	           UNITED STATES OF AMERICA

      DEPARTMENT OF TRANSPORTATION

             OFFICE OF THE SECRETARY

                  WASHINGTON, D.C.



						Served:  April 6, 2004

____________________________________________

NOTICE

Docket OST-2004-17279

____________________________________________ 

By Order 2004-3-3 the Department instituted the 2004 Hong Kong
Fifth-Freedom All-cargo Frequency Proceeding, to select carriers to
operate 18 available fifth-freedom frequencies for U.S. carrier service
in the Hong Kong fifth-freedom market.  Applications were received from
four carriers:  United Parcel Service (UPS), Federal Express Corporation
(FedEx), Northwest Airlines (Northwest), and Polar Air Cargo (Polar),
seeking a total of 15 frequencies.  Federal Express, Northwest, and
Polar filed applications seeking a total of 9 frequencies for Seoul-Hong
Kong service.  The Memorandum of Understanding permits only 12 weekly
fifth-freedom frequencies in the Seoul-Hong Kong market.  The Department
has allocated 7 of those 12 frequencies on a permanent basis, and thus,
only 5 frequencies are available for Seoul-Hong Kong services.

By Joint Motion, filed April 2, 2004, FedEx, Northwest, and Polar have
proposed that the Department now allocate the five remaining Hong
Kong-Seoul frequencies as follows:  Northwest, 1 frequency; Polar, 1
frequency; and FedEx, 3 frequencies.  The joint movants state that such
allocation will preserve the valuable resources of the Department, will
avoid any unnecessary and protracted proceeding, will promote
competition in the Hong Kong all-cargo market, and will provide the
Department with a mutually agreed upon proposal that will best serve the
public interest.  The joint movants also request that the Department
suspend the procedural timetable set forth in the Order instituting the
proceeding until the Department rules on the joint motion.

In view of the circumstances presented and pending our resolution of the
joint motion for allocation, we are suspending until further notice the
procedural dates established in Order 2004-3-3.  Therefore, acting under
authority assigned in 14 CFR 385.3, we suspend the remaining procedural
dates established in Order 2004-3-3 until further notice.

We will serve this notice by email or facsimile on all parties in Docket
OST-2004-17279.  We authorize answers to be served by facsimile or
email.

						PAUL L. GRETCH

			Director, Office of International Aviation

(SEAL)

Dated:  April 6, 2004

An electronic version of this notice 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 

 UPS was the only carrier to seek frequencies for Hong
Kong-Singapore-Macapagal service.  On March 24, 2004, and supplemented
March 29, 2004, UPS filed a motion for immediate allocation of
frequencies and dismissal from the proceeding.  By Notice of Action
Taken dated March 31, 2004, the Department granted UPS’ motion,
allocated UPS 6 Hong Kong fifth-freedom frequencies, and dismissed it
from the remainder of the proceeding.

In the applications filed, FedEx seeks 5 frequencies; Northwest, 1
frequency; and Polar, 3 frequencies.

