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OST-97-2939

Polar Air Cargo, Inc. (Exemption, US-Netherlands-Egypt-Ethiopia-Kenya-Uganda-Zimbabwe-South Africa Scheduled All-Cargo Service and Allocation of Frequencies - South Africa)

OST-97-2939 | September 25, 1997

Application for an Exemption and Allocation of Frequencies

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Requests an exemption from 49 U.S.C. § 41101 to the extent necessary to permit it to engage in scheduled foreign air transportation of property and mail between New York, New York on the one hand and Johannesburg, South Africa on the other, via intermediate stops in Amsterdam, the Netherlands, Cairo, Egypt, Addis Ababa, Ethiopia, Nairobi, Kenya, Harare, Zimbabwe and Entebbe/Kampala, Uganda," and to integrate services under this exemption with services that Polar Air is authorized to provide pursuant to outstanding exemption and certificate authority consistent with applicable international agreements. Polar Air's three weekly flights will, for the first time, provide a U.S. flag scheduled all-cargo presence in African markets. By integrating these new services into Polar Air's scheduled network of international freighter services, regular B-747 freighter service can be mounted to these points on a viable basis.

Exhibit A - Service Proposal | Service List

Counsel: Ginsburg Feldman, Alfred Eichenlaub, 202-637-9034

Polar Air Cargo, Inc. (Exemption, US-Africa Scheduled Service)

OST-97-2939 | October 31, 1997

Re: Application for Exemption

The purpose of this letter is to clarify the proposed start-up date of service under the exemption requested by Polar Air Cargo, Inc. for U.S.-Africa scheduled all-cargo route authority. In Polar Air's Application it was stated that the carrier would be prepared to begin scheduled services within 30 days of receipt of all governmental approvals. As a result of subsequent discussions in Africa with officials from each of the countries involved, Polar Air is now in a position to estimate that assuming exemption authority is issued and Polar Air's designations forwarded by December 1, 1997, foreign governmental approvals should be in hand in time to allow Polar Air to inaugurate scheduled service over the route by April 15, 1998.

Counsel: Ginsburg Feldman, Alfred Eichenlaub, 202-637-9034

Polar Air Cargo, Inc. - Notice of Action Taken

OST-97-2939 | Filed September 25, 1997 | Approved November 25, 1997 - (Posted Int'l Office of Aviation)

Notice of Action

Allocation of three U.S.-South Africa all-cargo frequencies 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, 202.637.2034

Polar Air Cargo, Inc.

OST-97-2939	October 6, 1998	Application for Waiver of Dormancy Period	US-Netherlands-Africa
		Service List

Polar has requested and received operating authority from all but one of the countries to be served on its U.S.-South Africa routings. As of today, Polar has not yet received operating permission from the government of Zimbabwe. Although Polar believes it will in due course receive operating permission from Zimbabwe, it would not be commercially prudent to commence a new service until authority from Zimbabwe is in place.

Counsel:  Polar and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com

Polar Air Cargo, Inc.

OST-97-2939

Filed October 6, 1998 Action Taken October 9, 1998

Notice of Action Taken

US-South Africa Dormancy

Polar states it has requested authority from all the countries on its U.S.-South Africa routing but has not yet received approval from the Government of Zimbabwe, and that under these circumstances it would not be commercially prudent to commence a new service. Polar anticipates starting service before expiration of the extended dormancy period but states that the extension through January 12, 1999, will enable it to proceed with its services should there be a last minute delay in grant of the Zimbabwe permit.

By:  Paul Gretch

Polar Air Cargo, Inc.

OST-97-2939

March 16, 1999

Application for Waiver of Dormancy Period

US-Africa Scheduled All-Cargo

Polar is currently providing twice-weekly Boeing 747 freighter service to South Africa. Polar also operates to Jeddah, Saudi Arabia and to such points as Nairobi, Kenya and Harare, Zimbabwe in support of its South Africa service. Although Polar has received certain operating authority from the Governments of Kenya and Zimbabwe, Polar's operations via Nairobi and Harare continue to be subject to restrictions which have hampered the further development of Polar's service. Polar continues to work with the governments of these countries, as well as the U.S. Embassies in both, to have these restrictions removed. For this reason, Polar needs additional time in which to develop its South Africa service to support three weekly operations.

Counsel:  Polar and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com

Polar Air Cargo, Inc.

