 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, DC

Issued by the Department of Transportation on April 8, 2004

NOTICE OF ACTION TAKEN --DOCKET OST-98-3939

________________________________________________________

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   Polar Air Cargo, Inc.  filed 12/16/2003 to:

XX  Renew for two years exemption under 49 U.S.C.§40109 to provide the
following service:

Scheduled foreign air transportation of property and mail from a point
or points in the United States, via intermediate points in both
directions, and a point or points in Colombia, and beyond Colombia to
points in the Western Hemisphere.  Polar also requests renewal of its
authority to integrate this authority with its existing certificate and
exemption authority.

Applicant rep:  Kevin P. Montgomery   202-828-1002   DOT analyst: Gerald
Caolo   202-366-2406

DISPOSITION

XX  Granted (Subject to conditions, see below) 

The above action was effective when taken: April 8, 2004, through April
8, 2006.

Action taken by:  Paul L. Gretch, Director

		  Office of International Aviation

XX  The authority granted is consistent with the U.S.-Colombia Air
Transport Agreement, as amended.

Except to the extent exempted or waived, this authority is subject to
the terms, conditions, and limitations indicated:  

	XX  Holder’s certificates of public convenience and necessity

	XX  Standard exemption conditions (attached)

________________________________________________________________________

Remarks:  The authority for which Polar Air Cargo requested renewal
expired February 21, 2004, but had been kept in force pursuant to the
provisions of the Administrative Procedure Act, 5 U.S.C. 558(c), as
implemented by 14 CFR Part 377, pending action on its timely-filed
renewal application.  

Conditions:  The route integration authority granted Polar is subject to
the condition that any service provided under this exemption shall be
consistent with all applicable agreements between the United States and
the foreign countries involved.  Furthermore, (a) nothing in the award
of the route integration authority requested should be construed as
conferring upon Polar rights (including fifth-freedom intermediate
and/or beyond rights) to serve markets where U.S. carrier entry is
limited unless Polar notifies the Department of its intent to serve such
a market and unless and until the Department has completed any necessary
carrier selection procedures to determine which carrier(s) should be
authorized to exercise such rights; and (b) should there be a request by
any carrier to use the limited-entry route rights that are included in
Polar’s authority by virtue of the route integration exemption granted
here, but that are not then being used by Polar, the holding of such
authority by route integration will not be considered as providing any
preference for Polar in a competitive carrier selection proceeding to
determine which carrier(s) should be entitled to use the authority at
issue.

The authority granted to operate to third countries is limited to
countries with which the United States has signed open-skies agreements
and/or countries for which the carrier holds authority to serve under
certificates or exemptions issued by the Department, and for which it
holds route integration authority by virtue of either the present action
or other action of the Department.

________________________________________________________________________

On the basis of data officially noticeable under Rule 24(g) of the
Department’s regulations, we found the applicant qualified to provide
the services authorized.

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) our action was consistent with Department
policy; (2) grant of the exemption authority was consistent with the
public interest; and (3) grant of the authority would not constitute a
major regulatory action under the Energy, Policy and Conservation Act of
1975.  To the extent not granted, we denied all requests in the
referenced Docket.  We may amend, modify, or revoke the action taken 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 



U.S. Carrier Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier
applicant(s) shall:

(1) Hold at all times effective operating authority from the government
of each country served;

(2) Comply with applicable requirements concerning oversales contained
in 14 CFR 250 (for scheduled operations, if authorized);

(3) Comply with the requirements for reporting data contained in 14 CFR
241;

(4) Comply with requirements for minimum insurance coverage, and for
certifying that coverage to the Department, contained in 14 CFR 205;

(5) Except as specifically exempted or otherwise provided for in a
Department Order, comply with the requirements of 14 CFR 203, concerning
waiver of Warsaw Convention liability limits and defenses;

(6) Comply with all applicable requirements of the Federal Aviation
Administration and with all applicable U.S. Government requirements
concerning security.  To assure compliance with all applicable U.S.
Government requirements concerning security, the holder shall, before
commencing any new service (including charter flights) to or from a
foreign airport, contact its Principal Security Inspector (PSI) to
advise the PSI of its plans and to find out whether the Transportation
Security Administration has determined that security is adequate to
allow such airport(s) to be served; and

(7) Comply with such other reasonable terms, conditions, and limitations
required by the public interest as may be prescribed by the Department
of Transportation, with all applicable orders and regulations of other
U.S. agencies and courts, and with all applicable laws of the United
States.

The authority granted shall be effective only during the period when the
holder is in compliance with the conditions imposed above.

08/2003

 PAGE   3 

