			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on April 30, 2004

NOTICE OF ACTION TAKEN -- DOCKET OST 2004-17387

________________________________________________________________________
________________________________________________________

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, as supplemented by letter dated April 23,
2004.

Relief requested:  Exemption from 49 U.S.C. section 40109(g) to permit
the applicant to continue to carry persons and their accompanying
baggage between Pago Pago, American Samoa, and the Manu’a Islands,
American Samoa, beyond April 30, 2004, through May 30, 2004, using
18-seat Twin Otter aircraft.  (In addition, the applicant requests us to
defer action on the remainder of its request, that is, to continue this
passenger service beyond May 30, 2004, through June 25, 2004.)

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

Polynesian Limited served its application in this Docket on those U.S.
carriers having the potential to conduct these intra-American Samoa
services.  As noted in our NOAT issued on March 26, 2004, the applicant
advised us that each carrier indicated that it did not have aircraft
available to conduct the proposed operation and had no comment or did
not oppose grant of the requested authority.

Initial award:  On March 26, 2004, we granted Polynesian Limited
authority in this Docket to serve American Samoa for a 30-day period
(that is April 1 through April 30, 2004), and deferred action on the
balance of its request (to operate beyond April 30 through June 25,
2004).  The initial authority included the carriage of property and
mail.

Supplemental Submission:  By letter dated April 23, 2004, Polynesian
Limited specifically requested that the Department extend its authority
30 days beyond April 30, 2004, asserting that, although a U.S. carrier,
Village Aviation, recently started intra-American Samoa cargo
operations, Polynesian Limited remains the only carrier holding out
intra-island passenger flights.  Polynesian Limited states that, in
light of Village Aviation’s commencement of cargo service in the
inter-island markets, Polynesian Limited proposes to limit its service
to the carriage of passengers and their baggage and that there continues
to be a need for such lift.

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:  April 30, 2004

Basis for approval:  Taking into account the current record, including
that the U.S. carrier Village Aviation has initiated cargo charters in
American Samoa,  we now are granting Polynesian Limited’s request in
this case to continue to operate its intra-American Samoa passenger
services, using its 18-seat Twin Otter aircraft, for an 

additional period of 30 days (that is, through May 30, 2004), or until
five days after a U.S. carrier initiates intra-American Samoa passenger
operations, and are deferring action on the remaining portion of
Polynesian’s application in this Docket, i.e., to continue this
operation through June 25, 2004.

In acting favorably on this unopposed request for extension of emergency
cabotage authority, we find that Polynesian Limited’s request
continues to meet all the relevant criteria of 49 U.S.C. section
40109(g) for the continued grant of an exemption of this type, and that
such favorable action still is required in the public interest.  In
making our initial grant to Polynesian in this Docket, on March 26,
2004, we noted that the effects of the late March 2004 suspension in
service by Inter Island Airways, which was the only carrier then serving
the inter-island American Samoa markets, clearly constituted 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 passenger lift
necessary to meet the needs of American Samoa, a community uniquely
dependent on air transportation.  In that regard, Village Aviation does
not currently hold Department authority to conduct passenger operations
in American Samoa.  Further, in our view, the continuation of
Polynesian’s passenger services is required 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
extension requested by Polynesian Limited for a maximum period 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 usual 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

