 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on June 21, 2002

NOTICE OF ACTION TAKEN -- DOCKET OST-96-2018

_____________________________________________________________

This serves as notice to the public of the action described below, taken
by the Department official indicated (no additional confirming order
will be issued in this matter).

Application of  Federal Express Corporation  filed  5/7/02  for:

	 

XX  Waiver of the 90-day dormancy condition

By Order 96-2-17 the Department granted Federal Express exemption
authority to provide scheduled all-cargo service in the New
York/Memphis-Moscow market and allocated it five weekly all-cargo
frequencies for this service.  That award was subject to the condition
that the frequency allocation would expire automatically and the
frequencies would revert to the Department for reallocation if they were
not used for a period of 90 days.   

On November 1, 1999, Federal Express temporarily suspended its direct
flight operations serving Moscow.  By Notices of Action Taken dated
January 24, 2000, and October 10, 2000; Order 2001-11-15; and Notice of
Action Taken dated March 27, 2002, the Department granted Federal
Express waivers of the 90-day dormancy condition.  The latest waiver is
through June 30, 2002, for one frequency, and through 

November 1, 2002, for four frequencies.  

Federal Express now seeks a further waiver from the dormancy condition
for all five of its frequencies until April 11, 2004, when the Annexes
to the U.S.-Russia agreement will expire.  Federal Express stated that
it had planned to provide one weekly round trip between Memphis and
Moscow via Paris, before June 30, 2002, but during U.S.-Russia
negotiations in April 2002, revisions to the Annexes made it impossible
for Federal Express to use the frequencies as planned.

Applicant rep. : Melissa Paul, 901-434-8580  DOT analyst : Sylvia
Moore, 202-366-6519

DISPOSITION

XX  Granted (See Remarks)

The above action was effective when taken for all five frequencies:  
June 21, 2002,  until  April 11, 2004

Action taken by:  Paul L. Gretch, Director

	                Office of International Aviation

2

Remarks:   As a result of revisions to the Annexes of the 1994
U.S.-Russia Air Transport Agreement, temporarily suspending all U.S.
carrier traffic rights between European points and Russia until April
11, 2004, we have granted Federal Express’ request for a waiver until
April 11, 2004, based on the circumstances stated in the request. 

________________________________________________________________________
______________

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) our action was consistent with Department
policy, and (2) the authority granted is consistent with the public
interest.  To the extent not granted, we denied all requests in the
referenced Docket.  We may amend, modify, or revoke the authority
granted in this Notice at any time without hearing at our discretion.	

Persons entitled to petition the Department for review of the action set
forth in this Notice under the Department’s regulations, 14 CFR §
385.30, may file their petitions within seven (7) days after the date of
issuance of this Notice.  This action was effective when taken, and the
filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide
Web at:

http://dms.dot.gov//reports/reports_aviation.asp

 Federal Express’ waiver from the dormancy condition is effective
through April 11, 2004, or until the date on which Federal Express
begins service with each of the frequencies, whichever occurs earlier. 
The 90-day dormancy period will begin on the date Federal Express begins
service.  As to any frequency with which Federal Express does not begin
service by April 11, 2004, its frequency allocation with respect to that
frequency expires automatically.