By Order 98-1-16 the Department granted Polar Air Cargo exemption authority to provide scheduled all-cargo service in the U.S.-South Africa market and allocated it three weekly all-cargo frequencies for this service. That award was subject to the condition that the frequency allocation will expire automatically and the frequencies will revert to the Department for reallocation if they are not used for a period of 90 days. Under the terms of the order, Polar's frequency allocation would expire July 14,1998. On July 13 and October 9,1998, the Department granted Polar waivers from the dormancy condition. Under the terms of the October 9, 1998 waiver Polar's frequency allocation was to expire on April 12,1999. On March 16 Polar sought a waiver from the 90-day dormancy condition for its third frequency so that the 90-day dormancy period would not begin until October 12, 1999.* Polar stated that certain restrictions for operations via Nairobi and Harare had hampered further development of Polar's service to support three weekly frequencies. No objections were filed to Polar's request, and the Department orally granted Polar the waiver.

By:  Paul Gretch

Polar Air Cargo, Inc.

Polar's start-up of service to South Africa, originally scheduled for April 1998, was delayed for a period of six months while Polar obtained the necessary foreign government approvals. During that period, Polar's frequencies were maintained by virtue of dormancy waivers granted July 13, 1998, and October 9, 1998. Thereafter, Polar began operating twice-weekly Boeing 747 freighter service to South Africa, with operations via Jeddah, Saudi Arabia, Nairobi, Kenya and Harare, Zimbabwe in support of the service. Due to the seasonal nature of these operations, and because Polar's operations via Nairobi and Harare have been subject to restrictions that have hampered the further development of the service, Polar has been required to temporarily suspend the service until the traffic can better support the operation. For this reason, Polar hereby seeks a three-month extension of the dormancy condition attached to Polar's allocation of U.S.-South Africa and U.S.-Saudi Arabia frequencies beyond the current reversion date of September 16, 1999, so that Polar may reenter the market promptly when conditions warrant. With such an extension, the ninety-day dormancy period would begin to run on December 16, 1999.

Polar respectfully requests (i) renewal of its exemption to provide scheduled foreign air transportation of property and mail between points in the United States and Amsterdam, the Netherlands; 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; (ii) a three-month waiver of the 90-day dormancy condition applicable to two of Polar's three U.S.-South Africa all-cargo frequencies; and (iii) a three-month waiver of the 90-day dormancy condition applicable to Polar's two U.S.-Saudi Arabia all-cargo frequencies, and such and additional relief as the Department deems appropriate.

Counsel:  Polar and Kirkland Ellis, Jeffrey Manley, 202-879-5161, jeffrey_manley@kirkland.com

Polar Air Cargo, Inc.

Counsel:  Kirkland Ellis, Jeffrey Manley, 202.879.5161, jeffrey_manley@kirkland.com

Polar Air Cargo, Inc.

Scheduled foreign air transportation of property and mail between points in the United States and Amsterdam, the Netherlands; Egypt; Ethiopia; Uganda; Kenya; Zimbabwe; and South Africa; and to integrate this authority with its existing exemptions and certificates of public convenience and necessity.  By Order 98-1-16 the Department granted Polar Air Cargo exemption authority to provide scheduled all-cargo service in the U.S.-South Africa market and allocated it three weekly all-cargo frequencies for this service. That award was subject to the condition that the frequency allocation will expire automatically and the frequencies will revert to the Department for reallocation if they are not used for a period of 90 days. On April 8, 1999, the Department granted Polar a waiver from the dormancy condition for one of its three frequencies until October 12, 1999. Polar temporarily suspended all South Africa service on June 18, 1999, and seeks a waiver from the 90-day dormancy condition for its other two frequencies so that the 90day dormancy period would not begin until December 16, 1999. Polar states that certain restrictions for operations via Nairobi and Harare had hampered further development of Polar's service to support operation of all three weekly frequencies.

By:  Paul Gretch

Polar Air Cargo, Inc.

Polar began operating twice-weekly Boeing 747 freighter service to South Africa, with operations via Jeddah, Saudi Arabia, Nairobi, Kenya and Harare, Zimbabwe in support of the service. Polar's third frequency continued to be maintained by virtue of a dormancy waiver. See Notice of Action Taken dated July 30, 1999. Pursuant to that waiver, Polar's third frequency is set to revert to the Department on January 10, 2000.  Due to the seasonal nature of these operations, and because Polar's operations via Nairobi and Harare have been subject to restrictions that have hampered the further development of the service, Polar has been required to temporarily suspend the service until the traffic can better support the operation. Polar requested and was granted a three-month extension of the dormancy condition attached to the two frequencies Polar had been using for its U.S.-South Africa service, which maintains the two frequencies in effect through March 15, 2000. See Notice of Action Taken dated September 10, 1999. Polar is actively seeking the necessary government authority to resume those two flights.

Counsel:  Kirkland Ellis, Jeffery Manley, 202.879.5161, jeffrey_manley@kirkland.com

Polar Air Cargo, Inc.

