UPS APPLIES FOR CHINA AIR RIGHTS
United Parcel Service has submitted an application to the U.S.
Department of Transportation for aviation operating rights to serve the
The DOT will in the coming months select one U.S.-based passenger or cargo
carrier to provide direct service into China, starting in 2001. Three U.S. and three
Chinese carriers already have authority to serve the U.S./China market.
UPS told the DOT it planned to offer six weekly flights between Ontario,
Calif.; Anchorage, Beijing and Shanghai using Boeing 747 freighters. UPS said it would fly
an additional four weekly flights between Newark, Anchorage, Shanghai and Tokyo, also
"China is one of the most important express cargo markets in the
world," said Jim Kelly, chairman and chief executive officer of UPS. "These
rights are critical for UPS to provide our customers with the flexibility and capability
they need to grow their businesses in this vital region."
UPS argued that existing U.S./China rights provide sufficient capacity
and competition for passengers. The Atlanta-based carrier noted, however, that Federal
Express is the only air express/freight carrier with Chinese operating rights, giving
FedEx an unfair advantage over competing air carriers.
"While passenger airlines do carry a limited payload of cargo, they do
not serve the just-in-time express market that is being fueled by the rise
in global electronic commerce," said Tom Weidemeyer, UPS Airline president.