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OST-2008-0127 - 2009 US-China All-Cargo Proceeding


US-China 2008 All-Cargo Frequencies - Notice Inviting Applications, Jan. 31, 2008 - No Applications Filed
OST-1999-5539 - US-China Air Services
OST-1999-6323 - 2001 US-China Air Services
OST-2004-18468 - 2004 Cargo Desitnation and 2004/2005 All-Cargo Frequencies
OST-2004-19077- 2005/2006 US-China Air Services Case and Designations
OST-2006-25275 - 2007 US-China Combination and All-Cargo Frequency Allocation Proceeding
OST-2007-28361 - US-China Combination and All-Cargo Frequency Allocation Proceeding


2009 US-China All-Cargo Designation and Frequency Allocation Proceeding

Order 2008-4-22
OST-2008-0127

Issued and Served April 15, 2008

Order Instituting Proceeding and Inviting Applications - Bookmarked

We have decided to institute the 2009 U.S.-China All-Cargo Designation and Frequency Allocation Proceeding to award the available designation to a U.S. air carrier to operate all-cargo services between the United States and China and to allocate 15 all-cargo frequencies to serve points in China Zone 1 or China Zone 2. These rights become available on March 25, 2009.

Incumbent carriers designated to provide all-cargo service between the United States and China Zone 1 or China Zone 2 are invited to apply for the 15 all-cargo frequencies that become available on March 25, 2009, and should request new or amended certificate authority, as needed, to operate the frequencies.

In awarding the rights available in this proceeding, our principal objective will be to maximize the public benefits that will result from the various awards of authority in this case. In this regard, we will consider which applicants will be most likely to offer and maintain the best service for the shipping public. We will consider the effects of the applicants’ service proposals on the overall market structure and level of competition in the U.S.-China market, and any other market shown to be relevant, in order to promote an air transportation environment that will sustain the greatest public benefits. In addition, we will consider other factors historically used for carrier selection where relevant. Based on the material in the record, we will consider whether it is in the public interest to award backup authority in this case.

Procedural Timetable:

Petitions for Reconsideration: 7 calendar days after the instituting order issued
Answers to Petitions: 4 calendar days after petition
New Applications: 14 calendar days after petitions for reconsideration
Answers: 10 calendar days after applications
Replies: 7 calendar days after answers

By: Michael Reynolds



Order 2008-4-22
OST-2008-0127

Issued and Served April 15, 2008 | Corrected April 21, 2008

Order Instituting Proceeding and Inviting Applications - Bookmarked - Corrected Copy

This copy reflects the corrected dates for the submission of Petitions for Reconsideration and Answers to Petitions under the procedural timetable on page 4.

Procedural Timetable:

Petitions for Reconsideration: 10 calendar days after the instituting order issued
Answers to Petitions: 7 calendar days after petition
New Applications: 14 calendar days after petitions for reconsideration
Answers: 10 calendar days after applications
Replies: 7 calendar days after answers

By: Michael Reynolds



May 7, 2008

Motion for Leave to File and Joint Petition for Reconsideration of FedEx, Northwest, Polar Air Cargo and UPS

Federal Express Corporation, Northwest Airlines, Inc., Polar Air Cargo Inc. and United Parcel Service Co. hereby ask the Department to amend Order 2008-4-22 by removing Item 10 of the Evidence Request in the Order's Appendix. In light of the simplified procedures the Department has adopted for this case -- which do not include a traffic forecast requirement -- the Petitioners move to be relieved of the burdensome incumbent data request, which is unnecessary for the sole issue of detennining which new entrant carrier will receive the available all-cargo designation.

None of the Petitioners intend to participate in this proceeding as applicants. They should not be required, therefore, to incur the expense of gathering and submitting such information, especially when it is not required for the Department's determination in this case.

Imposing any evidence requests on the Joint Petitioners, while eliminating the Department's own information response requirements is contrary to the simplified procedures that are intended to reduce burdens on carriers appearing before the Department in route proceedings. Parties in designation and frequency proceedings already incur great expense and use a considerable amount of valuable resources when gathering requested infonnation and evidence that is pertinent to the proceedings. While applicants seeking designations and frequencies typically would not object to reasonable requests for data that are necessary for Department determinations, it is unnecessary for non-applicants that do not anticipate participating in a proceeding to incur costs and expend valuable resources in gathering and submitting infonnation when such infonnation is not necessary for the Department to render its decision.

Counsel: Bailey Leopard, 901-434-6664, gbleopard@fedex.com for FedEx / Alexander Van der Bellen, 202-841-4184, sascha.vanderbellen@nwa.com for Northwest / Kevin Montgomery, 202-828-1002, kevin.montgomery@polaraircargo.com for Polar / Michael Francesconi, 502-329-6541, mfrancesconi@ups.com for UPS



Served May 8, 2008

Notice Shortening Answer Period

On May 7, 2008, Federal Express Corporation, Northwest Airlines, Inc., Polar Air Cargo, Inc. and United Parcel Service Co., collectively the incumbent carriers, submitted a late-filed petition for reconsideration of the evidence request accompanying instituting order, Order 2008-4-22, insofar as it directs the incumbent carriers to provide certain data.

To avoid delay in the conduct of this proceeding, we will shorten the answer period by making answers to both the petition for reconsideration, and the accompanying motion, due Friday, May 9, 2008. We will stay the requirement to submit incumbent carrier data pending the Department's issuance of a decision on the petition.

The May 9, 2008 submission date for new applications provided in Order 2008-4-22, remains unchanged, as prospective applicants would not have had the benefit of incumbent carrier data in preparing new applications in any event.

By: Paul Gretch



May 9, 2008

Application of Evergreen International Airlines for a Certificate of Public Convenience and Necessity, Designation and Frequency Allocation

Evergreen International Airlines submits this application for a certificate of Public Convenience and Necessity, a designation, and the allocation of six all-cargo frequencies to allow it to inaugurate scheduled all-cargo service to China on March 25, 2009. Evergreen proposes to operate six weekly westbound frequencies from New York (JFK) to Shanghai, with a traffic stop at Columbus, Ohio. These flights will return from Shanghai to JFK with intermediate traffic stops at Chicago/O'Hare (four times per week) and Dallas/Ft. Worth (twice weekly). Evergreen will start service with B747-200 aircraft, and in October 2009 will upgrade to B747-400 freighters that it currently has under contract.

This case represents an important opportunity for the Department of Transportation to advance its continuing efforts to increase competition and improve service in cargo operations in the U.S.-China markets. At the present time. the four US cargo carriers designated to serve China are underutilizing a valuable set of assets-the all-cargo frequencies for which the United States has painstakingly negotiated in recent years. As the Instituting Order notes [Order 2008-4-22], 17 all-cargo frequencies are available at this time, but are unused. This number seems likely to increase in light of Northwest's recent notice to the Department that it has ceased using a number of its all-cargo frequencies and wishes the Department's approval to suspend cargo service to Guangzhou entirely without risking any loss of those frequencies for dormancy.

