Counterpart to Warsaw Agreement

April 25, 2003

OST-03-15058 - Lake Charles, LA-Washington Dulles-Frankfurt-Iraq

Application for an Emergency Exemption

Hereby applies for an emergency exemption from the foreign air carrier permit and exemption conditions established by Order 90-8-16 to permit Antonov to operate up to five one-way all-cargo charter flights transporting outsized modular buildings, plus ancillary equipment, from Lake Charles, Louisiana, plus additional cargo originating in Washington, D.C. (Dulles) and Frankfurt (Rhein-Main AB), Germany, to points in Iraq, between April 28 and May 18, 2003, using AN 124-100 aircraft. This application for an exemption is being filed in conjunction with Antonov's application for a statement of authorization and special authorization under 14 C.F.R. Parts 212 and 216, filed on April 22, 2003, as amended by letter dated April 23, 2003, which are attached hereto and incorporated herein by reference.

In addition to requiring a statement of authorization and special authorization to operate Lake Charles-Dulles-Frankfurt-Iraq flights, Antonov is requesting an exemption from DOT's Iraq Order, which imposes the following conditions on all permits and exemptions held by foreign air carriers.

Counsel: Shaw Pittman, Robert Cohn, 202-663-8060

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April 28, 2003

OST-03-15058 - US-Iraq Emergency Exemption

Answer of Atlas Air to Application of Antonov Emergency Exemption | Word

Antonov seeks an exemption from the conditions imposed by the DOT order to carry modular buildings and ancillary equipment for Chapman Freeborn France on behalf of the U.S. Department of State, for use during the reconstruction of Iraq. While Atlas certainly has no desire to impede the flow of goods needed by the U.S. government during the reconstruction process, it believes that a DOT exemption favoring a single foreign carrier over all U.S. air carriers would be patently discriminatory and perhaps contrary to the governing executive orders.

If the Department grants the requested exemption, it will have created a situation in which a foreign carrier has the ability to operate to a country that not a single U.S. carrier has authority to serve. In the best of economic periods, that type of favoritism would be troubling. In the current climate, in which demand is soft and a variety of U.S. carriers are struggling to regain their once-solid financial footing, it would be especially improvident.

Given the rapidly changing situation in Iraq, now may be the time for the Executive Branch to consider whether restrictions imposed by prior executive orders and implementing provisions, such as those contained in Order 90-6-18, should be eased. However, such loosening should apply to all U.S. carriers on an across-the-board basis, and certainly not to a foreign carrier when not one U.S. carrier has economic authority to serve Iraq.

Counsel: Atlas, Russell Pommer, 202-354-3843, rpommer@atlasair.com

Answer of Southern Air

Southern does not want to delay the transportation of cargo for use by the U.S. State Department, of course, particularly during the stabilization of Iraq. Nonetheless, the Department should not grant Antonov the extraordinary authority it seeks while Southern and other U.S. all-cargo airlines are forbidden by Order 90-8-16 from providing foreign air transportation of property between the U.S. and Iraq, selling any transportation by air that includes a stop in Iraq or engaging in any transaction in the U.S. relating to transportation to or from Iraq.

Since the U.S. State Department is the customer for these flights, the Fly America Act governs the proposed foreign air transportation. If a U.S. airline were available to carry the outsized cargo, the Fly America Act would prohibit the approval of Antonov's proposed flights. (49 U.S.C. § 40118(a)(3)(A)) To ensure the Fly America Act is followed, the Department should be vigilant to ensure U.S. government cargo is carried by U.S. airlines whenever possible and applications by Antonov and other foreign airlines to carry such cargo between the U.S. and third countries are not approved unless the requirements of the Fly America Act and the Department are met.

Counsel: Crowell & Moring, Thomas Bolling, 202-624-2683

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April 30, 2003

OST-03-15058 - US-Iraq Emergency Exemption

Reply of Antonov Design Bureau

Antonov's application is distinguishable from the blanket relief that Atlas, Southern and Northwest are proposing for U.S. carriers. Antonov is requesting only a limited exemption in connection with five flights it has been specifically chartered to operate, transporting outsized cargo on behalf of the U.S. Department of State.' The cargo Antonov proposes to carry cannot be accommodated in aircraft operated by Atlas, Southern, Northwest or any other U.S. carrier. Granting a limited exemption to Antonov would not discriminatorily favor "a single foreign carrier" (Atlas Answer, p. 2), because no other U.S. carrier could possibly operate these charter flights, with or without removal of the Iraq transportation prohibition.

