BEFOR E TH E UNITE D STATE S DEPARTMEN T O FTRANSPORTATIO N

WASHINGTON , D.C . Applicatio n o f UNITE D PARCE LSERVIC E CO . Fo r an Allocatio n o f

On e Frequenc y (U.S.-China ) Docke t OST-2010

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C D APPLICATIO N O FUNITE D PARCE LSERVIC ECO . FO RA N ALLOCATIO N O FON EFREQUENC Y Communication s withrespec t t o thi s documen t

shoul db e serve dupon : Donta i L . Small s Unite dParce l Servic e Publi c Affair s 31 6 Permsylvani aAvenue , S.E . Washington , D.C . 2000 3 E-mail : dsmalls@ups.co m Scott C . Case y Michae l J . Francescon i Unite dParce l Servic e Co . 140 0 N . Hurstboum e Parkwa y Louisville , K Y 4022 3 E-mail : scasey@ups.co m mfrancesconi@ups.co m Date : May 19,201 0 Davi dL . Vaugha n Daniell e K . Fishe r Kelle y Dry e & Warre n LL P 305 0 K Street , N.W. , Suit e 40 0 Washington , D.C . 2000 7 (202 ) 342-846 2 Fax : (202)342-845 1 E-mail : dvaughan@kelleydrye.co m dfisher@kelleydrye.co m Attorney s for Unite dParce l Servic e Co .

NOTE : An y perso n wishin g t o support o r oppos e thi s Applicatio n mus t file a n answe r withth e DOT' S Documentary Service s Divisio n b y Jun e 3 , 2010 . A cop y o f suc h Answe r mus t b e serve dupo n Unite dParce l Servic e Co . an dit s counse l an dal l person s name do n th e attache dServic e List . Nevertheless , UP S wil l pol l al l person s o n th e servic e lis t for an immediat e response .BEFOR E TH E UNITE D STATE S DEPARTMEN T O FTRANSPORTATIO N

WASHINGTON , D.C . Applicatio n o f UNITE D PARCE LSERVIC ECO . Fo r a n Allocatio n o f

On e Frequenc y (U.S.-China ) Docke t OST-2010

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APPLICATIO N O FUNITE D PARCE LSERVIC ECO . FO RAN ALLOCATIO N O FON E FREQUENC Y I n accordanc e withSubpart C o f th e Rule s o f

Practic e (1 4 C.F. R302.30 1 e t seq. ) o f th e Departmen t

o f Transportatio n (th e "Department " o r "DOT") , Unite dParce l Servic e Co . ("UPS" ) hereb y applie s for an allocatio n o f

on e (1 ) round-tri p weekl y U.S.-Chin aall

carg o frequency , enablin g UP S t o provid e additional schedule dall-carg o (property an d mail ) ai r transportatio n service s betwee n th e U.S . an dChina , an dChin aan dth e world . Assumin g tha t

th e DO T finalizes it s tentativ e awar do f si x (6 ) all-carg o frequencie s t o Kalitta , ther e ar e te n (10 ) Zon e 1 o r Zon e 2 frequencie s availabl e t o all

carg o carriers. ' UP S wil l utiliz e th e frequenc y requeste dherei n t o serv e th e Shenzhe n market . UP S wil l serv e th e U.S . an dShenzhe n viaDubai an dCologn e on e (1 ) tim e pe r wee k usin g B-74 7 aircraf

t withapayloa dcapacity o f 256,50 0 pound s tha t

ar e currentl y i n UPS' s fleet. UP S plan s t o commenc e servic e o n Jul y 24 , 2010 . Se e Orde r t o Sho w Cause , OST-2010-001 7 (May 7 , 2010) .Applicatio n o f UP S OST-2010

- Pag e 2 of4 UP S hold s certificat e an dexemptio n authority t o serv e China. ^ UP S currentl y operate s forty-on e (41 ) weekl y U.S.-Chin aall-carg o frequencies.' ^ Th e frequenc y requeste di n thi s Applicatio n wil l complimen t thos e service s an denabl e UP S t o provid e a servic e patter n require dt o mee t th e demand s o f

thi s market . I n support

o f thi s Application , UP S state s a s follows : 1 . UP S i s aDelawar e corporatio n whos e curren t mailin g addres s i s 140 0 Hurstboum e Parkway , Louisville , Kentucky 40223 . UP S hold s certificate s o f publi c convenienc e an dnecessit y authorizin g i t t o engag e i n domesti c an dforeig n all

carg o ai r transportation.' ' 2 . UP S i s fit, willin g an dabl e t o provid e th e propose dservic e an dt o conform t o th e provision s o f

th e Federa l Aviatio n Ac t an dth e rules , regulation s an drequirement s o f th e Departmen t

thereunder . UP S request s tha t th e Departmen t

tak e official notice , pursuan t t o 1 4 C.F.R . 302.2 4 o f

th e economi c authoritie s an ddat ao n file tha t support UPS' s fitness. 3 . UP S i s acitize n o f th e Unite dState s a s tha t termi s define di n th e Federa l Aviatio n Act . Al l officers , directors , shareholder s o f UPS , o r person s wh o hav e th e