In contrast, Evergreen is seeking new authority to serve China wherever it is available, and using it to the fullest. Since 2005, it has operated more than 70% of the Zone 1 charter flights available to cargo carriers, as well as charter flights not subject to the 75-flight limit wherever possible. Nonetheless, Evergreen still cannot provide the regular pattern of service the market needs. Shanghai is the largest, fastest growing cargo market in China, and can readily support expanded service when offered by a carrier with Evergreen's experience in the market and commitment. Yet, while Evergreen is pursuing every opportunity to expand service within the artificial limits applicable to charters, 17 scheduled frequencies remain unused, and an incumbent carrier has just asked to be excused from the Department's dormancy policy in part because there are already abundant unclaimed frequencies. Most recently, the entire group of incumbent carriers confirmed to the Department that they will not be seeking additional frequencies in this proceeding. The Department, as it has done in the past, should take the opportunity in this proceeding to redress this imbalance at least in part by selecting an additional carrier for designation and allocating at least six frequencies to that carrier. There is a compelling need for an additional scheduled cargo carrier that is ready to meet the needs of the marketplace. Evergreen is that carrier.

Counsel: Squire Sanders, Edward Sauer, 202-626-6641


May 9, 2008

Application of Kalitta Air for a Certificate of Public Convenience and Necessity, Allocation of Ten All-Cargo Frequencies and Designation

Kalitta has made no secret of its intent to seek the new US carrier designation. It has actively participated in the US‑China negotiating process, and has continued to expand its presence in China through its long‑standing business relationships with some of the largest forwarders in the US‑China market. For a number of years Kalitta Air has met these shippers' needs by uplifting more scheduled freight from Hong Kong to the US than any other US air carrier. The scheduled cargo designation now sought by Kalitta is the logical next step for the carrier, given its deep commitment to the China market. Designating Kalitta, we submit, would be the logical next step for the Department in its efforts to strengthen US carrier freighter operations over the Pacific.

Kalitta proposes to operate ten weekly round trips on two routings, involving Shanghai and Guangzhou, using its Boeing 747 widebody freighters. Its proposal is not based solely on an economic analysis, but on its operating experience and knowledge of the air freight business in China. In 2007, Kalitta Air operated 449 flights to the United States from Hong Kong and Shanghai; these flights exclusively carried China‑US cargo. Its total operations in that market over the last five years exceed 1700 flights, with a total uplift of over 363 million pounds. The carrier has a large and experienced sales and customer support staff in Hong Kong, and its proposed new service has received the enthusiastic backing of many of the major shippers in the China‑United States airfreight market.

In light of the difficulties affecting the global economy, and particularly the increased cost of jet fuel, Kalitta is better positioned than any other likely applicant to commence and sustain service in this already highly competitive market. Its individually waybilled scheduled airfreight network extends from Hong Kong to the US and on to Europe and the Middle East. It has been on a solid financial footing from its inception nearly eight years ago, with cumulative profits of over $270 million over the last five years. And, it has reinvested those profits in a continual upgrading of its fleet and its maintenance facilities.

Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513


May 9, 2008

Answer of Kalitta Air to Petition of FedEx, Northwest, Polar Air Cargo and UPS

Kalitta Air wishes to advise the Department that it has no objection to the grant of relief requested by these carriers. As the Department noted in its Notice Shortening the Answer Period, the information requested of the incumbent carriers can be of no use to any applicant in preparing its application and supporting documents, since it would not have been available to them for analysis until the same day that their application and exhibits were to be submitted. Requiring the incumbent carriers to produce this information for the record in this Proceeding, on the other hand, does seem unduly burdensome both to the incumbent carriers and to the Department. It could, we fear, lead to unnecessary delay in the Department reaching a final decision with regard to the new designation award.

Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513


Application of Tradewinds Airlines for a Certificate of Public Convenience and Necessity, US-China Designation, and Frequency Allocation

With the Department's approval ofits application and the reciprocal grant by the PRC government of all necessary licenses, TradeWinds intends in the 2009 peak season (July- December) to operate a total of six (6) weekly Boeing B-747-400SF freighter flights between the U.S. and China. TradeWinds B-747-400SF flights will depart both Beijing and Tianjin on Sundays and Wednesdays and in Guangzhou on Mondays and Thursdays. As set forth in greater detail in Exhibit WI-lO, these schedules are designed to give shippers the capacity required on key days ofcargo consolidation (Sundays and Wednesdays). TradeWinds' pattern and level ofservice will be well positioned to compete with the PRC and Asia-based carriers as well as the U.S. carriers already serving China through their Asia hubs, and with these routings, TradeWinds would serve seven (7) of the top-ten China air cargo markets. TradeWinds believes that its proposed round-the-world routings will lessen the effects of the worsening directional imbalance which characterizes the China-U.S. air cargo market where, for 2007,59% of segment capacity utilized is for imports to the U.S. and only 22% of the capacity utilized is for exports from the U.S. to China.

Counsel: Pierre Murphy, 202-776-3980



May 16, 2008

Re: Erratum of Kalitta Air

On behalf of Kalitta Air, L.L.C., I am submitting herewith three corrected pages of the application filed by Kalitta in this proceeding on May 9, 2009: 

• Exhibit KA-T-2, page 4;
• Exhibit KA-T-3, pages 2 and 5; and
• Exhibit KA-101, page 1.

The corrected language is shown in boldface on each page. Further, I am attaching the "Index of Exhibits," which was inadvertently omitted from the original application materials.

Counsel: Sher & Blackwell, Mark Atwood


May 16, 2008

Application of TradeWinds Airlines for Certificate, Designation and Frequency Allocation - Errata

To correct typographical errors on page 1 of 4 of Exhibit WI-11, and page 3 of 7 of Exhibit WI-10 of TradeWinds' Application filed herein May 9, 2008, TradeWinds respectfully seeks leave to file the corrected pages.

Counsel: Pierre Murphy, 202-776-3980, pmurphy@lopmurphy.com



Order 2008-5-21
OST-2008-0127

Issued and Served May 16, 2008

Order on Reconsideration

By this order we grant the joint petition of Federal Express Corporation, Northwest Airlines, Inc., Polar Air Cargo, Inc. and United Parcel Service Co., collectively the “joint petitioners,” for reconsideration of Order 2008-4-22 in the above-captioned proceeding. Upon reconsideration, we grant the relief requested.

