DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Application of 

FEDERAL EXPRESS CORPORATION 

for an exemption pursuant to 49 U.S.C. § 40109 

(U.S.-Brazil All-Cargo Service) 

) 

) 

) Docket DOT -OST -1996-1196 

) 

) 

) 

___________________________________ ) 

APPLICATION OF FEDERAL EXPRESS CORPORATION 

FOR AMENDMENT AND RENEWAL OF AN EXEMPTION 

Communications with respect to this document should be sent to: 

Nancy S. Sparks 

Managing Director 

Regulatory Affairs 

FEDERAL EXPRESS CORPORATION 

1700 Pennsylvania Avenue, N.W. 

Suite 950 

Washington, D.C. 20006 

(202) 393-9286 (phone) 

(202) 628-0654 (fax) 

Email: nssparks@fedex.com 

May24, 2012 

Courtney E. Felts 

Senior Attorney 

Regulatory Affairs 

FEDERAL EXPRESS CORPORATION 

3620 Hacks Cross Road 

Building B, 3rd Floor 

Memphis, Tennessee 38125 

(901) 434-8632 (phone) 

(901) 434-8283 (fax) 

Email: cefelts@fedex.com 

Attorneys for 

FEDERAL EXPRESS CORPORATION 
DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Application of 

FEDERAL EXPRESS CORPORATION 

for an exemption pursuant to 49 U.S.C. § 40109 

(U.S.-Brazil All-Cargo Service) 

) 

) 

) Docket DOT-OST-1996-1196 

) 

) 

) 

_____________________________________ ) 

APPLICATION OF FEDERAL EXPRESS CORPORATION 

FOR AMENDMENT AND RENEWAL OF AN EXEMPTION 

Pursuant to 49 U.S.C. § 40109, Federal Express Corporation ("FedEx Express") 

hereby applies for amendment and renewal of its exemption authority to engage in scheduled 

foreign all-cargo air transportation between a point or points in the United States, and certain 

named points in Brazil, either directly or via intermediate points, and beyond Brazil to points 

in third countries, with full traffic rights and operational flexibility such as unlimited changeof-gauge. FedEx Express requests that this authority be granted for a period of at least two 

years. (See 1. Existing Authority, below.) 

In accordance with 14 C.F.R. § 302.303, FedEx Express submits the following 

information in suppmi of this Application: 

1. Existing Authority. By Order 89-5-10, served May 2, 1989, the Depatiment 

granted FedEx Express an exemption authorizing it to engage in scheduled foreign air 

transportation of property and mail between a point or points in the United States and nine 
Application ofFedEx Express 

Docket DOT -OST -1996-1196 

Page 2 of5 

named points 1 in Brazil, via intermediate points and, beyond Brazil, to Argentina, Chile, 

Paraguay, and Uruguay, with full traffic rights. The Department most recently renewed that 

authority by Notice of Action Taken July 13, 2010, for two years, through July 13, 2012. The 

Department also granted FedEx Express authority to serve Vit6ria, Brazil, by Notice of 

Action Taken August 6, 2010 to run coextensively with the above-referenced exemption 

authority in this docket, through July 13, 2012. FedEx Express also holds an allocation of 

five U.S.-Brazil all-cargo frequencies. 2 The United States has worked to achieve a phased-in 

Open Skies Agreement with Brazil that includes, among other gains, an open route 

designation with Fifth Freedom rights and operational flexibility such as unlimited changeof-gauge. U.S.-Brazil Memorandum of Consultations, signed March 18,2011. 

2. Automatic Extension. FedEx Express hereby invokes and relies upon the 

provisions of Section 558(c) of the Administrative Procedure Act, 5 U.S.C. § 558(c), as 

implemented by Part 377 of the Department's Special Regulations, 14 C.F.R. Pmi 377, to 

continue its exemption to serve Brazil in effect until the Depmiment makes a final 

determination of this Application.3 

Order 89-5-10 authorized FedEx Express to serve the following points in Brazil: Porto Alegre, Recife, 

Belo Horizonte, Salvador de Belem, Manaus, Brasilia, Rio de Janeiro, and Sao Paulo. 2 The most recent DOT allocation to FedEx Express was made in Docket OST-00-7559-38, November 

14,2000. FedEx Express relinquished one fi·equency on December 30,2002 (Docket OST-00-7559-90). All 

five remaining frequencies are of indefinite duration. 3 FedEx Express seeks a waiver of the requirement of 14 C.F.R. § 377.10(c) that this renewal application 

be filed more than sixty days before the exemption expires. This application is being filed fifty days in advance, 

due to health complications of counsel. This short delay in filing should not inconvenience any party, as parties 

are afforded a month and a half in which to respond. To expedite Department processing, FedEx Express will 

poll the carriers on the service list and will report the results to the Department. 
Application ofFedEx Express 

Docket DOT-OST-1996-1196 

Page 3 of5 

3. Current U.S.-Brazil Service. FedEx Express provides expedited air 

express/cargo service linking every address in the United States with points in Brazil. 

Currently, FedEx Express provides five weekly frequencies between Memphis and Sao 

Paulo, Brazil, with onward service beyond Sao Paulo using MD11 or MD10-30 aircraft. The 

service changes gauge at Sao Paulo and continues beyond to Buenos Aires, Argentina and 

Santiago, Chile using Boeing 727-200 freighter equipment also operated by FedEx Express. 