As Antonov explained in its application, it requires an exemption from DOT's Iraq Order because the Order fails to make an exception for a category of flights that are otherwise authorized under the regulations implementing the Executive Order. A similar situation arose earlier this year when Antonov was chartered to carry cargo to Sudan on behalf of the Department of State. Because the DOT's Sudan prohibition Order (98-2-5) similarly made no exceptions for flights carrying cargo exported by the U.S. Government in spite of such an exception in the Executive Order upon which the DOT's Order was based, Antonov requested and received an exemption. See, Notice of Action Taken dated January 16, 2003, Docket OST-2003-14288. Unless the Department has concerns over and above those of the White House and other Executive Branch agencies, there is no reason to prohibit the Department of State from shipping items that are permitted to be exported under the OFAC and Department of Commerce regulations. A limited exemption from the prohibition contained in DOT's Iraq Order, or even a blanket exemption as recommended by Atlas and Southern for all flights involving official U.S. Government business, would be entirely appropriate and in the public interest.

Counsel: Shaw Pittman, Robert Cohn, 202-663-8060

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April 30, 2003

OST-03-15058 - US-Iraq Emergency Exemption

Reply of Northwest Airlines | Word

Atlas makes a compelling argument that the governing executive orders do not give the Department the discretion to grant the exemption sought by Antonov. See Atlas Answer at 2-3. And, to the extent that neither Order 90-8-16 nor other Department regulations permit the exemption sought by Antonov, regulations and standards issued by other agencies cannot otherwise provide a basis for the Department to award the exemption sought by Antonov.

Northwest intends soon to file applications for certificate and exemption authority to serve Iraq, on the assumption that the Iraq transportation restriction will be rescinded.

Counsel: Northwest, Megan Rae Rosia, 202-842-3193, megan.rosia@nwa.com

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May 7, 2003

OST-03-15058 - Lake Charles, LA-Washington Dulles-Frankfurt-Iraq

Correspondence of Antonov

In light of continuing operational and legal restrictions on air service to Iraq and traffic congestion at Kuwait International Airport, Antonov requests the flexibility to operate the remaining four Lake Charles-Dulles-Frankfurt-Kuwait/Iraq flights that are the subject of the above-referenced application to Amman, Jordan.

Counsel: Shaw Pittman, Sheryl Israel, 202-663-8312, sheryl.israel@shawpittman.com

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July 3, 2003

OST-03-15058 - Lake Charles, LA-Washington Dulles-Frankfurt-Iraq

Motion to Dismiss Application

Counsel: Shaw Pittman, Sheryl Israel, 202-663-8312, sheryl.israel@shawpittman.com

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August 1, 2003

OST-96-1454 - US-Ukraine Charters

Application for Renewal of Exemption

Application of Antonov Design Bureau, pursuant 49 USC Section(c) and Subpart C, requesting renewal of an exemption from 49 USC Section 41301, to permit Antonov to continue to engage in charter foreign air transportation of property and mail between Ukraine and the United States, and to perform other all-cargo charters in accordance with 14 CFR Part 212.

Counsel: Shaw Pittman, Robert Cohn, 202-663-8060

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August 18, 2003

OST-03-15974 - Dallas/Ft. Worth-Miami

Application for an Emergency Exemption

Counsel: Shaw Pittman, Robert Cohn, 202-663-8060

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Filed August 15, 2003 | Issued August 21, 2003

OST-03-15974 - Dallas/Ft. Worth-Miami

Notice of Action Taken | Word

By: Paul Gretch

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OST-95-236

September 22, 2003

Counterpart to Warsaw Agreement

By: Antonov, Valerii Kulbaka

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OST-96-1454 - Ukraine-US All-Cargo Charters

Filed August 1, 2003 | Issued October 3, 2003

Notice of Action Taken | Word

Renew exemption from 49 U.S.C. § 41301 to engage in charter foreign air transportation of property and mail between Ukraine and the United States; and to perform other all-cargo charters in accordance with Part 212 of our rules.