By Order 98-1-16 the Department granted Polar Air Cargo exemption authority to provide scheduled all-cargo service in the U.S.-South Africa market and allocated it three weekly all-cargo frequencies for this service. That award was subject to the condition that the frequency allocation will expire automatically and the frequencies will revert to the Department for reallocation if they era not used for s period of 90 days. On April 81999, the Department granted Polar s waiver tom the dormancy condition for one of its three frequencies until October 12, 1999. Under the terms of that waiver, Polar's frequency would become dormant and revert to the Department on January 10, 2000. Polar seek: a Author waiver from the 90-day dormancy condition for this one frequency so that the 90-day dormancy period would not begin until January lo, 2000 Polar sterns that certain restrictions for operations via Nairobi and Harare had hampered further development of Polar's service.

By:  Paul Gretch

Polar Air Cargo, Inc.

Polar currently holds three U.S.-South Africa all-cargo frequencies, initially allocated by Order 98-1-6. Polar also holds two U.S.-Saudi Arabia all-cargo frequencies, initially allocated by Order 98-12-6. Polar has used these allocations to operate twice-weekly Boeing 747 freighter service to South Africa, with service via Jeddah, Saudi Arabia, Nairobi, Kenya, and Harare, Zimbabwe. Polar's third U.S.-South Africa frequency was maintained by virtue of a dormancy waiver, which currently extends through January 10, 2001. On June 18, 1999, Polar temporarily suspended its Africa operations. Restrictions on Polar's service via Nairobi and Harare, combined with the seasonal nature of the service, have hampered its full development. Polar hopes, however, to reinstate Africa service when conditions warrant. Since Polar ceased the operations, Polar's two U.S.-South Africa frequencies and two U.S.-Saudi Arabia frequencies have been maintained in effect by dormancy waivers granted by Notices of Action Taken dated September 10, 1999, in the above-captioned dockets. By this application, Polar seeks an additional waiver so as to maintain its ability to reenter the market at the first opportunity.

For the sake of administrative convenience, Polar requests a dormancy waiver through January 7, 2001, to coincide with the waiver currently in place with respect to Polar's third U.S.-South Africa frequency. Absent a waiver, Polar's two U.S.-South Africa and two U.S.-Saudi Arabia all-cargo frequencies would expire on March 15, 2000.

Counsel:  Polar and Wilmer Cutler, Jeffrey Manley, 202-663-6670, jmanley@wilmer.com

Polar Air Cargo, Inc.

By:  Paul Gretch

Polar Air Cargo, Inc.

Due to market conditions and restrictions on Polar's service via Nairobi and Harare, Polar was forced to temporarily suspend its Africa operations. By Notice of Action Taken dated March 10, 2000, the Department granted Polar a waiver from the dormancy conditions on its two U.S.-Saudi Arabia and two U.S.-South Africa frequencies effective through January 10, 2001, to coincide with the dormancy waiver attached to Polar's third U.S.-South Africa frequency.

Polar continues to actively pursue reintroduction of U.S.-Africa service, whether on its own or in alliance with another air carrier. With political conditions in Zimbabwe unchanged, Polar has explored alternative patterns of service over a variety of routings to re-enter the Africa market. Plans are again being advanced to commence service with the start of the growing season (September-October) and require the rights at issue. In order to remain positioned to reenter the market whe n its plans are finalized, Polar requests a waiver of the dormancy conditions on its frequency allocations through January 10, 2002. Absent a waiver, Polar's three U.S.-South Africa and two U.S.-Saudi Arabia all-cargo frequencies would revert to the Department on April 11, 2001.

Counsel:  Wilmer Cutler, Jeffrey Manley, 202-663-6670, jmanley@wilmer.com

Polar Air Cargo, Inc.

By Order 98-1-16 the Department granted Polar Air Cargo exemption authority to provide scheduled allcargo service in the U.S.-South Africa market and allocated it three weekly all-cargo frequencies for this service. That award was subject to the condition that the frequency allocation would expire automatically and the frequencies would revert to the Department for reallocation if they are not used for a period of 90 days. Since July 1998, the Department has granted Polar various waivers of the dormancy conditions with respect to some or all of these frequencies. The latest extensions were granted on January 7 and March 10, 2000. Under the terms of the waivers, unless Polar began its South Africa services these three frequencies would become dormant and revert to the Department on April 11, 2001. Polar now seeks a further waiver from the 90-day dormancy condition for its three frequencies until January 10, 2002. Polar states that certain restrictions for operations via Nairobi and Harare have hampered further development of Polar's service and that Polar has explored alternative patterns of service on a variety of routings for its operations. In order to remain positioned to re-enter the market when such plans are finalized, Polar seeks the requested extension of its dormancy waiver.

By:  Paul Gretch

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