UPS set to shift Hong Kong cargo flights to Clark airport
Logistics giant United Parcel Service Co. (UPS) is looking to transfer some of its existing Hong Kong-based flights serving other countries to Clark International Airport, as it prepares to position the gateway as its next major logistics hub.
In a notice dated July 31 seen by Manila Bulletin, UPS asked the United States Department of Transportation (DOT) to transfer six of its 19 fifth-freedom frequencies out of Hong Kong to operate the route.
Fifth-freedom flights refer to the right of airlines to carry cargo between two foreign countries from a country of origin, which in this case is the US.
Cargo airlines based in the US are allocated a total of 64 weekly fifth-freedom frequencies from Hong Kong under the 2002 memorandum of understanding (MOU) between the two economies.
Based on the agreement, the route between Hong Kong and Clark is restricted to only 12 weekly flights, with three of them already allocated to another logistics giant, Federal Express Corp. (FedEx).
To operate the service, UPS wants the US DOT to transfer all four of its existing fifth-freedom frequencies for Warsaw and two of its frequencies for Hanoi to Clark despite making full use of each.
“UPS’ transfer of six currently held frequencies to the Hong Kong-Clark market would be within the limits allowed by the MOU for that route,” UPS said. “Accordingly, UPS must
transfer frequencies it currently holds in order to inaugurate [the] service.”
Prior to this, UPS had requested that the US DOT grant it six of the seven available fifth-freedom frequencies out of Hong Kong to begin its Clark-Hong Kong service. These slots have since been allocated to Guam-based cargo carrier Asia Pacific Airlines.
UPS is pushing for the expedited processing of its request to transfer its frequencies to Clark, as it plans to commence services as soon as possible.
The company is currently constructing its new three-hectare sorting facility in Clark, with operations expected to begin in September.
The facility aims to position UPS for long-term growth as it moves to improve shipment times across the Asia-Pacific region, leveraging Clark's strategic location between the Pacific and the US and the rest of Asia.
UPS expects the launch of its service to bring additional competition to FedEx on the Hong Kong-Clark route, resulting in greater shipping options for customers.
It plans to operate the route using its Boeing 767 freighter aircraft, which has a payload capacity of more than 50 tons.