In the Matter of 

BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

) 

) 

2010 U.S.-CHINA ALL-CARGO 

DESIGNATION AND FREQUENCY 

ALLOCATION PROCEEDING 

) Docket DOT -OST -2010-0017 

) 

) 

) 

RESPONSE OF KALITTA AIR, L.L.C. 

TO REQUEST FOR EVIDENCE AND SUBMISSION OF ADDITIONAL 

EVIDENCE IN SUPPORT OF APPLICATION 

Communications with respect to this document should be addressed to: 

February 22, 2010 

Mark W. Atwood 

Elizabeth J. Wadsworth 

Sher & Blackwell, LLP 

1850 M St., N.W. 

Washington, D.C. 20036 

(202) 463-2513 

Counsel for 

Kalitta Air, L.L.C. 

NOTE: Any party may respond to this submission by filing an answer in the 

above docket and serving a copy upon all persons on the attached service list. 

Answers are due not later than March 3, 2010. 
In the Matter of 

BEFORE THE 

DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

) 

) 

2010 U.S.-CHINA ALL-CARGO 

DESIGNATION AND FREQUENCY 

ALLOCATION PROCEEDING 

) Docket DOT -OST -2010-0017 

) 

) 

) 

RESPONSE OF KALITTA AIR, L.L.C. 

TO REQUEST FOR EVIDENCE AND SUBMISSION OF ADDITIONAL 

EVIDENCE IN SUPPORT OF APPLICATION 

In response to the Department's Order Instituting Proceeding and its 

Request for Information and Evidence in the above docket, Kalitta Air, LLC 

hereby provides the attached exhibits in support of its previously submitted 

application in Docket DOT-OST-2009-0329 for a certificate of public convenience 

and necessity, exemption authority, designation and allocation of frequencies 

that are due to become available March 25, 2010 under the May 22,2007 U.S.-

Peoples Republic of China ("China" or "PRC") ad referendum agreement. 

An "Index of Testimony and Direct Exhibits" is provided, as well as an 

index cross-referencing the exhibits to each numbered request in the 

Department's Request for Information and Evidence. Kalitta Air believes that the 

attached exhibits in combination with its previously submitted application warrant 

the relief requested in its application: (1) grant of exemption and certificate 

authority for scheduled foreign air transportation of property and mail between a 

point or points in the United States and a point or points in China, via 
intermediate points, and beyond China to any point or points; (2) designation 

under the US-PRC agreement as the new U.S. all-cargo air carrier in the U.S.-

China market; (3) allocation of six round-trip frequencies effective March 25, 

2010; and (4) any other and further relief that the Department deems necessary 

and appropriate. 

Dated: February 22, 2010 

2 

~:Zz.a;f Mark W. Atwood 

Elizabeth J. Wadsworth 

Sher & Blackwell LLP 

1850 M St., N.W., Suite 900 

Washington, D.C. 20036 

(202) 463-2513 

Counsel for 

Kalitta Air, L.L.C. 

.. 
CERTIFICATE OF SERVICE 

I hereby certify that I have this 22nd day of February, 2010, caused this 

Response of Kalitta Air L.L.C. to be served upon each person listed below via e-mail: 

byerlyjr@state.gov 

john.allen@faa.gov 

carl.nelson@aa.com 

hkamen@coair.com 

rbkeiner@crowell.com 

recohn@hhlaw.com 

prrizzi@hhlaw.com 

sascha.vanderbellen@delta.com 

bruce.rabinowitz@wilmerhale.com 

gbleopard@fedex.com 

nssparks@fedex.com 

dvaughan@kelleydrye.com 

agoerlich@ggh-airlaw.com 

howard_kass@usairways.com 

mroller@rollerbauer.com 

pmurphy@lopmurphy.com 

rsilverberg@sgbdc.com 

tzoeller@naca.cc 

msinick@ssd.com 

Ihalloway@crowell.com 

3 

mlbenge@zsrlaw.com 

sametta. c. barnett@delta.com 

russell.bailey@alpa.org 

jrichardson@johnlrichardson.com 

jamestello@earthlink.net 

kevin. montgomery@polaraircargo.com 

mfrancesconi@ups.com 

anita.mosner@hklaw.com 

bkutzke@maxjet.com 

brent.connor@troutmansanders.com 

charles.hunnicutt@troutmansanders.com 

ggarofalo@ggh-airlaw.com 

jhill@dowlohnes.com 

jonathan.moss@wilmerhale.com 

julie.oettinger@united.com 

jyoung@yklaw.com 

lachter@erols.com 

laura.jackson@wcaa.us 

Idwasko@erols.com 

esauer@ssgdc.com 

Elizabeth J. Wadsworth 
DOT-OST-2010-0017 

Cross-Reference 

Page 1 of 2 

KALITTA AIR, L.L.C. 

CROSS-REFERENCE OF EVIDENCE REQUESTS 

TO EXHIBITS 

Request for Information and Evidence 

Request II. 1 

a) Proposed Schedules/Start date/equip/route 

a. ORD-JFK-PVG 

b. LAX-CAN 

b) Payload Capacity 

a. ORD-JFK-CAN 

b. LAX-CAN 

c) Round -trip basis 

d) Routings and Frequencies by Season 

e) Change of Gauge 

Request II. 2 

Express and mail 

Request II. 3 

Aircraft capacity/dedication 

Request II. 4 

a) Aircraft on hand 

b) Current use 

c) FAR Part 36 compliance 

d) Aircraft ownership/financing 

Request II. 5 

Fuel consumption 

Request II. 6 

Current U.S.-China service 

Request II. 7 

Public Interest Benefits 

Requestll.B 

Partial Grant 

Kalitta Air Exhibits and 

Testimony 

KA-101, p.1; T-2 

KA-102, p.1; T-2 

KA-101, p. 2; T-2; KA-202 p. 1 

KA-102, p. 2; T-2; KA-202 pp1-2 

KA-101;102; T-2 

KA-1 01;102; 1 03 

Not proposed 

KA-109 

KA-101, p. 2; KA-102 p. 2; 

KA 109; T-2 

T-1 ;T-2; KA-201 

KA-105; KA-201, p.3 

KA-201 p. 1 

KA-201 p. 2 

KA-104 

KA-301 

KA-110 

KA-107 
DOT -OST -2010-0017 

Cross-Reference 

Page 2 of 2 

KALITTA AIR, L.L.C. 

CROSS-REFERENCE OF EVIDENCE REQUESTS 

TO EXHIBITS (CONTINUED) 

Request for Information and Evidence 

Request II. 9 

No cooperative arrangements 

Request II. 10 

Back-up Award 

Request II. 11 

Frequencies/Routings 

Kalitta Air Exhibits and 

Testimony 

KA-108 

KA-107 

KA-1 01, 102, 1 03 
Exhibit Number 

KA-T-1 

KA-T-2 

KA-T-3 

KA-100 

KA-101 

KA-102 

KA-103 

KA-104 

KA-105 

KA-106 

KA-107 

KA-108 

KA-109 

KA-110 

KA-200 

KA-201 

KA-202 

KA-300 

KA-301 

KA-302 

KALITTA AIR, L.L.C. 

INDEX of 

TESTIMONY and DIRECT EXHIBITS 

Title 

Testimony of Connie Kalitta 

Testimony of D.C. Sanderlin 

Statement Regarding Shipper Support 

Introduction to 100 Series Exhibits 

DOT -OST -2010-0017 

Index 

Page 1 of 1 

Proposed Schedule ORO-JFK-PVG and 

Aircraft Payload Capacity per Flight Segment 

Proposed Schedule LAX-CAN and 

Aircraft Payload Capacity per Flight Segment 

Proposed Scheduled Routes (Schematic) 

Proposed Schedule - Fuel Consumption 

Existing Scheduled Routes - Atlantic and Pacific 

Road Feeder Services - United States, China and Europe 

Statement Concerning Partial Grant and Back-Up 

Statement Concerning Cooperative Arrangements 

Statement Concerning Traffic 

Statement Concerning Public Interest Benefits 

Introduction to 200 Series Exhibits 

Aircraft - Fleet and FAR Part 36 Compliance, Ownership 

and Financing, and Impact of China Service on Existing 

Operations 

Aircraft Specifications - B747-400BCF and B747-200F 

Introduction to 300 Series Exhibits 

Record of Performance in China 

Scheduled Sales Offices - United States and China 
Exhibit KA-T-1 

Testimony of Connie Kalitta 
KALITTA AIR, L.L.C. 