^ Se e Orde r

2001-1-6 , Orde r

2004-10-8 , Notic e o f

Actio n Taken , OST-2009-000 6 (Jan . 16 , 2009) , Notic e o f Actio n Taken , OST-2009-017 7 (Aug . 20 , 2009) . ' Se e Order s 2001-1-6 , 2004-10- 8 an d2005-3-40 . " Se e e.g. , Orde r

2001-1-6 , Orde r

2006-1- 1 an dNotic e o f

Actio n Taken , OST-2009-000 6 (Jan . 16 , 2009) .Applicatio n o f UP S OST-2010

- Pag e 3 of 4 powe r t o influenc e th e managemen t o f UP S o r person s holdin g an y votin g interes t i n UP S ar e U.S . citizens . 4 . Th e authorit y requeste dherei n i s consisten t withth e consolidate dbilatera l ai r service s agreemen t

betwee n th e Unite dState s an dChin aan di t i s comparabl e t o tha t whic hUP S currentl y operate s and , thus , woul dnot constitut e asubstantial chang e i n operation s requirin g revie w unde r Part 20 4 o f th e Department' s regulations . Th e propose dservic e woul dcaus e anear ter mne t annua l increas e i n aircraf t fiael consimiptio n o f

les s tha n 1 0 millio n gallon s an dth e annua l fuel consumptio n i s unde r th e threshol dse t

fort hi n Part 31 3 o f th e Department' s Regulation s whic heffectuate th e Energ y Polic y an dConservatio n Act .Applicatio n o f UP S OST-2010

- Pag e 4 of 4 WHEREFORE , UP S respectfull y request s that th e Departmen t

allocat e UP S on e (1 ) round-tri p weekl y carg o frequenc y t o enabl e UP S t o provid e additional schedule dall

carg o ai r transportatio n service s betwee n th e Unite dState s an dChin aan dbeyon dChin a t o th e world . UP S als o request s that th e Departmen t

gran t suc hothe r

an dfurther

relie f a s may b e deeme djus t

an dnecessary . Respectfull y submitted . Vaugha n Daniell e K . Fishe r Kelley Dry e & Warre n LL P 305 0 K Street , N.W. , Suit e 40 0 Washington , D.C . 2000 7 (202 ) 342-846 2 Fax : (202)342-845 1 E-mail : dvaughan@kelleydrye.co m dfisher@kelleydrye.co m Attorney s for Unite dParce l Servic e Co . Date : May 19,201 0CERTIFICAT E O FSERVIC E I hereb y certif

y tha t I hav e thi s day serve dth e foregoin g documen t b y electroni c mai l o n al l person s name dbelow : Nam e Carl B . Nelson , Jr . Hershe l Kame n Dan Weis s Samett aBamet t Alexande r

Van de r Belle n G . Baile y Leopar dJr . Edwar dW . Saue r C . Blai r Bersell i Mar k W . Atwoo d Kevi n Montgomer y Aaro n Goerlic h Jaso n Maddu x Julie Oettinge r Jeffrey Manle y Howar dKas s EstaRosenber g Representin g America n Continenta l Delt a Northwes t Federa l Expres s Evergree n Kalitt a Polar Southern Ai r Unite d U S Airway s DO T E-mai l

Carl .nelson@aa . co m Hershel . Kamen@coair.co m Dan.Weiss@coair.co m Sametta.C.Bamett@delta.co m sascha.vanderbellen@delta.co m gbleopard@fedex . co m esauer@ssd.co m blair.berselli@evergreenairlines.co m matwood@sherblackwelI.co m kevin . montgomer y @polaraircarg o .co m agoerlich@ggh-airlaw.co m j maddu x @ggh-airl aw . co m j ulie . oettinge r

@united . co m jeffrey.manley@united.co m howar dkass@usairways.co m Esta.Rosenberg@dot.go v