Posted:  May 16, 2003

	  9:15 a.m.

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on May 15, 2003

   NOTICE OF ACTION TAKEN -- Undocketed   

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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).

Joint Request of  United Parcel Service Co. and United Air Lines, Inc.  
 filed 5/08/03  for: 

XX  Temporary re-allocation to UPS of two U.S. carrier frequencies,
currently held by United, to:

Augment UPS’ current six day per week service to China by flying
double daily services on Tuesdays and Fridays from Anchorage to Shanghai
with B-747 freighter aircraft.  UPS requests the frequency allocation on
a temporary basis from May 8, 2003 through July 5, 2003. 

Applicant reps:  David Vaughan (UPS) (202) 955-9600; Jeffrey A. Manley
(United) (202)663-6000  

DOT Analyst:  Linda Senese  (202) 366-2367

D I S P O S I T I O N

XX  Granted (temporary reallocation of two United Air Lines China
frequencies to UPS)

The above action was taken:   May 15, 2003, and is effective for
services during the period 

May 15, 2003,  through July 5, 2003

Action taken by:   Paul L. Gretch, Director	

		    Office of International Aviation	

XX  The authority granted is consistent with the aviation agreement
between the United States and the People’s Republic of China.

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

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Remarks: On May 1, 2003, United temporarily suspended operations on nine
of its 21 U.S.-China frequencies.  By joint letter dated May 8, 2003,
United and UPS requested that UPS be allocated two of United’s
suspended nine frequencies through July 5, 2003. 

We determined, consistent with our traditional approach of favoring
maximum use of frequencies, that it was in the public interest to award
UPS the two frequencies it requested. 

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) our action was consistent with Department
policy; and (2) grant of the requests was consistent with the public
interest.  To the extent not granted or denied, we denied all other
requests.  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 document is available on the World Wide
Web at:

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

 Under the U.S.-People’s Republic of China Transport Agreement, the
four U.S. designated carriers (United, Northwest, Federal Express, and
UPS) may operate a total of 54 weekly frequencies.  United has been
allocated 21 weekly frequencies; Northwest, 16; Federal Express, 11; and
UPS, 6.  

 By Notice, dated May 8, 2003, the Department shortened the answer
period to the United/UPS request to May 12, 2003, and replies to May 13,
2003.  Northwest filed an answer objecting to the transfer of two United
frequencies to UPS and requesting a temporary allocation of one of the
dormant United frequencies.  On May 15, 2003, Northwest withdrew its
objection and request.

