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Updated: Thursday, August 11, 2005 7:57 AM


US-China Charter Flights


US-China Charter Flights

OST-98-20 - US-China Charter Flights

Served August 5, 2004

Notice Notifying US Carriers of Procedures to Distribute New Charter Opportunities | Word

On June 18, 2004, the United States and the People's Republic of China initialed a protocol amending the U.S.‑PRC aviation agreement. The amended agreement greatly expands the opportunities for the air carriers of both countries, including the opportunities for charters. In this regard, (among other things) under the new agreement, each Party shall approve applications by the airlines of the other Party for 75 one‑way charter flights annually from August 1 of each year, between points in China Zone 11 and U.S. points on city pairs served by Chinese carriers' scheduled services of the same type (combination or all‑cargo) as the proposed charter flight, and 75 one‑way charter flights annually from August 1 of each year, between points in China Zone 22 and U.S. points on city pairs served by Chinese carriers' scheduled services of the same type (combination or all‑cargo) as the proposed charter flight. These rights are available August 1, 2004, under the terms of the agreement.

The late summer/autumn is the peak season for U.S.-China cargo traffic, and U.S. carriers interested in operating the remaining available charters should be accorded as much time as possible, with as little procedural delay as possible, to be able to plan and implement their services. Thus, in order for U.S. carriers to make immediate use of these valuable rights, we have, as noted above, structured the procedures for this charter year to be similar to those that we have used for charter pools in other limited charter markets. The carriers are familiar with those procedures and can thus use them without delay.

Subsequent to this action, by letters dated July 23 and July 26, Polar Air Cargo and Kalitta Air each requested an allocation of U.S‑China cargo charters in China Zone 1. Evergreen and Kalitta filed answers to Polar's request, and Polar filed a reply. We will address these requests by subsequent separate actions under the procedures set forth in this Notice.

Kalitta NOAT from July 16th

By: Karan Bhatia


Polar Air Cargo, Inc. and Kalitta Air, Inc.

Undocketed

Issued August 9, 2004

Notice of Action Taken | Word

We have decided to grant Polar and Kalitta the charter flights they seek for U.S.-China cargo service to a point in Zone 1. It is our policy to ensure that the operating rights available to U.S. carriers are fully utilized. No other carrier has presented an application to operate any charters at this time. Both Polar and Kalitta have demonstrated that they have firm plans to utilize the charters. With respect to the concerns raised by Evergreen, we have, as noted above, issued procedures for the allocation of the charters at issue here. With respect to Kalitta’s concerns, we do not see as dispositive the fact that Polar is an applicant in the 2004 Cargo Designation and 2004/2005 All-Cargo Frequencies (U.S.-People’s Republic of China) Proceeding to determine the recipient of the newly-available scheduled cargo designation in the U.S.-China market. A decision in that carrier-selection case has not been made, so Polar has no ability to serve the U.S.-China market other than by using the charters available from the pool. Moreover, as noted, Polar has agreed that, if it is selected for the available scheduled cargo designation, it will return to the pool any unused charters upon commencement of its scheduled service in the market. We find that, under the circumstances presented, the public interest supports a decision to approve Polar’s and Kalitta’s requests. With the grant of these requests, 18 charters remain in the pool for Zone 1.

By: Paul Gretch


Notice - US-China Charter Flights

August 5, 2005

Notice of Procedures to Distribute Available Charter Opportunities | Word

On June 18, 2004, the United States and the People’s Republic of China initialed a protocol amending the U.S.-PRC aviation agreement.  The amended agreement greatly expanded opportunities for air carriers of both countries, including opportunities for charters.  In this regard, (among other things) under the agreement, each Party shall approve applications by the airlines of the other Party for 75 one-way charter flights annually from August 1 of each year, between points in China Zone 1 and  U.S. points on city pairs served by Chinese carriers’ scheduled services of the same type (combination or all-cargo) as the proposed charter flight, and 75 one-way charter flights annually from August 1 of each year, between points in China Zone 2 and U.S. points on city pairs served by Chinese carriers’ scheduled services of the same type (combination or all-cargo) as the proposed charter flight.  Under the terms of the agreement, these rights are available for the annual periods beginning August 1 each year.

By: Paul Gretch


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