In the Matterof BEFORETHE DEPARTMENTOF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. ) ) 2010 U.S.-CHINAALL-CARGO DESIGNATION AND FREQUENCY ALLOCATION PROCEEDING ) Docket DOT-OST-2010-0017 ) ) )
RESPONSE OF KALITTAAIR, L.L.C. TO REQUEST FOR EVIDENCEAND SUBMISSION OFADDITIONAL EVIDENCE IN SUPPORTOF APPLICATION

Communicationswith respecttothis documentshould be addressed to:

February22, 2010 MarkW. Atwood Elizabeth J. Wadsworth Sher& Blackwell, LLP 1850 M St., N.W. Washington, D.C. 20036 (202) 463-2513 Counselfor

Kalitta Air, L.L.C.

NOTE: Any party may respond to this submission byfiling an answer in the above docketand serving a copy upon all persons on the attached service list. Answers are due not laterthan March 3, 2010.In the Matterof BEFORE THE DEPARTMENT OF TRANSPORTATION OFFICE OF THE SECRETARY WASHINGTON, D.C. ) ) 2010 U.S.-CHINAALL-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-2009-0329for a certificate ofpublic convenience and necessity, exemption authority, designation and allocation of frequencies that are due to become available March 25, 2010 underthe May 22,2007 U.S.- Peoples Republic ofChina ("China" or "PRC") adreferendum 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 Requestfor 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, viaintermediate 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: February22, 2010



### 2

# ~:Zz.a;f MarkW. 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 belowvia 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

.WadsworthDOT-OST-2010-0017 Cross-Reference Page 1of2
KALITTAAIR, L.L.C. CROSS-REFERENCE OF EVIDENCE REQUESTS TO EXHIBITS Requestfor Information and Evidence 

### RequestII. 1 a) Proposed Schedules/Startdate/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 ofGauge 

### RequestII. 2 Express and mail 

### RequestII. 3 Aircraft capacity/dedication 

### RequestII. 4 a) Aircraft on hand b) Current use c) FAR Part 36 compliance d) Aircraft ownership/financing 

### RequestII. 5 Fuel consumption 

### RequestII. 6 Current U.S.-China service 

### RequestII. 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-101;102;103 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-107DOT-OST-2010-0017 Cross-Reference Page 

### 2 of

### 2 KALITTAAIR, L.L.C. CROSS-REFERENCE OF EVIDENCE REQUESTS TO EXHIBITS (CONTINUED) Requestfor Information and Evidence 

### RequestII. 9 No cooperative arrangements 

### RequestII. 10 Back-upAward RequestII. 11 Frequencies/Routings Kalitta Air Exhibits and Testimony
KA-108
KA-107
KA-101, 102, 103Exhibit 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 KALITTAAIR, L.L.C. INDEXof TESTIMONYand DIRECT EXHIBITS

Title Testimony ofConnie Kalitta Testimony of D.C. Sanderlin Statement Regarding Shipper Support Introduction to 100 Series Exhibits DOT-OST-2010-0017 Index Page 1of1

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 CooperativeArrangements Statement Concerning Traffic Statement Concerning Public Interest Benefits Introductionto 200 Series Exhibits Aircraft
- Fleet and FAR Part 36 Compliance, Ownership and Financing, and ImpactofChina 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 ofConnie KalittaKALITTAAIR, L.L.C. TESTIMONY of CONNIE KALITTA DOT-OST-2010-0017 Exhibit KA-T-1 Page 1of3

PRESIDENT and CEO ofKALITTAAIR, L.L.C.
Forthe second time in less than two years, Kalitta Airfinds 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 marketthis year.
Kalitta Air's core business has been andremains the sale 

### ofcargo lift over its own route network, by its own sales force, using its own individual air waybills, on its own aircraft, flying underits own callsign, andmaintainedbyits own U.S. heavymaintenance base which is staffed with U.S. workers. Nine years ago I purchased the key assets and certificates ofan international all-cargo airline that I had sold to Kitty Hawk several years before. I did this because I saw it as an opportunityto establish a reliable, low-cost all-cargo carrierthatwould 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 theirDOT-OsT-2010-0017 Exhibit KA-T-1 Page 2 of3 grip on costs and try to compensate either by shifting a greater percentage oftheir 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 forthe U.S. Postal Service. Our performance speaksfor 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-bodyfreighterfleetofthe applicants andis the onlyapplicantwith 747-400Faircraft. (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 airlineACMIorchartercustomers.
• 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 onlyapplicantoperating its own internationalscheduledall-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 establishedoperationalscheduledairfreightsales 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, makingitthe mostprofitableapplicant. (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 engineDOT-OST-2010-0017 Exhibit KA-T-1 Page3 of3 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 andU.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 yearfrom China (Hong Kong and Shanghai) to the United States carrying exclusively U.S.-destined cargo. Overthepastseven years we have operated2,556 flights andupliftedmore than halfa billion pounds offreightfrom China to the U.S. (See KA-301) I believethat Kalitta Air's solid financial base, substantial and expanding fleet and its long record ofsuccessful performance in the China-U.S. scheduled airfreight 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 airfreight 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 offerthe sametype ofdependable, 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 ofour performance in the marketplace.

