UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on August 20, 2004

   NOTICE OF ACTION TAKEN -- DOCKET OST-2004-18674

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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).

Application of  TradeWinds Airlines   filed  7/19/04 for: 

		

XX  Exemption for two years under 49 U.S.C. 40109 to provide the
following service:

Scheduled foreign air transportation of property and mail from points
behind the United States, via the United States and intermediate points,
to a point or points in the Republic of Korea and beyond.

Applicant rep:   Pierre Murphy   (202) 776-3980     DOT Analyst:  Thuy
H. Cooper   (202) 366-5423

D I S P O S I T I O N

XX  Granted in part (subject to conditions, see below)

XX  Balance dismissed (see remarks below)

XX  Granted route integration authority sua sponte (subject to
conditions, see below)

The above action was effective when taken: August 20, 2004 through
August 20, 2006.

Action taken by:   Paul L. Gretch, Director	

		      Office of International Aviation	

XX   The authority granted is consistent with the aviation agreement
between the United States and Korea.

Except to the extent exempted or waived, this authority is subject to
the terms, conditions, and limitations indicated:     		

XX  Holder’s certificate of public convenience and necessity

		XX  Standard Exemption Conditions (attached)    

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Conditions:  The authority granted to serve intermediate and beyond
points is limited to countries with which the United States has signed
open-skies agreements and/or countries for which TradeWinds holds
authority to serve under certificates and exemptions issued by the
Department, and for which it holds route integration authority by virtue
of either the present action or other action of the Department.

The route integration authority granted is subject to the condition that
any service provided under this exemption shall be consistent with all
applicable agreements between the United States and the foreign
countries involved.  Furthermore, (a) nothing in award of the route
integration authority granted should be construed as conferring upon
TradeWinds rights (including fifth-freedom intermediate and/or beyond
rights) to serve markets where U.S. carrier entry is limited unless
TradeWinds notifies the Department of its intent to serve such a market
and unless and until the Department has completed any necessary carrier
selection procedures to determine which carrier(s) should be authorized
to exercise such rights; and (b) should there be a request by any
carrier to use the limited-entry route rights that are included in
TradeWinds authority by virtue of the route integration exemption
granted here, but that are not then being used by TradeWinds, the
holding of such authority by route integration will not be considered as
providing any preference for TradeWinds in a competitive carrier
selection proceeding to determine which carrier(s) should be entitled to
use the authority at issue.

Remarks: We dismissed TradeWinds application to the extent that it
requests authority from points behind the United States.  The authority
to conduct operations from points behind the United States is inherent
in the authority that we award U.S. carriers to perform foreign air
transportation.

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On the basis of data officially noticeable under Rule 24(g) of the
Department’s regulations, we found the applicant qualified to provide
the services authorized. 

Under authority assigned by the Department in its regulations, 14 CFR
Part 385, we found that (1) our action was consistent with Department
policy; (2) grant of the application was consistent with the public
interest; and (3) grant of the authority would not constitute a major
regulatory action under the Energy Policy and Conservation Act of 1975. 
To the extent not granted, we denied all requests in the referenced
Docket.  We may amend, modify, or revoke the authority granted in this
Notice at any time without hearing at our discretion.

Persons entitled to petition the Department for review of the action set
forth in this Notice under the Department’s regulations, 14 CFR
§385.30, may file their petitions within seven (7) days after the date
of issuance of this Notice.  This action was effective when taken, and
the filing of a petition for review will not alter such effectiveness.

An electronic version of this document is available on the World Wide
Web at: http://dms.dot.gov//reports/reports_aviation.aspU.S. Carrier
Exemption Conditions

In the conduct of the operations authorized, the U.S. carrier
applicant(s) shall:

(1)  Hold at all times effective operating authority from the government
of each country served;

(2)  Comply with applicable requirements concerning oversales contained
in 14 CFR 250 (for scheduled operations, if authorized);

(3)  Comply with the requirements for reporting data contained in 14 CFR
241;

(4)  Comply with requirements for minimum insurance coverage, and for
certifying that coverage to the Department, contained in 14 CFR 205;

(5)  Except as specifically exempted or otherwise provided for in a
Department Order, comply with the requirements of 14 CFR 203, concerning
waiver of Warsaw Convention liability limits and defenses;

(6)  Comply with all applicable requirements of the Federal Aviation
Administration and with all applicable U.S. Government requirements
concerning security, including, but not limited to, 49 CFR Part 1544. 
To assure compliance with all applicable U.S. Government requirements
concerning security, the holder shall, before commencing any new service
(including charter flights) to or from a foreign airport, contact its
International Principal Security Inspector (IPSI) to advise the IPSI of
its plans and to find out whether the Transportation Security
Administration has determined that security is adequate to allow such
airport(s) to be served; and

(7)  Comply with such other reasonable terms, conditions, and
limitations required by the public interest as may be prescribed by the
Department of Transportation, with all applicable orders and regulations
of other U.S. agencies and courts, and with all applicable laws of the
United States.

The authority granted shall be effective only during the period when the
holder is in compliance with the conditions imposed above.

05/2004

 By Order 98-3-11, we found TradeWinds fit, willing, and able to conduct
interstate and foreign charter air transportation of persons, property,
and mail.  TradeWinds currently provides all-cargo charter flights
between the United States and Asia.  Operationally, the services
proposed in the instant application are not markedly different in scope
from those charter services.  Thus, we found no reason to question the
carrier’s qualifications to provide the services proposed in the
present application.

