 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on May 15, 2003

NOTICE OF ACTION TAKEN -- DOCKET OST 2003-15177

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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).

Applicant:  VOLGA-DNEPR J.S. CARGO AIRLINE                              
                          Date Filed:  May 13, 2003

Relief requested:  Exemption from 49 U.S.C. section 40109(g) to permit
the applicant to operate one, one-way cargo charter flight from
Philadelphia, PA, to Moffet Field, Sunnyvale, CA, on or about May 19,
2003, using its AN-124 aircraft to transport a Lockheed Martin AMC-SES
communication satellite, on behalf of Lockheed Martin.  The applicant
stated that Lockheed Martin needs urgent delivery of the satellite in
order to meet the tight schedule for its completion and subsequent
launch; that the cargo is too large for transportation on U.S.-carrier
aircraft; and that surface transportation is not feasible because of the
delicate nature and high value of the cargo, and conditions unsuitable
to maintain system integrity compliance.

Applicant representative:  Glenn P. Wicks, 202-457-7790         DOT
analyst:  Allen F. Brown, 202-366-2405

Responsive pleadings:  Volga-Dnepr 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
operations and that it had no comment or did not oppose grant of the
requested authority.

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, i.e.,
Order 2001-5-23.

                                                                        
        DISPOSITION

Action: Approved                                                        
                                               Action date:  May 15,
2003

Effective dates of authority granted:  May 15, 2003, through May 22,
2003

Basis for approval:  We are granting Volga-Dnepr’s request to operate
its proposed flight from Philadelphia to Sunnyvale, during the period
May 15-22, 2003.  We found that its request 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 the need to move the cargo promptly
in order to meet urgent development and launch schedule, the fact that
the cargo could not be transported by surface transportation because of
its delicate nature, the potential negative impact of delivery delay;
and the unique, outsized nature of the cargo, 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 that could be used to conduct the operation at
issue here.  We also found that grant of this authority would prevent
unreasonable hardship to the cargo and Lockheed Martin.  Finally, we
found that the applicant was qualified to perform its proposed operation
(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 and to the condition that the applicant
must comply with an FAA-approved flight routing for the authorized
operation.

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

