UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on September 10, 2004

   NOTICE OF ACTION TAKEN -- DOCKET OST-2002-13299

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______________

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).

Request of      ATLAS AIR, INC., (ATLAS)    filed   9/1/04  for:

XX  Activation of Backup Authority and Designation for U.S.-Mexico
All-Cargo Service

Background

By Order 2003-5-23, the Department awarded Express.Net Airlines, LLC
(Express.Net) primary authority and Atlas backup authority to provide
certain U.S.-Mexico all-cargo scheduled service in the 2002 U.S.-Mexico
All-Cargo Exemption Service Case, Docket OST-2002-13299.  
Express.Net’s award was subject to the condition that it begin its
proposed service by August 20, 2003.  Once service was implemented, the
route authority was further subject to a 90-day dormancy condition,
whereby the exemption authority for a given route(s) would become
dormant if it were not used for a period of 90 days.  

Order 2003-5-23 provided further that Atlas’ backup exemption
authority would not become effective until: (1) Express.Net notifies the
Department that it decided not to inaugurate service or that the subject
Mexico authority is dormant; (2) Atlas notifies the Department that it
is still in a position to implement the services it proposed in the
Proceeding and requests the Department to activate its backup exemption
authority; and (3) the Department takes action to activate the backup
authority.

Dormancy Notices

By letter dated December 31, 2003, Express.Net advised the Department
that its authority to serve the Dayton-El Paso-Chihuahua markets was
dormant and, by letter dated August 30, 2004, Express.Net advised the
Department that its authority to serve the
Dayton-Monterrey-Guadalajara-Mexico City markets also was dormant.

Request for Activation of Backup Authority

By letter dated September 1, 2004, Atlas requested activation of its
backup exemption authority to provide U.S.-Mexico all-cargo service
between: (1) Huntsville, Alabama, on the one hand, and Mexico City and
Guadalajara, Mexico, on the other hand; and (2) Los Angeles, California,
on the one hand, and Mexico City and Guadalajara, Mexico, on the other
hand.  Atlas also requested designation under the U.S.-Mexico aviation
agreement to provide the services proposed.  Atlas states, further, that
it is still in a position to institute service in the U.S.-Mexico
market.  In this regard, Atlas maintains that, as soon as its backup
authority has been activated and Atlas has obtained the requisite
license from the Mexican government, Atlas plans to commence service in
the markets with B747 freighter aircraft.  

see next page   - 

													2

Applicant rep: Russell E. Pommer (202) 822-9121  DOT analyst:  Linda L.
Lundell  (202) 366-2336

 

DISPOSITION

XX Granted Atlas’ request for activation of its backup exemption
authority, subject 

       to conditions (see below)

The above action was effective when taken:   September 10, 2004,  
through   September 10, 2006.  

Action taken by:  Paul L. Gretch, Director

                            Office of International Aviation

XX  Authority granted is consistent with the aviation agreement between
the United States and Mexico.

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)

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___________________

Conditions:  The backup exemption authority activated here for
U.S.-Mexico all-cargo services is subject to the dormancy notice
requirements set forth in condition 7 of Appendix A of Order 88-10-2.

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___________________

On the basis of data officially noticeable under Rule 24(g) of the
Department’s regulations, we found Atlas 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 request was consistent with the public
interest; and (3) grant of the request 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 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 electric version of this document is available on the World Wide Web
at:

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

					APPENDIX 

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, including, but not limited to, 49 CFR Part 1544. 
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
International Principal Security Inspector (IPSI) to advise the IPSI 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.

										  05/2004

     Specifically, Express.Net was awarded exemption authority to serve
the Dayton-Monterrey-Guadalajara-Mexico City and Dayton-El
Paso-Chihuahua markets.  Atlas was awarded backup exemption authority to
serve the Huntsville-Mexico City-Guadalajara and Los Angeles-Mexico
City-Guadalajara markets.   

   Order 2003-5-23 stated further that, should the backup exemption
authority of Atlas become activated, the authority would remain in
effect for two years, subject to conditions.  

   In light of our action here activating Atlas’ backup authority, we
will proceed to designate Atlas under the U.S.-Mexico aviation agreement
to provide the subject all-cargo services.

   See, also, footnotes 17 and 19 in Order 2003-5-23 in the 2002
U.S.-Mexico All-Cargo Exemption Service Case.