In the southbound direction, all five frequencies are utilized to operate nonstop 

service from Memphis to Sao Paulo; northbound, nonstop service from Sao Paulo to 

Memphis is operated four times per week, with the fifth frequency used to operate a Sao 

Paulo - San Juan- Memphis routing. 

4. Applicable Bilateral Agreement. On March 18, 2011, the United States 

and Brazil signed a Memorandum of Consultations (MOC) that will culminate in Open Skies 

by 2015. Prior to that time, designated U.S. carriers have increased opportunities for U.S.-

Brazil service. Pursuant to the MOC, these new opportunities are immediately available and 

include an open route schedule with Fifth Freedom rights and operational flexibility along 

with unlimited change-of-gauge. The amendment and renewal of the exemption authority 

requested above is consistent with this recent agreement. 

5. Energy Statement. Grant of this Application will not result in increased 

annual fuel consumption constituting a "major regulatory action" requiring an energy 

statement pursuant to 14 C.F.R. § 313.6. 
Application of FedEx Express 

Docket DOT -OST -1996-1196 

Page 4 of5 

6. Fitness and Public Interest. FedEx Express is fit, willing, and able to 

provide international air cargo services, as required by 49 U.S.C. § 41102(b)(1). FedEx 

Express is an air carrier of property and mail in scheduled air transportation, operating such 

services within the United States pursuant to an all-cargo air service cetiificate issued under 

49 U.S.C. § 41103. In international markets, FedEx Express operates under a cetiificate of 

public convenience and necessity issued under 49 U.S.C. § 41102, and specific grants of 

exemption authority pursuant to U.S.C. § 40109. FedEx Express requests that the Department 

take official notice, pursuant to 14 C.F .R. § 302.24(g), of the extensive data on file with the 

Department that establish conclusively the fitness of FedEx Express to operate under the 

requested authority.4 

Granting the amendment and renewal of the exemption authority requested would be 

consistent with the public interest and Department precedent. FedEx Express has used its 

current U.S.-Brazil exemption authority to provide the highest quality of efficient, 

convenient, and reliable air express/cargo service between the United States, numerous 

points in Brazil, and points beyond Brazil. 

7. Duration of Exemption Authority. FedEx Express requests that the 

amendment and renewal of the exemption authority at issue granted for at least two years. 

Grant of a two-year te1m would be consistent with the policy and practice of the Department 

in renewing temporary authorizations to serve limited-entry international markets. 

4 See, e.g., 2005/2006 U.S-China Air Services Case (Docket OST-2004-19077). 
Application ofFedEx Express 

Docket DOT -OST -1996-1196 

Page 5 of5 

WHEREFORE, FedEx Express respectfully requests that the Department amend and 

renew its exemption authority to engage in scheduled foreign all-cargo air transportation 

between a point or points in the United States, and certain named points in Brazil, either 

directly or via intermediate points, and beyond Brazil to points in third countries, with full 

traffic rights and operational flexibility such as unlimited change-of-gauge, and that this 

authority be granted for a period of at least two years, and for other, futiher, different, and 

additional relief that the Depatiment deems just and proper. 

Respectfully submitted, 

FEDERAL EXPRESS CORPORATION 

b~L~/ Cominey E. F ts 

Senior Attorney 

Regulatory Affairs 
Certificate of Service

I hereby certify that on May 24, 2012, I served a copy of the foregoing

Application of Federal Express Corporation for Amendment and Renewal of an

Exemption, by email upon the persons listed below.

__________________________________

Carl B. Nelson Jr.

Associate General Counsel

American Airlines, Inc.

via e-mail to: carl.nelson@aa.com

Pierre Murphy

Attorney for Arrow Air, Inc.

via e-mail to: pmurphy@lopmurphy.com

Russell E. Pommer

Associate General Counsel and 

Senior Director of

Regulatory Affairs

Atlas Air, Inc.

via e-mail to: rpommer@atlasair.com

Kevin Montgomery

Vice President – Government Affairs

Polar Air Cargo Worldwide, Inc.

kevin.montgomery@polaraircargo.com

Stephen Morrissey

Managing Director, International and 

Regulatory Affairs

United Air Lines, Inc.

via e-mail to: steve.morrissey@united.com

Anita M. Mosner and Jennifer M. Nowak

Holland & Knight, LLP

Counsel for United Parcel Service Co.

via e-mail to: anita.mosner@hklaw.com and
Dan Weiss

Managing Director, International Policy

and Regulatory Affairs

Continental Airlines, Inc.

via e-mail to: dan.weiss@coair.com

Alexander Van der Bellen

Managing Director, Government Affairs

And Associate General Counsel

Delta Air Lines, Inc.

via e-mail to: sascha.vanderbellen@delta.com

jennifer.nowak@hklaw.com

Larry D. Cox, A.A.E.

President & CEO

Memphis-Shelby County Airport Authority

via e-mail to: larryc@mscaa.com

Benjamin T. Slocum

Director and Assistant General Counsel

US Airways, Inc.

via e-mail to: 

benjamin.slocum@usairways.com

 

William C. Evans

John R. Mietus, Jr.

Counsel for Centurion Air Cargo, Inc.

via e-mail to: bill@mietuslaw.com and 

john@mietuslaw.com