TESTIMONY 

of 

CONNIE KALITTA 

DOT -OST -2010-0017 

Exhibit KA-T-1 

Page 1 of 3 

PRESIDENT and CEO of KALITTA AIR, L.L.C. 

For the second time in less than two years, Kalitta Air finds itself participating in a 

China scheduled all-cargo designation proceeding. As before, we remain the only U.S. 

air carrier that operates its own substantial international scheduled all-cargo operation 

and yet lacks a designation to provide that service between the United States and 

China. Kalitta Air's principal business is not operating aircraft for foreign airlines; nor is 

Kalitta Air a carrier that relies upon AMC charters to sustain its existence. Our airline 

has waited patiently for our turn to enter a market that we know well by virtue of our 

long-standing services from Hong Kong. Shippers, in turn, have had to wait with us. I 

believe that we long ago established our scheduled service bona fides in the 

marketplace. I would ask the Department to open the door for Kalitta Air to enter the 

mainland China scheduled service market this year. 

Kalitta Air's core business has been and remains the sale of cargo lift over 

its own route network, by its own sales force, using its own individual air 

waybills, on its own aircraft, flying under its own call sign, and maintained by its 

own U.S. heavy maintenance base which is staffed with U.S. workers. Nine years 

ago I purchased the key assets and certificates of an international all-cargo airline that I 

had sold to Kitty Hawk several years before. I did this because I saw it as an 

opportunity to establish a reliable, low-cost all-cargo carrier that would focus on carrying 

of high volumes of individually waybilled airport to airport general freight-the core of 

international trade by air. I had watched U.S. scheduled freighter operators lose their 
DOT -OsT -2010-0017 

Exhibit KA-T-1 

Page 2 of 3 

grip on costs and try to compensate either by shifting a greater percentage of their own 

business to their higher priced express or priority services or affiliating themselves with 

a major integrated express airline. This left a market opening for a carrier that 

understood the economics of international all-cargo operations and whose employees 

from bottom to top were committed to operating as safely, efficiently and cost-effectively 

as possible. Since then we concentrated a great deal of effort on making reasonable 

profits from the scheduled air freight equivalent of the coach passenger-forwardertendered freight of all kinds and the accompanying carriage of international mail for the 

U.S. Postal Service. Our performance speaks for itself: 

• Kalitta Air's freighter fleet has grown from two Boeing 747 freighters to a current 

fleet of 21 Boeing 747 freighter aircraft, including three Boeing 747-400BCFs; 

Kalitta has the largest wide-body freighter fleet of the applicants and is the 

only applicant with 747-400F aircraft. (See KA-201) 

• Kalitta Air's 747-400F aircraft, its most modern and efficient freighters, are 

employed in Kalitta Air's own scheduled and charter services; other carriers 

have their most efficient aircraft committed to the needs of their foreign 

airline ACMI or charter customers. 

• Kalitta Air's scheduled, individually waybilled, all-cargo network extends from 

Hong Kong in Asia, across the United States and Europe to Bahrain in the Middle 

East, the only applicant operating its own international scheduled all-cargo 

network. (See KA-105, pp 1-2) 

• Kalitta Air has a well-established scheduled air freight sales force and customer 

support staff in the United States, Asia, Europe, and the Middle East, the only 

applicant with an established operational scheduled air freight sales force. 

(See KA-302) 

• Kalitta Air is financially secure, enjoying substantial cumulative net profits over 

the past four fiscal years, including a net profit (unaudited) of approximately $47 

million for 2009, making it the most profitable applicant. (DOT Forms 41) 

• Kalitta Air operates its own U.S.-based heavy aircraft maintenance shop and 

engine overhaul facility at which it performs its heavy airframe and engine 
DOT -OST -2010-0017 

Exhibit KA-T-1 

Page 3 of 3 

maintenance, employing 857 workers; it is one of the few U.S. airlines and the 

only applicant to make such a maintenance commitment to U.S. workers 

and U.S. jobs. 

• And perhaps most significantly, despite the global economic turndown which hit 

exports from the Far East particularly hard, Kalitta Air did not abandon its 

Chinese market; it operated 303 B-747F flights last year from China (Hong Kong 

and Shanghai) to the United States carrying exclusively U.S.-destined cargo. 

Over the past seven years we have operated 2,556 flights and uplifted more 

than half a billion pounds of freight from China to the U.S. (See KA-301) 

I believe that Kalitta Air's solid financial base, substantial and expanding fleet and 

its long record of successful performance in the China-U.S. scheduled air freight market 

should create a presumption that Kalitta is the applicant most likely to put these 

valuable U.S. route assets to sustained, productive use. Indeed it is the only applicant 

that can point to experience operating an expansive global scheduled, individually 

waybilled air freight network and maintaining the trained marketing, sales and customer 

service teams needed to support it. 

I recently returned from Hong Kong where we held our bi-annual dinner honoring 

our loyal customers from Hong Kong and China. As in the past, I was struck by their 

expressions of gratitude for Kalitta Air's focused commitment to servicing the needs of 

these major shippers, including our continuation of significant levels of regular 

scheduled service during periods, such as early 2009, when other U.S. and foreign 

carriers were abandoning the Hong Kong-U.S. market or severely restricting their 

capacity. They reiterated their desire to see us offer the same type of dependable, fairly 

priced 747 scheduled all-cargo services from Mainland China, and they pledged their 

support. I hope that after such a long effort by Kalitta Air, the Department will see fit to 

grant it the designation - a designation that we have tried our best to earn on the basis 

of our performance in the marketplace. 
Exhibit KA-T-2 

Testimony of D.C. Sanderlin 
KALITTA AIR, L.L.C. 

TESTIMONY 

of 

D.C. SANDERLIN 

VICE PRESIDENT, GENERAL MANAGER 

DOT -OST -2010-0017 

Exhibit KA-T-2 

Page 1 of 7 

Kalitta Air has succeeded in the international scheduled all-cargo business 

because it: (i) offers a time-definite airport to airport general freight and mail services 

upon which the forwarding community and the U.S. Postal Service have come to rely; 

(ii) provides the scheduled sales and customer service needed to support that business; 

and (iii) tightly controls the costs associated with providing this complete package. Its 

proposal in this proceeding follows that established plan. 

A credible proposal for inaugurating scheduled, all cargo service in the ChinaU.S. market must account for several key factors: 

• First, the market is a highly competitive one - customer confidence and 

loyalty are important; 

• Second, the market is imbalanced with eastbound freight demand well above 

westbound; 

• Third, freight yields per kilogram for U.S. exports to China are often only 25% 

of the corresponding yields for import traffic; 

• Fourth, heavy air freight is controlled by the international air freight forwarders 

and carrying their freight means serving gateway airports where these 

forwarders have consolidation and break-bulk facilities; and 

• Fifth, recent changes in U.S.-Asia freighter schedules and routings must be 

considered. 
DOT -OST -2010-0017 

Exhibit KA-T-2 

Page 2 of 7 

Each of these factors was carefully considered in developing Kalitta Air's proposed 

operating plan. 

1. Overview of Kalitta Air's proposed schedule. 

A. Chicago - New York - Shanghai (KA -101) 

Routing: Shanghai - Anchorage - Chicago - New York - Anchorage (where CANdestined traffic from ORO and JFK shippers can be transferred to flight 

K4824) - Shanghai. Serving ORO and JFK on a loop instead of a strict 

linear routing allows us to offload import cargo and board export cargo at 

ORO, eliminating the expense of a second stop at ORO on the westbound 

flight. 

