 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on June 9, 2004

                     NOTICE OF ACTION TAKEN -- DOCKET OST-2004-17899

_____________________________________________________________

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 Air Lines, Inc.  filed  5/14/04 and supplemented
6/8/04 for:

				 

XX  Allocation of 7 combination frequencies for fifth-freedom U.S.-Hong
Kong services in connection with United’s plans to provide daily
scheduled combination services between San Francisco and Ho Chi Minh
City, Vietnam via Hong Kong. 

No answers were filed to the application.

Applicant rep.:  Jeffrey A. Manley (202) 663-6670  DOT analyst:   Linda
Senese (202) 366-2367 

DISPOSITION

XX  Granted, subject to conditions (see also remarks  below)

The above action was effective when taken:June 9, 2004  , and will
remain in effect, subject to the conditions below. 

XX  Action taken by:	Paul L. Gretch, Director		

			Office of International Aviation

XX  The authority granted is consistent with the October 19, 2002,
Memorandum of Understanding between the Government of the United States
and the Government of the Hong Kong Special Administrative Region of the
People’s Republic of China and with the Air Transport Agreement
between the Government of the United States and the Government of the
Socialist Republic of Vietnam.

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

(See Reverse Side)



2

Conditions:  Consistent with our standard practice, the frequency
allocation granted is subject to the condition that if any frequencies
are not used for a period of 90 days (once inaugurated), the allocation
as to each of those frequencies will expire automatically and the unused
frequencies will revert to the Department for reallocation.  If United
does not begin service with the each of the seven allocated frequencies
by December 17, 2004, each unused frequency will automatically revert to
the Department for reallocation.

________________________________________________________________________
_____________

Under the 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 authority was consistent with
the public interest.  To the extent not granted, we denied all requests
in the referenced Docket.  We may amend, modify, or revoke the action
taken 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

 United requests that the allocation of frequencies be effective
December 10, 2004.  United indicates that it already holds the necessary
underlying economic authority to operate services between San Francisco
and Ho Chi Minh City via Hong Kong.  However, United also requests
designation under the U.S.-Vietnam air services agreement as a U.S.
combination carrier.  That request is being handled separately through
diplomatic channels.

 Under the terms of the agreement with Vietnam, Hong Kong-Vietnam
fifth-freedom combination traffic rights may not be exercised by U.S.
carriers until October 15, 2005.  However, in its supplement, United
submits an exchange of letters between United and the Civil Aviation
Administration of Vietnam (CAAV) that indicates that the CAAV has agreed
to allow United to exercise the requested fifth-freedom rights as early
as June 2004, a result that is consistent with United’s proposed
December 10, 2004 startup date.

