Home | Search | Help
OST by Number | OST by Order | OST by Carrier | OST by Subject | OST by Day
OIA by Carrier/Subject | OIA by Day | FAA by Number | FAA by Subject | FAA by Day
Carrier Financials | Charter Office | Answer/Reply Calendar

OST-1996-2025 - Evergreen International - US-Russia All-Cargo

http://www.evergreenaviation.com/

Evergreen International Airlines, Inc.

Evergreen began carrying freight from the United States to Khabarovsk on March 23, 1995, and during the past two years has utilized its allocation of three U.S.-Russia frequencies in connection with its U.S.- Hong Kong scheduled all-cargo services. These services are operated with B-747F aircraft from Evergreen's fleet.

While the current economic circumstances in Russia remain uncertain, Evergreen continues to offer service in the market, and sometimes provides the only available common carriage alternative for transport of large shipments between U.S. points and Khabarovsk. Thus, the availability of Evergreen's service provides important benefits to shippers and forwarders moving freight between the United States and Russia. Evergreen is confident that market conditions in Russia will improve in the future. Consequently, Evergreen is engaged in ongoing discussions with the Federal Aviation Authority of Russia (FAAR)and other appropriate Russian agencies, and in negotiations with major Russian airlines and other cargo transport industry organizations in Russia. This market-development activity, coupled with operational experience gained during its regularly-scheduled and periodic charter operations in Russia, maintains Evergreen's capability to continue and to expand its all-cargo services as market conditions improve.

Counsel:  Evergreen and Steptoe Johnson, Richard Taylor, 202-429-6459

Scheduled foreign air transportation of property and mail between Anchorage, Alaska, on the one hand, and Khabarovsk, Petropaviovsk, Vladivstok, and Yuzhno-Sakhalinsk, Russian Federation, on the other, and beyond to Hong Kong, without local traffic rights between Russia and Hong Kong, and to integrate this authority with its existing certificate and exemption authority.

By:  Paul Gretch

Counsel:  Steptoe Johnson, David Coburn, 202-429-6459

Renew for two years exemption from 49 U.S.C. §41101 to: (a) Provide scheduled foreign air transportation of property and mail between Anchorage, Alaska, on the one hand, and Khabarovsk, Petropavlovsk, Vladivostok, and Yuzlino-Sakhalinsk, Russia, on the other, and beyond to Hong Kong, without local traffic rights between Russia and Hong Kong, and (b) integrate this exemption authority with Evergreen's other exemption and certificate authorities granted by the Department, to the extent permitted by international agreements. 

By:  Paul Gretch

Hereby applies for waiver of the 90-day dormancy condition to its allocation of three weekly all-cargo frequencies between Anchorage, on the one hand, and Khabarovsk, Petropavlovsk, Vladivostok and Yuzhno-Sakhalinsk, Russia, on the other.

Grant of this waiver would be in the public interest based on the same considerations that led to issuance of the blanket waiver conferred by Order 2001-11-15, namely, the market disruption and drastic schedule adjustments that resulted from the events of September 11. The adverse impact of these events continues to be felt in the U.S.-Russia all-cargo market and has made resumption of Evergreen's freighter services uneconomical for the foreseeable future. Evergreen intends to reenter this market and anticipates that day will come well before expiration of the additional period of waiver it requests herein, which will afford Evergreen the flexibility it needs to resume service as soon as economic conditions warrant.

Counsel:  Steptoe Johnson, David Coburn, 202.429.8063

Waiver of 90-day dormancy condition: Evergreen has applied for a waiver of the 90-day dormancy condition with respect to its allocation of three weekly U.S.- Russia all-cargo frequencies for services between Anchorage, on the one hand, and Khabarovsk, Petropavlovsk, Vladivostok and Yuzhno-Sakhalinsk, Russia, on the other. Evergreen requests a waiver of the dormancy condition from April 1, 2002, through November 8, 2002. Evergreen states that the adverse effects of the events of September 11, 2001, continue to be felt in the U.S.- Russia all-cargo market, making it uneconomic for Evergreen to resume freighter services for the foreseeable future. Evergreen states that it intends to reenter this market and anticipates that day will come well before the expiration of the additional waiver it requests here. Evergreen states that the waiver will afford it the flexibility to resume service as soon as economic conditions warrant.