Frequency: Three round trip flights per week. 

Aircraft: B747-400BCF 

Start-up: 

Payload: 

April 1, 2010 or as soon thereafter as requisite authority can be secured. 

The 747-400F aircraft can carry a max payload of 249,876 Ibs over each 

segment on this routing. 

B. Los Angeles - Guangzhou (KA-102) 

Routing: Guangzhou - Khabarovsk (fuel) - Anchorage - Los Angeles - Anchorage 

(where PVG destined traffic from LAX shippers can be transferred to flight 

K4822) - Khabarovsk (fuel) - Guangzhou. 

Frequency: Three round trip flights per week. 

Aircraft: Combination of B-747-400F and -200F aircraft with full transition to -400 

series aircraft as more of this equipment is added to fleet. 

Start-up: April1, 2010 or as soon thereafter as requisite authority can be secured. 
Payload: 

DOT -OST -2010-0017 

Exhibit KA-T-2 

Page 3 of 7 

The 747-400F aircraft can carry a max payload of 249,876 Ibs over each 

segment on this routing and will operate over the route twice weekly. The 

747-200F aircraft can carry a maximum payload of 245,547 Ibs over each 

segment of this routing and will operate once weekly. 

2. Gateway choices are based upon serving the primary forwarder shipping 

lanes. 

A. Shanghai (PVG) 

Shanghai is the primary air freight gateway for the rapidly expanding industries in 

a broad area of Eastern China. The airport handled 63% of China's international trade 

by air in 2007 and it anticipates doubling its air freight throughput by 2015. If not the 

fastest growing airport in the world in terms of freight tonnage, it is certainly among the 

leaders. Kalitta Air has an established presence in Shanghai by virtue of business 

relationships it has developed over the years with Hong Kong-based forwarders who 

control a substantial amount of traffic from PVG. These customers have pledged 

support for the new PVG service. 

Kalitta Air will operate three departures per week between JFK/ORD in the 

United States and PVG, using its B747-400F equipment. The westbound flight over this 

routing, flight K4822, is scheduled so the aircraft's ground time in Anchorage overlaps 

with that of the westbound flight from Los Angeles, flight K4824 (see KA-1 01), 

permitting a cross-loading of the two flights. By doing this, shippers in each of the four 

U.S. gateways 1 have well-timed service on Kalitta Air to PVG and CAN. 

B. Guangzhou (CAN) 

Over the past eight years Kalitta Air has operated almost 2,500 freighter flights 

from the Pearl River Delta region of China to the United States using the HKG gateway, 

1 New York, Chicago, Los Angeles and Anchorage. 
DOT -OST -2010-0017 

Exhibit KA-T-2 

Page 4 of 7 

carrying over 500 million pounds (232 million kgs) of freight from China to the United 

States. (See KA-301). This experience has given the carrier extensive knowledge of 

the market and longstanding business relationships with the major forwarders and 

agents who control a majority of the U.S.-bound traffic from the region. The decision by 

Northwest to cease freighter flights has left a serious gap in U.S. flag service coverage 

for those shippers who tender consolidated freight-of-all-kinds traffic. 

Kalitta Air will operate three departures per week from CAN with B747-400F (2x 

week) and -200F aircraft (1x week) now in its fleet. Service will gradually transition to 

full -400F equipment as additional 747-400 aircraft are added to Kalitta Air's fleet. Each 

aircraft will be routed through Anchorage to Los Angeles. The ANC transload on the 

westbound flight means that a single departure from LAX can carry traffic destined for 

PVG and CAN. 

C. Los Angeles 

Los Angeles will have direct round-trip single plane service three times per week 

to CAN. Utilizing Kalitta Air's cross-load operation in Anchorage, shippers from LAX 

can use these three departures to transport their freight to PVG as well. 

LAX is a freight consolidation and break-bulk point for virtually every major U.S. 

and foreign forwarder shipping consolidated freight over the Pacific and a point at which 

Kalitta Air has operated for years with an established sales force. 

D. Chicago 

As noted above, Chicago will be served by three round-trip flights per week to 

PVG. Again, the Anchorage transload means that Chicago will also receive service to 

CAN. Like LAX, ORD is one of the world's largest forwarder consolidation and break-
DOT -OST -2010-0017 

Exhibit KA-T-2 

Page 5 of 7 

bulk points, and is a city at which Kalitta has provided scheduled service for a number of 

years with a substantial sales force. 

E. New York 

New York serves as a major consolidation and break-bulk point for forwarders in 

the U.S.-Asia market. Service there responds to shipper needs in the New England and 

Middle Atlantic States. It is also a point at which Kalitta Air has operated scheduled 

service for many years with an established sales force. 

F. Kalitta Air's Anchorage Cross-Load Operation 

Several of Kalitta's flights to China from the United States will transit Anchorage 

at the same time with cargo cross-loaded between the two aircraft. It is an efficient and 

proven concept first introduced by The Flying Tiger Line 30 years ago. Because ANC is 

a refueling stop on all Kalitta Air flights to China, the costs associated with the transload 

are relatively small and the added overall time of transit is virtually nonexistent. 

However, the ability to offer export shippers in all our three U.S. gateways-in the East, 

Midwest and West-timely service to both Central and Southern China, enhances the 

benefits that Kalitta Air makes available to U.S. exporters and significantly improves the 

economics of the operation. 

3. Kalitta Air has the sales, marketing and customer service personnel in 

place to make the operation a success. 

The stated business of the other applicant in this proceeding is providing ACMI 

and charter services for other airlines and integrators, as well as operating contract 

operations for the Air Mobility Command. 2 A viable international scheduled all-cargo 

2 Southern's own description of its business is that "The company specializes in long-haul, 

heavy-lift operations for ACMI (aircraft, crew, maintenance and insurance) and charter 

customers." http://www.southernair.com/overview.html 
DOT -OST -2010-0017 

Exhibit KA-T-2 

Page 6 of 7 

service involves far more economic risk and requires a special and quite different set of 

skills. 

Scheduled international freight and mail service requires a cadre of 

knowledgeable individuals experienced in dealing effectively with myriad issues from 

market evaluation and planning to soliciting and booking business, through transit, 

customs clearance, pallet breakdown, delivery, billing and collection and claims for loss 

or damage. In each of these areas, Kalitta Air has some of the most experienced and 

respected individuals in the industry. 

In keeping with its focus of offering the best services on the most economical 

basis, for a number of years Kalitta Air has partnered with experienced, respected sales 

teams in Asia, the United States, Europe and the Middle East to provide these essential 

commercial functions. The scheduled service sales and customer service personnel 

representing Kalitta Air before the shipping public have decades of experience in the 

field of scheduled international air freight/mail, and have been with Kalitta since the 

inception of its scheduled operations in each region. 

4. Kalitta Air's fleet is suited to an efficient US-China service. 

Escalating operating costs place a premium on operating efficient long-range 

freighter aircraft. Fortunately, Kalitta Air has the financial strength to be able to adjust to 

this new environment. Kalitta Air has already acquired and is operating highly efficient 

GE-powered B-747-400F aircraft, the aircraft of choice for virtually all carriers that 

operate scheduled all-cargo flights across the Pacific. 

The only way for a carrier to mount an economically sustainable pattern of cargo 

service between China and the United States is to position itself to capitalize fully on the 

profit opportunity presented in the east-bound market. Because of the low volumes and 
DOT -OST -2010-0017 

Exhibit KA-T-2 

Page 7 of 7 

yields on westbound freight, revenues from the east-bound sectors must cover most of 

the costs of a round trip service. With payload capability of up to 250,000 pounds per 

departure from China, KaliUa Air can take full advantage of the east-bound revenue 

potential. KaliUa Air's recent experience indicates that its full capacity is likely to be 

needed. The mix of fleet proposed will offer approximately 1.5 million pounds of weekly 

capacity in each direction. 

