			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on March 26, 2004

NOTICE OF ACTION TAKEN -- DOCKET OST 2004-17387

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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:  POLYNESIAN LIMITED                                          
                              Date Filed:  March 22, 2004

Relief requested:  Exemption from 49 U.S.C. section 40109(g) to permit
the applicant to carry persons, property and mail between Pago Pago,
American Samoa, and the Manu’a Islands, American Samoa, during the
period April 1, through June 25, 2004, using 18-seat Twin Otter
aircraft.  Polynesian asserts that the only carrier currently serving
the subject market is Inter Island Airways, and that this U.S. carrier
is preparing to suspend its inter-island flights on March 31, 2004. 
Polynesian Limited notes that such cessation would leave American Samoa
without needed inter-island lift and that the Government of American
Samoa formally has requested it to resume operations in the subject
market to prevent residents from being left without inter-island air
service. 1/

Applicant representative:  Charles F. Donley II, 202-626-6840        DOT
analyst:  Allen F. Brown, 202-366-2405

Responsive pleadings:  Polynesian Limited served its application on
those U.S. carriers having the potential to conduct these intra-American
Samoa services.  After polling these carriers, the applicant advised us
that 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 in part, remainder deferred (see below).              
                   Action date:  March 26, 2004

Basis for approval:  We are granting Polynesian Limited authority to
operate its proposed intra-American Samoa services, using 18-seat Twin
Otter equipment, for a period of 30 days, that is, April 1 through April
30, 2004, or until five days after we are notified that Inter Island
Airways resumes, or another U.S. carrier initiates, service in these
inter-island markets, whichever occurs first.  We are deferring action
on the remaining portion of Polynesian’s application, that is, to
continue this operation beyond April 30 through June 25, 2004.

1/  The Department previously granted Polynesian Limited exemption
authority to operate in this market.  See Docket OST-2003-16163 and
Docket OST-2003-16404

.

In acting favorably on this unopposed application for emergency cabotage
authority, we find that Polynesian Limited’s 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 such favorable action is required in the
public interest.

The effects of the March 31, 2004, suspension in service in the
inter-island American Samoa markets by Inter Island Airways, the only
U.S. carrier serving these markets, clearly constitute an emergency
created by unusual circumstances not arising in the normal course of
business. Also, the record in this case clearly indicates that no U.S.
carrier appears able at this time to provide the level of service
necessary to meet the needs of American Samoa, an isolated multi-island
community that is uniquely dependent on air transportation.  Further,
provision of the services that Polynesian Limited proposes clearly is
needed to prevent undue hardship to the residents of American Samoa.

Given these circumstances, we find that the standards for grant of
emergency cabotage authority have been met, and that grant of the
exemption requested by Polynesian Limited, for a maximum of 30 days,
with deferral on the remainder, is warranted.

As provided in 49 U.S.C. section 40109(g), we will review this exemption
near the end of this 30-day term to see if the unusual circumstances
that established the need for the exemption still exist, and will be
prepared to decide at that time whether the situation warrants extension
of this authority for an additional term.

Finally, we find that the applicant is qualified to perform its proposed
operation.

Except to the extent exempted/waived, this authority is subject to our
standard exemption conditions.

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