By: Paul Gretch

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OST-04-17113 - Emergency Exemption Honolulu-Milwaukee

February 11, 2004

Application for Emergency Exemption

Air Partner PLC, acting on behalf of Siemens Automation and Drive has requested that Antonov operate two flights transporting eight rail cars plus ancillary equipment from Honolulu to Milwaukee using Antonov's AN-225 aircraft. Siemens urgently requires these rail cars to be delivered to Milwaukee as part of its "Exider" technology train, which will be on display in Chicago during National Manufacturing Week (February 23-26). Each Exider rail car is fitted with installations that showcase high-technology products, solutions and services. After being displayed in Chicago, this 1,000-foot technology "trade show on rails" will subsequently continue on a 10-city coast-to-coast U.S. tour that will include stops in Atlanta, Washington, D.C., New York, Boston, Detroit, Houston, Los Angeles, San Francisco and Seattle.

Counsel: Shaw Pittman, Robert Cohn, 202-663-8060

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OST-04-17113 - Honolulu-Milwaukee

Filed: February 11, 2004 | Issued: February 13, 2004

Notice of Action Taken | Word

Exemption from 49 U.S.C. section 40109(g) to permit the applicant to operate two, one‑way, cargo charter flights from Honolulu, Hawaii, to Milwaukee, Wisconsin, through February 21, 2004, using its AN124‑100 aircraft to transport six rail‑coach cars (three per flight), on behalf of Siemens Automation. The applicant stated that Siemens, due to unanticipated delay in the shipment schedules of this cargo, now urgently needs lift to get the cargo to the Chicago area for the National Manufacturing Week display (starting February 23, 2004); that the cargo is too large for transportation on U.S.‑carrier aircraft; and that ocean transportation is not feasible because of the long time period that such mode of transportation would take.

By: Karan Bhatia

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OST-98-3304 - Family Assistance Plans

March 9, 2004

Re: Amended Family Assistance Plan

Counsel: Shaw Pittman, Sheryl Israel ,202-663-8000

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OST-04-17906 - Emergency Exemption - Dallas/Ft. Worth-Miami

May 19, 2004

Application for an Emergency Exemption

Permit Antonov to operate a single one-way all-cargo charter flight transporting one outsized Boeing 777 aircraft engine, plus ancillary equipment, from Dallas/Ft. Worth, Texas, to Miami, Florida, between May 19, 2004, and May 20, 2004, using its AN124-l00 aircraft. A Boeing 777 airplane operated by American Airlines, Inc. in scheduled air transportation is on the ground in Miami and requires the immediate delivery of an engine to return the airplane to service. Accordingly, Antonov respectfully requests expedited consideration and immediate approval of this application for an emergency exemption.

Counsel: Shaw Pittman, Sheryl Israel, 202-663-8312, sheryl.israel@shawpittman.com

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OST-04-17906 - Emergency Exemption - Dallas/Ft. Worth-Miami

Filed May 19, 2004 | Issued May 20, 2004

Notice of Action Taken | Word

Exemption from 49 U.S.C. section 40109(g) to permit the applicant to operate one, one-way, cargo charter flight from Dallas/Ft. Worth, Texas, to Miami, Florida, during the period May 19-20, 2004, using its AN-124-100 aircraft to transport one Boeing 777 aircraft engine, plus ancillary equipment, on behalf of Rolls Royce and American Airlines. The applicant stated that American Airlines requires delivery of the engine as soon as possible to repair one of its aircraft at Miami, and to return that aircraft to scheduled service; that the cargo is too large for transportation on U.S.-carrier aircraft; and that surface transportation is not feasible because of the large size of the cargo and of the long time period that such mode of transportation would take.

