 						             	Served: December 4, 2002

 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

		

NOTICE

Japan Charter Authorizations

(January 1 – December 31, 2003)

								

Under the terms of a 1998 U.S.-Japan Memorandum of Understanding (1998
MOU), U.S. carriers can operate 800 one-way charter flights (hereinafter
we refer to “one-way charters” simply as “charters”) between the
United States and Japan during the calendar year 2003 (January
1-December 31, 2003), subject to the limitation that no more than 300 of
these flights may serve Tokyo.

By Orders 92-6-32 and 92-9-21, we established new procedures to simplify
the distribution of the annual charters available to U.S. carriers for
operation in the U.S.-Japan market.  Specifically, we replaced our
year-to-year comparative allocation proceedings with streamlined advance
allotment/charter pool procedures.  Under these procedures, a portion of
the available charters are allotted in advance to carriers that have
operated an average of at least 20 charters over the previous two years.
 The balance is maintained in a charter pool for distribution on a
first-come, first-served basis.  We stated that allotments would be
issued in advance of the beginning of the charter year to qualifying
carriers for the upcoming charter year.

Under our streamlined procedures, two carriers—Continental Micronesia
and Polar Air Cargo—are entitled to advance allocations.  Based on the
attached summary of carrier operations in the U.S. Japan market,
consistent with the procedures established in Orders 92-6-32 and
92-9-21, Continental Micronesia would receive an advance allocation of
32 charters, and Polar 38 charters.   The remaining 730 flights are
reserved in a charter pool for distribution on a first-come,
first-served basis.                                     

As discussed in Order 92-9-21, we require carriers issued advance
allotments to notify the U.S. Air Carrier Licensing Division (X-44),
Office of International Aviation, by letter no later than 14 days after
the service date of this notice as to what portion of their advance
allotment they intend to operate, together with an estimate of the
number of charters to be used for Tokyo service in calendar year 2003. 
They also are required to file monthly reports of the charter flights
operated from their advance allocations.  Carriers operating flights
from the charter pool must also file post flight reports, identifying
the date of the Notice of Consistency under which those flights were
approved.

2

The advance allotments issued by this notice and flights operated from
the charter pool for operations in calendar year 2003 are subject to the
conditions and procedures established in the Appendix.                 

As a final matter, in order to facilitate maximum usage of the available
charter opportunities, and taking into account recent patterns of use
(where supply has considerably exceeded demand) and the fact that under
the terms of the 1998 MOU the total number of available charters has
increased from 600 to 800, we have decided to increase the number of
charters for which carriers may apply each month from 30 to 50.  

By:

				

						READ C. VAN DE WATER

					          Assistant Secretary for Aviation

						        International Affairs         				

(SEAL)

Dated: December 4, 2002

Attachment

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

http://dms.dot.gov//reports/reports_aviation.asp



										APPENDIX

										Page 1 of 2

1.	The advance allotments are subject to the following condition:

Where fewer than 40 percent of a carrier’s allocated charters have
been 

used or been committed for use by contracts during the six-month

period ending June 30, the remaining charter allotments exceeding or
equal

to the number of those already operated or committed by contract in the 

preceding six months would be forfeited and placed in the charter pool.

2.	The charters not subject to advance allotment for the charter year
are reserved in a charter pool for distribution on a first-come,
first-served basis subject to the following conditions:

(a)	For the period January 1 through October, 31, 2003, carriers may
apply

for up to 50 charters per month;

(b)	After October 31, 2003, no restrictions apply on the number of

charters that may be applied for each month;

(c)	Applications to operate charters may be filed no earlier than

90 days in advance of the flight date; and

(d)	Applications must identify the type of charter (passenger or

cargo); the date of each one-way flight; the charterer(s); the city-pair

markets involved by direction; the type of aircraft to be used; and 

(for cargo charters) the type of cargo transported.  After October 31,

2003, a copy of the charter contract would also be required.

3.	Each carrier granted an advance allotment must notify the U.S. Air
Carrier Licensing Division (X-44), Office of International Aviation, by
letter, no later than July 10, 2003, of the number of charters it has
operated through June 30, 2003, and the number of flights committed by
firm contracts for the balance of the charter year.  For charters under
contract, carriers shall indicate the charterer(s), dates, city-pair
markets, and nature of the traffic.

4.	Each carrier granted either an advance allotment or pool charters
must notify the U.S. Air Carrier Licensing Division (X-44), Office of
International Aviation, no later than the tenth day of each month (or
until its charters are exhausted, whichever occurs earlier) of: (1) the
number of Japan charters operated during the preceding month; (2) the
city pairs served by direction; and (3) the number of charters for which
Japanese authority was obtained for that month which 

										APPENDIX

										Page 2 of 2

subsequently were canceled or rescheduled.  Carriers with advance
allotment charters shall notify the Department whether or not any
charters have been operated by the carrier during the month and such
carriers shall return to the Department immediately any allotted
flights(s) that it will not use; and

5.	The Director of the Office of International Aviation is assigned the
authority for this and subsequent charter years, to administer
distribution of flights from the charter pool established by this order
and, where deemed in the public interest, to waive the restrictions on
the charter pool.

U.S.-JAPAN CHARTER OPERATIONS

					2 0 0 0				   2 0 0 1		

			

			Jul	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun		Total

Continental Micronesia	  0             8            0            0      
      2           6           12             0            4            4
            8           0                           44	 

Federal Express	                0             1            4            
2             0          2*           0              0            0     
      1             8           0                           18   

Polar Air Cargo		  1*           3*          10*       15*        11*    
    3*          1*            2*          2*          1*           3*   
      2*                        53*                         

					2 0 0 1				   2 0 0 2		

			

			Jul	Aug	Sep	Oct	Nov	Dec	Jan	Feb	Mar	Apr	May	Jun		Total

Continental Micronesia	  0             0            0            0      
      0           0             4             0            2           
3             8           0                           17	 

Federal Express	                0             0            0           
3              0           0             0             0            1   
       2              0          0                             6   

Polar Air Cargo		  1*           3*          1*          4*            3*
        0             2             1            2           1          
   1          2                           21            

*Flights obtained from the charter pool

Two Year Average

											            Rounded to Next

			2000/2001		2001/2002		Average			Even Number

Continental Micronesia	     44			      17			   30.5	                    
                32

Federal Express		     18                                          6     
                              12                                        
    12

Polar Air Cargo                       53*                               
      21                                    37                          
                  38

 Our procedures provide that the average number will be rounded to the
next even number.  See Order 92-6-32 at page 4.

 Based on Federal Express’ monthly reports filed with the Department,
Federal Express did not operate an average of at least 20 charters over
the previous two years and, thus, does not qualify to receive an advance
allotment for the 2003 charter year.

