 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on May 26, 2004

NOTICE OF ACTION TAKEN -- DOCKET OST 2004-17893

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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:  May 17, 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 over the routing Philadelphia, Pennsylvania, to
Stennis Space Center, Mississippi, to Moffet Field, California, on or
about May 28-June 8, 2004, using its AN-124-100 aircraft.  Volga-Dnepr
plans to carry on this flight one Lockheed Martin Space Systems
satellite in a container (to be enplaned at Philadelphia), and one empty
satellite container (to be enplaned at Stennis Space Center).  The
applicant stated that Lockheed Martin urgently needs lift to meet tight
assembly 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 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 26, 2004

Effective dates of authority granted:  May 26, 2004, through June 8,
2004

Basis for approval:  We are granting Volga-Dnepr’s request to operate
its proposed flight, enplaning cargo at Philadelphia and at Stennis
Space Center, and carrying that cargo to Moffet Field, through June 8,
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 assembly and launch schedules, the fact that the cargo could
not be transported by surface transportation because of its 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