5. Kalitta Air's maintenance base and engine overhaul facility in Michigan 

allows close control over the quality and timing of maintenance on its large 

747F fleet. 

While most U.S. air carriers were closing domestic heavy maintenance facilities 

and sending more and more work off-shore, KaliUa Air moved in an opposite direction. 

It continued to invest in the modernization and expansion of its FAA-award winning 

maintenance facility in Oscoda, Michigan, a facility that now employs 857 highly skilled 

and well-paid U.S. workers. The results have benefited KaliUa Air and the citizens of 

Michigan. 

From KaliUa Air's standpoint, owning its own maintenance facility means that 

senior management can directly control all aspects of the quality of the maintenance on 

its aircraft and engines. In addition, critical aircraft maintenance does not need to be 

scheduled around the time windows that are available at a third-party provider's base, 

nor are our costs affected by shifts in the value of the U.S. dollar against the currency of 

a foreign repair station. 

*** 
Exhibit KA-T-3 

Statement Regarding Shipper 

Support 
KALITTA AIR, L.L.C. 

DOT-OST-2010-0017 

Exhibit KA-T-3 

Page 1 of 6 

STATEMENT REGARDING SHIPPER SUPPORT 

Kalitta Air has a history of scheduled operations and a base of loyal scheduled 

service customers here and in Asia. That base is broad and diverse, ranging from 

some of the largest international forwarders, such as SAX Global, Expeditors, Hellmann 

and "integrated forwarders" such as DHL Global Forwarding and the global air freight 

services of UPS, to smaller family run forwarding companies that specialize in one or 

two international markets. 

Little more than a year ago, in the previous China designation proceeding, Kalitta 

Air submitted a number of letters in support of its application. Those letters were 

submitted for the record in Exhibit KA-304 of that docket (DOT-OST-2008-0127). 

Rather than ask those same shippers to duplicate their effort here and add further to the 

amount of material submitted at this time, we ask that the Department take official 

notice of KA-304 from the previous case. It is worth noting, however, that since these 

letters were submitted, the situation with respect to U.S.-flag all-cargo services from 

China has deteriorated. Northwest's long established all-cargo operations, which had 

been a mainstay of the U.S. carrier presence in the China market for decades, 

terminated at the end of last year. The selection of an experienced all-cargo 

replacement, dedicated to the scheduled freight-of-all-kinds market, has become all the 

more important. 

In their letters, these shippers offered objective, concrete evidence on critical 

DOT decisional criteria. First, they spoke of their own experience with Kalitta's 

performance as a scheduled carrier; and second, they made a commitment of 

commercial support for the new China designation. These same shippers have 

continued to express the same sentiments and commitments in their communications 
DOT -OST -2010-0017 

Exhibit KA-T-3 

Page 2 of 6 

with Kalitta Air. In combination, this evidence buttresses the conclusion that Kalitta Air 

has the experience, personnel, aircraft and financial strength to operate the proposed 

service and will have from the outset the substantial traffic base needed to sustain it. All 

of the language quoted below is from the letters submitted for the record in Exhibit KA304 of DOT-OST-2008-0127. 

BAX Global is a major international forwarding and logistics company that 

transports substantial volumes in both directions between the United States and China. 

It is an established customer of Kalitta Air over both the Pacific and Atlantic. SAX 

Global's letter of support to the Secretary cited specific reasons for urging Kalitta Air's 

selection: 

"First, Kalitta Air has proven that it can operate a sustained, profitable, 

scheduled, individually waybil/ed international all-cargo service. 

Second, Kalitta Air has 'staying power. ' It has operated regular scheduled service 

flights over the Pacific from Hong Kong at high weekly frequencies for six years 

and it has operated from the United States to Europe and the Middle East for 

almost that long. 

Third, Kalitta Air understands scheduled air freight and the scheduled air freight 

needs of the forwarder community. 

Fourth, Kalitta Air has been consistently profitable and is financially sound. It can 

weather a period of start-up challenges. 

Fifth, Kalitta Air has consistently upgraded both its fleet and its maintenance 

base. It has added 8747-400 freighter aircraft and is said to be negotiating for 

more. 

Sixth, Kalitta Air has an experienced scheduled service sales and customer 

service team in place in China and in the United States. We have worked with 

these individuals and respect their competence. 

Finally, in Kalitta Air the forwarding industry has a carrier that can replace the 

services to China that are being terminated by Northwest and the Polar services 
DOT -OST -2010-0017 

Exhibit KA-T-3 

Page 3 of 6 

in China that DHL is now converting to its own purposes, routings and 

schedules. " 

Expeditors International, another major global forwarding enterprise, uses 

Kalitta's "scheduled service to Europe and is a very large customer of yours in Hong 

Kong .... You have earned our admiration." After citing Kalitta Air's commitment to 

modernizing and expanding its fleet, and expressing confidence in Kalitta Air's ability to 

start-up and continue China services under current trying conditions, Expeditors' Senior 

Vice President - Global Air Cargo promised that "when you begin service to/from 

Shanghai and Guangzhou, you can count on us to support you with significant cargo 

traffic in those markets .... We need Kalitta Air in the China market. " 

Hellmann Worldwide Logistics, Ltd. is another large international forwarder 

that ships substantial volumes of freight from Shanghai and Guangzhou to the United 

States. It is one of our largest customers in Hong Kong, and Hellmann's President and 

CEO for Greater China spoke from years of experience in praising Kalitta Air's 

scheduled service staff both in Hong Kong and in the United States, and noting the 

"prompt and excellent customer service we receive in both locations." He states the 

desire of his company to "move a large percentage of that (Shanghai and Guangzhou) 

traffic on Kalitta Air, just as we do today from Hong Kong. " 

Unique Logistics International is another long-term scheduled service 

customer of Kalitta Air. It has offices in 16 cities in China and in 2007, shipped over 

20.3 million kilograms of airfreight from China and Hong Kong to the United States. 

Unique relies on Kalitta Air "for the simple reason that it has proven itself in the 

marketplace as an excellent cargo airline ... .[andJ [oJf U.S. carriers that have served 

Hong Kong over the past eight years, not one understands the general air freight market 

better than Kalitta Air and none have served it as consistently and well .... We have been 

waiting for the day when Kalitta Air can inaugurate scheduled service from these points 
DOT -05T -2010-0017 

Exhibit KA-T-3 

Page 4 of6 

(Shanghai and Guangzhou) so that we can do business from there with our preferred 

airline partner. " 

GoodOne Express Limited, is another large Hong Kong Chinese forwarder with 

expanding operations in Guangzhou and Shanghai. Mr. Yip of GoodOne Express 

"Iook(s) forward to the day when Kalitta Air's scheduled service is available to us not 

only from Hong Kong but from Shanghai and Guangzhou as well!" And, he explains 

why: "they know what we need, they can respond quickly to last minute requirements 

and they provide excellent follow-up once the flight departs HKG. We have no doubt 

that Kalitta Air will provide us with the same great service on flights from CAN and 

PVG." 

Easyway Air Freight Ltd. a Hong Kong company that is rapidly expanding into 

Guangzhou and Shanghai, cites that "only Kalitta has a proven record of providing firstrate, dependable scheduled service" lift to the region "year after year," and that "Kalitta 

Air's Hong Kong services have become indispensable to us and to our 

shipper !customers .... Your company understands the meaning of the word 'commitment' 

and your customers are grateful for that. Now I want to make a commitment to you: you 

can count on our company's strong commercial support from the very first flight you 

operate under new China authority." 

In its letter, OHL Global Forwarding confirms that "Kalitta Air has demonstrated 

its ability to grow steadily and efficiently while at the same time continually improving its 

high degree of service and customer support in [its] scheduled service 

operations .... Kalitta Air can count on us for significant commercial support for its new 

China routes." 
DOT -OST -2010-0017 

Exhibit KA-T-3 

Page 5 of 6 

UPS, while it is unusual for it to lend its support to the designation request of 

another carrier, reports having watched as Kalitta Air built its Hong Kong scheduled 

operations to "impressive levels" and thinks that we "are likely to have the same type of 

focused success in the heavy freight field if authorized to serve CAN and PVG." 