We have decided to grant the petition and the relief requested by the joint petitioners. In the interest of securing an adequate decisional record we have previously requested data from incumbent carriers, including in cases where the incumbent carriers might not themselves be participating as applicants. In this case, upon review, we believe that such data is not needed by the parties or the Department to complete the record. No parties objected. Accordingly, we will vacate Item II.10 in its entirety from the evidence request set forth in Order 2008-4-22.

By: Michael Reynolds



May 19, 2008

Consolidated Answer of Evergreen International Airlines - Bookmarked

Evergreen's proposal is focused on the critical Shanghai-New York (JFK) market and includes stops in the United States designed to provide comprehensive coverage of major U.S. markets. It reflects the extensive expertise concerning the China-United States market that Evergreen has developed over the past three years through a highly successful program of nearly 300 cargo charter operations. It builds on Lources that Fvircen already has on the ground at Shanghai that will be needed to implement scheduled service. It employs Boeing 747-400 freighter aircraft purchased by Evergreen specifically for this service. When compared to the competing submissions of Kalitta and Tradewinds, it is clear that Evergreen's proposal is the superior choice.

Counsel: Squire Sanders, Edward Sauer, 202-626-6641


May 19, 2008

Consolidated Answer of Kalitta Air to the Applications of Tradewinds Airlines and Evergreen International Airlines - Bookmarked

Kalitta Air will institute services with a total of ten flights in each direction per week between the US and China. The other applicants offer only six, with one of those applicants proposing a round-the-world eastbound routing of no value to US exporters to China. 

Even assuming normal freighter schedule reductions during periods of extended manufacturing holidays in the US and Asia (Christmas, New Years, Chinese New Year and other US and Chinese holidays) Kalitta Air would operate at least 192 more round trip frequencies per year than Evergreen proposes. With respect to TradeWinds, the frequency advantage for Kalitta would be the same if the applicant is proposing a year round schedule of six flights per week.

Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513


May 19, 2008

Consolidated Answer of Tradewinds Airlines - Bookmarked

In stark contrast with other China proceedings in prior years where both the available designations as well as the available frequencies have always been heavily over-subscribed, the current incumbents in the U.S.-China all-cargo market (UPS, FedEx, Polar and Northwest) are not participating in the current proceeding. This is clearly because these incumbents are not using a significant portion ofthe frequencies already awarded to them in prior proceedings. The Department is presented, therefore, with the unprecedented situation ofthese incumbents not applying for any of the fifteen new weekly frequencies since they believe they will be unable to use them for the foreseeable future.

The reason for this unprecedented situation is of course the unprecentedly high price of fuel coupled with the overall depressed situation of the China-U.S. air cargo market including, importantly, the severe west-bound U.S. export imbalance making the maintenance of a traditional pattern of round-trip China-U.S.-China flights highly problematic and uneconomical.

Counsel: Law Offices of Pierre Murphy, Pierre Muprhy, 202-776-3980


May 19, 2008

Answer of The City of Houston and The Greater Houston Partnership

Respectfully submit this answer in support of the application of TradeWinds Airlines for the designation for an all-cargo carrier in the U.S.-China market that becomes available on March 25, 2009, as well as for six (6) of the available frequencies for all-cargo service in the U.S.-China market.

TradeWinds’ China service proposal includes twice-weekly single-plane service between Houston’s George Bush Intercontinental Airport (IAH) and Tianjin (TSN), with stops in both directions on a round-the-world itinerary. In addition, the itinerary to be operated by TradeWinds (see exhibit WI-5) would enable new and additional services to and from other international points with which Houston has significant economic links, including Milan, Almaty, Seoul, Santiago, and Bogota. Accordingly, the Houston Parties strongly support TradeWinds’ application and urge that it be granted by the Department.

TradeWinds’ service proposal is designed to best utilize the newly available U.S.-China all-cargo rights under the circumstances of the harsh economic climate currently confronting air carriers. As TradeWinds notes, there is an imbalance between U.S.-China and China-U.S. traffic which can best be addressed by operating services over an eastbound round-the-world itinerary. But at the same time, TradeWinds’ proposal would serve traffic moving from the U.S. to China in markets where such a need exists. As explained in greater detail below, Houston is atypical in that it is a net exporter of air cargo to China – and thus TradeWinds’ proposal to use Houston as both a start and an end point for some of its itineraries reflects current market needs and will enhance the public benefits of its services.

Counsel: Zuckert Scoutt, Rachel Trinder, 202-298-8660



May 27, 2008

Consolidated Reply of Evergreen International Airways - Bookmarked

Neither Kalitta nor Tradewinds has raised a legitimate question as to the superiority of Evergreen’s proposed B747 service between Shanghai and New York. Without doubt, Evergreen remains the only applicant in this proceeding with the experience, resources, and commitment to institute competitive scheduled service between the United States and China in March 2009. The Department should approve Evergreen’s application without delay.

No other applicant offers this unique combination of valuable benefits, and no other applicant would bring to the U.S.-China market the competitive spur contemplated by the Department when it negotiated the 2007 amendments to the bilateral or instituted this proceeding.

As a further demonstration of Evergreen’s deep commitment to the U.S.-China market, Evergreen is very pleased to announce that it will increase its service from Shanghai from two to three weekly flights, utilizing B747-200 aircraft, effective July 1, 2008. Since charter flights from China available under the bilateral cap will be exhausted well before that date (largely as a result of Evergreen’s extensive operation of Shanghai-U.S. charters during the first five months of this year), Evergreen will operate these flights from Shanghai to Columbus, with continuing service to New York. Commencement of this additional service on July 1 will provide Evergreen with a sound basis on which to transition to New York/Columbus-Shanghai scheduled service in March 2009, and proves beyond doubt that Evergreen is committed totally to operating its proposed service. No other applicant in this proceeding has made a similar commitment or backed it with actual operations in its proposed market. Stated simply, Evergreen today has in place at Shanghai everything it requires to begin scheduled Shanghai-New York service on March 25, 2009--it is, in fact, successfully operating the functional equivalent of its proposed service today through the use of charters.

Counsel: Squire Sanders, Edward Sauer, 202-626-6641


May 27, 2008

Consolidated Reply of Kalitta Air to the Answers of Tradewinds Airlines and Evergreen International Airlines - Bookmarked - 10MB

Answers submitted in this Proceeding leave the public interest equation unchanged. Among the three applicants, Kalitta Air will offer the public more round-trip capacity; serve more China markets on a round-trip basis; utilize the B-747-400 freighter aircraft that are now in its fleet; provide more options for U.S. exporters; have broad shipper support in both China and the U.S.; operate to and from the two largest U.S. gateway airports for China trade -- Los Angeles and Chicago, as well as from Atlanta which ranks 7th; have the most scheduled service experience and sales force; fill a void left by Northwest; and have the financial strength to initiate and sustain the services proposed.

