 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on January 4, 2005

   NOTICE OF ACTION TAKEN -- DOCKET OST-99-5743

________________________________________________________________________
_________________________________

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   United Parcel Service Co.   filed   12/3/04  to:

XX Renew exemption under 49 U.S.C. 40109 to provide the following
service:

Scheduled foreign air transportation of property and mail between any
point or points in the United States, and any intermediate point or
points, and any point or points in Japan, and any point or points beyond
Japan.  UPS requests the right to integrate such authority with its
other existing certificate and exemption authority to provide foreign
air transportation.  UPS states that the requested authority will be
used solely in conjunction with a code-share agreement between UPS and
Nippon Cargo Airlines Co., Ltd.

No answers were filed to this application.

 

Applicant rep:   David L. Vaughan  (202) 955-9864    DOT Analyst:  Linda
Senese (202) 366-2367

D I S P O S I T I O N

XX  Granted (subject to conditions, see below)

The above action was effective when taken:  January 4, 2005, through 
January 4, 2007.

Action taken by:   Paul L. Gretch, Director	

		    Office of International Aviation

	

XX  The authority granted is consistent with the 1998 Memorandum of
Understanding between the United States and Japan.

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)

(See Reverse Side)



2

Conditions:  (a) 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, (i) nothing in the award
of the route integration authority requested should be construed as
conferring upon UPS rights (including fifth-freedom intermediate and/or
beyond rights) to serve markets where U.S. carrier entry is limited
unless UPS 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); (ii) should there be a request by any carrier
to use the limited-entry route rights that are included in UPS’
authority by virtue of the route integration exemption granted here, but
that are not then being used by UPS, the holding of such authority by
route integration will not be considered as providing any preference for
UPS in a competitive carrier selection proceeding to determine which
carrier(s) should be entitled to use the authority at issue.

(b) The authority granted to operate via intermediate points and beyond
Japan to third countries shall be limited to blind-sector operations
only.

(c) The authority granted to operate to third countries is limited to
countries with which the United States has signed open-skies agreements
and/or countries for which the carrier holds authority to serve under
certificates or exemptions issued by the Department, and for which it
holds route integration authority by virtue of either the present action
or other action by the Department.

(d) The authority granted is limited to code-share operations with
Nippon Cargo Airlines on flights operated by Nippon Cargo Airlines.

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_____________

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) the action was consistent with Department policy; (2) grant of the
exemption authority 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, 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 document is available on the World Wide
Web at:

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

									Attachment

U.S. Carrier Standard Exemption Conditions

In the conduct of operations authorized by the attached notice, the
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 the applicable requirements of the Federal Aviation
Administration Regulations, and with all applicable U.S. Government
requirements concerning security, including, but not limited to 49 CFR
Part 1544.  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 International Principal Security Inspector (IPSI)
to advise the IPSI 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.

											

									05/2004

