 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on December 31, 2003

NOTICE OF ACTION TAKEN -- DOCKET OST 2003-16802

________________________________________________________________________
________________________________________________________

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:  December 23, 2003

Relief requested:  Exemption from 49 U.S.C. section 40109(g) to permit
the applicant to operate (on behalf of Lockheed Martin) two, one-way
cargo charter flights from Denver, Colorado, to Cape Canaveral, Florida,
on or about January 6-8, 2004, using its AN-124-100 aircraft, to carry,
on or about January 6, Lockheed Martin Space Systems C202 Centaur III
Launch Vehicle payload, and, on or about January 8, Lockheed Martin
Space Systems A202 Atlas III Booster payload.  The applicant stated that
Lockheed Martin needs prompt shipment of this cargo to Cape Canaveral to
meet extremely tight schedules for integration activities 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
large size, 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:  December 31,
2003

Effective dates of authority granted:  December 31, 2003, through
January 11, 2004

Basis for approval:  We are granting Volga-Dnepr’s request to operate
its two proposed one-way flights from Denver to Cape Canaveral through
January 11, 2004.  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 schedules for integration activities and launch,
the fact that the cargo could not be transported by surface
transportation because of its large size, delicate nature and high
value, 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 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:        Karan K. Bhatia

                                  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

