Transportation Industry
DOT Announces U.S.-China Air Cargo Rights in Final Order
By Media
U,S, Department of Transportation
Oct 18, 2004, 8:34am

DOT 191-04
Contact: Bill Mosley, Tel.: (202) 366-4570
Monday, October 18, 2004

DOT Announces U.S.-China Air Cargo Rights in Final Order

The U.S. Department of Transportation today formally announced the selection of Polar Air Cargo as a new entrant in the U.S.-China aviation market, and that the three all-cargo carriers currently serving China – FedEx, Northwest Airlines and UPS – will receive additional flights to expand their services.

The new services were made available by the U.S.-China aviation agreement signed July 24 in Beijing by U.S. Transportation Secretary Norman Y. Mineta and Civil Aviation Administration of China Minister Yang Yuanyuan.

The department awarded Polar nine weekly U.S.-China flights, six of which are available now and three beginning March 25, 2005. FedEx and UPS each received 12 additional weekly flights, and Northwest received six. For each of the three incumbent carriers, half of the new flights are available now, and the other half on March 25, 2005.

"These additional routes will help feed the appetite of the growing U.S. economy by providing new avenues for trade with China," said DOT Assistant Secretary for Aviation and International Affairs Karan Bhatia.

Today’s final order confirms the tentative decision announced by the department on Sept. 3, 2004. The final and tentative decisions, carrier applications, and comments are available on the Internet at http://dms.dot.gov, docket OST-2004-18468.

The department noted that the benefits of the agreement come at a critical time. China is the United States’ largest transoceanic trading partner and the China-U.S. trade is expected to grow faster than any other U.S. air freight market over the next two decades.

The agreement allows a total of 195 new weekly flights over six years for the carriers of each country – 111 by all-cargo carriers and 84 by passenger airlines. Prior to the new agreement, the carriers of each country could operate a total of 54 flights per week. This means that at the end of the six-year period, each side may operate a total of 249 weekly flights between the two countries. The agreement also allows five additional airlines from each country to serve the U.S.-China market over the next six years, of which Polar was the first new U.S. carrier to be named.

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