In a letter to the Secretary, BAL Trans Logistics noted that Kalitta Air has 

"proven its dedication and capabilities" in scheduled international air freight and 

promises that Kalitta Air "will have our support from the outset." 

Morrison Express, a substantial forwarder in the U.S.-China market that 

strongly supported our application, noted the need for a U.S. general freight carrier in 

the U.S.-China market as well as a concern that the carrier selected might turn out to be 

"unwilling or unable" to commence service. "A carrier's past record of scheduled service 

performance is particularly important." 

Support from major global forwarders such as those quoted above is essential to 

a successful scheduled service operation. But Kalitta Air has found that the key to 

meaningful sustained profits lies in the ability to win the support of medium size 

forwarders who often specialize in just a few markets and commodities. Again, Kalitta 

Air has worked to establish a reputation among these shippers. 

ABLE Freight Services specializes in the air shipment of goods to China and 

Hong Kong. It cites our relationship with and our reputation among the freight 

forwarding and freight agency communities, founded on Kalitta's loyalty to those 

shippers. "Kalitta Air understands the China airfreight market better than most." 

AE Eagle Cargo notes a number of reasons why it urges the Department to 

select Kalitta Air, including that Kalitta's "sales personnel here and in Asia speak 
DOT -05T -2010-0017 

Exhibit KA-T-3 

Page 6 of 6 

Mandarin and Cantonese" as well as its record and its commitment to upgrading its fleet 

with -400 series aircraft. 

A-Link Freight, Inc. supports Kalitta Air because "we cannot risk our reputation 

by entrusting our customers' freight to an 'unknown quantity' or make transportation 

plans in reliance on an airline that might not start the promised service." 

Strong sentiments were expressed by Inter Pacific Express Inc. "I know of no 

carrier other than Kalitta that has the experience, the proven sales staff and the 

reputation for dependable, reliable scheduled service that will be needed to succeed 

... against the competition that is already there." 

Kalitta Air did not make an effort in the previous case to present large numbers of 

support letters. Instead, we asked for letters from a small but representative crosssection of customers who we believed understood both the market and our carrier and 

who were willing to express their thoughts on each to the Department. If nothing else, 

these letters demonstrated then and now that Kalitta Air has won the loyalty of shippers 

large and small and that it can count on traffic support from the outset of its new 

scheduled China frequencies. 

*** 
Exhibit KA-1 00 

Introduction to 100 Series Exhibits 
KALITTA AIR, L.L.C. 

DOT -OST -2010-0017 

Exhibit KA-100 

Page 1 of 2 

INTRODUCTION TO 100 SERIES EXHIBITS 

These exhibits describe the scheduled service proposals of Kalitta Air and 

provide specific information concerning the proposals that have been requested of 

applicants by DOT. 

The first pages of Exhibits KA-101 and 102 are the round-trip schedules in both 

UTC and local times. The second page of each exhibit shows available payload over 

each segment. KA-103 presents the total route proposal in schematic form. Estimated 

fuel consumption is contained in KA-104. 

The proposal and related exhibits are based upon three round-trip flights per 

week over both routings. If the market strengthens over coming months, Kalitta Air is 

prepared to increase its services to as many as five flights per week over these routes 

in the fourth quarter. Should it see market demand rise, Kalitta Air will file a separate 

application for additional frequencies to increase its scheduled services, providing, of 

course, that unused cargo frequencies are then available from the pool. 

Kalitta Air's current international, individually waybilled scheduled air freight 

services are set out in schematic form in KA-105. Page 1 shows current transatlantic 

services; page 2 lays out the current transpacific operations. All services are Kalitta 

Air's; they are not wet lease or charter services performed on behalf of another air 

carrier. Road feeder service over existing and proposed gateways in both China and 

the United States is set forth in KA-106. 

The Department has requested applicants to state their willingness to accept a 

partial grant of the authority requested or a back-up award, a description of any 
DOT-OST-2010-0017 

Exhibit KA-100 

Page 2 of 2 

cooperative arrangements proposed with respect to the applied for rights, and a 

breakdown of traffic among freight, express and mail. 

Kalitta Air's responses are in KA-107 through KA-109 respectively. KA-110 is a 

statement of the public benefits that would follow from an award to Kalitta Air. 

*** 
Exhibit KA-1 01 

Proposed Schedule ORO-JFK-PVG 

and Aircraft Payload Capacity per 

Flight Segment 
FIt. # 

345 K4822 

567 K4829 

KALITTA AIR, L.L.C. 

PROPOSED SCHEDULE 

ORD/JFK/PVG 

DOT -OST -2010-0017 

Exhibit KA-101 

Page 1 of 2 

(Start-up until Winter Schedule 2010/11) 

Depart 

(UTC) (LCL) 

JFK 2215 1815 

ANC 1040 0240 

PVG 2200 0600 

ANC 0900 0100 

ORO 1645 1145 

Arrive 

(UTC) (LCL) 

ANC 0530 2130 

PVG 1940 0340 

ANC 0700 2300 

ORO 1445 

JFK 1900 

0945 

1500 

Note: K4822 will originate in ORO on day 3 at 1645 (UTC) and depart JFK for ANC at 

2215 (UTC). All flights will be operated with B747-400BCF aircraft. Service will be 

inaugurated April 2, 2010 or, if all government authorizations necessary to commence 

service are not issued to Kalitta Air by that date, then as soon as possible after such 

authorizations are issued. 
Flight Segment 

JFK -ANC 

ANC-PVG 

PVG-ANC 

ANC-ORO 

ORO-JFK 

KALITTA AIR, L.L.C. 

PROPOSED SCHEDULE 

ORD/JFKlPVG 

DOT -OST -2010-0017 

Exhibit KA-101 

Page 2 of 2 

Aircraft Payload Capacity per Flight Segment 

Total available alc payload capacity (lbs)1 

249,826 

249,826 

249,826 

249,826 

249,826 

Note: Entire capacity of the aircraft over these sectors will be dedicated to freight 

moving between China and the United States. 

1 Inclusive of tare. 
Exhibit KA-1 02 

Proposed Schedule LAX-CAN 

and Aircraft Payload Capacity per 

Flight Segment 
DOT -OST -2010-0017 

Exhibit KA-102 

Page 1 of 2 

KALITTA AIR, L.L.C. 

PROPOSED SCHEDULE 

LAX/CAN 

(Start-up until Winter Schedule 2010/11) 

Days FIt. # Depart 6rrive 

(UTC} (LCL} (UTC} (LCL} 

345 K4824 LAX 2345 1645 ANC1 0500+1 2100 

ANC 0700+1 2300 KHV2 1315+1 0015+2 

KHV 1445+1 0215+2 CAN 2030+1 0430+2 

567 K4831 CAN 2330 0730+1 KHV3 0430+1 1530+1 

KHV 0600+1 1700+1 ANC 1200+1 0400+1 

ANC 1400+1 0600+1 LAX 1845+1 1145+1 

Note: All flights to be initially operated with B747-400F and -200F; one flight per week 

with a -200F and two flights with -400F aircraft, transitioning to all 747-400F aircraft as 

more of this series aircraft are added to the fleet. 

1 Transload available to K4822 for shipments destined to PVG. 

2 Fuel only when westbound load factors are sufficiently high to preclude operating ANC-CAN 

non-stop. 

3 Eastbound stop - fuel only. 
Flight Segment 

LAX-ANC 

ANC-KHV (fuel) 

KHV-CAN 

CAN-KHV (fuel) 

KHV-ANC 

ANC-LAX 

KALITTA AIR, L.L.C. 

