 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

								Served: August 5, 2004

NOTICE

U.S.-China Charter Flights

By this Notice we notify U.S. carriers of procedures to distribute the
newly available charter opportunities between the United States and the
People’s Republic of China (PRC).

On June 18, 2004, the United States and the People’s Republic of China
initialed a protocol amending the U.S.-PRC aviation agreement.  The
amended agreement greatly expands the opportunities for the air carriers
of both countries, including the opportunities for charters.  In this
regard, (among other things) under the new agreement, each Party shall
approve applications by the airlines of the other Party for 75 one-way
charter flights annually from August 1 of each year, between points in
China Zone 1 and  U.S. points on city pairs served by Chinese
carriers’ scheduled services of the same type (combination or
all-cargo) as the proposed charter flight, and 75 one-way charter
flights annually from August 1 of each year, between points in China
Zone 2 and U.S. points on city pairs served by Chinese carriers’
scheduled services of the same type (combination or all-cargo) as the
proposed charter flight.  These rights are available August 1, 2004,
under the terms of the agreement.

By Notice dated July 16, 2004, we granted Kalitta Air’s request for 29
charter flights in China Zone 1 for services in the Shanghai-Chicago
market.  In awarding this authority to Kalitta, we stated that “we
intend, on an expedited basis, to address by subsequent separate action
the question of procedures for allocating the remaining numerically
limited charter opportunities available.”

We find that the public interest warrants our placing the remaining 46
charters for Zone 1, and the 75 charters for Zone 2, into a charter pool
for distribution on a first-come, first-

											2

served basis, consistent with procedures we have used in other similar
markets with limited charter opportunities.  The late summer/autumn is
the peak season for U.S.-China cargo traffic, and U.S. carriers
interested in operating the remaining available charters should be
accorded as much time as possible, with as little procedural delay as
possible, to be able to plan and implement their services.  Thus, in
order for U.S. carriers to make immediate use of these valuable rights,
we have, as noted above, structured the procedures for this charter year
to be similar to those that we have used for charter pools in other
limited charter markets.  The carriers are familiar with those
procedures and can thus use them without delay.

Under the first-come, first-served procedures, as soon as arrangements
are firm for operating a charter flight to or from China that is subject
to the numerical limitation, carriers should so advise the U.S. Air
Carrier Licensing Division (X-44), Office of 

International Aviation, 400 Seventh Street, SW, Washington, DC 20590. 
We will provide the carrier with a Notice of Consistency acknowledging
its right to perform the 

charter operation.  Applications must identify the type of charter
(passenger or cargo); the date of each one-way flight; the charterer(s);
the city-pair markets; whether the requested charters fall within China
Zone 1 or China Zone 2 (applicants should also identify the specific
Chinese carrier scheduled services associated with the Zone 1 or Zone 2
determination); the type of aircraft to be used; the type of cargo
transported (for cargo charters); and a statement affirming that the
carrier has firm plans to use the charters.  Applicants may request
confidentiality under Rule 12 of our procedural regulations (14 CFR
302.12).  Carriers receiving a Notice of Consistency shall, in writing,
return to the U.S. Air Carrier Licensing Division immediately any
flight(s) that they will not use.  

Applicants should be aware that the information requested here does not
relieve U.S. carriers of their obligation to file a separate
notification of proposed charter flights with the Chinese authorities. 
In notifying the Chinese authorities, U.S. carriers should also submit a
copy of the Notice of Consistency showing Departmental approval of the
charter flights.

U.S. carriers holding scheduled combination or all-cargo authority in
the U.S.-China market will not be eligible applicants until the last two
months of the charter year when the pool will be available to all
carriers with no restrictions.  It has been our general policy where
charter opportunities are limited to reserve the available flights for
carriers that have no other access to the market.  We have made
exceptions to this policy only 											3

where there are special needs for cargo shipments (such as livestock
charters) that could

not be accommodated by scheduled services.  Should such special needs
arise, we would be prepared to consider them on a case-by-case basis.

In terms of reporting, each U.S. carrier granted U.S.-China charters is
to report, in writing, to the U.S. Air Carrier Licensing Division, on
its operations for the preceding month by the tenth day of each month.  

We will also impose the reporting and return requirements established
above on the 29 charters awarded to Kalitta Air by Notice of Action
Taken dated July 16, 2004.

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

Given our interest in deriving maximum benefit for U.S. carriers,
travelers, and shippers, we seek to assure that Notices of Consistency
are given to direct air carriers for flights actually to be operated. 
To this end, the Department reserves the right to require operating
carriers to produce contracts or other additional information about the
flights they propose to operate.

We will serve this notice on all U.S. certificated air carriers.