The other applicants cannot contest any of this. Therefore they are forced to rely on claims that it should just be ignored. Evergreen's case rests on persuading the Department that since Northwest withdrew from Guangzhou, no other U.S. carrier can succeed there. TradeWinds' position requires it to persuade the Department that its new global scheduled freight network would be viable while the proposals of the other applicants would not. Neither TradeWinds nor Evergreen has met the evidentiary goals they set for themselves.

Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513


May 27, 2008

Consolidated Reply of TradeWinds Airlines - Bookmarked

TradeWinds' innovative use of its existing traffic base in the one-directional eastbound flow to China has four major advantages: (a) It avoids the burdening eastbound traffic with westbound costs; (b) It does not add to the one-way excess capacity in the westbound U.S.- China Trans-Pacific market; (c) It lowers the overall fuel burn and cost of operations; and it enables TradeWinds to offer a more attractive price to shippers, which in turn may offer a real challenge to the current modal shift of airfreight being rerouted to sea.

There can be little doubt that this market has changed dramatically from the one that existed just a couple of years ago. The ramifications of the historically high and ever increasing carrier fuel prices, coupled with the increases in air cargo capacity in the U.S.-China air cargo market, the slowdown in the U.S. economy, and shipper sensitivity to increasing China-U.S. air cargo yields has undermined the sustainability of long term incumbents like Northwest, let alone the prospects for new entrants in the market, especially on traditional Trans-Pacific routing Unlike the other two applicants, TradeWinds' eastbound-only routings will not produce more destabilizing additional capacity to the already excessive and underutilized amount of air cargo capacity existing in the westbound Trans-Pacific sector. Now more than ever, the Department must rely on the recent evidence to critically evaluate market conditions and weigh the future streams of public benefits accruing from its award based on the viability and sustainability of the three applicants proposed U.S.- China all cargo service.

Like United before it, US Airways has just announced the cancellation of its new China service due to fuel prices. See: 2007/2008/2009 U.S.-China Air Service and Combination Frequency Proceeding; Docket OST-2007-28567.

Counsel: Pierre Murphy, 202-776-3980



May 28, 2008

Response of Kalitta Air to Reply of Evergreen International Airlines to Motion for Leave to File

Evergreen's Reply claims that corrections to Kalitta Air's Application, which were filed with the Department on May 16th , were not served on Evergreen, and that Evergreen's rebuttal case and exhibits were based upon the initial, uncorrected submission. Counsel has confirmed that counsel for TradeWinds was served with the corrections on the 16th, and undersigned counsel's e-mail log shows that the corrections were also sent by email to Mr. John Palo at Evergreen, but apparently not to Evergreen's Washington counsel. For this administrative oversight we apologize and can assure the Department that there was no intent to disadvantage Evergreen.

Taking Evergreen at its word that it did not see the corrections prior to its filing of its Answer and rebuttal exhibits, Kalitta Air would have no objection to the Department comparing the merits of the Kalitta Air and Evergreen proposals on the basis of the uncorrected Kalitta Air schedules to which Evergreen has already responded at length.

Kalitta Air's schedules as originally filed reflect ten round-trip flights per week from the U.S. to China; five frequencies from Los Angeles to Guangzhou and five frequencies from Chicago and Atlanta to Shanghai over a loop routing. All outbound flights from the United States connect in Anchorage for cross-loading Those ten flights as scheduled on the original exhibits offer the public benefits listed in Kalitta Air's pleadings in essentially the same degree as would the corrected schedules. The substantial quantitative and qualitative differences between Kalitta Air's proposal and those of the other Applicants remain regardless of whether the analysis is of the schedules as initially filed, or as corrected.

The correction affected only two of the ten weekly scheduled flights, adding a second stop in Chicago on the round-trip routing, as had been Kalitta Air's original intent.

Kalitta Air requests leave to file this Response, which would otherwise be an unauthorized document. The sole purpose of this Reply is to state the carrier's position with respect to Evergreen's request that the corrections not be considered. Kalitta Air hopes that by disposing of this controversy now, the Department will be better able to proceed with its decision in the expedited manner it intended.

Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513



May 9, 2008

Congressman Gregory Meeks (D-NY) in Support of Evergreen International Airlines

I welcome Evergreen's entry into the US-Shanghai scheduled all-cargo markets, and urge you to consider them for designation as a scheduled cargo carrier in 2009.

The Greater New York region will benefit from the significant economic impact that Evergreen's proposed service will provide to our community. Economic impact studies of new air cargo service between the U.S. and China have found that a new service such as that proposed by Evergreen would have a positive economic impact of approximately $27 million annually as a result of increased local economic activity, spending, and new jobs.

By: Gregory Meeks



June 4, 2008

Re: Chicagoland Chamber of Commerce in Support of Evergreen's Proposal

We believe there is a strong need for cargo service between Shanghai and Chicago that the airlines currently operating in the market cannot meet. Evergreen's proposal will help fill this gap by offering four widebody frequencies per week between Shanghai and Chicago. This is an important increase in capacity and in frequency. It will enable shippers to bring their time-sensitive products to market more quickly, and encourage more local involvement in international trade.

Our region and local businesses will benefit from the significant economic impact that Evergreen's proposed service will provide to our community. Economic impact studies of new air cargo service between the U.S. and China have found that a new service such as that proposed by Evergreen would have a positive economic impact of approximately $17 million annually as a result of increased local economic activity, spending and new jobs.

By: Gerald Roper


May 16, 2008

Re: Columbus Regional Logistics Council in Support of Evergreen's Proposal

We believe there is a strong need for service between Shanghai and Columbus that the airlines currently operating in the market cannot meet. Evergreen's proposal will help fill this gap by offering six widebody frequencies per week between the US and Shanghai. This is an important increase in capacity and in frequency. It will enable shippers such as our company to bring their time‑sensitive products to market more quickly.

Evergreen is well‑known to shippers in the US‑China markets. For years it has conducted a successful cargo charter operation in China. It is presently offering highly reliable and professional services within the limitations imposed by the charter authority that it must utilize. We are pleased to know that in the past several years, Evergreen has operated the major portion of the available charters between the US and China. Its ability to make up and break up shipments is particularly valuable since it removes a significant burden that we would otherwise face. This is a capability that other carriers in the market simply do not offer.

By: John Ness


May 22, 2008

Re: Congressman Daniel Lipinski (D-IL) in Support of Evergreen's Proposal

Importantly, Evergreen intends to stop at O'Hare on two frequencies. The Greater Chicago region will benefit from the significant economic impact that Evergreen's proposed service will provide to our community, including increased local economic activity, spending, and new jobs. In fact, economic impact studies have shown that new air cargo service between the U.S. and China, such as that proposed by Evergreen, could create approximately $27 million annually for the local economy.