PROPOSED SCHEDULE 

LAXICAN 

DOT -OST -2010-0017 

Exhibit KA-102 

Page 2 of 2 

Aircraft Payload Capacity per Flight Segment 

Total available alc payload capacity (lbs)1 

747-400F 747-200F 

249,826 245,547 

249,826 245,547 

249,826 245,547 

249,826 245,547 

249,826 245,547 

249,826 245,547 

Note: Entire capacity of the aircraft over these sectors will be dedicated to freight 

moving between the China and the United States. 

1 Inclusive of tare. 
Exhibit KA-1 03 

Proposed Scheduled Routes 

(Schematic) 
KALITTA AIR, L.L.C. 

PROPOSED SCHEDULED INDIVIDUALLY WAYBILLED ROUTES 

(Schematic) 

DOT -OST -2010-0017 

Exhibit KA-103 

Page 1 of 1 

Note: Three rlt flightslweek over the ORD-JFK-ANC-PVG routing (designated in blue) and three rlt flights weekly over the LAX-ANCCAN (designated in green) routing with transload between the two flights at ANC. KHV is for fuel only. This frequency level over 

both routings is anticipated to increase beginning in the fourth quarter of 2010, if frequencies are then available. 
Exhibit KA-1 04 

Proposed Schedule -

Fuel Consumption 
Docket DOT-OST-2010-0017 

Exhibit KA-104 

Page 1 of 1 

KALITTA AIR, L.L.C. 

PROPOSED SCHEDULE 

ESTIMATED FUEL CONSUMPTION1 

Total fuel consumption US-PVG routing: 

Total fuel consumption US-CAN routing: 

Total fuel consumption both routings: 

16,312,500 gallons/year (747-400BCF) 

9,756,600 gallons/year (747-400BCF) 

5,802,800 gallons/year (747-200F) 

31,871,900 gallons/year 

Kalitta Air does not anticipate any difficulty in obtaining fuel from normal suppliers 

in the quantities necessary to operate the schedules proposed in the proceeding. 

1 Assumes normally reduced freighter schedules during Chinese and U.S. production holiday 

periods. 
Exhibit KA-1 05 

Existing Scheduled Routes -

Atlantic and Pacific 
KALITTA AIR, L.L.C. 

DOT-OST-2010-0017 

Exhibit KA-105 

Page 1 of 2 

EXISTING SCHEDULED INDIVIDUALLY WAYBILLED ALL-CARGO ROUTES 

(Schematic) 

ATLANTIC 

New York (EWR and JF 

NOTE: The core schedule is eight departures per week from New York. However, because of mail 

and freight demand, particularly to the Middle East, at least three extra sections per week are usually 

also operated and returned via the Pacific. 
KALITTA AIR, L.L.C. 

DOT-OST -2010-0017 

Exhibit KA-105 

Page 2 of2 

EXISTING SCHEDULED INDIVIDUALLY WAYBILLED ALL-CARGO ROUTES 

(Schematic) 

PACIFIC 

Khabarovsk (KHV i 

ew York (JFK)I :;> 

Columbus (LCK 

IHong Kong (HKG)I 

NOTE: Current frequencies are six scheduled service departures per week from HKG. In the 

second half of the year scheduled departures from Hong Kong can average from 10 to 20 flights 

per week. KHV is fuel only and is subject to change to other points depending upon relative price 

of fuel at each potential refueling location. 
Exhibit KA-1 06 

Road Feeder Services -

United States, China and Europe 
KALITTA AIR, L.L.C. 

DOT-OST-2010-0017 

KA-106 

Page 1 of 3 

MAJOR CONNECTING ROAD FEEDER SERVICES 

NORTH AMERICA 

Airport Trucking available to and from: 

Chicago (ORO) Cleveland Akron 

Charlotte Columbus 

Houston St. Louis 

I nd ianapolis Milwaukee 

Denver Kansas City 

Omaha Minneapolis 

Orlando Miami 

Montgomery Birmingham 

Huntsville New Orleans 

Houston Baton Rouge 

Los Angeles (LAX) San Diego Riverside 

San Francisco Sacramento 

San Jose Oakland 

Las Vegas Phoenix 

Tucson Dallas 

Houston Albuquerque 

Salt Lake City Portland 

Seattle Denver 

New York (EWR/JFK) Portland Boston 

Hartford Providence 

Philadelphia Pittsburgh 

Washington Richmond 

Buffalo Baltimore 

Charlotte Richmond 

Memphis Miami 

Raleigh Durham Norfolk 

Greensboro Colombia 
KALITTA AIR, L.L.C. 

DOT -OST -2010-0017 

KA-106 

Page 2 of 3 

MAJOR CONNECTING ROAD FEEDER SERVICES 

CHINA 

Airport 

Guangzhou (CAN) 

Shanghai (PVG) 

Trucking available to and from: 

Foshan 

Panyu 

Shunde 

Zhongshan 

Doumen 

Macao 

Dongguan 

Longhua 

Shenzhen 

Tangxia 

Yentian 

Huizhou 

Nanjing 

Wuxi 

Zhenjiang 

Shaoxing 

Hangzhou 

Nanhai 

Huangpu 

Jiangmen 

Zuhai 

Xinhui 

Hong Kong 

Baoan 

Longgang 

Buji 

Changan 

Shekao 

Kunshan 

Changzhou 

Ningbo 

Xiaoshan 
KALITTA AIR, L.L.C. 

DOT -OST -2010-0017 

KA-106 

Page 3 of 3 

MAJOR CONNECTING ROAD FEEDER SERVICES 

EUROPE and MIDDLE EAST 

Airport 

Liege (LGG) and 

Amsterdam (AMS) 

Manama, Bahrain (BAH) 

Trucking available to and from: 

Copenhagen 

Hamburg 

Warsaw 

Frankfurt 

Vienna 

Budapest 

Zurich 

Brussels 

Stuttgart 

Augsburg 

Marseilles 

Turin 

Essen 

Madrid 

Lisbon 

AI-Kuwayt, Kuwait 

Doha, Qatar 

Stockholm 

Bremen 

Berlin 

Munich 

Prague 

Gothenburg 

Geneva 

Cologne 

Paris 

Lyon 

Milan 

Rome 

Barcelona 

Antwerp 

Amsterdam 

Riyadh, Saudi Arabia 

Abu Dhabi, U.A.E. 

Muscat, Oman 

Dubai, U.A.E. 
Exhibit KA-1 07 

Statement Concerning Partial Grant 
KALITTA AIR, L.L.C. 

DOT -OST -2010-0017 

Exhibit KA-107 

Page 1 of 1 

STATEMENT CONCERNING PARTIAL GRANT and BACK-UP 

Kalitta Air has requested six of the available round-trip frequencies to operate its 

proposed US-China services. 1 Considering the frequencies available and the public 

benefits flowing from the use of six of them by Kalitta Air, we hope that the Department 

will see fit to grant the application in its entirety. 

Kalitta Air is prepared to accept fewer than six weekly frequencies if the 

Department concludes that such a restricted allocation is in the public interest. We 

would urge the Department to keep in mind that a total allocation of fewer than six 

frequencies per week would render Kalitta Air less competitive with the incumbent 

Chinese, U.S. and third-country carriers already serving the market. 

Kalitta Air received back-up authority in the previous China designation 

proceeding and strongly believes that the record establishes why it should receive the 

primary award here. It WOUld, however, accept a back-up award should the Department 

not issue it a primary award. 

*** 

1 Kalitta Air expects that market strengthening later in 2010 will warrant an increase in 

scheduled frequencies over one or both routes in the fourth quarter. Should that forecast prove 

accurate, Kalitta Air would request additional frequencies from the pool of those available at the 

time. 
Exhibit KA-1 08 

Statement Concerning 

Cooperative Arrangements 
KALITTA AIR, LLC. 