# Exhibit KA-T-2 Testimony of D.C. SanderlinKALITTA AIR, L.L.C. TESTIMONY of D.C. SANDERLIN VICE PRESIDENT, GENERAL MANAGER DOT-OST-2010-0017 Exhibit KA-T-2 Page 1 of7

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 supportthat 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 accountfor 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% ofthe corresponding yields for importtraffic; • Fourth, heavy airfreight is controlled by the international airfreight forwarders and carrying their freight means serving gateway airports where these forwarders have consolidation and break-bulkfacilities; and • Fifth, recent changes in U.S.-Asia freighter schedules and routings must be considered.DOT-OST-2010-0017 Exhibit KA-T-2 Page 2of7
Each of these factors was carefully considered in developing Kalitta Air's proposed operating plan.
1. Overview ofKalitta Air's proposed schedule. A. Chicago- NewYork - 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 ofa second stop at ORO on the westbound flight. Frequency: Three round trip flights perweek. Aircraft: B747-400BCF Start-up: Payload: April 1, 2010 oras soon thereafter as requisite authority can be secured. The 747-400F aircraft can carry a max payload of249,876 Ibs overeach segmenton 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 perweek. Aircraft: Combination of B-747-400F and -200F aircraft with full transition to -400 series aircraft as more ofthis equipment is added to fleet. Start-up: April1, 2010 oras soon thereafter as requisite authority can be secured.Payload: DOT-OST-2010-0017 Exhibit KA-T-2 Page 3of7
The 747-400F aircraft can carry a max payload of249,876 Ibs over each segment on this routing and will operate overthe route twice weekly. The 747-200F aircraft can carry a maximum payload of245,547 Ibs over each segment ofthis 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 airfreight gatewayforthe 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 offreight 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 supportforthe 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 overthis 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-101), permitting a cross-loading ofthe two flights. By doing this, shippers in each ofthe four U.S. gateways1 havewell-timed service on Kalitta Airto 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 NewYork, Chicago, Los Angeles and Anchorage.DOT-OST-2010-0017 Exhibit KA-T-2 Page 4 of7 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 ofthe U.S.-bound trafficfrom the region. The decision by Northwest to cease freighter flights has left a serious gap in U.S. flag service coverage forthose shipperswhotender 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 perweek to CAN. Utilizing Kalitta Air's cross-load operation in Anchorage, shippers from LAX can usethesethree departuresto transporttheirfreightto PVG as well.
LAX is a freight consolidation and break-bulk point for virtually every major U.S. and foreign forwarder shipping consolidated freight overthe Pacific and a point at which Kalitta Air has operated foryears with an established salesforce.
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 5of7
bulk points, and is a city atwhich Kalitta has provided scheduled servicefor a numberof years with a substantial salesforce.
E. NewYork 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 servicefor manyyears with an established salesforce.
F. Kalitta Air'sAnchorage 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 conceptfirst introduced by The Flying Tiger Line 30 years ago. BecauseANC is a refueling stop on all Kalitta Airflights 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 ourthree 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 ofthe operation.
3. Kalitta Air has the sales, marketing and customer service personnel in placeto makethe operation asuccess. 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 companyspecializes in long-haul, heavy-liftoperations forACMI (aircraft, crew, maintenance andinsurance) andcharter customers." http://www.southernair.com/overview.htmlDOT-OST-2010-0017 Exhibit KA-T-2 Page 6 of7
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 ofthese areas, Kalitta Air has some ofthe 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 numberofyears Kalitta Air has partnered with experienced, respected sales teams in Asia, the United States, Europe and the Middle Eastto 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 ofits 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 ableto adjustto 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 carrierto mount an economically sustainable pattern ofcargo service between China and the United States is to position itselfto capitalize fully on the profit opportunity presented in the east-bound market. Because ofthe lowvolumes andDOT-OST-2010-0017 Exhibit KA-T-2 Page 7of7 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 offleet proposed will offer approximately 1.5 million pounds ofweekly capacity in each direction.
5. Kalitta Air's maintenance base and engine overhaul facility in Michigan allows close control overthe quality and timing of maintenance on its large 747Ffleet. 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 ofthe quality ofthe 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 ofthe U.S. dollar againstthe currency of aforeign repair station.
***