Evergreen is well-known to customers in the U.S.-China markets. It has conducted a successful cargo charter operation in China for years and has operated the major portion of available charters between the U.S. and China for the last several years. It is presently offering highly reliable and professional services within the limitations imposed by the charter authority that it must utilize. In particular, its ability to make up and break down shipments is particularly valuable in U.S.-China cargo service.

By: Daniel Lipinski


May 13, 2008

Re: Dallas/Fort Worth International Airport in Support of Evergreen's Proposal

We believe there is a strong need for B-747 all-cargo service between Shanghai and DFW that the airlines currently operating in the market cannot meet. In 2007, China accounted for more than 40% of all of DFW's air cargo trade with Asia. More than 91,300 metric tonnes of air cargo was shipped between the DFW Customs District and China last year, making DFW the 5t largest market for Chinese air cargo in the U.S. Between 2002 and 2007, imports and exports from China have grown at average annual rates of 25.9% and 45.9%, respectively.

Yet given the size of the market, and the growth exhibited, only one airline, Shanghai based China Cargo Airlines, offers direct all‑cargo flights between DFW and China. Other airlines do provide service, but it is via their connecting hubs or through other U.S. air cargo gateways necessitating truck feeder service to or from DFW. The effect of this is slower service and increased cost to shippers. Clearly, additional direct plane service would be of significant benefit to DFW importers and exporters, the local community, and the entire North Texas Region.

Evergreen's proposal will help fill this gap by offering an additional two 747 frequencies per week between DFW and Shanghai. This is an especially important increase in capacity and in frequency as there is only one airline offering direct service to Shanghai from DFW, China Cargo Airlines. This service will enable shippers to bring their time‑sensitive products to market more quickly and it will provide an additional stimulus to the DFW export market.

By: Jeffrey Fegan


May 12, 2008

Re: Morrison Express in Support of Evergreen's Proposal

We believe there is a strong need for service between Shanghai and Columbus that the airlines currently operating in the market cannot meet. Evergreen's proposal will help fill this gap by offering six widebody frequencies per week between the US and Shanghai. This is an important increase in capacity and in frequency. It will enable shippers such as our company to bring their time‑sensitive products to market more quickly.

Evergreen is well‑known to shippers in the US‑China markets. For years it has conducted a successful cargo charter operation in China. It is presently offering highly reliable and professional services within the limitations imposed by the charter authority that it must utilize. We are pleased to know that in the past several years, Evergreen has operated the major portion of the available charters between the US and China. Its ability to make up and break up shipments is particularly valuable since it removes a significant burden that we would otherwise face. This is a capability that other carriers in the market simply do not offer.

By: Trinna Lute


May 22, 2008

Re: Ohio Congressional Delegation in Support of Evergreen's Proposal

The Ohio region will benefit from the significant economic impact that Evergreen's proposed service will provide to our community. The recent opening of the Rickenbacker Intermodal Terminal and this possible increase in air cargo service will expand the capacity at the existing Rickenbacker Global Logistics Park, support local business initiatives, give area shippers better export options, and attract other companies to central Ohio. Economic impact studies of new air cargo service between the U.S. and China have found that a new service such as that proposed by Evergreen would have a positive economic impact of approximately 27 million annually as a result of increased local economic activity, spending, and new jobs.

The Columbus-Shanghai market is currently underserved. Rickenbacker International Airport currently has no scheduled mainland China service. The Columbus area needs expanded service and increased competition in the US-China cargo market. In order to respond to the ever increasing commercial activity between the two countries, Evergreen's proposed operation will immediately add six westbound flights, with capacity of more than 600 tons per week to the US-China markets. This is a vast improvement both in frequency and capacity over the already robust, yet limited service that Evergreen is able to offer at present, on a strictly charter basis. Shippers will have better import and export options at JFK and Columbus, as well as Chicago and Dallas and traffic already exists to support these new flights.


May 27, 2008

Re: Senator Ron Wyden (D-OR) in Support of Evergreen's Proposal

In the past several years, Evergreen has operated the major portion of the available charters between the US and China. The scheduled air cargo trade route between Shanghai and the United States, however, is monopolized by two foreign carriers. It's clear that we have a need for a domestic carrier to provide scheduled cargo service on this route.

This vital trade route is currently underserved and Evergreen's proposal for six wide body flights in each direction every week will help fill the gap. This important increase in capacity and frequency will enable shippers to bring time-sensitive products to market more quickly.

By: Ron Wyden


June 5, 2008

Re: Texas Congressional Delegation in Support of Evergreen's Proposal

The Greater Dallas-Fort Worth region will benefit from the significant economic impact that Evergreen's proposed service will provide to our community. Economic impact studies of new air cargo service between the U.S. and China have found that a new service such as that proposed by Evergreen would have a positive economic impact of approximately $27 million annually as a result of increased local economic activity, spending, and new jobs. Evergreen's proposed operation will immediately add two weekly eastbound flights to Dallas/Fort Worth International Airport, adding capacity of more than 200 tons per week to the US-China markets. As a major hub airport for passenger and cargo aviation, DFW airport is perfectly situated to receive Chinese imports and distribute them with ease through the airport's intermodal access to rail and major highways for distribution throughout Texas and the region.



May 9, 2008

Re: Senator Gordon Smith (R-OR) in Support of Evergreen International

Evergreen's proposal will provide an important increase in capacity and frequency between the U.S. and Shanghai, particularly by offering six widebody frequencies between the two locations. This will enable shippers to quickly bring their time-sensitive products to market and encourage more involvement in international trade. I am pleased to learn of Evergreen's efforts to operate this service and welcome the opportunity to provide my support for their application.

By: Gordon Smith


May 9, 2008

Re: Congressman David Wu (D-OR) in Support of Evergreen International

Evergreen International Airlines is headquartered in my Congressional district in McMinnville, Oregon. I am pleased to learn of Evergreen's plans to operate this service, and welcome the opportunity to extend my support to this important service.

By: David Wu


May 22, 2008

Re: Ohio Congressional Delegation in Support of Evergreen International

We are writing to let you know that we support Evergreen International Airlines' application for authority to provide scheduled all-cargo service between Shanghai, China and John F. Kennedy Airport New York with intermediate stops at Rickenbacker International Airport in Columbus, Ohio, among other U.S. cities. We were pleased to learn of Evergreen's plans to operate this service, and welcome the opportunity to let you know of our support.