DOT -OST -2010-0017 

KA-108 

Page 1 of 1 

CURRENT AND PROPOSED COOPERATIVE ARRANGEMENTS 

Kalitta Air has no current or proposed cooperative arrangements, code 

share arrangements or ACMl/charter arrangements with any other U.S. or foreign 

airline in any of the markets for which it seeks designation and allocations in this 

proceeding. 

*** 
Exhibit KA-1 09 

Statement Concerning Traffic 
KALITTA AIR, L.L.C. 

STATEMENT CONCERNING TRAFFIC 

DOT - OST -2010-0017 

Exhibit KA-109 

Page 1 of 1 

Given the frequencies and elapsed times of its proposed U.S.-Shanghai and 

U.S.-Guangzhou flights, Kalitta Air believes that its forwarder customers will rely upon 

Kalitta Air to transport a significant amount of their "priority" or "express" freight moving 

over these sectors. Thus, we would estimate that approximately 8% of the general 

freight traffic we receive will actually consist of shipments for which the forwarder's 

customer is receiving an express-type service from the forwarder. 

Mail is estimated to constitute approximately 1.5% of total cargo on the U.S.-CAN 

flights and approximately 1 % of the total cargo on the U.S.-PVG flights. 

All of the Kalitta Air departures from PVG and CAN will exclusively carry cargo 

that is destined for the United States; shippers from each Chinese gateway will have 

access to the full aircraft capacity. Similarly, U.S. exporters to China will have all of the 

westbound capacity available for their use. 
Exhibit KA-11 a 

Statement Concerning 

Public Interest Benefits 
KALITTA AIR, L.L.C. 

DOT -OST -2010-0017 

Exhibit KA-11 0 

Page 1 of 2 

PUBLIC INTEREST BENEFITS OF PROPOSED SERVICE 

1. Kalitta Air's proposal offers the broadest market coverage in both the 

United States and China, connecting the three largest U.S. gateways with 

the two largest commercial centers in China. 

Kalitta Air's proposal would provide competitive wide body B747-400F scheduled 

service between Los Angeles, Chicago, New York and Anchorage in the United States 

and the two premier China production centers, Shanghai and Guangzhou. Kalitta Air's 

flights from the Midwest and East are scheduled to transit Anchorage westbound at the 

same time so that freight can be cross-loaded between the two flights. This means that 

U.S. exporters from each of the U.S. gateways can tender to Kalitta Air cargo that is 

bound for both Shanghai and Guangzhou. 

2. Kalitta Air's proposal offers shippers the most capacity by operating the 

largest capacity aircraft. 

Kalitta Air's proposal calls for all of its frequencies to be operated with B74 7 

aircraft. Five of the six weekly initial frequencies will be operated with B747-400 

freighters; the sixth will be with a B747-200F. Under Kalitta Air's proposal 

approximately 1.5 million pounds of weekly capacity in each direction would be made 

available to U.S. exporters and importers (see KA-202). 

3. Kalitta Air would restore U.S. flag scheduled heavy freight service to 

Guangzhou. 

Since Northwest's withdrawal from the freighter market, Guangzhou has been 

without U.S. flag scheduled heavy freight service. Kalitta Air's service would provide 

U.S. exporters and importers with access to a cost effective alternative to the U.S. 

express carriers now serving CAN. As noted in Paragraph 1 above, because of the 

cross load between the two Kalitta aircraft at ANC, U.S. shippers from the East, 

Midwest, and West are offered service to both Shanghai and Guangzhou. 
DOT -OST -2010-0017 

Exhibit KA-11 0 

Page 2 of 2 

4. Kalitta Air offers the public established teams of scheduled sales and 

customer support personnel in both the United States and Asia. 

Kalitta Air has, for many years, maintained experienced scheduled service sales 

and customer support teams in Los Angeles, Chicago and New York (see KA-302). 

The personnel are well known to local shippers and importers and are available 24/7 to 

assist in resolving any of a number of potential issues ranging from customs issues to 

securing trucking services. From the public standpoint, having these experienced 

individuals available is important. Because Kalitta Air has these assets in place, it will 

not be saddled with the additional costs associated with developing these capabilities. 

That, in turn, will allow Kalitta Air to keep its rates at fair and competitive levels. 

Similarly, Kalitta Air has highly skilled scheduled air freight sales and support 

personnel already in place in Asia (see KA-302, page 2). These individuals work with 

most of the major shippers from both Guangzhou and Shanghai on an almost daily 

basis. 

5. Kalitta Air's 747-400F aircraft are dedicated to its own service, not 

committed to another carrier. 

Kalitta Air's aircraft were acquired largely for the purpose of being employed in 

Kalitta's own U.S.-Asia operations. They are not encumbered with ACMI, or ACMI-like 

blocked space commitments with foreign air carriers. Because of this, the ability of 

Kalitta Air instituting and maintaining the service proposed is not compromised. 

6. Kalitta Air's selection would best support United States Government efforts 

to expand U.S. employment. 

Of the two applicants, Kalitta Air, with its established scheduled air freight 

services from the United States and its established sales and customer service offices 

supporting U.S. originating shipments is the most likely to inaugurate and maintain the 

United States to Asia flights that will support U.S. manufactured exports and their 

related jobs. In addition, Kalitta Air is committed to performing heavy airframe and 

engine maintenance on its fleet at its own maintenance center in Oscoda, Michigan. 

Growing its presence in Asia will allow Kalitta Air to expand that already substantial 

facility and the almost 900 well-paying jobs it already provides. 
Exhibit KA-200 

Introduction to 200 Series Exhibits 
KALITTA AIR, L.L.C. 

DOT -OST -2010-0017 

Exhibit KA-200 

Page 1 of 1 

INTRODUCTION TO 200 SERIES EXHIBITS 

The 200 series of exhibits contain information on Kalitta Air's aircraft fleet, all of 

which are owned by the company (see KA-201, p.2). The aircraft dedicated to the 

services proposed herein will be Boeing 747-400F and747-200F (70 power) aircraft 

listed in these exhibits and other 747 -400F equipment that Kalitta Air may acquire in the 

future. 1 Because of the substantial size of Kalitta's fleet and the acquisition of the new 

747-400BCF, operating the schedules to and from China that are proposed in this 

proceeding will not affect any of Kalitta Air's other scheduled, charter or AMC flying. In 

addition, Kalitta Air remains actively engaged in seeking to acquire additional 747-400F 

aircraft and, although this proposal conservatively assumes no additional aircraft, it is 

probable that more will be added to the fleet over the remainder of 2010. 

The specifications of the Kalitta Air B747-400 and B747-200 (70 powered) 

freighter aircraft are set out in KA-202. 

The Kalitta Air fleet is maintained at the company's heavy aircraft maintenance 

facility and engine overhaul shop in Oscoda, Michigan. These facilities employ 857 

mechanics and workers and are major contributors to the State of Michigan's economy. 

*** 

1 As noted in KA-201, the 747-100F aircraft owned by Kalitta Air are dedicated to domestic and 

charter activities. 
Exhibit KA-201 

Aircraft -

Fleet and FAR Part 36 Compliance, 

Ownership and Financing, and 

Impact of China Service on Existing 

Operations 
KALITTA AIR, L.L.C. 

AIRCRAFT 

Kalitta Air's Fleet 

DOT -OST -2010-0017 

Exhibit KA-201 

Page 1 of 3 

The aircraft needed to operate the services proposed in this proceeding are 

currently in the Kalitta Air fleet and are being used throughout its system today. All of 

the aircraft proposed to be used are FAR Part 36-compliant. The Kalitta Air widebodied freighter fleet consists of: 

Aircraft Type 

Boeing 747-400F aircraft 

Boeing 747 -200F aircraft 

Boeing 747-100F aircraft1 

*** 

Owned 

3 

14 

4 

Leased 

1 The 747-100 fleet is utilized in domestic and charter all-cargo operations; these aircraft are not 

planned to be used in any scheduled international operations proposed in this proceeding. 
KALITTA AIR, L.L.C. 

