 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on May 9, 2003

   NOTICE OF ACTION TAKEN -- DOCKET OST-2003-14489

________________________________________________________________________
______

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).

Applications of  American Airlines, Inc. and United Parcel Service Co. 
filed  2/20/03 for:

XX  U.S.-Tokyo Air Services – Slots at Narita Airport 

Applicant Reps: Carl B. Nelson, Jr. (202) 496-5647 (AA), David L. Vaughn
(202) 955-9864 (UPS)  

DOT Analyst:    Sylvia Moore (202) 366-6519

On January 27, 2003, Federal Express Corporation notified the Department
by letter that, during this year’s summer schedule season (March 30
– October 25, 2003) it would not need two weekly slots it currently
holds for operations on Runway A at Tokyo’s Narita Airport.

By Notice dated February 10, 2003, the Department invited U.S. carriers
authorized to serve Tokyo and interested in the award of these slots for
the operation of scheduled services to file applications by 

February 20.  American Airlines, Inc. and United Parcel Service Co. each
filed a request for both available slots.

UPS proposed to use the slots over an Anchorage-Tokyo-Taipei routing,
with no code-share traffic, using B-767 aircraft and soon thereafter
transitioning to MD-11 aircraft, and stated that it could commence
services immediately upon the availability of the slots.  

American stated that it would use the slots to increase its Dallas/Ft.
Worth-Tokyo combination services to double daily, using B-777 aircraft,
also carrying JAL’s code on these flights.

Responsive pleadings were filed by American, UPS and the Dallas/Ft.
Worth International Airport.  

On April 10, American filed a supplement stating that it was reducing
its service in the Dallas/Ft. Worth-Tokyo market from 11 to 7 effective
April 5 – June 14, 2003, and that due to the current economic
environment it is unlikely that it will operate more than 12 weekly
flights between Dallas/Ft. Worth and Tokyo until after the end of the
2003 summer season.  American stated that the Department should suspend
this proceeding and not make an award at this time unless UPS is
prepared to confirm that it will use the two slots during the 2003
summer season and the Department is convinced that all-cargo operations
on intra-Asia route segments represent the best long-term use of the
slots.

2

On April 17, UPS responded that it is prepared to begin using the slots
immediately upon notice of the award, with wide body B-767 freighter
equipment—ultimately upsizing to MD-11 equipment, and that the
Department should award the slots to the carrier that will use them.

Decision:  We have decided to award the two available slots to UPS.  We
believe that the slots will provide UPS with an opportunity to enhance
service and competition in the marketplace.  While we recognize
American’s interest in operating additional flights between Dallas/Ft.
Worth and Tokyo, the carrier has stated that it is not in a position to
use the slots at issue in this proceeding in the 2003 summer season. 
When we issued our Notice citing the availability of the summer-season
slots and inviting applications for them, we expressly said that we were
doing so “to assure that these valuable opportunities do not go
unused.”  Notice of February 10, 2003, in this Docket.  We believe
that awarding the slots to UPS, the only applicant prepared to use them
during the 2003 summer season, best meets the objectives as set forth in
our Notice and best serves the public interest.  

DISPOSITION

XX Granted to UPS (two slots)

The award granted was effective when taken:  May 9, 2003

Action taken by:  Read C. Van de Water

                               Assistant Secretary for Aviation

		        and International Affairs

We may amend, modify, or revoke the award granted in this Notice at any
time without hearing at our discretion.

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

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

 Continental and Continental Micronesia filed a pleading stating that
neither carrier is in a position at this time to apply for the slots but
that both carriers will in the future require additional Narita slots to
compete effectively.

 The Dallas/Ft. Worth International Airport supports the application of
American for additional Dallas/Ft. Worth-Tokyo nonstop flights.  

 In the circumstances presented, we need not reach the issue raised by
American concerning long-term use of the slots.