By: George Voinovich


June 6, 2008

Re: Congressman John Dingell (D-MI) in Support of Kalitta Air

I write to you today to ask that you fully consider the application submitted by Kalitta Air, LLC, for a 2009 US-China All-Cargo Designation allocation. It is my understanding that you will be making a decision regarding desinations in the coming weeks. Such a designation would be greatly beneficial to Michigan's 1st Congressional District, which has served as a home to Kalitta Air since 1967.

By: Congressman John Dingell


June 5, 2008

Re: Texas Congressional Delegation in Support of Evergreen International

We are writing to enthusiastically endorse Evergreen International Airlines' application for authority to provide scheduled all-cargo service between Shanghai's Pudong International Airport and New York's John F. Kennedy International Airport. We are pleased to learn of Evergreen's desire to operate this service, and welcome the opportunity to express our support.

By: Kenny Marchant



July 31, 2008

Re: Norman Mineta in Support of Evergreen International

I am writing to express my support for the application of Evergreen International Airlines seeking authority to operate scheduled all-cargo service between Shanghai, China and John F. Kennedy International Airport commencing in March 2009. Of the three applicants in the current cargo service case, Evergreen offers the most extensive experience in U.S.-mainland-China cargo markets, and a long history of safe, profitable operations. It has also made a service proposal that I believe best fits the needs of those markets. I urge the Department to act favorably on Evergreen's request.

By: Norman Mineta



September 5, 2008

Re: Letter from Evergreen International Airlines

I am writing to express Evergreen's continuing commitment to operating scheduled cargo flights in the U.S‑China market. Evergreen explained in its application and subsequent pleadings in the captioned docket why it would be the best choice for the all‑cargo designation and associated frequencies available under the U.S.‑China bilateral agreement. I want to make clear to the Department of Transportation that Evergreen remains unequivocally committed to instituting service in the U.S.‑China market‑‑as proposed and without delay‑‑should the Department grant Evergreen the authority it requested.

Last week, American Airlines asked the Department to defer for one year the date by which American must begin service in the Chicago-Beijing combination service market. American's request follows similar requests for China service deferrals from United Air Lines and US Airways, requests for China frequency conversion from Delta Air Lines and Continental Airlines, and a request from Northwest Airlines to suspend its U.S.-Guangzhou all-cargo service in its entirety. Unlike these carriers, Evergreen remains firmly committed to serving the U.S.-China market with scheduled flights, and is filly prepared to implement the service proposal contained in its May 9, 2008, application.

While other carriers are reducing their commitment to the U.S.-China market, Evergreen continues to serve the market with frequent charters, as it has for years. Evergreen operated nine charters each month in June and July 2008, and operated thirteen charters in August 2008. That represents a total of thirty-one China charters during the past three months--at a time while other carriers have been deferring or reducing their U.S.-China services. Indeed, no other carrier involved in this case has operated any China cargo charters during this period, or more than a token number during the preceding charter year. Evergreen has no intention of limiting or otherwise reducing its commitment to the China market.

Evergreen's plans to acquire two B747-400F aircraft, which will be used to serve China, remain firmly in place. Aircraft deliveries are on schedule. Evergreen's continuing charter service and its contract to acquire larger, more efficient, aircraft expressly for the US-China route fully demonstrate Evergreen's unwavering commitment to instituting scheduled China service, as proposed and without delay.

By: Evergreen, Delford Smith



September 8, 2008

Re: Letter from Kalitta Air in Response to Evergreen's September 5th Letter

On September 5, 2008 Evergreen International Airways submitted to you an unauthorized and inappropriate document in the above‑captioned proceeding. Kalitta Air, L.L.C. takes strong exception to Evergreen's attempt to circumvent the procedural rules that the Department established in setting down this proceeding. 

The Evergreen pleading goes far beyond its purported purpose of reaffirming the carrier's interest in the designation. The Evergreen letter attempts to present factual evidence as to its own operations since the close of the record and makes statements purporting to be factual with respect to the operations of Kalitta Air that are, quite simply, incorrect. The letter is a blatant attempt to influence improperly the decision in this proceeding. It should not be accepted. 

Kalitta Air is committed to the China service proposal it submitted and factually supported on the record in this proceeding. We anxiously await the Department's decision.

Counsel: Sher & Blackwell, Mark Atwood, 202-463-2500



Order 2008-9-28
OST-2008-0127

Issued and Served September 23, 2008

Order to Show Cause

Three carriers, Evergreen, Kalitta, and TradeWinds Airlines, Inc. filed applications for the all-cargo service designation opportunity and frequencies that are available effective March 25, 2009. Evergreen and TradeWinds each requested six frequencies, and Kalitta requested 10 frequencies. Each applicant proposes year-round service. Evergreen and TradeWinds intend to institute service on March 25, 2009, while Kalitta intends to institute service on March 30, 2009. Also, each applicant intends to carry general freight and a small percentage of express packages and/or mail. Each applicant indicated that it does not intend to operate its China services pursuant to any wet-lease or code-share arrangement with any carrier. However, TradeWinds anticipates entering into interline arrangements with Arrow Cargo in Miami and CargoItalia in Milan.

By this show-cause order, we tentatively decide to award Evergreen International Airlines, Inc. certificate authority to provide all-cargo services in the U.S.-China market and allocate to Evergreen six weekly all-cargo frequencies for its proposed services. The rights become available on March 25, 2009. We also tentatively decide to select Kalitta Air, LLC as a backup to Evergreen’s primary award and tentatively award it backup certificate authority.

We tentatively find that the public interest calls for imposing a restriction on the sale or transfer of newly-awarded U.S.-China all-cargo route rights. We thus tentatively impose the following condition on the economic authority to be awarded in this proceeding: the selected primary carrier (and, if its authority is activated, the selected backup carrier) must operate newly-awarded U.S.-China all-cargo routes until March 25, 2011, before that carrier may be permitted to sell or transfer the route in question. Our tentative action here is consistent with the no sale/no transfer condition that was applied to new route authority and frequencies in the 2007/2008/2009 U.S.-China Air Services and Combination Frequency Allocation Proceeding in Docket OST-2007-28567. We see no basis for distinguishing between cargo and combination air carriers to justify a different position.

