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DOT
58-03
Contact: Bill Mosley
Tel.: (202) 366-5571
Monday, July 14, 2003
DOT
Tentatively Selects Carriers For Hong Kong All-Cargo Service
Following last year's agreement expanding U.S.-Hong Kong air-service
rights, the U.S. Department of Transportation (DOT) today tentatively selected
six airlines to operate new all-cargo air service between Hong Kong and
third-country cities in conjunction with their U.S.-Hong Kong services.
Carriers
tentatively selected to operate new or expanded service are Federal Express,
United Parcel Service (UPS), Evergreen International Airlines, Kalitta Air,
Northwest Airlines and Polar Air Cargo. If
the department's show-cause order is made final, all carriers filing
applications will have a share in the new opportunities.
With the new services made possible, U.S.-carrier all-cargo flights
between Hong Kong and third countries will have risen from the eight weekly
round-trip flights available prior to last year's agreement up to a new weekly
total of 48.
"This
expansion of U.S. all-cargo services in the important and growing Hong Kong air
freight market will provide enormous benefits not only for the carriers involved
but for shippers and the economies of both sides," U.S. Secretary of
Transportation Norman Y. Mineta said. "These
benefits will increase still further next year when our expansive agreement with
Hong Kong permits even more new service opportunities."
In October 2002, the United States and Hong Kong reached agreement on a
broad expansion of both passenger and cargo air services.
The agreement included a large increase, in three phases, in U.S. airline
rights to provide all-cargo services between Hong Kong and third countries
(known as "fifth-freedom services").
On Nov. 22, the department, in order to take advantage of the new rights
as soon as possible, allowed Federal Express, Northwest, Polar and UPS to
operate services on a temporary basis while DOT considered applications in the
proceeding. Today's show-cause
order tentatively awards on a long-term basis the fifth-freedom rights that were
available at the time the agreement was reached as well as those that may begin
Oct. 28, 2003. The department will
allocate in a separate proceeding the 16 weekly flights available in next year's
third phase of the expansion.
In
evaluating the applications, the department sought to maximize public benefits
by expanding service choices for U.S. shippers in both express and general cargo
service, strengthening competition among U.S. carriers as well as among U.S. and
foreign carriers in the Pacific rim region to the benefit of U.S. shippers,
enhancing route systems and hub connection possibilities to improve efficiency
and service, and promoting new entry into the fifth-freedom market.
In its tentative decision, the department
proposed to award the new Hong Kong round-trip flights available now and on Oct.
28 as follows:
* Federal Express - now: six flights to Subic Bay, Philippines; on Oct. 28: six
flights to Paris - one flight via Mumbai, India - and one to Subic Bay.
*
UPS - now: six flights to Clark, Philippines; on Oct. 28: six flights to
Cologne, Germany, via Mumbai or Dubai, United Arab Emirates.
*
Evergreen - now: one flight to Seoul, Korea; on Oct. 28: one additional flight
to Seoul.
*
Kalitta - now: one flight to Seoul and two to Dubai; on Oct. 28: one additional
flight to Seoul.
*
Northwest - now: four flights to Manila, Philippines; no additional Oct. 28
flights.
*
Polar - now: two flights each to Seoul and Manila; on Oct. 28: one flight to
Manila.
Objections to
the department's tentative decision are due in 14 days, with answers to
objections due seven days afterward. Following
the comment period, the department will review comments and issue a final
decision.
The show-cause order, carrier applications and other filings in this case may be
obtained at http://dms.dot.gov, docket OST-2002-14049.
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