 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on February 11, 2004

NOTICE OF ACTION TAKEN -- DOCKET OST 2004-17089

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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:  February 10, 2004, as supplemented February 11, 2004.

Relief requested:  Exemption from 49 U.S.C. section 40109(g) to permit
the applicant to operate, on behalf of Space Systems Loral, one, one-way
cargo charter flight from Cape Canaveral, Florida, to Moffet Field,
California, on about February 12, 2004, using its AN-124-100 aircraft. 
The cargo to be carried is one Space Systems Loral empty satellite
container and associated equipment.  The applicant stated that Space
Systems Loral needs prompt shipment of this particular container to
Moffet Field, because of an unanticipated satellite-production delay
suffered by the shipper Space Systems Loral, and, thus, that the company
now urgently needs the container back by February 12, 2004, to use for
packaging a satellite scheduled for prompt delivery to a customer, that
the cargo is too large for transportation on U.S.-carrier aircraft; and
that surface transportation is not feasible because of the cargo’s
large size and delicate nature and need for prompt delivery.

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
operation 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:  February 11,
2004

Effective dates of authority granted:  February 11, 2004, through
February 12, 2004

Basis for approval:  We are granting Volga-Dnepr’s request to operate
its proposed one-way flight from Cape Canaveral to Moffet Field, through
February 12, 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 container
promptly, following an unanticipated production delay, in order to meet
the urgent delivery schedule for the unpackaged satellite, the fact that
the cargo could not be transported by surface transportation because of
its large size and need for prompt carriage, 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 Space Systems Loral.  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

