DOT allows Polar Air to enter U.S./China air cargo market

DOT allows Polar Air to enter U.S./China air cargo market    Polar Air Cargo is the tentative winner in the sweepstakes to grant a fourth U.S. all-cargo carrier the right to begin service to China.
   The Department of Transportation said it has picked Polar Air, a subsidiary of Atlas Air Worldwide Holdings, as the new cargo entrant for the U.S./China market permitted under the U.S.-China aviation treaty signed in July. Other airlines vying for the one opening were Evergreen International Airlines, Gemini Air Cargo and Arrow Air.
   The department also proposed to allot 39 new weekly frequencies to FedEx, UPS and Northwestern Airlines — the three existing carriers operating all-cargo China service — and Polar Air.
   Under the bilateral aviation agreement, the two sides are each allowed an additional 111 flights per week by all-cargo carriers to be phased in over six years. Twenty-one flights are available now and another 18 may be added on March 25. The previous rules only permitted 54 flights of all kinds.
   The department plans to award Polar nine weekly flights, six of which are available now and three in March. FedEx and UPS would each receive 12 additional weekly flights and Northwest would receive six. For each of the three incumbent carriers, half of the flights would be available immediately and the rest in March.
   FedEx, which operates 11 U.S.-China flights per week, asked for 18 flights per week. UPS, which operates six flights per week, said six of its new flights would serve Shanghai immediately and the other six would serve Guangzhou next year.
   The DOT issued a separate order Friday asking for applications for new services to China that will become available during the next two years. The department will pick a new passenger carrier and award seven weekly passenger flights for service that can begin March 25. The DOT will also select either a new passenger or all-cargo carrier for service that can begin in 2006. It will also allocate seven new weekly passenger flights and 12 new weekly all-cargo flights that become available at that time.
   Interested parties have seven days from Friday to file any objections with DOT’s selection of Polar and distribution of flights. The department will review the objections and issue a final order.