UPS Wins DOT Approval to Shift Hong Kong Air Rights to New Philippines Route

The U.S. Department of Transportation has approved UPS's request to transfer six of its Hong Kong flying rights — four to Warsaw, Poland and two of three to Hanoi, Vietnam — so it can launch new all-cargo service from Hong Kong to Clark Airport in the Philippines. The move supports UPS's expanding hub at Clark, where a facility expansion is expected to finish later this year, and the carrier plans to fly the route using Boeing 767-300 freighters.

UPS is also eyeing dormant route authority granted to Asia Pacific Airlines for a Guam-Hong Kong-Manila service. That carrier received a DOT extension to Oct. 31 to begin flying after missing its original deadline, and UPS has said it will push to have the department reallocate those frequencies to other carriers if service doesn't start on time.

The expansion reflects UPS's growing footprint in Asia, where second-quarter Asia-to-Asia export volume rose 13.6% year over year. The company is also expanding its Hong Kong hub and upgrading its Incheon Airport terminal in Seoul.

Rival FedEx, which holds 14 of the 64 U.S.-Hong Kong fifth-freedom allocations, is also strengthening its intra-Asia network. It recently began flying a Boeing 777 freighter five times weekly from Guangzhou, China to Sydney, Australia, cutting up to a day of transit time for shipments from the Philippines, Thailand, Malaysia, Japan and South Korea. That follows new FedEx freighter service between Guangzhou and Penang, Malaysia, and added Bangkok-to-Guangzhou flights added last November.

Original article: DOT approves UPS transfer of Hong Kong routes to Philippines