BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Application of 

 FEDERAL EXPRESS CORPORATION 

For an allocation of twenty U.S.-China 

Zone 1 or Zone 2 all-cargo frequencies 

Docket OST-2010-____________ 

APPLICATION OF FEDERAL EXPRESS CORPORATION 

Communications with respect to this document should be sent to: 

G. Bailey Leopard, Jr. 

Senior Counsel 

FEDERAL EXPRESS CORPORATION 

Regulatory Affairs 

3620 Hacks Cross Road 

Building B, 3rd Floor 

Memphis, Tennessee 38125 

(901) 434-6664 (phone) 

(901) 434-8283 (fax) 

Email: gbleopard@fedex.com 

Attorney for 

FEDERAL EXPRESS CORPORATION 

NOTICE: Answers to this application are due on June 24, 2010, but FedEx Express 

will poll interested parties served with this application and advise the Department of 

the results.

June 9, 2010
BEFORE THE 

U.S. DEPARTMENT OF TRANSPORTATION 

OFFICE OF THE SECRETARY 

WASHINGTON, D.C. 

Application of 

 FEDERAL EXPRESS CORPORATION 

For an allocation of twenty U.S.-China 

Zone 1 or Zone 2 all-cargo frequencies 

Docket OST-2010-____________ 

APPLICATION OF FEDERAL EXPRESS CORPORATION 

Federal Express Corporation (“FedEx Express”) hereby applies for an allocation 

of twenty (20) U.S.-China Zone 1 or Zone 2 all-cargo frequencies. As explained below, 

FedEx Express understands that these frequencies are available from a combination of 

previously allocated frequencies to FedEx Express, which FedEx Express was unable to 

operate; frequencies that Northwest Airlines (n/k/a Delta Airlines, Inc.) (“Delta”) is no 

longer operating; and frequencies from the Department’s otherwise unallocated pool of 

Zone 1 or Zone 2 all-cargo frequencies. FedEx Express requires an allocation of the 

requested frequencies to operate the services described in more detail below, which will 

commence during the first week of the IATA Winter 2010 schedule season. 

Granting this application will be consistent with the public interest, especially 

since there will still be nine (9) Zone 1 all-cargo frequencies immediately available for 

U.S. all-cargo carriers and since all U.S.-China all-cargo designation and frequency limits 

will be lifted as of March 25, 2011 (i.e., at the beginning of the following schedule 

season). For these reasons, the Department’s grant of this request will not prejudice any 

other interested party. FedEx Express will conduct a poll of carrier representatives 

June 9, 2010 
Application of 

Federal Express Corporation 

Page 2 

 

served with this application to determine if there are any objections to FedEx Express’s 

request and will advise the Department of the results as soon as possible. 

In further support of this request, FedEx Express states as follows: 

1. Five (5) of the frequencies requested herein involve a reallocation of 

frequencies the Department previously allocated to FedEx Express.1 FedEx Express 

intended to use those five frequencies to add a roundtrip A310 operation between the 

FedEx Express hub in Guangzhou and Beijing on an existing round-the-world service 

five days per week,2 connecting both Beijing and the Guangzhou hub efficiently and 

effectively to the FedEx Express SuperHub in Memphis, its European hub in Paris, as 

well as other key points in the FedEx Express global network. However, as the 

Department is aware, China’s General Administration of Civil Aviation (“CAAC”) 

refused to approve this co-terminalization operation between Beijing and Guangzhou for 

the IATA Summer 2010 Schedule Season, so FedEx Express was unable to implement 

this service. FedEx Express is requesting a reallocation of these frequencies in 

anticipation of being able to implement this service at the beginning of the IATA Winter 

2010 Schedule Season (i.e., on or about October 31, 2010). 

2. Based on widely published media reports, FedEx Express understands that 

Delta ceased all freighter operations on or about December 31, 2009. FedEx Express also 

understands that, at that time, Delta held sixteen (16) U.S.-China Zone 1 or Zone 2 all1 See Application of Federal Express Corporation and Motion for Shortened Answer Date and 

Expedited Process, DOT-OST-2010-0015-1 (January 13, 2010) and Notice of Action Taken, DOT-OST2010-0015-4 (February 3, 2010). 

