 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on August 21, 2003

NOTICE OF ACTION TAKEN -- DOCKET OST 2003-15888

________________________________________________________________________
________________________________________________________

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:  August 7, 2003

Relief requested:  Exemption from 49 U.S.C. section 40109(g) to permit
the applicant to operate two, one-way cargo charter flights from Denver,
Colorado, to Cape Canaveral, Florida, on or about August 25 through
August 27, 2003, using its AN-124 aircraft to transport on the first
flight, one Lockheed Martin Space Systems A203 Atlas III Booster, and,
on the second flight, one Lockheed Martin Space Systems C203 Centaur
III, on behalf of Lockheed Martin Space Systems.  The applicant stated
that Lockheed Martin needs prompt shipment of this cargo to Cape
Canaveral to complete aggressive mission-integration and launch
schedules, that the cargo is too large for transportation on
U.S.-carrier aircraft; and that surface transportation is not feasible
because of the extreme width, delicate nature and high value of the
cargo, and conditions unsuitable to maintaining 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).

                                                                        
        DISPOSITION

Action: Approved                                                        
                                               Action date:  August 21,
2003

Effective dates of authority granted:  August 21, 2003, through August
29, 2003

Basis for approval:  We are granting Volga-Dnepr’s request to operate
its two proposed flights from Denver to Cape Canaveral, through August
29, 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
the urgent integration and launch schedules, the fact that the cargo
could not be transported by surface transportation because of its size
and 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 operations at
issue here.  We also found that grant of this authority would prevent
unreasonable hardship to the cargo and Lockheed Martin Space Systems. 
Finally, we found that the applicant was qualified to perform its
proposed operation.

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:      Michael W. Reynolds

                                  Acting 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

