 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, DC

Issued by the Department of Transportation on July 7, 2005

               NOTICE OF ACTION TAKEN -- DOCKET OST-2002-12503

__________________________________________________________________

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 Amerijet International, Inc.  filed 06/17/05 for:

XX  Waiver of the start-up condition applicable to U.S.-Ecuador
all-cargo frequencies.

Amerijet seeks a waiver of the start-up condition for two U.S.-Ecuador
all-cargo frequencies through October 11, 2005.  By Order 2005-4-11, in
this docket, the Department granted Amerijet two frequencies to provide
scheduled all-cargo service in the U.S.-Ecuador market.  The award was
subject to the condition that Amerijet inaugurate its proposed services
within 90 days of the award, i.e., July 11, 2005.    

In support of its waiver request, Amerijet states that it has made
arrangements necessary to begin service, including establishing a legal
presence in Ecuador, retaining employees and representatives, securing
essential premises, and entering into agreements.  Amerijet indicates
that it has commenced the licensing process in Ecuador.  However,
Amerijet does not anticipate that the Ecuadorian licensing process will
be completed by July 11.  In these circumstances, Amerijet requests that
the Department grant a waiver of the start-up condition through October
11, 2005, to allow more time for Amerijet to begin its new services.    
   

Arrow Air filed an answer opposing Amerijet’s waiver application. 
Amerijet filed a reply.    

Arrow asserts that Amerijet will not follow through on its proposal to
use the two frequencies.  Arrow argues that the steps Amerijet cites in
connection with starting its Ecuador service merely reiterate claims
Amerijet made as to arrangements for starting Ecuador charter service in
the fall of 2004.  Arrow maintains that, unlike Amerijet, it will use
the two frequencies quickly and, thus, its back-up award for the two
frequencies should be activated on July 11.  Arrow states that the
frequencies are valuable and there should be no further delay in
providing service to Ecuador for the benefit of the shipping public.   

In its reply, Amerijet asserts that Arrow’s answer in opposition is a
thinly veiled petition for reconsideration of the Department’s final
order awarding Amerijet the frequencies.  Amerijet maintains that Arrow
has failed to produce any probative evidence to support its assertions. 
Amerijet argues that a short delay in the implementation of its
scheduled service to Ecuador will not harm any recognizable interest. 
Finally, Amerijet notes that its services will bring new competition to
the U.S.-Ecuador market.    

Applicant rep: John Richardson, 202-371-2258      DOT analyst: Michael
D. Bodman 202-366-9667

DISPOSITION

XX  Granted. (See below).

The above action was effective when taken: July 7, 2005, through October
11, 2005.

Action taken by:  Paul L. Gretch, Director

		 Office of International Aviation

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

XX Holder’s U.S.-Ecuador exemption authority 

XX Order 2005-4-11.

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____________

Remarks:  By Order 2005-4-11, we decided to award Amerijet rather than
Arrow two unallocated frequencies for all-cargo service between the U.S.
and Ecuador.  We fully set forth our reasons in our tentative decision
(Order 2005-2-6) as to why we believed that the public interest
warranted Amerijet’s selection.  We continue to believe that the
introduction of Amerijet’s new scheduled Ecuador service will be in
the public interest.  We had hoped that Amerijet would have been able to
commence these operations within the timeframe of our standard 90-day
start-up condition.  While it has not done so, we believe that it has
provided a basis on the record for us to conclude that it is actively
working to begin its new scheduled service.  In these circumstances, we
shall grant Amerijet the waiver it requests.  However, we are putting
Amerijet on notice that there should be no expectation that an
additional request will similarly be granted.  As is our policy in
considering waiver requests, we reserve the right to reexamine whether
grant of this waiver continues to be in the public interest.  Any future
request to extend the waiver for the frequencies at issue here will have
to be considered in light of the specific arguments offered and
responses thereto, and in the context of the circumstances present at
that time, including whether another carrier seeks to use the
frequencies at issue. 

________________________________________________________________________
___________

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) grant of the authority was 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 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 

Amerijet’s waiver is effective through October 11, 2005.   As to any
frequency with which Amerijet does not begin service by that date, its
allocation with respect to that frequency will expire automatically.   

Consistent with Order 2005-4-11, Arrow’s backup award remains in
place.

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