Order 2014

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UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation

on the 10 th of February

, 20 14

Served: April 1 5 , 2014

D ocket DOT

- OST

- 1996

- 1530

ORDER ISSUING CERTIFICATE

Summary

By this order we renew Federal Express Corporation’s (FedEx Express) certificate authority to provide

scheduled foreign air transportation of property and mail between a point or points in the United States,

via any intermediate point s , to a point or point s in Ch ina open to scheduled international operations, and

beyond to any points outside of China, with full traffic rights

.

Application

By application filed on November 26 , 2013

, FedEx Express request ed renewal of a certificate of public

convenience and necessity for Route 638, authorizing FedEx Express to provide scheduled foreign air

transportation of property and mail between a point or points in the United States, via any intermediate

point s , to a point or points in Ch ina open to scheduled international operations, and beyond to any points

outside of China, with full traffic rights

. 1 FedEx Express requests a certificate term of at least five

1 We note that FedEx Express currently holds certificate authority to provide scheduled all

- cargo service between the U.S.

and China pursuant to its Certificate for Route 638, which was renewed and reissued to FedEx Express for a five

- year term

expiring on M ay 25, 2009, by Order 2004

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- 23 , served May 28, 2004. The authority has been kept in force pursuant to the

provisions of the Administrative Procedures Act, 5 U.S.C. 558(c), as implemented by 14 CFR Part 377, pending action on its

t imely

- filed renewal appl ication dated November 20, 2008.

Application of

FEDERAL EXPRESS CORP ORATION

Under 49 U.S.C. § 41102 for renewal of a

certificate of public convenience and necessity

(U.S.

- China All

- Cargo Service)additional years. Because the public convenience and necessity bas is for granting this application is

clear, and the application is not controversial, it is appropriate to use simplified, Subpart B procedure s to

grant the requested authority. 2

No answers were filed.

Decision

We have decided, under assigned authority

, to grant FedEx Express’ request for a renewed five

- year

certificate of public convenience and necessity for Route 638 authorizing scheduled foreign air

transportation of property and mail between a point or points in the United States , via any intermediate

points, to a point or points in China open to scheduled international operations, and beyond to any points

outside of China, with full traffic rights

. 3 The authority sought by the applicant is consistent with the

civil aviation agreement between the United States and China and uses rights for which the United

States has exchanged valuable operating rights.

Terms, Conditions, and Limitations

The certificate of public convenience and necessity is subject to the standard terms, conditions, and

limitations we consistently impose in the public interest. Duration of certificate authority is determined

by the nature of the routes at issue. Where routes may be served by multiple U.S. carriers, without

restriction s on additional entrants, the certificates are of indefinite duration. Where , as here, limited

entry routes are involved, we issue temporary, experimental certificates of five years’ duration under 49

U.S.C. § 41102(c). 4

Findings and Conclusions

In view of the foregoi ng and all facts of record, we f ind and conclude that:

1. It is consistent with the public convenience and necessity to issue the applicant a certificate in the

form attached;

2. T he applicant is a citizen of the United States and is fit, w illing, and able to perform properly the

foreign air transportation described in the attached certificate and to conform to the provisions of

Subtitle VII of Title 49, United States Code (Transportation), and to the Department’s rules,

regulations, and re quirements;

3. The public interest requires that the exercise of the privileges granted by the attached certificate be

subject to the terms, conditions, and limitations contained in and attached to the certificate and to

such others required by the public i nterest as the Department may prescribe;

2 14 CFR 302.212 et seq . Under Rule 33(b) we may, in our discretion, omit a tentative decision in proceedings under Subpart

B and proceed directly to a final decision.

3 We find that grant of this authority is consiste nt with the public interest and, based on officially noticeable data, we find that

FedEx Express is fit to conduct the scheduled foreign air transportation for which it seeks authority here ( s ee Order 2010

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24 ). FedEx Express is an operating certificated air carrier, for which the authority at issue here would not constitute a

substantial change in operations requiring further review by the Department. No information has come to our attention which

leads us to question the fi tness of FedEx Express to perform the authority it seeks.

4 14 CFR Part 399.120.4. The issuance of this certificate does not constitute a major regulatory action under the Energy,

Policy and Conservation Act of 1975, as defined by section 313.4(a)(1) of the Department’s

regulations; 5 and

5. The public interest does not require an oral evidentiary hearing or a show

- cause proceeding on this

application. T here are no material, determinative issues of fact requiring such procedures for their

resolution.

ACCORDINGLY,

1. We renew and re issue in the form attached, a certificate of public convenience and necessity to

Federal Express Corporation to provide scheduled foreign air transportation of property and mail

between a point or points in the United States, via any intermediate point s , to a p oint or points in

Ch ina open to scheduled international operations, and beyond to any points outside of China, with

full traffic rights ;

2. We dismiss as moot Federal Express Corporation’s application for renewal of a certificate of public

convenience and n ecessity for Rou te 638, dated November 20, 2008 in this docket;

3. Unless disapproved by the President of the United States under 49 U.S.C. § 41307, this order shall

become effective on the 61 st day after its submission for section 41307 review or upon the d ate of

receipt of advice from the President or his designee under Executive Order 12597 and implementing

regulations that he or she does not intend to disapprove the Department’s order under that section,

whichever occurs earlier; and 6

4. To the extent not granted, explicitly denied, or dismissed, we deny all motions and requests in this

docket;

5. We will serve a copy of this order on Federal Express Corporation

, the Embassy of China in

Washington, D.C.

