UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY WASHINGTON, DC

Issued by the Department of Transportation on February 3, 2010

NOTICE OF ACTION TAKEN – DOCKETS DOT- OST-2010-0015 and DOT-OST-2009-0258

This document serves as notice to the public of the action described below, by the Depa rtment official indicated (no additional confirming order w ill be issued in this matter).

Application of FEDERAL EXPRESS CORPORATION (FedEx Express) filed 1/13/10, as clarified 1/19/10

for:

Docket DOT-OST-2010-0015

XX Allocation of five (5) U.S.-China all-cargo frequencies for year-round services between the United States and points in China Zone 1. 1

XX Motion for shortened answer date and expedited process.

Docket DOT-OST-2009-0258

XX Conversion of one (1) U.S.-China all-cargo f requency from seasonal ser vice to year-round service. 2

Applicant Rep: G. Bailey Leopard, Jr. (901) 434-6664 DOT Analyst: Thuy H. Cooper (202) 366-5423

D I S P O S I T I O N

XX Granted with respect to allocation of five frequencies (subject to conditions, see below) 3

XX Granted with respect to conversion of one fre quency from seasonal service to year-round service

XX Dismissed motion for shortened answer date and expedited process 4

The above actions were effective when taken: February 3, 2010 . The allocation of frequencies will remain in effect indefinitely, subject to conditions.

Action taken by: Paul L. Gretch, Director

Office of International Aviation

1 The carrier initially requested six all-cargo frequencies to operate all-cargo services commencing on or about March 28, 2010. However, on January 19, 2010, the carrier clarified that it is only seek ing five frequencies as the Department allocated a “seasonal use” Zone 1 all-cargo frequency to FedEx Express on October 20, 2009, in Docket DOT-OST-2009-0258. The carrier states that if the Department expands that authority to include year-round use, FedEx Express’ request for one of the six frequencies would be satisfied. See Notice of Polling Results, Reply of Federal Express Corporation to the Answer of Southern Air Inc. and Clarification of Applications at 3.

2 See note 1.

3 FedEx Express’ current request for five frequencies to serve between the United States and China Zone 1 will leave a total of one U.S.-China Zone 1 all-cargo frequency available for allocation.

4 The answer period has expired, so we are dismissing the motion as moot. Southern Air, Inc. (Southern) filed an answer in response to FedEx Express’ request for a shortened answer date and expedited process. Southern does not object to the application of FedEx Express but requests that the Department act on its pending application for exemption authority and allocation of frequencies ( see Docket DOT-OST-2009-0307) no later than the time the Department rules on FedEx Express’ application. As Southern’s application addresses other aviati on rights that become available in March 2010 and are not in issue in this docket, we will address Southern’s application separately.XX The authority granted is consistent with the Air Transport Agreement, as amended, between the United States and the People’s Republic of China.

Except to the extent exempted or waived, this authorit y is subject to the terms, conditions, and limitations

indicated: XX Holder’s Certificates of Public Convenience and Necessity

Conditions: Consistent with our standard practice, the freque ncies allocated here are subject to our standard 90-day dormancy condition, wherein any frequency not opera ted for a period of 90 days (once inaugurated and for any reason other than seasonal use) , will be deemed dormant and the allocation as to that frequency will expire automatically and the frequency will revert to th e Department for reallocation. If FedEx Express does not begin service with the allocated frequencies within 90 da ys of March 28, 2010, its proposed start-up date, the unused frequencies will automatically revert to the Department for reallocation



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____________________________________________________________________________________________________________________________ Under authority assigned by the Department in its regul ations, 14 CFR Part 385, we found that (1) our action was consistent with Department policy; (2) grant of the 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 or dismissed, we denied all requests in the referenced

Docket. We may amend, modify, or revoke the authority gran ted 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 with in 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://www.regulations.gov