2 Under the terms of the U.S.-China Air Transport Agreement, FedEx Express must use a frequency 

to co-terminalize its Guangzhou hub with a Zone 1 point (i.e., Beijing) through December 31, 2010. 
Application of 

Federal Express Corporation 

Page 3 

 

cargo frequencies. Since Delta has not been operating those sixteen (16) all-cargo 

frequencies for more than ninety (90) days, they have automatically reverted back to the 

Department and are available for immediate reallocation. 

3. If the Department grants Evergreen International Airlines, Inc.’s pending 

request for one (1) Zone 1 or Zone 2 all-cargo frequency, there will be eight (8) 

frequencies left in the Department’s unallocated pool of Zone 1 or Zone 2 all-cargo 

frequencies. 

4. Therefore, twenty-nine (29) Zone 1 or Zone 2 all-cargo frequencies – five (5) 

frequencies the Department previously allocated to FedEx Express, sixteen (16) 

frequencies Delta is no longer using, and eight (8) frequencies in the Department’s 

unallocated pool – are available for immediate allocation. 

5. In addition to the request for reallocation of the five (5) frequencies for new 

U.S.-Guangzhou/Beijing service described above, FedEx Express requests: 

• six (6) frequencies for a new transpacific round-trip service between the 

FedEx Express Newark hub and Beijing, via Anchorage and Osaka in the 

westbound direction and via Seoul and Anchorage in the eastbound 

direction, using MD-11 aircraft;3

• three (3) frequencies for additional transpacific round-trip service between 

Anchorage and Shanghai using MD-11 aircraft; 

• one (1) frequency for additional transpacific service between Anchorage 

and Shanghai using MD-11 aircraft; and 

• five (5) frequencies for additional transpacific round-trip service between 

the FedEx Express Memphis SuperHub and Shenzhen, via Anchorage one 

day per week in the westbound direction, and via Tokyo and Seoul four 

days per week in the westbound direction, using Boeing 777 aircraft.4

3 The MD-11 has a gross payload of 196,000 pounds. 

4 The 777 has a gross payload of 219,000 pounds. 
Application of 

Federal Express Corporation 

Page 4 

 

6. All of the above-described service will operate on a weekly, year-round basis, 

and FedEx Express intends to commence these services during the first week of the IATA 

2010 Winter Schedule Season (i.e., October 31 through November 6, 2010). 

7. The Department’s grant of this request will be consistent with the public 

interest, and it will not prejudice any other interested party, especially since there will 

still be nine (9) Zone 1 or Zone 2 all-cargo frequencies immediately available to other 

carriers, and since all U.S.-China all-cargo designation and frequency limits will be lifted 

as of March 25, 2011. 

WHEREFORE, FedEx Express respectfully requests an allocation of twenty (20) 

U.S.-China Zone 1 or Zone 2 all-cargo frequencies, effective on or about October 31, 

2010. 

 Respectfully submitted, 

 FEDERAL EXPRESS CORPORATION 

 /s/ 

 G. Bailey Leopard, Jr. 

 Sr. Counsel 

 Regulatory Affairs 
Certificate of Service 

 I hereby certify that I have this 9th day of June, 2010, caused the Application of 

Federal Express Corporation to be served upon each party listed below in the manner 

indicated. 

 /s/ 

G. Bailey Leopard, Jr. 

C. Blair Berselli 

Evergreen International Airlines, Inc. 

blair.berselli@evergreenairlines.com 

(via e-mail) 

Edward W. Sauer 

Counsel for 

Evergreen International Airlines, Inc. 

esauer@ssd.com 

(via e-mail) 

Kevin P. Montgomery 

Polar Air Cargo, Inc. 

kevin.montgomery@polaraircargo.com 

(via e-mail) 

Alexander Van der Bellen 

Delta Airlines, Inc. 

sascha.vanderbellen@delta.com 

(via e-mail) 

David L. Vaughan 

Counsel for United Parcel Service Co. 

dvaughan@kelleydrye.com 

(via e-mail) 

Michael J. Francesconi 

United Parcel Service Co. 

mfrancesconi@ups.com 

(via e-mail) 

Danielle Fisher 

Counsel for United Parcel Service Co. 

dfisher@kelleydrye.com 

(via e-mail) 

Dontai Smalls 

United Parcel Service Co. 

dsmalls@ups.com 

(via e-mail) 

Mark W. Atwood 

Counsel for Kalitta Air, LLC 

matwood@sherblackwell.com 

(via e-mail)