NEW

November 25, 1997

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This serves as interim notice to the public of the action described below, taken orally by the Department official indicated; the confirming order or other decision document will be issued as soon as possible.

Application of Polar Air Cargo, Inc. filed 9/25/97 in Docket OST-97-2939 for:

XX Allocation of three U.S.-South Africa all-cargo frequencies

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

Scheduled foreign air transportation of property, and mail between points in the United States and points in Amsterdam, Egypt, Ethiopia, Uganda, Kenya, Zimbabwe, and South Africa, and to integrate this authority with authority under its existing certificates of public convenience and necessity and exemptions.

Applicant rep.: Alfred J. Eichenlaub, 202-637-9034 DOT analyst: Gerald Caolo, 202-366-2406

DISPOSITION

XX Granted (subject to conditions, see below)

The above action was effective when taken: November 25, 1997, through November 25, 1999

XX Under assigned authority (14 CFR 385) by: Paul L. Gretch, Director

Office of International Aviation

(Petitions for review may be filed from now until

10 days after the confirming order/letter issues.

Filing of a petition shall not stay the effectiveness of this action.)

XX Authority granted is consistent with the U.S.-South Africa Air Transport Agreement and also, the Agreement between the United States and the Netherlands. The authority granted with respect to service between Egypt and the United States is covered by the Agreement between the two countries, and service beyond Egypt is extrabilateral but consistent with the overall state of aviation relations between the United State and Egypt. Finally, the authority granted to Ethiopia, Kenya, Uganda and Zimbabwe is consistent with overall state of aviation relations between the United States and these countries.

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: Consistent with our standard practice, the frequency allocation granted for South Africa services is subject to the condition that it will expire automatically and the frequencies will revert back to the Department for reallocation if they are not used for a period of 90 days. The 90-day dormancy period will begin April 15, 1998, Polar’s proposed start-up date.

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

Remarks: Polar initially plans to offer service between New York, New York, and Johannesburg, South Africa, via Amsterdam, the Netherlands; Cairo, Egypt; Addis Ababa, Ethiopia; Nairobi, Kenya; Harare, Zimbabwe; and Entebbe/Kampala, Uganda. Under the U.S.-South Africa bilateral agreement, a total of four intermediate or beyond points are available for local traffic rights on all-cargo services until April 1, 1998, when that number will increase to five. Polar initially plans to use Amsterdam, Cairo, Nairobi, and Harare as intermediates with local traffic rights between those points and South Africa.