By: Michael Reynolds



October 7, 2008

Objections of Kalitta Air to Order to Show Cause

Kalitta Air is extremely disappointed by the Department's tentative decision in this Proceeding (Order 2008-9-28). The carrier continues to believe that it presented the best and most realistic proposal from the standpoint of maximizing public benefits from the U.S-China designation. It offered the best aircraft - 747-400's currently in its fleet and another on order. It offered the most -frequencies - ten round trips. It offered service to more points and geographic regions in China - Guangzhou and Shanghai. It offered coverage from all three geographic regions of the United States to those two points in China on each Kalitta Air U.S. departure by connecting the two Kalitta Air westbound flights in Anchorage. It offered the most realistic proposal - Kalitta would submit that it is the only realistic proposal -- for operating round-trip schedule freighter services in the U.S.-China market. It offered a proven, established record of operating and selling international scheduled, individually waybilled airfreight services - scheduled service between the U.S. and Europe and the Middle East, and scheduled service from Hong Kong to Chicago and New York. And, it offered point-to point U.S.-China service in both directions on each of its five weekly 747-400 US-Shanghai flights, a key element that the Department incorrectly attributed exclusively to Evergreen.

Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513



October 17, 2008

Answer of Evergreen International Airlines

Evergreen objects to Kalitta's unprecedented startup condition. The long line of limited-entry route cases involving cargo services to China during the years that the U.S.-China markets have been gradually opened to new service does not contain any condition that parallels the one requested by Kalitta. Nor, to Evergreen's knowledge, has such a condition been imposed in any other limited-entry route case. On the contrary, the Department has consistently followed the policy of affording carriers the necessary flexibility to tailor their services to the changing demands of the marketplace, rather than imposing enhanced startup restrictions. While it is hardly unusual for a disappointed applicant to seek to persuade the Department to impose special restrictions on the carriers tentatively selected by the Department's show cause orders, those efforts have been routinely rebuffed by the Department. The latest example of this is the recent China passenger service case in which MAXjet contended that press reports published following the issuance of the show cause order called into question whether US Airways, which had been selected for Philadelphia-Shanghai service, would have the gates available in Philadelphia to operate the flights it proposed. MAXjet requested that the Department suspend processing of the final order, reopen the record to evaluate US Airways' commitment to the route, and grant MAXjet backup authority. In response, the Department declined to reopen the proceeding and reiterated its determination not to issue backup authority in that case, noting that US Airways had committed to providing the services that were awarded. The only "new" condition imposed in that proceeding was the sales/transfer restriction that the Department is also proposing here. Of course, while MAXjet's argument was based on what it viewed as new facts arising after issuance of the show cause order, Kalitta can make no such claim here. Kalitta's fallacious arguments that Evergreen's U.S.-Shanghai servIce will not prove to be economically viable, and that circumstances fifteen years ago at the first opening of the China markets to all-cargo service outweigh Evergreen's strong recent history of China operations and undermine the reliability of its current proposal were both fully considered and rejected by the Department. Kalitta's objection simply repeats what it has stated before, adding only speculation and innuendo about Evergreen's possible future actions. This is hardly the type of record on which the Department should now impose greater restraints on Evergreen than imposed on any other new entrant carrier.

Another example is the Los Angeles-Puerto Vallarta Combination Service Proceeding (Order 2006-9-8) (September 11, 2006). In that case United questioned Delta's commitment to proposed new service in the Los Angeles-Puerto Vallarta market and proposed that Delta be required to provide daily year-round service without interruption for two years. Once again the issue was the viability of a service proposal, this time in light of the departure of another carrier from the market after the issuance of the show cause order. The Department declined United's request, noting that its customary conditions in limited entry U.S.-Mexico route awards should be sufficient.

Counsel: Squire Sanders, Edward Sauer, 202-626-6641



October 20, 2008

Reply of Kalitta Air to Answer of Evergreen International Airlines and Motion for Leave to File

A key point of contention in this Proceeding was whether Evergreen intends to operate the round-trip U.S.-China service it proposed or whether it intends merely to secure the designation by characterizing its one-way (AMC...supported) charter flights as "scheduled" to meet the start-up condition of an Order. Evergreen did not seek to respond to this point with any sort of economic evidence but rather with repeated assurances of its "commitment to operating the full service proposal," and by repeatedly stressing that its commitment "could not be clearer."

Commitments notwithstanding, Evergreen now equivocates on the heretofore "unequivocal." It strenuously objects to being asked to honor those promises for even a month of operations. Kalitta Air submits that Evergreen's Answer speaks volumes as to its intent: Operating one-way flights from China to the United States using aircraft that have been positioned in Asia through outbound AMC charters. Such an operation would offer absolutely nothing to US shippers and the US exporting community. The promise of such benefits was an important consideration in the Department's tentative choice (See Order 2008-9-28).

Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513



October 21, 2008

Re: Evergreen Will Not Reply to Reply of Kalitta

I am writing to you regarding the Reply of Kalitta Air, LLC to the Answer of Evergreen International Airlines, Inc. and Motion for Leave to File, submitted yesterday in this Docket. Kalitta's unauthorized Reply is merely a repetition of arguments that Kalitta has already made in this proceeding. Those arguments have already been considered by the Department in its Order to Show Cause (Order 2008-9-28), and also addressed fully in Evergreen's Answer to Kalitta's objections to that order. Evergreen sees no need to burden the Department's staff and the record with even more repetition. Accordingly, Evergreen wishes to advise the Department that it will not file a response to Kalitta's pleading.

Counsel: Squire Sanders, Edward Sauer, 202-626-6641



Order 2008-12-31
OST-2008-0127

Issued and Served December 31, 2008

Final Order

By this Order we make final our tentative findings and conclusions set forth in Order 2008-9-28, and award Evergreen International Airlines, Inc. certificate authority to provide all-cargo services in the U.S.-China market and allocate to Evergreen six weekly all-cargo frequencies for its proposed services. The rights become available on March 25, 2009. We also make final our tentative decision to select Kalitta Air, L.L.C. as a backup to Evergreen’s primary award and award it backup certificate authority.

By: Michael Reynolds



Feburary 20, 2009

Motion of Evergreen Interational Airlines

Evergreen International Airlines, Inc. hereby requests an amendment to Order 2008-12-31 to the extent necessary to permit Evergreen to inaugurate scheduled all-cargo service between the United States and China on or before March 25, 2010. Evergreen makes this request with great reluctance. Evergreen has operated to China for several years on a charter basis, and saw the availability of additional scheduled all-cargo authority as an opportunity to build on that already successful base. Unfortunately the China cargo markets have slowed greatly since Evergreen planned its service. While the company fully expected it would not need to join the ranks (now at seven) of carriers that have sought various forms of postponements or dormancy waivers in their China services, the downturn has drastically accelerated in the past few months, and has made the launch of service at this time impossible. Evergreen plans to inaugurate service between the United States and Shanghai as soon as market conditions allow. However, Evergreen must request this postponement in order to preserve its authority to do so.