By:  Paul Gretch

Evergreen instituted service from the U.S. to Khabarovsk in March 1995, and utilized its frequencies in connection with its U.S.-Hong Kong B-747 operations. These services have provided significant benefits to U.S. and Russian shippers and receivers. Due to the downturn in the world economy and the impact of the events of September 11, 2001, on air transportation, Evergreen currently is not offering service in  the market. However, Evergreen continues to have a strong interest in serving the U.S.­Russia cargo market; thus, it wishes to retain its exemption authority so that service may be resumed when economic conditions warrant. Resumption of such service at the appropriate time clearly will benefit shippers and receivers and is in the public interest. In addition, renewal of the exemption authority is consistent with the term of the U.S.­-Russia air transport agreement.

Counsel:  Verner Liipfert, William Evans, 202-371-6030

At the time of its previous request for an extension of the dormancy waiver, Evergreen anticipated that economic conditions would improve and that it could resume service in the U.S.-Russia market prior to the expiration of the dormancy waiver. However, conditions clearly have not improved and Evergreen simply is not in a position to resume service on an economic basis in the foreseeable future. Nevertheless, Evergreen remains committed to resuming service when warranted by traffic demands and extension of the present waiver will enable Evergreen to accomplish that goal in an orderly and efficient manner.

Counsel:  Verner Liipfert, William Evans, 202-371-6030

On September 9, 2002, Evergreen International Airlines, Inc. filed an application to renew its exemption authority last renewed by Notice of Action Taken, dated November 8, 2000, to engage in scheduled foreign air transportation of property and mail between Anchorage, Alaska, on the one hand, and Khabarovsk, Petropavlovsk, Vladivostok, and Yuzhno-Sakhalinsk, Russia, on the other, and beyond to Hong Kong, without local traffic rights between Russia and Hong Kong. The Notice of Action Taken also authorized Evergreen to integrate this authority with its other exemption and certificate authorities. Through an oversight Evergreen neglected to seek renewal of the integration authority. Consequently, Evergreen is filing this Supplement to clarify that it also requests renewal of its authority to integrate the Russia exemption authority with  other exemption and certificate authorities held by Evergreen to the extent permitted by international agreements.

Counsel: Verner Liipert, William Evans,  202 371-6030

Provide scheduled foreign air transportation of property and mail between Anchorage, Alaska, on the one hand, and Khabarovsk, Petropavlovsk, Vladivostok, and Yuzhno-Sakhalinsk, Russia, on the one hand, and beyond to Hong Kong, without local traffic rights between Russian and Hong Kong, and (b) integrate this exemption authority with Evergreen's other exemption and certificate authorities granted by the Department, to the extent permitted by international agreements.

Evergreen also seeks to renew through November 8, 2003, its waiver of the 90-day dormancy condition applicable to its allocation of three weekly all-cargo frequencies for services between Anchorage, on the one hand, and Khabarovsk, Petropavlovsk, Vladivostok and Yuzhno-Sakhalinsk, Russia, on the other.

In support of its applications, Evergreen notes that it instituted service from the US to Khabarovsk in March 1995 and used its allocated frequencies in connection with its US-Hong Kong operations. Due to the downturn in world economy and the impact of the events of September 11, 2001, however, Evergreen states that it currently is not offering service in the market but continues to have a strong interest in serving the US-Russia market and that it wishes to keep its exemption authority in order to resume services when conditions warrant.

The authority granted is consistent with the aviation agreement between the United States and Hong Kong. The Annexes to the U.S.-Russia Air Transport Agreement under which Evergreen's authority was previously granted expired on January 22, 2001. However, the operations proposed by Evergreen are in conformance with the Annexes agreed to by both sides ad referendum on April 11, 2002. Both sides, as agreed, have initiated the necessary internal procedures for bringing these Annexes into force.

By: Paul Gretch

September 8, 2003

Application for Waiver of Dormancy Condition

At the time of its previous request for an extension of the dormancy waiver, Evergreen anticipated that economic conditions would improve and that it could resume service in the U.S.-Russia market prior to the expiration of the dormancy waiver. However, conditions clearly have not improved and Evergreen simply is not in a position to resume service on an economic basis in the near future. In addition, the situation has been exacerbated by the Iraq war and the attendant demands placed on all-cargo airlines for transportation in support of the war and the construction effort. Nevertheless, Evergreen remains committed to resuming service when warranted by traffic demands, and extension of the present waiver will enable Evergreen to accomplish that goal in an orderly and efficient manner.

