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 th is 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, 2010BEFORE 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 Expr ess”) 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 frequenc ies are available from a combination of previously allocated frequenc ies 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 frequencie s from the Department’s ot herwise 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 sc hedule season. Granting this application will be consiste nt 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.-Chi na 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, 2010Application 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, Fe dEx Express states as follows: 1. Five (5) of the frequencies request ed herein involve a reallocation of frequencies the Department previ ously 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 Expr ess global network. However, as the Department is aware, China’s General Ad ministration of Civil Aviation (“CAAC”) refused to approve this co-terminalizati on operation between Be ijing and Guangzhou for the IATA Summer 2010 Schedule Season, so FedEx Express was unable to implement this service. FedEx Express is requesti ng 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 re ports, 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 sixt een (16) U.S.-China Zone 1 or Zone 2 all1 See Application of Federal Express Corporation and Motion for Shortened Answer Date andExpedited 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 b een operating those sixt een (16) all-cargo frequencies for more than ninety (90) days, th ey have automatically reverted back to the Department and are available for immediate reallocation. 3. If the Department grants Evergreen International Airlin es, 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 unallo cated 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 al located to FedEx Express, sixteen (16) frequencies Delta is no longer using, and ei ght (8) frequencies in the Department’s unallocated pool – are availa ble for immediate allocation. 5. In addition to the reques t for reallocation of the fi ve (5) frequencies for new U.S.-Guangzhou/Beijing service describe d above, FedEx Express requests:

• six (6) frequencies for a new transpac ific round-trip service between the FedEx Express Newark hub and Beiji ng, 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 tr anspacific 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 tr anspacific round-trip service between the FedEx Express Memphis SuperHub and Shenzhen, via Anchorage one day per week in the westbound direct ion, and via Tokyo and Seoul four days per week in the westbound di rection, 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 se rvices during the firs t week of the IATA 2010 Winter Schedule Season ( i.e. , October 31 through November 6, 2010). 7. The Department’s grant of this reque st will be consistent with the public interest, and it will not prejud ice any other interested party, especially since there will still be nine (9) Zone 1 or Zone 2 all-car go frequencies immediatel y 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 re spectfully requests an a llocation of twenty (20) U.S.-China Zone 1 or Zone 2 all-cargo fr equencies, effective on or about October 31,

2010.

Respectfully submitted,

FEDERAL EXPRESS CORPORATION

/s/ G. Bailey Leopard, Jr. Sr. Counsel Regulatory AffairsCertificate of Service I hereby certify that I have this 9 th 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)