Federal Express Corporation

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2 BEFORE THE U.S. DEPARlMENT OF TRANSPORTATION OFFICE OF TIIE SECRETARY WASHINGTON, D.C. Application of Federal Express Corporation Docket OST For An Exemption Under 49 U.S.C (c) (U.S.- Kazakhstan) APPLICATION OF FEDERAL EXPRESS CORPORATION FOR RENEWAL OF AN EXEMPTION In this application, Federal Express Corporation ("FedEx Express") seeks renewal of its exemption to operate between the United States and Kazakhstan and beyond, via intermediate points. 1 FedEx Express requests that this authority be renewed for at least two years. Renewal of this exemption authority would be consistent with the public interest and Department precedent. The Department's grant ofexemption authority in 2005 allowed FedEx Express to be the first U.S. air carrier to operate a regularly scheduled flight into Kazakhstan. FedEx Express has used its U.S.-Kazakhstan exemption authority to provide the highest quality of efficient, convenient, and reliable air express/cargo service between the United States and Kazakhstan. Almaty's airport infrastructure and strategic locale as a refueling stop for FedEx FedEx Express seeks renewal ofthis exemption under 49 U.S.C (c) and Subpart C of the Department's procedural regulations from the requirements of49 U.S.c and that it obtain a certificate ofpublic convenience and necessity before engaging in U.S. Kazakh scheduled foreign air transportation. October 6,2008

3 Application offedex Express (U.S.-Kazakhstan) Page 2 of5 Express' Hong Kong-Paris flights have also enabled FedEx Express to compete more effectively in the expanding trade relationship between Asia and Europe. In accordance with 14 C.F.R , FedEx Express submits the following information in support ofthis application: I. Existing Authority. On February 23, 2005, the Department granted FedEx Express an exemption to engage in scheduled foreign air transportation of property and mail between a point or points in the United States and Almaty, Kazakhstan and beyond, via intermediate points, and to integrate this authority with its other existing worldwide authorities. 2 This authority was renewed on December 11,2006 for a period oftwo years Before the Department granted FedEx Express the 2005 exemption, FedEx Express had served Kazakhstan on an interline basis for many years. On October 29,2003, FedEx Express began using Almaty as a refueling stop on its Hong Kong-Paris flights. Refueling enabled FedEx Express to increase the westbound Asia-Europe cargo capacity of each flight by 55,000 pounds with little circuity. Almaty boasts a 4,400-meter long runway~ modem fuel supply facilities, and highly professional technical support and services. 3. FedEx Express currently provides U.S.-Almaty service using MD-II equipment having a gross payload of 196~OOO pounds. FedEx Express has created a regional transit hub in Kazakhstan which enables it to transship cargo between points 2 Notice ofaction Taken, Feb. 23, 2005 (Docket OST ).

4 Application offedex Express (U.S.-Kazakhstan) Page 3 of5 in Asia and points in Europe, and ultimately will enable it to ship cargo directly over the pole to the United States. 4. AQPlicable Bilateral Agreement. As the Department has previously detennined, this exemption authority is consistent with the bilateral aviation relationship between the United States and Kazakhstan, which is governed by principles of comity and reciprocity.4 FedEx Express has all Kazakh authority necessary to provide the proposed service. 5. Fitness and Public Interest. FedEx Express is fit, willing, and able to provide international air cargo services, as required by 49 U.S.C (b)(1). FedEx Express is an air carrier of property and mail in scheduled air transportation, operating such services within the United States pursuant to an all-cargo air service certificate issued under 49 U.S.C In international markets, FedEx Express operates under a certificate of public convenience and necessity issued under 49 U.S.C , and specific grants of exemption authority pursuant to 49 U.S.C FedEx Express requests that the Department take official notice, pursuant to 14 C.F.R (g), ofthe extensive data on file with the Department that establish conclusively the fitness offedex Express to operate under the requested authority. Approval of this renewal is in the public interest and will allow for continued valuable services and alternatives for shippers. Since originally receiving authority, FedEx Express has created a regional hub in Kazakhstan. This hub enables FedEx 3 Notice ofaction Taken, Dec. 11,2006 (Docket OST ).

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