 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on May 10, 2004

NOTICE OF ACTION TAKEN -- DOCKET OST 2004-17626

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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:  April 26, 2004

Relief requested:  Exemption from 49 U.S.C. section 40109(g) to permit
the applicant to operate, on behalf of Lockheed Martin, one, one-way
cargo charter flight from Denver, Colorado, to Cape Canaveral Kennedy
Space Center, Florida, on or about May 16-20, 2004, using its AN-124-100
aircraft.  Volga-Dnepr plans to carry on this flight Lockheed Martin
Space Systems Atlas and Centaur launch vehicles.  The applicant stated
that Lockheed Martin urgently needs lift to meet tight 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 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
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:  May 10, 2004

Effective dates of authority granted:  May 10, 2004, through May 20,
2004

Basis for approval:  We are granting Volga-Dnepr’s request to operate
its proposed one-way flight from Denver to Cape Canaveral, through May
20, 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
the tight integration and launch schedules, 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. 
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