By: Karan Bhatia

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OST-96-1454 - Exemption - Russia-US All-Cargo Charter

September 9, 2004

Application for Renewal of an Exemption

Renewal of Antonov's exemption authority is in the public interest because such authority will continue to benefit shippers that need to transport outsized cargo to and from the United States. Since 1991, Antonov has operated ad hoc charter flights to and from the United States using the AN 124‑100, a four engine freighter aircraft that has a normal maximum payload of 264,555 lbs. (which, subject to specific exemptions, may be increased up to 330,000 lbs.). The AN 124‑l00 is capable of transporting cargo that cannot be accommodated by any other commercially available aircraft, including the Boeing 747F and the Lockheed Martin L‑100 Hercules. The belly of the parked AN‑124‑100 can be lowered to the ground to load and unload cargo through the aircraft's nose or tail using either a ramp system or the aircraft's unique self‑contained crane system. These features make the aircraft particularly well‑suited to carry outsized or extremely heavy cargo and to transport critical general cargo loads to and from remote or otherwise inadequately equipped airfields.

Antonov takes full advantage of the capabilities of the AN 124-100 (and, more recently, the AN-225 "Mriya", a six-engine super heavy lifter derivative of the AN124 with a cargo capacity of 250 metric tons) by carrying, on an expedited basis, unique and specialized shipments on behalf of various charter customers. For example, Antonov is frequently called upon to transport such large or heavy items as oil refining equipment, power plant turbine units, power generators, satellite equipment, construction equipment, vehicles, and other outsized pieces that cannot be transported in conventional aircraft. This worldwide all-cargo service benefits shippers in the United States, Ukraine, and third countries, and meets the needs of a highly specialized cargo market. Renewal of Antonov's exemption authority will allow Antonov to continue to meet these needs to the benefit of the shipping public.

Antonov's citizenship and qualifications remain substantially as described in its application for a foreign air carrier permit dated April 8, 1993 in Docket OST-95-647

Counsel: Shaw Pittman, Robert Cohn, 202-663-8312

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OST-96-1454 - Ukraine-US

Filed September 9, 2004 | Issued October 8, 2004

Notice of Action Taken | Word

Renew exemption from 49 U.S.C. § 41301 to engage in charter foreign air transportation of property and mail between Ukraine and the United States; and to perform other all-cargo charters in accordance with Part 212 of our rules.

By: Paul Gretch

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Avialeasing Aviation Company, Uzbekistan Airways, Aerosvit Airlines, Air Ukraine, Antonov Design Bureau

Order 2005-4-22
Undocketed

Issued and Served April 26, 2005

Order

In this order we are removing the requirement that, for national security reasons, foreign air carriers of Uzbekistan and Ukraine obtain approved routings, or prior approval under 14 CFR Part 212, for their charter operations to or from the United States.

Order 81-5-41 required a number of foreign air carriers for national security reasons to seek prior approval under the provisions of Part 212 before operating any charter flights to or from the United States. The prior approval requirement was used to establish satisfactory flight routings supplied by the FAA and Department of Defense. At the time Order 81-5-44 was issued, no foreign air carriers of either Uzbekistan or Ukraine held Department authority to serve the United States. However, carriers of each country have since obtained Department authority, and the FAA's position has been that the charter operations by foreign air carriers from Uzbekistan and Ukraine should be subject to prior approval for national security reasons.

The foreign air carriers of Uzbekistan are Avialeasing Aviation Company (Avialeasing) and Uzbekistan Airways. Avialeasing, an all-cargo carrier, holds a foreign air carrier permit issued by Order 2002-1-10. Uzbekistan Airways, a combination carrier, holds a foreign air carrier permit issued by Order 98-10-18.

AeroSvit's current exemption authority authorizes it to engage in scheduled combination services between Ukraine and New York, and to conduct charters in accordance with Part 212 of the Department's rules. See Notice of Action Taken dated December 2, 2004. in Docket OST-2002-12356. Air Ukraine's current exemption authority, confirmed by Order 96-10-17 (Docket OST-96-1406), authorizes Air Ukraine to conduct scheduled combination services between Ukraine and the coterminal points New York, Washington, D.C. (Duties), Chicago and Los Angeles; and to conduct charters in accordance with Part 212 of the Department's rules. On September 17, 1997, Air Ukraine filed a timely renewal application in Docket OST-96-1406 to continue its exemption authority

By: Karan Bhatia

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