 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

	    Issued by the Department of Transportation on September 27, 2002

NOTICE OF ACTION TAKEN -- DOCKET OST-2002-13449

________________________________________________________________________
________________________________________________________

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).

Applicant:  Antonov Design Bureau						Date Filed:  September 24, 2002

Relief requested:  Exemption pursuant to 49 U.S.C. section 40109(g) to
operate one one-way cargo charter flight from Wilmington, OH, to
Seattle/Boeing Field, WA, during the period September 27-October 2,
2002, using its AN-124 aircraft to transport one outsized GE90-115
aircraft engine and related tooling and components.  Antonov stated that
General Electric Aircraft Engines (GEAE) urgently required delivery of
the first of two GE90-225 flight test certification engines for
installation on a newly designed Boeing-777-300ER airplane that is
scheduled to be completely assembled by November in order to undergo
subsequent FAA certification flight testing, and that timely delivery of
the engine is a critical component of the overall airplane rollout and
certification schedule.  It further stated that the size of the engine,
and the distance involved, forecloses the use of surface transportation
for timely delivery; that in order to avoid undue delays, shipment by
air was essential; and that because of the size of the cargo
transportation on U.S. carrier aircraft was not possible.  

Applicant representative:  Sheryl Israel   202-663-8060

Responsive pleadings:  Antonov served its application on those U.S.
carriers operating large all-cargo aircraft.  Each carrier indicated
that it did not have aircraft available to conduct the proposed
operation and that it had no comment or did not oppose grant of the
requested authority to Antonov.

Statutory Standards:  Under 49 U.S.C. section 40109(g), we may authorize
a foreign air carrier to carry commercial traffic between U.S. points
(i.e., cabotage traffic) under limited circumstances.  Specifically, we
must find that the authority is required in the public interest; that
because of an emergency created by unusual circumstances not arising in
the normal course of business the traffic cannot be accommodated by U.S.
carriers holding certificates under 49 U.S.C. section 41102; that all
possible efforts have been made to place the traffic on U.S. carriers;
and that the transportation is necessary to avoid unreasonable hardship
to the traffic involved (an additional required finding, concerning
emergency transportation during labor disputes, was not relevant here). 
For examples of earlier grants of authority of this type, see, e.g.,
Order 2001-5-23.

	DISPOSITION

Action:  Approved							Action date:  September 27, 2002

Effective dates of authority granted:  September 27 - October 4, 2002

Basis for approval:  We found that the application met all the relevant
criteria of 49 U.S.C. section 40109(g) for the grant of an exemption of
this type and that the grant was required in the public interest. 
Specifically, we were persuaded that GEAE’s need to transport the
engine without delay to in order to meet scheduled assembly and
certification flight testing deadlines, and the fact that the cargo
could not be transported by other modes in time to meet those deadlines,
constituted an emergency not arising in the normal course of business. 
Moreover, based on the representations of the U.S. carriers, we
concluded that no U.S. carrier had aircraft available which would be
used to conduct the operation at issue here.  Finally, we found that the
applicant was qualified to perform its proposed operations (see, e.g.,
Notice of Action Taken  dated August 26, 2002, in Docket OST-96-1454).

Except to the extent exempted/waived, this authority is subject to our
standard exemption conditions (attached) and to the condition that
Antonov comply with an FAA-approved flight routing for the authorized
flight.

Action taken by:   	Read C. Van de Water

			Assistant Secretary for Aviation

			   and International Affairs

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

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

												        Appendix A

FOREIGN AIR CARRIER CONDITIONS OF AUTHORITY

In the conduct of the operations authorized, the holder shall:

(1)  Not conduct any operations unless it holds a currently effective
authorization from its homeland for such operations, and it has filed a
copy of such authorization with the Department;

(2)  Comply with all applicable requirements of the Federal Aviation
Administration, including, but not limited to, 14 CFR Parts 129, 91, and
36, and with all applicable U.S. Government requirements concerning
security;

(3)  Comply with the requirements for minimum insurance coverage
contained in 14 CFR Part 205, and, prior to the commencement of any
operations under this authority, file evidence of such coverage, in the
form of a completed OST Form 6411, with the Federal Aviation
Administration’s Program Management Branch (AFS-260), Flight Standards
Service (any changes to, or termination of, insurance also shall be
filed with that office);

(4)  Not operate aircraft under this authority unless it complies with
operational safety requirements at least equivalent to Annex 6 of the
Chicago Convention;

(5)  Conform to the airworthiness and airman competency requirements of
its Government for international air services;

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

(7)  Agree that operations under this authority constitute a waiver of
sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with
respect to those actions or proceedings instituted against it in any
court or other tribunal in the United States that are:

   (a)  based on its operations in international air transportation
that, according to the contract of carriage, include a point in the
United States as a point of origin, point of destination, or agreed
stopping place, or for which the contract of carriage was purchased in
the United States; or

   (b)  based on a claim under any international agreement or treaty
cognizable in any court or other tribunal of the United States.

In this condition, the term "international air transportation" means
"international transportation" as defined by the Warsaw Convention,
except that all States shall be considered to be High Contracting
Parties for the purpose of this definition;

(8)  Except as specifically authorized by the Department, originate or
terminate all flights to/from the United States in its homeland;

(9)  Comply with the requirements of 14 CFR Part 217, concerning the
reporting of scheduled, nonscheduled, and charter data;

(10) If charter operations are authorized, except as otherwise provided
in the applicable aviation agreement, comply with the Department's rules
governing charters (including 14 CFR Parts 212 and 380); and

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

This authority shall not be effective during any period when the holder
is not in compliance with the conditions imposed above.  Moreover, this
authority cannot be sold or otherwise transferred without explicit
Department approval under Title 49 of the U.S. Code (formerly the
Federal Aviation Act of 1958, as amended).



 											

U.S. Department of Transportation	

Office of the Secretary of Transportation									        (41301/40109)
7/2002

