comparative selection among the
applicants be necessary, we will establish further proceedings to handle
the requests.

We will authorize service of documents by facsimile and by electronic
mail.  Carriers that are interested in such service, however, should
state if they want service by email and should provide interested
parties with their fax number and/or email address.

Therefore, acting under authority assigned in 14 CFR 385.3, we invite
the applications as described above to be filed no later than seven
calendar days from the service date of this Notice.



We will serve this Notice on all U.S. certificated carriers operating
large aircraft; the U.S. Department of State (Office of Aviation
Negotiations); and the Federal Aviation Administration.

 

By:

		                                                PAUL L. GRETCH

 		                                                Director

		                                                Office of
International Aviation

(SEAL)

Attachment

Dated: October 24, 2002

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

  HYPERLINK "http://dms.dot.gov//reports/reports_ aviation.asp" 
http://dms.dot.gov//reports/reports_ aviation.asp 

   These increases will be phased in over a two-year period.

   These increases will be phased in over a three-year period.

   Previously, U.S. and Hong Kong carriers were limited to service from
only six U.S. gateways in the continental United States.

   “Where applicable” refers to situations in which the U.S. carrier
is proposing to exercise fifth-freedom traffic rights on a code-share
operation.

   The original filing is to be unbound and without tabs on 8-1/2” X
11” white paper, using dark ink (not green) to facilitate use of the
Department’s docket imaging system.  In the alternative, filers are
encouraged to use the electronic submission capacity available through
the Dockets/DMS Internet site (  HYPERLINK https://dms.dot.gov 
https://dms.dot.gov ) by following the instructions at the web site.

   It will not be necessary for applicants to file separate motions to
consolidate to assure that the Department considers mutually exclusive
applications contemporaneously; the Department will consolidate all
mutually exclusive applications filed in response to this Notice on its
own initiative for contemporaneous consideration.

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