# Exhibit KA-T-3 Statement Regarding Shipper SupportKALITTA AIR, 

### L.L.C. DOT-OST-2010-0017 Exhibit KA-T-3 Page 1 of6

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 ofthe 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 ayear 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). Ratherthan askthose same shippers to duplicate their effort here and add furtherto 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 communicationsDOT-OST-2010-0017 Exhibit KA-T-3 Page 2 of6
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 outsetthe substantial traffic base needed to sustain it. All ofthe 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/edinternationalall-cargo service. Second, Kalitta Airhas 'stayingpower.' Ithas operatedregularscheduledservice flights overthe Pacific from Hong Kong athigh weekly frequencies forsixyears and it has operated from the United States to Europe and the Middle East for almostthatlong. Third, Kalitta Airunderstands scheduled airfreight and the scheduledairfreight needs ofthe forwardercommunity. Fourth, Kalitta Airhas been consistentlyprofitable andis financiallysound. Itcan weatheraperiodofstart-up challenges. Fifth, Kalitta Air has consistently upgraded both its fleet and its maintenance base. It has added 8747-400 freighteraircraft andis said to be negotiating for more. Sixth, Kalitta Air has an experienced scheduled service sales and customer service team in place in China andin the United States. We have worked with these individuals andrespecttheircompetence. Finally, in Kalitta Air the forwarding industry has 

### a carrier that can replace the services to China thatare being terminatedbyNorthwestand the PolarservicesDOT-OST-2010-0017 Exhibit KA-T-3 Page 3 of6
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 ofyours 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 supportyou with significant cargo trafficin those markets

.... We needKalitta Airin 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 ofour 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 ofthat (Shanghai and Guangzhou) traffic on Kalitta Air,justas we do todayfrom HongKong. " 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 overthepasteightyears, notone understands the generalairfreightmarket betterthan Kalitta Airandnone have serveditas consistentlyandwell

....We have been waiting forthe day when Kalitta Aircan inaugurate scheduledservice from these pointsDOT-05T-2010-0017 Exhibit KA-T-3 Page 4 of6 (Shanghai and Guangzhou) so that we can do business from there with ourpreferred airlinepartner. "
GoodOne Express Limited, is another large Hong Kong Chinese forwarderwith 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 theyprovide 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 "onlyKalitta has aproven record ofproviding firstrate, dependable scheduledservice" lift to the region "yearafteryear," and that "Kalitta Air's Hong Kong services have become indispensable to us and to our shipper !customers

.... Yourcompanyunderstands the meaning ofthe word 'commitment' andyourcustomers are gratefulforthat. NowI wantto make

### a commitmenttoyou:you can count on our company's strong commercial support from the very first flight you operate undernewChina authority."
In its letter, 

### OHL Global Forwarding confirms that "Kalitta Airhas demonstrated its abilityto growsteadilyandefficiently while at the same time continuallyimproving its high degree of service and customer support in [its] scheduled service operations

....Kalitta Aircan count on us forsignificant 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 focusedsuccess in the heavyfreightfieldifauthorizedto serve CANandPVG."
In a letter to the Secretary, BALTrans Logistics noted that Kalitta Air has "proven its dedication and capabilities" in scheduled international air freight and promisesthat Kalitta Air "willhave oursupportfrom 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 thatthe carrier selected mightturn out to be "unwilling orunable"to commence service. "A carrier'spastrecordofscheduledservice performance isparticularlyimportant." Supportfrom 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 Airunderstands the China airfreightmarketbetterthan 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 speakDOT-05T-2010-0017 Exhibit KA-T-3 Page 6 of6
Mandarin andCantonese"as well as its record and its commitmentto upgrading its fleet with -400 series aircraft.
A-Link Freight, Inc. supports Kalitta Air because "we cannotrisk ourreputation by entrusting our customers' freight to an 'unknown quantity' or make transportation plans in reliance on an airline thatmightnotstartthepromisedservice." Strong sentiments were expressed by Inter Pacific Express Inc. "I knowofno 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

