Supplementary Memorandum by United Parcel
Service (AS 21A)
At the oral hearings organised by the Environment,
Transport and Regional Affairs Committee of the House of Commons
on 24 May 2000, Mrs Dunwoody, Chair of the Transport Sub-Committee
requested UPS to provide a list of its fifth freedom operations
in Europe. This list is attached. In providing this information
to the Select Committee, UPS wishes to make the following comments
to put this information in the context of its overall air operation
in Europe.
UPS currently operates a total of seven fifth
freedom operations in Europe. These account for approximately
10 to 12 per cent of the total intra-European flight segments
in the UPS air operation in Europe. The balance of these flights
(90 per cent) are operated by European carriers).
Despite the entry into force of liberal/Open
Skies Agreements between the US and big European countries such
as France, Italy and Portugal over the past three years, BCAA
member carriers have not lost any business from UPS. On the contrary,
the number of routes operated by BCAA members on behalf of UPS
in Europe has increased. While UPS shares some of the views expressed
by the BCAA, it is also clear that because BCAA members specialise
in the chartering business, their objective is to force UPS and
other US express parcel carriers into sub-contracting arrangements
through regulatory constraints. As an air carrier, UPS believes
that the decision as to whether or not to sub-contract should
be based on sound business reasons and left to the airline's discretion.
Morgan Foulkes
Manager, Public Affairs International
26 May 2000
| 
