Alaska International Airport System 2011 Cargo Summit

1. Alaska International Airport System 2011 Cargo Summit 30 August, 2011

2. Cargo Transfer Panel • Moderator: John Parrott – Manager, ANC • Robert Finamore – USDOT, Office of International Aviation • Jeff Shane – Hogan Lovells • Kymberly Fernandez – Chief Supervisory Officer in Alaska for US Customs and Border Protection • Tom Phillips – Keiser Phillips Associates • Jesse VanderZanden – Manager, FAI

3. Alaska Air Cargo Transfer OpportunitiesStevens Amendment • Allows non-US airlines to carry international cargo between US points as part of an interline itinerary if and only if the interline connection occurs in Alaska. • Conditions: (a) Non-US carrier must be authorized to serve Alaska. (b) Cargo being carried on the domestic leg of an interline itinerary must be carried on behalf of a US direct air carrier or indirect air carrier (freight forwarder) using code sharing, blocked space agreements, etc.

4. Alaska Air Cargo Transfer OpportunitiesExemption Authority Special US DOT exemption authority makes it advantageous to use Alaska as a cargo hub for: • Flexible on-line transfers • Change-of-gauge (including “starburst”) • Commingling US international cargo with non-US • US and non-US carriers can transfer cargo freely with each other where origin and destination are outside the US • Any non-US carrier serving the US allowed to serve Alaska • Carriers invited to apply for new routes to the US provided new points to be served will be served via Alaska

5. Alaska Air Cargo Transfer OpportunitiesOpen Skies Agreements Airlines from countries with which the US has Open Skies agreements also enjoy the flexibility provided in DOT’s August 19 order. • US Open Skies partners include: Singapore, Taiwan, New Zealand, Brunei, Malaysia, South Korea, Pakistan, Sri Lanka, Samoa, Indonesia, India, Japan, Maldives, Thailand, Cook Islands, Australia, and Laos. • Some Open Skies agreements also include 7th-freedom rights for all-cargo operations between the US and third countries (for example, carriers from the following countries hold such rights: Singapore, New Zealand, Brunei, Malaysia, Pakistan, Samoa, Indonesia, India, Maldives, Thailand, Cook Islands, Australia, and Laos.)

6. Technical Stop Stops at ANC can be completed in 1-2 hours No restrictions. Example: TG’s BKK-ORD flight stops for refueling at ANC. No cargo loaded or off-loaded.

7. On-line Transfers- Starburst Change of Gauge TG No restrictions. “Starburst change-of gauge” permitted. Example: TG’s BKK-ANC flight (B747-400) transfers cargo onto 3 continuing segments (B767) between ANC and US.

8. On-Line Transfers: Multiple Origins and Destinations TG Example: TG flies cargo from multiple Asian gateways to US. No restrictions on on-line transfers at ANC. (Requires 7th Freedom authority from US and 3rd countries.)

9. Interline to/from US: Non-US carrier to/from US carrier No restrictions. Example: TG moves cargo from/to BKK to/from ANC and transfers with multiple US carriers.

10. Interline to/from US under Stevens Amendment:Non-US and US Carrier * TG AA AA TG Example: Cargo moving between ORD and NRT. Domestic segment is on TG*and interlines with AA at ANC. *Domestic US segment performed under Stevens-compliant arrangement with US direct or indirect air carrier.

11. Interline to/from US under Stevens Amendment:Between Non-US Carriers * * Example: TG and JL exchange Asia-US cargo at ANC. *Domestic US segments performed under Stevens-compliant arrangements with US direct or indirect air carriers.

12. Commingling US cargo with non-US cargo To Europe TG Example: TG carries both US-bound and Europe-bound cargo from BKK. TG may freely transfer cargo at ANC to onward flights to US and Europe.

13. Transferring non-US cargo at Alaska To Europe TG JL No restrictions. Example: TG and JL can stop at ANC on flights to/from Canada and Europe and exchange cargo.