, the U.S. Department of State (Office of Aviation Negotiations)

, and the Federal

Aviation Administration.

By:

PAUL L. GRETCH

Director

Office of International Aviation

(SEAL)

An electronic version of this document is available on the World Wide Web at:

http://www.regulations.gov

5 Our finding is based on the fact that grant of the application would not result in a near

- term increase in annual fuel

consumption in excess of 10 million gallons.

6 This order was submitted for review under 49 USC Section 41307 on February 10 , 2014 . The 61 st day is April 1 4

, 20 1 4

. Since the President’s designee did not disapprove this Order before that date it became effective on April 1 4 , 20 1 4

.Appendix A



# Experimental

Certificate of Public

Convenience and Necessity

for

ROUTE 638

(as reissued )

This Certifies That



# FEDERAL EXPRESS CORPORATION

i s authorized, subject to the provisions of Subtitle VII of Title 49 of United States

Code, the orders, rules, and regulations issued thereunder, and the attached Terms,

Conditions, and Limitations, to engage in foreign air transportation of property and

mail.

This certificate is not transferrable without the approval of the Department of

Transportation.

By Direction of the Secretary

Issued by Order 2014

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On February 10

, 20 14 Director, Office of

Effective on April 1 4 , 20 14 International Aviation*As renewed by

Order 2014

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Route 638

Page 1 of 2

Terms, Conditions, and Limitations

Federal Express Corporation

for Route 638

is authorized to provide scheduled foreign air transportation of property and mail between a point or points in the

United States, via any intermediate point s , to a point or points in China open to scheduled international

operations, and beyond to any points outside of China, with full traffic rights.

This authority is subject to the following conditions :

(1) The holder shall at all times conduct its operations in accordance with the regulations prescribed

by the Department of Transportation for the services authorized by this certificate, and with such other reasonable

terms, conditions, and limitations as the Department of Transportation may prescribe in the public interest.

(2) The holder is not authorized to carry passengers (other than cargo attendants accompanying

freight shipments)

.

(3) The holder shall at all times conduct its operations in accordance with all treaties and

between the United States and other countries, and the exercise of the privileges gra nted by this certificate is

subject to compliance with such treaties and agreements and with any orders of the Department of Transportation

issued under them. To the extent that the holder has authority to serve more than one country or points in more

tha n one country on the same route segment, that authority does not confer upon the holder any additional rights

(including fifth

- freedom intermediate and/or beyond rights) in limited

- entry markets unless the Department has

completed any necessary carrier sel ection procedures to determine which carrier(s) should be authorized to

exercise such rights. In such cases, the fact that the carrier may hold authority to serve the countries (points) at

issue on the same segment will not be considered as providing any preference to the holder in a carrier selection

proceeding.

(4) The authority granted to serve intermediate and beyond points on this certificate is limited to

c ountries with which the United States has signed open

- skies agreements and/or countries for whic h the carrier

holds authority to serve under certificates or exemptions issued by the Department, and for which it holds route

integration authority under this certificate or by virtue of some other action of the Department.

(5) The exercise of the authority granted here is subject to the holder’s first obtaining from the

appropriate foreign governments such operating rights as may be necessary.

(6) The holder acknowledges that this certificate is granted to determine if the holder’s projected

services, efficiencies, methods, rates, fares, charges, and other projected results will, in fact, materialize and

remain for a sustained period of time, and to determine whether the holder will provide the innovative and low

priced air transportation it proposed in its application for this authority.*As renewed by

Order 2014

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Route 638

Page 2 of 2

(7) The holder’s authority is effective only to the extent that such operations comply with all

applicable requirements of t he Federal Aviation Administration , the Transportation Security Administration, and

with all applicable U.S. Government requirements concerning security, i ncluding, but not limited to, 49 CFR Part

1544. To assure compliance with all applicable U.S. Government requirements concerning security, the holder

shall, before commencing any new service (including charter flights) to or from a foreign airport, contact its

Principal Security Inspect or ( PSI) to advise the PSI of its plans and to find out whether the Transportation

Security Administration has determined that security is adequate to allow such airport(s) to be served.

(8) The holder shall at all times remain a “Citizen of the United States ,” as required by 49 U.S.C.

40102(a ) ( 15).

(9 ) The holder shall maintain in effect liability insurance coverage as required under 14 CFR Part 205.

Failure to maintain such insurance coverage will render a certificate ineffective, and this or other failure to

comply with the provisions of Subtitle VII of 49 U.S.C. or the Department’s regulations shall be sufficient

grounds to revoke this certificate.

( 10 ) Should the holder propose any substantial changes in its ownership, management, or operations (as that

ter m is defined in 14 CFR 204 of the Department’s regulations) , it must first comply with the requirements of 14

CFR 204.5.

( 11 ) In the event the holder ceases all operations for which it was found “fit, willing, and able,” its authority

under th is certificate shall be suspended under the terms of 14 CFR 204.7 and the holder may neither re commence

nor advertise such operations unless its fitness to do so has been redetermined by the Department. Moreover, if

the holder does not resume operations w ithin one year of its cessation, its authority shall be revoked for

dormancy.

This certificate shall become effective April 1 4 , 20 1 4 . It shall expire April 1 4

, 201 9 , unless the Department

earlier suspend s , modifies, or deletes the authority

.