 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

	    Issued by the Department of Transportation on October 23, 2002

NOTICE OF ACTION TAKEN -- DOCKET OST-2002-13523

________________________________________________________________________
________________________________________________________

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:  10/18/02, as
supplemented 10/21/02

Relief requested:  Seven-day extension of the effective period of the 49
U.S.C. section 40109(g) exemption authority granted to Antonov by Order
2002-10-13, and the flexibility to coterminalize Ontario and/or
Victorville, CA, with Seattle, WA.   In support of its request Antonov
stated that West Coast port operations continue to be impaired and the
movement of containers off ships has proceeded more slowly than
predicted; that Honda’s most critically needed parts shipments are now
stalled at its southern California seaport gateways; that, as result of
these circumstances, the the situation at Honda’s production lines is
even more serious; and that this extension and coterminalization
flexibility will be instrumental in helping address Honda’s serious
parts supply crisis and maintain production levels at U.S. plants.

Applicant representative:  Alexander Van der Bellen  202-663-8060       
  DOT analyst:  Barbara Schools  202-366-2401

Responsive pleadings:  Antonov served its application on those U.S.
carriers operating large all-cargo aircraft.  Except as noted below,
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:  October 23, 2002

Effective dates of authority granted:  October 23, 2002 - October 30,
2002

Basis for approval:  We found in the circumstances presented that our
previous public interest findings supporting grant of this authority
remained valid and that Antonov’s request for extension and
coterminalization flexibility 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.  (See Order 2002-10-13 dated
October 9, 2002, in this docket.) 

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
flights. 

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;1

(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).__________________

1  To assure compliance with all applicable U.S. Government requirements
concerning security, the holder should, before commencing any new
service (including charter flights) from a foreign airport that would be
the holder’s last point of departure for the United States, inform its
Principal Security Inspector of its plans.

 											

U.S. Department of Transportation	

Office of the Secretary of Transportation									        (41301/40109)
10/2002

  By Order 2002-10-13, dated October 9, 2002, the Department granted
Antonov an exemption pursuant to 49 U.S.C. section 40109(g) to permit it
to operate a maximum of 20 one-way cargo charter flights from Seattle,
WA, to Columbus, OH, during the period ending October 20, 2002.  In its
original application for this authority, Antonov stated that the flights
were on behalf of Honda Motors Ltd. and Honda of America, which required
urgent delivery of shipping containers holding motor vehicle parts and
components that had been held up by the West Coast port lockout; that
once the lockout ended, Honda needed to move the containers without
further delay to its U.S. manufacturing facilities in order to maintain
production; and that no U.S. carrier was in a position to provide
alternate lift that would meet its requirements.  

  Arrow Air, Inc., noted its answer filed in response to Antonov’s
original application, but had no further comments.