...againstthe competition thatis alreadythere."
Kalitta Airdid 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 nowthat Kalitta Air has won the loyalty ofshippers large and small and that it can count on traffic support from the outset of its new scheduled China frequencies.
***

# Exhibit KA-100 Introduction to 100 Series ExhibitsKALITTA AIR, L.L.C. DOT-OST-2010-0017 Exhibit KA-100 Page 1 of2

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 availablefrom 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 setforth 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 anyDOT-OST-2010-0017 Exhibit KA-100 Page 2 of2 cooperative arrangements proposed with respect to the applied for rights, and a breakdown oftraffic among freight, express and mail.
Kalitta Air's responses are in KA-107 through KA-109 respectively. KA-110 is a statement ofthe public benefits thatwould followfrom an award to Kalitta Air.
***

# Exhibit KA-101 Proposed Schedule ORO-JFK-PVG

and Aircraft Payload Capacity per Flight SegmentFIt. 

### #
345 K4822

567 K4829 KALITTA AIR, L.L.C. PROPOSED SCHEDULE ORD/JFK/PVG DOT-OST-2010-0017 Exhibit KA-101 Page 1 of2

(Start-up untilWinter 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.FlightSegment 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 of2

Aircraft Payload Capacity per FlightSegment
Total available alc payload capacity (lbs)1 249,826 249,826 249,826 249,826 249,826

Note: Entire capacity ofthe aircraft overthese sectorswill be dedicated to freight moving between China and the United States.

1 Inclusive oftare.

# Exhibit KA-102 Proposed Schedule LAX-CAN and Aircraft Payload Capacity per Flight SegmentDOT-OST-2010-0017 Exhibit KA-102 Page 1of2 KALITTA AIR, L.L.C. PROPOSED SCHEDULE LAX/CAN (Start-up untilWinter Schedule 2010/11) Days FIt. 

### # Depart 6rrive (UTC} (LCL} (UTC} (LCL} 345 K4824 LAX 2345 1645 ANC 1 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 ofthis series aircraft are added to the fleet.

1Transload 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 2of2

Aircraft Payload Capacity per FlightSegment
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 ofthe aircraft overthese sectors will be dedicated to freight moving between the China and the United States.

1 Inclusive oftare.

# Exhibit KA-103 Proposed Scheduled Routes (Schematic)KALITTAAIR, L.L.C. PROPOSED SCHEDULED INDIVIDUALLYWAYBILLED ROUTES (Schematic) DOT -OST -2010-0017 Exhibit KA-103 Page 1 of 1

Note: Three rltflightslweek overthe ORD-JFK
-ANC-PVG routing (designated in blue) andthree rltflights weeklyoverthe LAX-ANC
CAN (designated in green) routing with transload between the twoflights at ANC. KHV is forfuel only. Thisfrequency level over both routings is anticipated to increase beginning in thefourth quarterof2010, iffrequencies are then available.

# Exhibit KA-104 Proposed Schedule
- Fuel ConsumptionDocket DOT-OST-2010-0017 Exhibit KA-104 Page 1 of1

KALITTAAIR, L.L.C. PROPOSEDSCHEDULE ESTIMATED FUEL CONSUMPTION 1
Total fuel consumption US-PVG routing:
Total fuel consumption US-CAN routing:

Total fuel consumption both routings: 16,312,500gallons/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 necessaryto operate the schedules proposed in the proceeding.

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

# Exhibit KA-105 Existing Scheduled Routes - Atlantic and PacificKALITTAAIR, L.L.C. DOT-OST-2010-0017 Exhibit KA-105 Page 1of2

EXISTING SCHEDULED INDIVIDUALLYWAYBILLEDALL-CARGO ROUTES (Schematic) ATLANTIC



### NewYork (EWR and JF

NOTE: The core schedule is eight departures perweek 

### 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.KALITTAAIR, L.L.C. DOT-OST-2010-0017 ExhibitKA-105 Page2 of2

EXISTING SCHEDULED INDIVIDUALLYWAYBILLEDALL-CARGO ROUTES (Schematic)

PACIFIC



### Khabarovsk (KHV
i 

### ewYork (JFK)I
:;> 

### Columbus (LCK IHong Kong (HKG)I NOTE: Current frequencies are 

### six scheduled service departures perweek from HKG. In the second half ofthe year scheduled departures from Hong Kong can average from 10 to 20 flights perweek. KHV is fuel only and is subjectto change to other points depending upon relative price offuel ateach potential refueling location.

