The U.S. Department of Transportation on Tuesday approved FedEx Corp.’s request to bypass a mandatory stop in Dubai under its existing authority to operate aircraft between Hong Kong and Paris because of the operational difficulties posed by hostilities in the Persian Gulf.
FedEx (NYSE: FDX) has not operated the Hong Kong flight to Dubai in 75 days and is coming up on a 90-day inactivity deadline. Under DOT rules, an airline has to operate at least once every 90 days in markets with limited entry to prevent forfeiting its rights.
FedEx said in its application that episodic air space closures and ongoing military operations in the Gulf region have disrupted aviation activity and created a safety risk in Dubai, where the integrated logistics company has a 613,500-square foot air hub for connecting shipments moving around the world.
FedEx operates six flights per week from Hong Kong to Paris, but only one of them is required to operate through Dubai.
The U.S.-Hong Kong air services agreement limits so-called fifth-freedom operations for all-cargo carriers to 64 weekly flights. Fifth-freedom rights allow an airline to operate commercial flights between two foreign countries, as long as the flight starts or ends in the airline’s home country. FedEx controls 14 of the 64 allocations, including the six flights to Paris.
FedEx said temporary relief from the dormancy limit would allow significant flexibility in determining how to manage the restart of service to Dubai once conditions allow. Although Dubai airport is handling flights, it’s not completely free and open. Airlines can’t operate full schedules there. On Monday, Iran fired missiles at the United Arab Emirates.
The Department of Transportation waived the 90-dormancy condition through Oct. 25.
In a separate decision, regulators extended FedEx’s authority by two years for operating Boeing 777 flights from the U.S. to South Africa via Dubai; Nairobi, Kenya or Europe.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
Write to Eric Kulisch at ekulisch@freightwaves.com.
RELATED STORIES:
Supply Chain AI Symposium
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
Future of Rail Symposium
Reshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
Past the hype. Join operators, founders, and enterprise leaders figuring out how to deploy AI in supply chain.
The Old Post • Chicago, IL Register NowReshoring is rewriting freight demand. Join shippers, rail executives, and government officials to shape the next decade.
The Signal at Chattanooga Choo Choo • Chattanooga TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now