                    UNITED STATES OF AMERICA

            DEPARTMENT OF TRANSPORTATION

                    OFFICE OF THE SECRETARY

                             WASHINGTON, DC

Issued by the Department of Transportation on February 4, 2003

NOTICE OF ACTION TAKEN—DOCKET OST 99-6044

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This serves as notice to the public of the action described below, taken
by the Department official indicated

(no additional confirming order will be issued in this matter).

Application of      United Parcel Service Co.     filed   1/10/03   to:

XX  Renew exemption under 49 U.S.C. 40109 to:

Integrate its existing authority to provide scheduled foreign air
transportation of property and mail under its certificates of public
convenience and necessity for Route 665 (U.S. – Canada), Route 569
(various U.S points – Mexico), Route 581 (U.S. – Japan) and Route
557 (U.S. – various points worldwide) and under its currently held
exemptions, and any certificate or exemption authority it may be granted
in the future, so as to permit foreign air transportation services
involving any points named on the above certificates and exemptions.
UPS also requests to integrate its certificate authority on Route 790
(U.S.-Italy), Route 795 (U.S. –various Latin American points), and
Route 797 (U.S.-China) with the above certificates and exemptions.  UPS
has requested the authority for an indefinite duration.

Applicant rep:    David L. Vaughan<PHONE_NUMBER>       DOT Analyst:
Sylvia Moore<PHONE_NUMBER>

D I S P O S I T I O N

XX  Granted in part (subject to conditions, see below)

XX  Balance dismissed (see below)

The above action was effective when taken:   February 4, 2003,   through
   February 4, 2005

Action taken by:   Paul L. Gretch, Director

		    Office of International Aviation

Except to the extent exempted or waived, this authority is subject to
the terms, conditions, and limitations indicated:     XX  Holder’s
Certificates of Public Convenience and Necessity

	      XX  Standard Exemption Conditions (attached)

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Conditions:  The route integration authority granted is subject to the
condition that any service provided under this exemption shall be
consistent with all applicable agreements between the United States and
the foreign countries involved.  Furthermore, (a) nothing in award of
the route integration authority requested should be construed as
conferring upon United Parcel Service rights (including fifth-freedom
intermediate and/or beyond rights) to serve markets where U.S. carrier
entry is limited unless United Parcel Service

(See Reverse Side)

2

notifies the Department of its intent to serve such a market and unless
and until the Department has completed any necessary carrier selection
procedures to determine which carrier(s) should be authorized to
exercise such rights; and (b) should there be a request by any carrier
to use the limited-entry route rights that are included in United Parcel
Service's authority by virtue of the route integration exemption granted
here, but that are not then being used by United Parcel Service, the
holding of such authority by route integration will not be considered as
providing any preference for United Parcel Service in a competitive
carrier selection proceeding to determine which carrier(s) should be
entitled to use the authority at issue.

Dismissal:  We dismissed that portion of UPS’ request for renewal of
route integration authority with respect to future certificate/exemption
authority.  See Notice of Action Taken dated May 10, 2001, in this
docket.

Consistent with our standard practice for this type of application, we
granted UPS’ exemption for a period of two years, and dismissed its
request for longer-term authority.

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On the basis of data officially noticeable under Rule 24(g) of the
Department’s regulations, we found the applicant qualified to provide
the services authorized.

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) our action was consistent with Department
policy; (2) grant of the exemption was consistent with the public
interest, and (3) grant of the authority would not constitute a major
regulatory action under the Energy Policy and Conservation Act of 1975.
To the extent not granted or dismissed, we denied all requests in the
referenced Docket.  We may amend, modify, or revoke the authority
granted in this Notice at any time without hearing at our discretion.

Persons entitled to petition the Department for review of the action set
forth in this Notice under the Department’s regulations, 14 CFR
§385.30, may file their petitions within seven (7) days after the date
of issuance of this Notice.  This action was effective when taken, and
the filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide
Web at:

http://dms.dot.gov//reports/reports_aviation.asp

APPENDIX

U.S. CARRIER

Standard Exemption Conditions

In the conduct of operations authorized by the attached notice, the
applicant(s) shall:

(1)  Hold at all times effective operating authority from the government
of each country served;

(2)  Comply with applicable requirements concerning oversales contained
in 14 CFR 250 (for scheduled operations, if authorized);

(3)  Comply with the requirements for reporting data contained in 14 CFR
241;

(4)  Comply with requirements for minimum insurance coverage, and for
certifying that coverage to the Department, contained in 14 CFR 205;

(5)  Except as specifically exempted or otherwise provided for in a
Department Order, comply with the requirements of 14 CFR 203, concerning
waiver of Warsaw Convention liability limits and defenses;

(6)  Comply with the applicable requirements of the Federal Aviation
Administration Regulations and with all applicable U.S. Government
requirements concerning security; and

(7)  Comply with such other reasonable terms, conditions, and
limitations required by the public interest as may be prescribed by the
Department of Transportation, with all applicable orders and regulations
of other U.S. agencies and courts, and with all applicable laws of the
United States.

The authority granted shall be effective only during the period when the
holder is in compliance with the conditions imposed above.

									       10/02

 To assure compliance with all applicable U.S. Government requirements
concerning security, the holder should, before commencing any new
service (including charter flights) to or from a foreign airport, inform
its Principal Security Inspector of its plans.