BEFORE THE UNITED STATES DEPARTMENT OF TRANSPORTATION WASHINGTON, D.C.
) Application of ) ) UNITED PARCEL SERVICE CO. ) ) For an Allocation ofOne ) Frequency (U.S.-China) ) ) Docket OST-2010-

APPLICATION OFUNITED PARCEL SERVICE CO. FORAN ALLOCATION OF ONE FREQUENCY Communications with respect to this document should be served upon: Dontai L. Smalls United Parcel Service Public Affairs 316 PennsylvaniaAvenue, S.E. Washington, D.C. 20003 E-mail: dsmalls@ups.com
Scott C. Casey Michael J. Francesconi United Parcel Service Co. 1400 N. Hurstbourne Parkway Louisville, KY 40223 E-mail: scasey@ups.com mfrancesconi@ups.com Date: July 2,2010 David L. Vaughan Danielle K. Fisher Kelley Drye & Warren LLP 3050 K Street, N.W., Suite 400 Washington, D.C. 20007 (202) 342-8462 Fax: (202) 342-8451 E-mail: dvaughan@kelleydrye.com dfisher@kelleydrye.com Attorneys for United Parcel Service Co.

NOTE: Anyperson wishing to support or oppose this Application must file an answer with the DOT's Documentary Services DivisionbyJuly 19,2010. A copy of such Answermust be served upon United Parcel Service Co. and its counsel and all persons named on the attached Service List. Nevertheless, UPS will poll all persons on the service list for an immediate response.BEFORE THE UNITED STATES DEPARTMENT OFTRANSPORTATION WASHINGTON,D.C.
) Application of ) ) UNITED PARCEL SERVICE CO. ) ) For an Allocation ofOne ) Frequency (US.-China) ) ) Docket OST-2010-

APPLICATION OF UNITED PARCEL SERVICE CO. FORAN ALLOCATION OF ONE FREQUENCY In accordance with Subpart C oftheRules ofPractice (14 C.F.R 302.301 etseq.) ofthe Department ofTransportation (the "Department" or "DOT"), United Parcel Service Co. ("UPS") hereby applies for an allocation ofone (1) round-trip weeklyUS.-China allcargo frequency, enabling UPS to provide additional scheduled all-cargo (property and mail) airtransportation services between the US. and China, and China and the world. Assuming that the DOT grants the Application ofFederal Express for twenty (20) all-cargo frequencies, there are nine (9) Zone 1orZone 2 frequencies available to allcargo carriers. I UPS will utilize the frequency requested herein to serve the Shanghai market. UPS will serve the US. and Shanghai via Dubai and Cologne one (1) time per week using MD-l1 aircraft with apayload capacity of202,000 pounds that are currently in UPS's fleet. UPS plans to commence service on September 20,2010.

See Application ofFederal Express Corporation, OST-2010-0149 (June 9, 2010).Application ofUPS OST-2010-

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UPS holds certificate and exemption authorityto serve China. 2 UPS currently operates forty-two (42) weeklyU.S.-China all-cargo frequencies. 3 The frequency requested in this Application will complement those services and enable UPS to provide
a servicepattern required to meet the demands ofthis market. In support ofthis Application, UPS states as follows:
1. UPS is a Delaware corporation whose current mailing address is 1400 Hurstbourne Parkway, Louisville, Kentucky 40223. UPS holds certificates of public convenience and necessity authorizing it to engage in domestic and foreign all-

. . 4 cargo air transportatIOn.
2. UPS is fit, willing and able to provide the proposed service and to conform to the provisions ofthe Federal Aviation Act and the rules, regulations and requirements ofthe Department thereunder. UPS requests that the Department take official notice, pursuant to 14 C.F.R. 302.24 ofthe economic authorities and data on file that support UPS's fitness.

2 See Order 2001-1-6, Order 2004-10-8, Notice ofAction Taken, OST-2009-0006 (Jan. 16,2009), Notice ofAction Taken, OST-2009-0177 (Aug. 20, 2009), Notice of Action Taken, OST-2010-0136 (May 25,2010). 3 See Orders 2001-1-6, 2004-10-8 and 2005-3-40. 4 See e.g., Order 2001-1-6, Order 2006-1-1 and Notice ofAction Taken, OST-2009- 0006 (Jan. 16,2009).Application ofUPS OST-2010-

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3. UPS is a citizen ofthe United States as that term is defined in the Federal Aviation Act. All officers, directors, shareholders ofUPS, orpersons who have the powerto influence the management ofUPS orpersons holding any voting interest in UPS
are U.S. citizens.
4. The authorityrequested herein is consistent with the consolidated bilateral air services agreement betweenthe United States and China and it is comparable to that which UPS currentlyoperates and, thus, would not constitute a substantial change in operations requiringreview underPart 204 ofthe Department's regulations. The proposed service would cause a nearterm net annual increase in aircraft fuel consumption ofless than 10 million gallons and the annual fuel consumption is underthe threshold set forth in Part 313 ofthe Department's Regulations which effectuate the EnergyPolicy and ConservationAct.Application ofUPS OST-2010-
___ _ Page 4 of4 WHEREFORE, UPS respectfullyrequests that the Department allocate UPS one (1) round-trip weekly cargo frequency to enable UPS to provide additional scheduled allcargo air transportation services between theUnited States and China and beyond China to the world. UPS also requests that the Department grant such other and further reliefas maybe deemedjust and necessary.

Date: July 2,2010 Respectfully submitted,

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# . .o DavidL. Vaughan Danielle K. Fisher KelleyDrye & Warren LLP 3050 K Street, N.W., Suite 400 Washington, D.C. 20007 (202) 342-8462 Fax: (202) 342-8451 E-mail: dvaughan@kelleydrye.com dfisher@kelleydrye.com Attorneys for United Parcel Service Co.CERTIFICATE OF SERVICE I herebycertifythat I have this day served the foregoing documentby electronic mail on all persons named below:
Name Representing E-mail Carl B. Nelson, Jr. American Carl.nelson@aa.com Hershel Kamen Continental Hershel.Kamen@coair.com Dan Weiss Dan.Weiss@coair.com SamettaBarnett Delta Sametta.C.Barnett@delta.com Alexander Van der sascha.vanderbellen@delta.com Bellen G. BaileyLeopard Jr. Federal Express gbleopard@fedex.com Edward W. Sauer Evergreen esauer@ssd.com C. BlairBerselli blair.berselli@evergreenairlines.com Mark W. Atwood Kalitta matwood@sherblackwell.com Kevin Montgomery Polar kevin.montgomery@polaraircargo.com Aaron Goerlich SouthernAir agoerlich@ggh-airlaw.com Jason Maddux**jmaddu~@ggh-airlaw.com** Julie Oettinger United julie.oettinger@united.com Jeffrey Manley jeffrey.manley@united.com Howard Kass US Airways howard kass@usairways.com Esta Rosenberg DOT Esta.Rosenberg@dot.gov