Office of International Aviation for July 24, 1997

Office of International Aviation Filings for July 24, 1997

Applications for Statement of Authorization and Wet Lease:

Aeroflot | HeavyLift | SAS and Air Canada (2)

Approved/Dismissed Applications:

HeavyLift

Brazil Cargo Charters July 1, 1996 - June 30, 1997 - as of June 24, 1997
1996/1997 Japan Charter Ad Hocs - Oct. 1, 1996 - Sept. 30, 1997 as of June 9, 1997 - CMI and FedEx added 7/9
Brazil Passenger Charters - April 1, 1997 - March 31, 1998 - as of June 11, 1997

Aeroflot Russian International Airlines

July 24, 1997

Statement of Authorization

Cover Letter

The authority requested is necessary to enable Aeroflot to transport rocket engines and related accessory equipment to and from Pratt & Whitney. More specifically, the flights for which authority is requested will transport a thirteen ton RD-180 liquid propellant rocket engine and accessory equipment to the United States and a six ton RD-120 engine back to Russia. Because of the size of the RD-180 engine, it cannot be transported by commercially available Western manufactured aircraft. These engine rockets are being used in connection with a joint U.S.-Russian effort to develop rocket engines for the U.S. space program and pursuant to a technical assistance agreement issued by the U.S. State Department. Grant of the authority requested will further this development program, contribute to mutually beneficial cooperative efforts between the United States and Russia and further the public interest.

Counsel: Boros Garofalo, Don Hainbach, 202-822-9070

Index

HeavyLift Volga Dnepr, Ltd.

July 23, 1997

Re: Application for Emergency Exemption

This is to confirm my oral advice to you today that General Electric, the shipper with respect to the above-identified application, has reported that, due to technical problems, the shipment scheduled to operate Wilmington, Ohio to Seattle, Washington on or about July 24, 1997 will not operate.

Counsel: Miller Hamilton, Lester Bridgeman, 334-432-1414

Index

HeavyLift Volga Dnepr, Ltd.

97-471 | July 22, 1997 | Approved July 24, 1997 for 7/24-8/3/97

Statement of Authorization

Miami-Campinas carrying 55,000 lbs. of packaging machinery.

Charterer: Riverwood International, Marietta, GA

Counsel: Miller Hamilton, Lester Bridgeman, 334-432-1414

Index

Scandinavian Airlines System and Air Canada

July 24, 1997

Answer of Northwest Airlines

Before acting upon the Joint Application, therefore, the Department should obtain a written assurance from the Government of Canada that Canada's position has changed and that it now is prepared to authorize U.S. carriers to engage in third-country code-sharing via Canada. In the event Canada provides such an assurance, Northwest would withdraw its objection to the Joint Application. If, on the other hand, the Government of Canada fails to provide such an assurance, the Joint Application of SAS and Air Canada should be denied on the basis of insufficient comity and reciprocity.

Counsel: Northwest, Megan Rae Poldy, 202-842-3193

Answer of SAS and Air Canada – July 23, 1997

Despite Delta's argument to the contrary, the Department plainly has determined that principles of comity would warrant the approval of a third-country code-sharing service involving a Canadian carrier. When it permitted Qantas and Canadian Airlines to hold out service in the Canada-Australia market via a point in the United States, the Department expressly determined that approval of that service was fully warranted on the basis of comity and reciprocity. Given the Department's repeated (and recent) renewal of this arrangement, it is clear that DOT has found that U.S. carriers have been and will be permitted to enjoy commensurate benefits. If the Department has made that finding with respect to Canadian and Qantas, it must do so with respect to SAS and Air Canada. Moreover, Delta has articulated no reason to question Canada's willingness to approve a code-share between a U.S. carrier and a European carrier via a point in Canada, and Air Canada is unaware of any situation in which Canadian officials have refused to approve such a request.

Counsel: Bagileo Silverberg for SAS / Galland Kharasch for Air Canada

Index