# Exhibit KA-106 Road Feeder Services
- United States, China and EuropeKALITTA AIR, L.L.C. DOT-OST-2010-0017 KA-106 Page 1of3

MAJOR CONNECTING ROAD FEEDER SERVICES NORTH AMERICA Airport Trucking availableto and from: Chicago (ORO) Cleveland Akron Charlotte Columbus Houston St. Louis Indianapolis 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 NewYork (EWR/JFK) Portland Boston Hartford Providence Philadelphia Pittsburgh Washington Richmond Buffalo Baltimore Charlotte Richmond Memphis Miami Raleigh Durham Norfolk Greensboro ColombiaKALITTA AIR, L.L.C. DOT-OST-2010-0017 KA-106 Page 2 of3

MAJOR CONNECTING ROAD FEEDER SERVICES CHINA Airport Guangzhou (CAN)

Shanghai (PVG) Trucking availableto 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 XiaoshanKALITTAAIR, L.L.C. DOT-OST-2010-0017 KA-106 Page 3 of3

MAJOR CONNECTING ROAD FEEDER SERVICES EUROPE and MIDDLE EAST Airport Liege (LGG) and Amsterdam (AMS)

Manama, Bahrain (BAH) Trucking availableto 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-107 Statement Concerning Partial GrantKALITTAAIR, L.L.C. DOT-OST-2010-0017 Exhibit KA-107 Page 1 of 1

STATEMENTCONCERNING PARTIAL GRANTand BACK-UP
Kalitta Air has requested six ofthe available round-trip frequencies to operate its proposed US-China services. 1 Considering the frequencies available and the public benefits flowing from the use ofsix ofthem by Kalitta Air, we hope that the Department will seefitto grantthe 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. ItWOUld, 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 Airwould request additional frequencies from the pool ofthose available at the time.

# Exhibit KA-108 Statement Concerning Cooperative ArrangementsKALITTA AIR, LLC. DOT-OST-2010-0017 KA-108 Page 1 of1

CURRENTAND PROPOSED COOPERATIVEARRANGEMENTS
Kalitta Air has no current or proposed cooperative arrangements, code share arrangements orACMl/charter arrangements with any other U.S. orforeign airline in any ofthe markets for which it seeks designation and allocations in this proceeding.

***

# Exhibit KA-109 Statement Concerning TrafficKALITTAAIR, L.L.C. STATEMENTCONCERNINGTRAFFIC DOT- OST-2010-0017 Exhibit KA-109 Page 1 of1

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 oftheir "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 theforwarder.
Mail is estimated to constitute approximately 1.5% oftotal cargo on the U.S.-CAN flights and approximately 1

### % ofthe 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 ofthe westbound capacity availablefortheir use.

# Exhibit KA-11

# a Statement Concerning Public Interest BenefitsKALITTA AIR, L.L.C. DOT-OST-2010-0017 Exhibit KA-110 Page 1of2

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 largestcommercial 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 thatfreight 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 largestcapacity aircraft. Kalitta Air's proposal calls for all of its frequencies to be operated with B747 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 ExhibitKA-110 Page 2 of2 4. Kalitta Air offers the public established teams of scheduled sales and customersupportpersonnel 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 Airto keep its rates atfair 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 committedto anothercarrier. 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 selectionwould bestsupport United States Governmentefforts 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-payingjobs it already provides.

# Exhibit KA-200 Introduction to 200 Series ExhibitsKALITTAAIR, 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 equipmentthat Kalitta Air may acquire in the future. 1 Because ofthe substantial size of Kalitta's fleet and the acquisition ofthe 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 morewill be added to the fleet overthe remainder of2010.
The specifications of the Kalitta Air B747-400 and B747-200 (70 powered) freighteraircraft 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 majorcontributors to the State of Michigan's economy.
***

1As 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 ImpactofChina Service on Existing OperationsKALITTAAIR, L.L.C. AIRCRAFT
Kalitta Air's Fleet DOT-OST-2010-0017 Exhibit KA-201 Page 1 of3

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 freighterfleet consists of:
AircraftType Boeing 747-400F aircraft Boeing 747-200F aircraft Boeing 747-100F aircraft1



## *** Owned 

### 3
14


### 4 Leased

1The 747-100 fleet is utilized in domestic and charterall-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 Ownershipand Financing DOT-OST-2010-0017 Exhibit KA-201 Page 2 of3

