									

1401 New York Avenue NW,  Suite 530 •  Washington, DC 20005-2147 • 
USA

Phone  (202) 638-5500  •  Fax  (202) 638-4593

Web Site:  www.evergreenaviation.com

February 20, 2004

Mr. Paul L. Gretch 

Director

Office of International Aviation 

Department of  Transportation

400 Seventh Street, SW

Washington, DC  20590

Re:  2002/2003 Hong Kong Fifth-Freedom All-Cargo Frequency Proceeding
(Docket OST-2002-14049)

Dear Mr. Gretch:

	I am writing to notify the Department of Transportation and the other
carriers in this proceeding that Evergreen International Airlines, Inc.
(“Evergreen”) reluctantly has decided to return to the Department
its two frequencies for fifth-freedom all-cargo services between Hong
Kong and Seoul, allocated to Evergreen in this proceeding.

	As I noted in my progress report of February 9, 2004, Evergreen
received confirmation from the Korean Ministry of Construction and
Transportation (KMOCT) that there were no problems with its application.
  The Civil Aviation Safety Board recently also notified KMOCT and
Evergreen that there were no problems with its documents and approval
was expected in due course.

	In anticipation of KMOCT approval, Evergreen sales and marketing
representatives in the U.S. and Asia were working actively to promote
these new services.   

Unfortunately, Evergreen’s senior management has decided that a weak
economic environment, combined with depressed rates and unidirectional
markets, force the company to suspend its plans to inaugurate new
services to Korea and Hong Kong.   While Evergreen considered submitting
a request for an additional delay in start up, the company decided this
would not best fulfill the Department’s goals for competition and
rapid introduction of new air services in these markets.

	Evergreen appreciates the Department’s award of new rights in these
important markets, and returns the two frequencies with deep regret that
we are not in a position to inaugurate services at this time.

	I have served copies of this notice to all parties in this proceeding
by electronic mail or facsimile.

							Sincerely,

								/ s /

							

							Thomas V. Lydon

							Director – Government Affairs

						

Mr. Paul L. Gretch

February 20, 2004

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