AIRCRAFT 

Ownership and Financing 

DOT -OST -2010-0017 

Exhibit KA-201 

Page 2 of 3 

All of the B74 7 -200 and -100 series aircraft in the Kalitta Air fleet are owned by 

the airline free and clear of any debt or lease obligation. 

The B-747-400BCF aircraft are owned by Kalitta Air, which arranged financing 

with GE for a portion of the purchase price. 

If Kalitta Air deems it prudent to finance acquisition of additional B747-400F 

aircraft in 2010, it anticipates that it will have no difficulty in securing such financing on 

reasonable terms given its strong balance sheet and sustained profitability. 

*** 
KALITTA AIR, L.L.C. 

AIRCRAFT 

DOT-OST-2010-0017 

Exhibit KA-201 

Page 3 of 3 

Kalitta Air's Proposed China Service Will Not Affect Existing Operations 

The size of the Kalitta Air fleet of B747-400F and -200F aircraft gives the carrier 

a good deal of scheduling latitude and available aircraft time. Operating the U.S.-China 

schedules proposed by Kalitta Air in this proceeding would have no adverse effect on 

any other of the carrier's existing or planned air transportation services for 2010 and 

beyond. Consequently, no such services would need to be terminated or reduced. 

*** 
Exhibit KA-202 

Aircraft Specifications 

B747-400BCF and 

B747-200F 
KALITTA AIR, L.L.C. 

AIRCRAFT SPECIFICATIONS 

DOT -OST -2010-0017 

Exhibit KA-202 

Page 1 of 2 

Boeing 747-400BCF (GECF6-80C2 B1F power) 

Maximum Payload: 249,8761bs 

Cargo compartment (Main Deck): 20,464 cubic feet. 

ULD Capacity (Main Deck): 30 (96x125 in) 

Lower aft compartment: 4,498 cubic feet 

Lower bulk compartment: 835 cubic feet 

Container capacity lower deck: 9 (88x125 in) 

Cruising speed: 567 mph 

Maximum payload range: 4,100 miles 

Main Cargo door opening: 120x134 inches 

Lower cargo compartment doors: 64x125 inches 
KALITTA AIR, L.L.C. 

AIRCRAFT SPECIFICATIONS 

Boeing 747-200F (JT90-7Q power) 

Maximum Payload: 245,5471bs 

Cargo compartment (Main Deck): 20,310 cubic feet. 

ULD Capacity (Main Deck): 29 (96x125 in) 

Lower aft compartment: 2,400 cubic feet 

Lower bulk compartment: 795 cubic feet 

Container capacity lower deck: 9 (88x125 in) 

Cruising speed: 575 mph 

Maximum payload range: 3,608 miles 

Main Cargo door opening: 120x134 inches 

Lower cargo compartment doors: 64x125 inches 

DOT -OST -2010-0017 

KA-202 

Page 2 of 2 
Exhibit KA-300 

Introduction to 300 Series Exhibits 
KALITTA AIR, L.L.C. 

DOT -OST -2010-0017 

Exhibit KA-300 

Page 1 of 1 

INTRODUCTION TO 300 SERIES EXHIBITS 

Exhibit KA-301 catalogues Kalitta Air's performance in China and its current 

levels of scheduled service (see KA-301, p.2). 

Because of its existing scheduled service operations (see KA-105), Kalitta Air 

has a well established scheduled service sales presence in the United States and in 

China (HK). The locations of those offices and the locations in Shanghai and 

Guangzhou where scheduled sales offices will be opened following an award to Kalitta 

Air in this proceeding are listed in Exhibit KA-302. Pictures of Kalitta Air's sales offices 

in Hong Kong, which will serve as the head office for China sales, are included in that 

exhibit. 

In the 2009 U.S.-China All-Cargo Designation and Frequency Allocation 

Proceeding (DOT-OST-200B-0127), Kalitta Air entered into evidence a number of letters 

from major shippers both in the United States and China. (See KA-304 in that 

proceeding.) Those letters were from forwarders explaining in some detail why, from 

their perspective, they believe that Kalitta Air represents the ideal choice of carrier for a 

China designation. Rather than ask these shipper's to duplicate their efforts, we ask the 

Department to take official notice of those letters and the various reasons why they 

support Kalitta Air. 
Exhibit KA-301 

Record of Performance in China 
KALITTA AIR, L.L.C. 

DOT -OST -2010-0017 

Exhibit KA-301 

Page 1 of 2 

KALITTA AIR'S RECORD OF PERFORMANCE IN CHINA 2002 TO DATE1 

Hong Kong to US Shanghai to US 

Year(s) No. of Flights Cargo uplifted (kgs) No. of Flights Cargo uplifted (kgs) 

2002 182 16,014,242 

2003 155 14,652,252 

2004 370 34,686,438 31 2,893,503 

2005 371 35,184,421 

2006 353 33,919,679 7 640,666 

2007 427 41,079,035 21 1,917,345 

2008 284 27,850,097 10 929,916 

2009 297 29,391,181 6 566,223 

2010 (thru 2/14) 38 3,759,488 4 392,673 

*** 

Total Kalitta Air 8747 freighter flights from China to US 2002 to date: 2,556 flights 

Total cargo transported from China to the US 2002 to date: 242,381,020 kgs 

(533,238,244 Ibs.) 

Source: Company records. All flights operated with B747 freighter aircraft. None of 

these flights were operated for or on behalf of another air carrier or foreign air carrier. 

1 Flights operated up to 14 February 2010. 
KALITTA AIR, L.L.C. 

DOT -OST -2010-0017 

Exhibit KA-301 

Page 2 of 2 

KALITTA AIR'S CURRENT CHINA SERVICE 

Kalitta Air operated an average of over six scheduled flights per week between 

Hong Kong and the United States from 1 January 2010 up until the production break for 

the Lunar New Year holidays, beginning 14 February. Kalitta Air will resume the six 

flights per week schedule effective 22 February, matching the resumption of traffic flows 

following the holidays. In addition, extra sections are routinely offered to accommodate 

demand. 

From mainland China, Kalitta remains limited to charter services but has 

operated four such flights since 1 January 2010. 

*** 
KALITTA AIR, L.L.C. 

ON-LINE SCHEDULED SALES OFFICES 

Los Angeles: 

20321 SW Acacia St. Suite 220 

Newport Beach, CA 92660 

and 

400 Continental Blvd. 

6th Floor 

EI Segundo, CA 90245 

Chicago: 

4849 Scott Street 

Suite 120 

Schiller Park, IL 60176 

New York: 

Building 9 

JFK International Airport 

Jamaica, New York 11430 

United States 

DOT -OST -2010-0017 

Exhibit KA-302 

Page 1 of 4 
KALITTA AIR, L.L.C. 

ON-LINE SCHEDULED SALES OFFICES 

China and Hong Kong: 

Management Office: 

Room 402, 4th Floor 

Wing On Plaza 

No. 62, Mody Road 

Tsimshatsui, Kowloon 

HONG KONG 

Airport Office: 

Room 708, 7th Floor 

Asia Airfreight Terminal 

Chun Ping Road 

Chek Lap Kok, Lantau 

HONG KONG 

Shanghai: 

No. 328, Haitian Road 

Pudong International Airport 

201202 Shanghai, PRC 

Guangzhou: 

Room 2420-22 

Guangbai Xinyi Building 

510030 Guangzhou, PRC 

China 

DOT -OST -2010-0017 

Exhibit KA-302 

Page 2 of 4 

Note: In Shanghai and Guangzhou, Kalitta Air has a commitment from Hellman to 

provide the temporary offices as shown above while it negotiates for the lease of 

permanent office space in both cities. 
Kalitta Air Downtown HK Sales Office 

DOT-OST-2010-0017 

Exhibit KA-302 

Page 3 of 4 
Kalitta Air Downtown Sales Office - HKG 

Kalitta Air Downtown Sales Office - HKG 

OOT-05T-2010-0017 

Exhibit KA-302 

Page 4 of 4