 

UNITED STATES OF AMERICA

DEPARTMENT OF TRANSPORTATION

OFFICE OF THE SECRETARY

WASHINGTON, DC

Issued by the Department of Transportation on June 6, 2005

   NOTICE OF ACTION TAKEN -- DOCKET OST-2005-20827

________________________________________________________________________
_________________________________

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 ASTAR AIR CARGO, INC. (ASTAR) filed   3/29/2005, 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 between (1)
the terminal point Wilmington, Ohio, on the one hand, and the coterminal
points Saltillo, Mexico City/Toluca, Guadalajara, and Monterrey, Mexico,
on the other hand; (2) the coterminal points Austin and Houston, Texas,
and Cincinnati, Ohio, on the one hand, and the terminal point Saltillo,
Mexico, on the other hand.  Astar also requests route integration to
combine this exemption authority with Astar’s existing certificate and
exemption authorities.  Astar states that it is requesting this
authority to allow Astar to provide scheduled service between Wilmington
and Mexico City, Guadalajara and Monterrey, in place of Cincinnati,
Ohio, as well as between Saltillo (an alternative to Monterrey), and
Houston, Austin, Cincinnati, and Wilmington.  In this regard, Astar also
requests waiver (or non-imposition) of the dormancy provisions for
intermittent or seasonal services in condition 12 of its certificate for
Route 725.

Applicant rep: Stephen H. Lachter  (202) 862-4321    DOT Analyst:  Thuy
H. Cooper  (202) 366-5423

D I S P O S I T I O N

XX  Granted (subject to conditions, see below)

The above action was effective when taken: June 6, 2005, through June 6,
2007.

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 Mexico.

  

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

XX  Holder’s certificates of public convenience and necessity

	XX  Standard exemption conditions (attached)

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______________________________________

Conditions: The U.S.-Mexico exemption authority granted is subject to
the dormancy notice requirements set forth in condition 7 of Appendix A
of Order 88-10-2, including the provision for seasonal/intermittent
services.

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
ASTAR rights (including fifth-freedom intermediate and/or beyond rights)
to serve markets where U.S. carrier entry is limited unless ASTAR
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 ASTAR’s
authority by virtue of the route integration exemption granted here, but
that are not then being used by ASTAR, the holding of such authority by
route integration will not be considered as providing any preference for
ASTAR in a competitive carrier selection proceeding to determine which
carrier(s) should be entitled to use the authority at issue.

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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
exemption authority 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:

  HYPERLINK "http://dms.dot.gov//reports/reports_aviation.asp" 
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

   Astar, successor to DHL Airways, is one of a total of five U.S.
carriers that may be designated to provide all-cargo services in the
U.S.-Mexico market under the U.S.-Mexico aviation agreement.

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