Counsel: Squire Sanders, Edward Sauer, 202-626-6641



March 3, 2009

Answer of Kalitta Air to Motion of Evergreen International Airlines and Request for Activation of Backup Authority

With the disappointing loss of the primary award in this case and in the face of declining global freight volumes and yields, Kalitta Air took a number of steps to position itself to maintain profitable core scheduled, charter and AMC operations until the global economy recovers. It sharply reduced its active fleet and initiated lay-offs and furloughs of pilots and ground personnel. It will therefore take some time to secure necessary licenses and authorizations in China and to reactivate aircraft and rehire personnel. Nevertheless, Kalitta Air believes it will be prepared to commence scheduled 747-400F services to and from China within approximately 180 days of a final DOT order transferring the designation to Kalitta Air and activating its backup authority.

Kalitta Air harbors no illusions about the difficulties in commencing new services to China. However, despite the sharp declines in Hong Kong traffic cited by Evergreen, Kalitta Air maintains regularly scheduled freighter service between Hong Kong and the United States. Kalitta also continues to operate its daily scheduled roundtrip freighter services between the United States and the Middle East. These core scheduled operations and the scheduled sales and operational staff that supports them provide a framework from which to initiate and expand services between the United States and China. Building on that existing framework, Kalitta will be able to inaugurate meaningful levels of weekly 747 freighter service between Shanghai and the United States within the time frame set out above.

Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513



March 10, 2009

Reply of Evergreen International Airlines

Evergreen International Airlines, Inc. hereby replies to the answer of Kalitta Air, LLC opposing Evergreen’s request for a deferral of the dates contained in Order 2008-12-31, which require Evergreen to begin scheduled all-cargo flights in the U.S.-China market on or before March 25, 2010. Kalitta asks that the Department deny Evergreen’s request and award the available designation and frequencies to Kalitta, under the backup authority granted to it in Order 2008-12-31. Evergreen opposes Kalitta’s request, and urges the Department to deny Kalitta’s attempt to strip Evergreen of the operating rights awarded to Evergreen in December 2008.

While maximum operating flexibility would be helpful in the face of current economic circumstances, Evergreen understands and appreciates the Department’s interest in seeing that valuable bilateral rights are utilized to the maximum extent possible. With this in mind, Evergreen affirms its commitment to begin scheduled U.S.-China service and institute service in accordance with the terms of Order 2008-12-31, as follows:

  1. Evergreen will commence scheduled all-cargo service between the United States and China no later than ten days after March 25, 2009.
  2. Service will be operated initially at a level of three frequencies weekly.
  3. After ninety days, Evergreen will increase service to four frequencies weekly.
  4. Evergreen will increase service to six frequencies weekly no later than September 1, 2009, and will continue operation of these frequencies in accordance with the terms of Order 2008-12-31.

This timetable will require slight modification of the dates set forth in Order 2008-12-31. Evergreen respectfully requests that the Department grant Evergreen’s request for modification so that it can bring to shippers service it has long planned and worked hard to establish (and which the Department found was superior to services proposed by Kalitta and Tradewinds), while at the same time maintaining a modicum of flexibility to respond to unprecedented market conditions.

Counsel: Squire Sanders, Edward Sauer, 202-626-6641



March 13, 2009

Motion for Leave to File and Response of Kalitta Air

In less than two weeks Evergreen has made a complete volte face from its representations as to facts affecting its start-up and its own capabilities. There is one thing, however, that it has been careful not to do: it has assiduously avoided stating that it will operate even its reduced scheduled service in both directions. To conclude that Evergreen's credibility is left a bit strained as a result of its representations to date in this docket and others seems reasonable. Kalitta Air therefore asks the Department to make it explicit that to fulfill its obligations Evergreen must provide its scheduled service from as well as to the United States. If Evergreen intends to operate over the routing it proposed in its exhibits (which was an important factor in the Department's decision), such· a simple requirement would place the carrier at no conceivable disadvantage. It would, however, provide a degree of protection for those U.S. shippers and exporters that the Department believed would be benefited by the selection of Evergreen for the designation in this limited entry market.

Counsel: Sher & Blackwell, Mark Atwood, 202-463-2513



Filed February 20, 2009 | Issued March 17, 2009

Notice of Action Taken

By Order 2008-12-31, the Department awarded Evergreen certificate authority to serve the U.S.-China all-cargo market and allocated Evergreen six weekly frequencies for its proposed service. The award was subject to our standard 90-day start-up condition, which would require Evergreen to start service as of March 25, 2009.

Evergreen proposes to commence its U.S.-China all-cargo service no later than ten days after March 25, 2009. Evergreen proposes to operate, initially, at a level of three weekly frequencies for 90 days, then increasing to four weekly frequencies. Evergreen states that by September 1, 2009, the carrier would increase service to six weekly frequencies, and would continue operation of these frequencies in accordance with the terms of Order 2008-12-31.

Evergreen initially requested an amended start-up date from March 25, 2009 to March 25, 2010, for its proposed U.S.-China scheduled all cargo service. Following an objection from Kalitta Air, LLC (discussed in the Responsive Pleadings section of this Notice), Evergreen modified its proposed start-up timetable as described here.

Under the circumstances presented, we will grant Evergreen’s request to waive the start-up condition for its U.S.-China scheduled all-cargo service and deny Kalitta’s requests with respect to activation of its backup authority and imposition of additional conditions on Evergreen’s authority. Evergreen has explicitly stated on the record that it is fully committed to its U.S.-China service proposal. We have considered Kalitta’s request for additional conditions and determined that Kalitta raises no persuasive basis for imposing additional conditions on Evergreen’s authority.

We will require Evergreen to institute its U.S.-China all-cargo service with three weekly frequencies within 10 days of March 25, 2009 (i.e., by April 4, 2009). We will grant a temporary waiver of the start-up condition for one of the three remaining weekly frequencies until June 25, 2009, and for the remaining two weekly frequencies, we will grant a waiver through September 1, 2009. We expect Evergreen to utilize all six weekly frequencies by September 1, 2009.

By: Paul Gretch


 

September 18, 2013

Application Evergreen International Airlines for Renewal of a Certificate of Public Convenience and Necessity

By Order 2008-12-31, the Department granted Evergreen International Airlines, Inc. an Experimental Certificate of Public Convenience and Necessity for Route 888 authorizing scheduled foreign air transportation of property and mail between a point or points in the United States and a point or points in the People's Republic of China, via intermediate points and beyond China. That certificate became effective March 25, 2009, and is scheduled to expire March 25, 2014. Evergreen hereby requests renewal of that certificate for at least an additional five years.

Evergreen inaugurated scheduled service to China in 2009 and has operated continuously since that time. During 2012, for example, Evergreen operated approximately 250 all-cargo flights between the US and China. This service is operated with B-747-400 all-cargo aircraft, the largest in Evergreen's fleet.

Counsel: Squire Sanders, Edward Sauer, 202-626-6641


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