All ofthe B747-200 and -100 series aircraft in the Kalitta Air fleet are owned by the airlinefree and clear ofany debtor lease obligation.
The B-747-400BCF aircraft are owned by Kalitta Air, which arranged financing with GEfor a portion ofthe 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.
***KALITTAAIR, L.L.C. AIRCRAFT DOT-OST-2010-0017 Exhibit KA-201 Page 3 of3

Kalitta Air's Proposed China Service Will NotAffect Existing Operations

The size ofthe Kalitta Air fleet of B747-400F and -200F aircraft gives the carrier a good deal ofscheduling latitude and available aircrafttime. 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 B747-200FKALITTA AIR, L.L.C. AIRCRAFT SPECIFICATIONS DOT-OST-2010-0017 Exhibit KA-202 Page 1 of2

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

Maximum Payload: 249,8761bs Cargo compartment (Main Deck): 20,464 cubicfeet.
ULD Capacity (Main Deck): 30 (96x125 in)
Lower aft compartment: 4,498 cubicfeet
Lower bulk compartment: 835 cubicfeet
Containercapacity lowerdeck: 9 (88x125 in) Cruising speed: 567 mph
Maximum payload range: 4,100 miles
Main Cargo dooropening: 120x134 inches

Lower cargo compartmentdoors: 64x125 inchesKALITTA AIR, L.L.C. AIRCRAFT SPECIFICATIONS Boeing 747-200F (JT90-7Q power)

Maximum Payload: 245,5471bs Cargo compartment (Main Deck): 20,310 cubicfeet.
ULD Capacity (Main Deck): 29 (96x125 in)
Lower aft compartment: 2,400 cubicfeet
Lower bulk compartment: 795 cubicfeet
Container capacity lowerdeck: 9 (88x125 in) Cruising speed: 575 mph
Maximum payload range: 3,608 miles
Main Cargo dooropening: 120x134 inches

Lowercargo compartmentdoors: 64x125 inches DOT-OST-2010-0017 KA-202 Page 2 of2

# Exhibit KA-300 Introduction to 300 Series ExhibitsKALITTA 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 ofscheduled 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 numberof 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 carrierfor a China designation. Ratherthan askthese shipper's to duplicatetheir efforts, we askthe Department to take official notice of those letters and the various reasons why they support Kalitta Air.

# Exhibit KA-301 Record of Performance in ChinaKALITTAAIR, L.L.C. DOT-OST-2010-0017 Exhibit KA-301 Page 1 of2

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



## *** TotalKalitta Air8747freighterflights from China to US 2002 to date: 2,556 flights Total cargo transportedfrom China to the US 2002 to date: 242,381,020kgs (533,238,244 Ibs.) Source: Company records. All flights operated with B747 freighter aircraft. None of theseflights were operated for or on behalfofanotherair carrier orforeign aircarrier.

1 Flights operated up to 14 February 2010.KALITTA AIR, L.L.C. DOT-OST-2010-0017 Exhibit KA-301 Page 2 of2

KALITTA AIR'S CURRENTCHINASERVICE
Kalitta Air operated an average of over six scheduled flights per week between Hong Kong and the United States from 1January 2010 up until the production breakfor the Lunar New Year holidays, beginning 14 February. Kalitta Air will resume the six flights perweek schedule effective 22 February, matching the resumption oftrafficflows 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 1January 2010. ***KALITTA AIR, L.L.C. ON-LINE SCHEDULED SALES OFFICES

Los Angeles: 20321 SWAcacia 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 NewYork: Building 9 JFK InternationalAirport Jamaica, NewYork 11430 United States DOT-OST-2010-0017 Exhibit KA-302 Page 1 of4KALITTAAIR, 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 AirfreightTerminal Chun Ping Road Chek Lap Kok, Lantau HONG KONG Shanghai: No. 328, Haitian Road Pudong InternationalAirport 201202 Shanghai, PRC Guangzhou: Room 2420-22 Guangbai Xinyi Building 510030 Guangzhou, PRC China DOT-OST-2010-0017 Exhibit KA-302 Page 2 of4

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.KalittaAirDowntownHKSales Office DOT-OST-2010-0017 Exhibit KA-302 Page 3 of4KalittaAirDowntown Sales Office

- HKG

KalittaAirDowntown Sales Office

- HKG OOT-05T-2010-0017 Exhibit KA-302 Page 4 of4