By:

KARAN K. BHATIA

Assistant Secretary

for Aviation and International Affairs

Dated: August 5, 2004

(SEAL)

An electronic version of this document 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 

SERVICE LIST

Marshall S Sinick			Joanne Young/David Kirstein	Carl Nelson Jr

Alaska Airlines			North American, World Airways,	American Airlines &

Aloha Airlines			   & America West		TWA LLC

Florida West			Baker & Hostetler, Suite 1100	Suite #600

Suite 500			1050 Connecticut Ave NW	1101 17th Street NW

1201 Pennsylvania Ave NW	Washington DC 20036		Washington DC 20036

Washington DC 20004

Brian T Hunt			Aaron Goerlich			Robert E. Cohn

American Trans Air		Sunworld International		Delta Air Lines

7337 West Washington St		Garafalo, Goerlich, Hainbach	Midway Air Lines

Indianapolis IN 46251		1200 New Hampshire Ave NW	Shaw Pittman

	Washington DC 20036		2300 N Street NW

								Washington DC 20037

Ed Faberman			R Bruce Keiner Jr		Lorraine Halloway

MN Airlines			Continental Airlines		Continental Micronesia/

Ungaretti & Harris		Crowell & Moring		Air Micronesia

1500 K Street NW #250		1001 Pennsylvania Ave NW	1001 Pennsylvania Ave NW

Washington DC 20005		Washington DC 20004		Washington DC 20004

Jonathan B Hill			Jeffrey Manley			Howard Kass

Hawaiian Airlines		United Air Lines 			US Airways

Dow Lohnes & Albertson		Wilmer Cutler Pickering		2345 Crystal Drive

Suite 800			   Hale and Dorr LLP		Arlington, VA 22227

1200 New Hampshire NW		2445 M Street NW		

Washington DC 20036		Washington DC 20037-1420

Nathaniel Breed			Megan Rosia 			Robert P Silverberg

Pan American Airways		Northwest Airlines Inc.		ABX Air, Kitty Hawk

Zuckert Scoutt & Rasenberger	901 15th Street NW #310		  & Midwest
Airlines 

888 Seventeenth Street NW	Washington DC 20005		Silverberg Goldman

Washington DC 20006-3309					  & Bikoff           

						1101 30th Street NW

						Washington DC  20007

Gary Garafalo			David E Vaughan			Kevin Montgomery

Air Transport Intl			United Parcel Service		Polar Air Cargo

1200 New Hampshire Ave NW	Kelley Drye & Warren		1747 Pennsylvania Ave NW

Washington DC 20036		1200 19th St NW #500		Suite 875

		Washington DC 20036		Washington DC 20006

Steve Lachter			John L Richardson		Russ Pommer

ASTAR Air Cargo		Amerijet International		Atlas Air

1150 Connecticut Av NW		John L Richardson PLLC		1747 Pennsylvania Ave NW

Washington DC 20036		1156 15TH St NW #1105		Suite 875

				Washington DC 20005		Washington DC 20006



									Service page 2

Tom Lydon	 		Moffett Roller			Mark W Atwood       .

Evergreen International		Gemini Air Cargo		Custom Air Transport &

1401 New York Ave NW		Roller & Bauer			   Kalitta Air 

Washington DC 20005-2147	1020 19th St NW #400		Sher & Blackwell

		Washington DC 20036		1850 M Street NW #900

						Washington DC  20036

Nancy Sparks			Stephen Alterman		Lawrence Wasko

Federal Express			Northern Air Cargo & Horizon	Arrow Air

1101 Pennsylvania Ave NW	Meyers & Alterman		1150 Connecticut Ave NW

Washington DC 20004		1220 19th Street NW		Washington DC  20036

				Washington DC 20036-2438

Pierre Murphy			Air Transport Association		National Air Carrier Assn.
Brendan Airways				International Department		1000 Wilson Blvd

d/b/a USA3000			Suite 1100			Suite 1700

1200 New Hampshire NW		1301 Pennsylvania Ave NW	Arlington, VA 22209

Washington DC 20036		Washington DC 20004-1707

 

 China Zone 1 consists of Shanghai, Beijing, and Guangzhou.

 China Zone 2 consists of Anhui, Fujian, Guangdong (except Guangzhou),
Hebei, Henan, Hubei, Hunan, Jiangsu, Jiangxi, Shandong, Shanxi, Tianjin,
and Zhejiang.

 An electronic version of this Notice is available on the World Wide Web
at: http://dms.dot.gov//reports/reports_aviation.asp.

 Notice, at 2.  Subsequent to this action, by letters dated July 23 and
July 26, Polar Air Cargo and Kalitta Air each requested an allocation of
U.S.-China cargo charters in China Zone 1.  Evergreen and Kalitta filed
answers to Polar’s request, and Polar filed a reply.  We will address
these requests by subsequent separate actions under the procedures set
forth in this Notice.

 See Orders 98-4-19 and 98-6-14 (Brazil) and Orders 92-6-32 and 92-9-21
(Japan).

 Because of security procedures in place at DOT involving incoming mail,
we urge carriers to send these requests by fax to 202-366-6780 or
202-366-3694.

 This notification must be received within two business days of the
carrier’s determination that an allocated flight or flights will not
operate.

 We will post an electronic version of the Notice of Consistency on the
World Wide Web at: http://dms.dot.gov//reports/reports_aviation.asp.

 See, e.g., Order 98-4-19.

