MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Rules

By: Senator(s) White (29th), Smith, Johnson (19th), Kirby, Canon, Gollott, Scoper, Moffatt, Harvey

A CONCURRENT RESOLUTION URGING THE U.S. DEPARTMENT OF TRANSPORTATION TO GRANT UNITED PARCEL SERVICE'S (UPS) APPLICATION FOR DESIGNATION TO PROVIDE NEW AIR EXPRESS SERVICE TO CHINA UNDER THE NEW AIR SERVICES AGREEMENT.

WHEREAS, on October 28, 1999, UPS submitted its application to the United States Department of Transportation (DOT) for aviation operating rights to the People's Republic of China; the application formally launched the company's bid to obtain the one new slot reserved for a United States carrier to serve the China market; and

WHEREAS, in its formal application, UPS argued its selection would provide far more economic benefit for United States businesses and workers than would any other applicant's; the company also asserted that UPS's selection would finally expand service competition to the Chinese marketplace while providing much-needed capacity in the air express and general air freight markets; and

WHEREAS, UPS has served the nations of Asia since 1988 and operates an extensive network within China through a partnership with a Chinese carrier, including UPS-branded operations in 21 major business centers; the company is seeking to expand its Chinese service by utilizing UPS jet freighter aircraft; and

WHEREAS, in coming months, the Department of Transportation will select one additional United States-based passenger or cargo carrier to fly directly into China, starting in April 2001; currently, three United States and three Chinese carriers have the authority to serve the United States-China market; UPS noted that Federal Express currently hold all competing air carriers at a disadvantage since it is the only air express/freight carrier with Chinese operating rights; and while there is plenty of capacity and competition in the passenger market with five United States and Chinese passenger carriers, there is unmet and growing demand for additional capacity in the air express/freight sector, UPS argued; awarding the designation to UPS will bring competition to the marketplace, provide much needed service in the air express/freight market and provide far more economic benefits to the United States than would the designation of any other United States air carrier; unlike any other applicant, UPS connects every business and residence in the United States every day to China; and the new designee must be able to provide this type of integrated express service needed for the next century; and

WHEREAS, granting this application will provide tremendous economic benefits to consumers and communities in both Mississippi and the United States:

NOW, THEREFORE, BE IT RESOLVED BY THE SENATE OF THE STATE OF MISSISSIPPI, THE HOUSE OF REPRESENTATIVES CONCURRING THEREIN, That we do hereby urge the United States Department of Transportation in the strongest possible terms to award this new designation to United Parcel Service (UPS) to provide new air express service to the People's Republic of China under the new United States-China air services agreement.

BE IT FURTHER RESOLVED, That certified copies of this resolution be forwarded to the Honorable Rodney Slater, Secretary of Transportation and to each member of Mississippi's congressional delegation.