OST-98-3631 / Polynesian Limited (Emergency Exemption Maota, Samoa-Pago Pago, American Samoa) / Answer of Hawaiian Airlines / March 18, 1998

In the matter of the application of

for an exemption from 49 U.S.C. 41301 to engage in foreign air transportation between Maota, Samoa and Pago Pago, American Samoa

The history of Polynesian's efforts to establish, continue and then reestablish its service between Apia, Western Samoa and the United States, especially Honolulu and Los Angeles, has been well documented in various pleadings including Consent Order 95-2-18. Polynesian, despite repeated filing by Hawaiian and consistent reminders from DOT as to violations of the Transportation Act (hereinafter the "Act") and specifically the prohibition on cabotage, again has failed to disclose its history of violations of the cabotage provisions (49 U.S.C. §41703) of the Act and failed to obtain authority under the Act prior to commencing operations on the proposed route.

The application before the Department in this docket, an "Emergency" exemption request, again demonstrates by its vary existence, the carrier's continued inability to comply with the requirements of the Act. As Polynesian admits, it has already operated two (2) flights without the necessary authority and now wants the Department to shorten answer periods and expedite its processes to accommodate a schedule that has been recreated by no one other than Polynesian.

The issue in prior dockets and the Consent Decree referenced above has been Polynesian's inability to comply with the requirements of the Act in that it had been selling cabotage transportation from Pago Pago, American Samoa over Apia, Western Samoa to Honolulu and Los Angeles. This application gives Polynesian another route, another opportunity, to sell transportation in violation of the Act.

Given Polynesian's past performance and its present violation of the Act, in failing to apply for the required operating authority, Hawaiian requests that the Department, should it determine to grant the requested relief, condition any such authority it may grant to Polynesian, as requested by Hawaiian in prior dockets such as Docket OST-96-1687 and OST 95-806. Hawaiian asks the Department to explicitly condition the grant of the exemption application on the condition that the carriage of any cabotage traffic will result in the immediate termination of the requested exemption authority and all other authority held by Polynesian. Hawaiian incorporates by reference its pleadings contained in Dockets 48700, 48706 and 42309 which detail the illegal cabotage undertaken by Polynesian in the past. 1/

1/ See, Answer in Opposition to the Application of Renewal of Exemption of Polynesian Airlines, Ltd. dated September 3, 1993, Docket 42309; Answer of Hawaiian Airlines, Inc. to Application for Renewal of Exemption, dated May 13, 1994, Docket 48700; Response of Hawaiian Airlines. Inc. to the Reply of Polynesian Airlines. Ltd. and Motion to File Out of Time, dated June 13, 1994, Docket 48706.

WHEREFORE, Hawaiian asks the Department to explicitly condition the grant of this emergency exemption application, should the Department determine to rule in Polynesian's favor, on the explicit condition that the carriage of cabotage traffic will result in the immediate termination of the exemption authority in this docket and all other authority held by Polynesian from the United States..

Respectfully submitted,

Dow Lohnes, Jonathan Hill

Counsel for Hawaiian Airlines, Inc.

March 18, 1998