 

			  UNITED STATES OF AMERICA

		        DEPARTMENT OF TRANSPORTATION

			  OFFICE OF THE SECRETARY

			          WASHINGTON, D.C.

Issued by the Department of Transportation on June 2XX, 2005

NOTICE OF ACTION TAKEN -- DOCKET OST 2005-21335

________________________________________________________________________
________________________________________________________

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 (Volga-Dnepr)						Date
Filed:  May 26, 2005

Relief requested:  Exemption from 49 U.S.C. section 40109(g) to permit
the applicant to operate one round-trip       all--cargo charter flight
between Denver, Colorado and Cape Canaveral, Florida within during the
period of June 6-14, 2005, using it’s AN-124-100 aircraft to transport
twoone CcLockheed Martin Space System Centaur tTank each way Upper
Stages on behalf of Lockheed Martin Space Systems (LMSS). The applicant
statesd that LMSSockheed Martin needsed urgent delivery of the
equipmentthe subject lift in order to meet an aggressive integration and
launch schedules that include subsequent launch integration activities
and launch processing; that the cargo is too large for transportation by
U.S.-carrier aircraft; and that a technical evaluation conducted by
Lockheed Martin determined that surface transportation is not feasible
because of the delicate nature of the cargowould place the cargo in
conditions that are unsuitable to maintaining system integrity. 

Applicant representative:  Glenn P. Wicks, 202-457-7790        DOT
analyst:  Daniel M. Wolfert, 202-366-2405

Responsive pleadings:  The applicantVolga-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 operations and that it had no comment or did not oppose grant
of the requested authority to Volga-Dnepr.

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:  June 2XX,
2005

Effective dates of authority granted:  June 26x, 2005, through June 14,
2005.

Basis for approval:  We are granting Volga-Dnepr Airline’s request to
operate its proposed round-trip operation (described above) between
Denver, Colorado and Cape Canaveral, Floridaon behalf of LMSS, through
June 14, 2005.  We found that this 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 of the urgent that the need to move the
cargo promptly in order to meet the shipper’s integration and launch
schedules associated with the cargodelivery schedule, the fact that the
cargo could not be transported by surface transportation because of its
delicate naturethe 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 which could be used to conduct the operation at
issue here.  We also found that grant of this authority was necessary to
prevent unreasonable hardship to Lockheed MartinMSS.  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 (attached) and to the condition that the
applicant must comply with an FAA-approved flight routing for the
authorized flightoperation.

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

FOREIGN CARRIER EXEMPTION CONDITIONS                                   
                               ATTACHMENT

In the conduct of the operations authorized, the foreign carrier
applicant(s) shall:

1) Not conduct any operations unless it holds a currently effective
authorization from its homeland for such operations, and it has filed a
copy of such authorization with the Department;

2) Comply with all applicable requirements of the Federal Aviation
Administration, including, but not limited to, 14 CFR Parts 129, 91, and
36, and with all applicable U.S. Government requirements concerning
security, including, but not limited to, 49 CFR Part 1546 or 1550, as
applicable.  To assure compliance with all applicable U.S. Government
requirements concerning security, the holder shall, before commencing
any new service (including charter flights) from a foreign airport that
would be the holder’s last point of departure for the United States,
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;

3) Comply with the requirements for minimum insurance coverage contained
in 14 CFR Part 205, and, prior to the commencement of any operations
under this authority, file evidence of such coverage, in the form of a
completed OST Form 6411, with the Federal Aviation Administration’s
Program Management Branch (AFS-260), Flight Standards Service (any
changes to, or termination of, insurance also shall be filed with that
office);

4) Not operate aircraft under this authority unless it complies with
operational safety requirements at least equivalent to Annex 6 of the
Chicago Convention;

5) Conform to the airworthiness and airman competency requirements of
its Government for international air services;

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

7) Agree that operations under this authority constitute a waiver of
sovereign immunity, for the purposes of 28 U.S.C. 1605(a), but only with
respect to those actions or proceedings instituted against it in any
court or other tribunal in the United States that are: a) based on its
operations in international air transportation that, according to the
contract of carriage, include a point in the United States as a point of
origin, point of destination, or agreed stopping place, or for which the
contract of carriage was purchased in the United States; or b) based on
a claim under any international agreement or treaty cognizable in any
court or other tribunal of the United States.  In this condition, the
term “international air transportation” means “international
transportation” as defined by the Warsaw Convention, except that all
States shall be considered to be High Contracting Parties for the
purpose of this definition;

8) Except as specifically authorized by the Department, originate or
terminate all flights to/from the United States in its homeland;

9) Comply with the requirements of 14 CFR Part 217, concerning the
reporting of scheduled, nonscheduled, and charter data;

10) If charter operations are authorized, except as otherwise provided
in the applicable aviation agreement, comply with the Department’s
rules governing charters (including 14 CFR Parts 212 and 380); and

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

This authority shall not be effective during any period when the holder
is not in compliance with the conditions imposed above.  Moreover, this
authority cannot be sold or otherwise transferred without explicit
Department approval under Title 49 of the U.S. Code.                    
                                                                        
       						 

 05/2004