Counsel: Piper Rudnick, William Evans, 202-861-6459, bill.evans@piperrudnick.com

Filed September 8, 2003 | Issued September 23, 2003

Notice of Action Taken | Word

Evergreen seeks to renew through March 31, 2004, its waiver of the 90-day dormancy condition applicable to its allocation of three weekly all-cargo frequencies for services between Anchorage, on the one hand, and Khabarovsk, Petropavlovsk, Vladivostok and Yuzhno-Sakhalinsk, Russia, on the other.

In support of its application, Evergreen notes that it began serving the U.S.-Russia market in 1995 and expended significant resources in an effort to develop the market. Although it is continuing those efforts, Evergreen states that the company was dealt a serious setback by the events of September 11, 2001 and the subsequent downturn in the world economy, necessitating its previous waivers for the dormancy condition. Evergreen maintains that conditions have not improved and have been exacerbated by the Iraq war and the attendant demands placed on all-cargo airlines for transportation in support of the war and the construction effort and that it is not in a position to resume service on an economic basis in the near future. Evergreen states that it remains committed, however, to resuming service when warranted by traffic demands and seeks a waiver through March 31, 2004, and that the extension waiver request will enable Evergreen to accomplish that goal in an orderly and efficient manner. Evergreen states that nearly half of the available all-cargo frequencies are available for allocation so grant of this waiver will not deter the Department from allocating frequencies to other interested cargo airlines.

January 27, 2004

Application for Waiver of Dormancy Condition

Applies for renewal through March 31, 2005, of its waiver of the 90-day dormancy condition applicable to its allocation of three weekly all-cargo frequencies between Anchorage, Alaska, on the one hand, and Khabarovsk, Petropavlovsk, Vladivostok, and Yuzhno-Sakhalinsk, Russia, on the other.

Evergreen began serving the U.S.-Russia market in 1995 and it expended significant resources in an effort to develop the market. Although Evergreen is continuing those efforts, the company's goals were dealt a serious setback with the events of September 11, 2002, and the subsequent worldwide economic downturn, and as noted, it sought and received waivers of the dormancy condition. At the time of its previous request for an extension of the dormancy waiver, Evergreen anticipated that economic conditions would improve and that it could resume service in the U.S.-Russia market prior to the expiration of the dormancy waiver. However, conditions have not improved significantly and Evergreen simply is not in a position to resume service on a reasonably economic basis in the near future. Nevertheless, Evergreen remains committed to resuming service when warranted by traffic demands, and extension of the present waiver will enable Evergreen to accomplish that goal in an orderly and efficient manner.

Evergreen understands that more than half of the 23 all-cargo frequencies are available for allocation so grant of the waiver will not deter the Department from allocating frequencies to other interested cargo airlines.

Counsel: Evergreen and Piper Rudnick, William Evans, 202-861-6459

Filed January 27, 2004 | Issued March 24, 2004

Notice of Action Taken | Word

Evergreen seeks to renew through March 31, 2005, its waiver of the 90-day dormancy condition applicable to its allocation of three weekly all-cargo frequencies for services between Anchorage, on the one hand, and Khabarovsk, Petropavlovsk, Vladivostok and Yuzhno-Sakhalinsk, Russia, on the other.

Evergreen notes that it began serving the U.S.-Russia market in 1995 and expended significant resources in an effort to develop the market. Although it is continuing those efforts, Evergreen states that the company was dealt a serious setback by the events of September 11, 2001, and the subsequent downturn in the world economy, necessitating its previous waivers of the dormancy condition. Evergreen maintains that at the time of its previous request for an extension of the dormancy waiver it anticipated that economic conditions would improve and that it could resume service in the U.S.-Russia market prior to the expiration of the dormancy waiver. Under the terms of the latest waiver Evergreen’s frequency allocation would automatically expire if Evergreen does not resume service by March 31, 2004. Evergreen states that it remains committed to resuming service when warranted by traffic demands and seeks a waiver through March 31, 2005. Evergreen states that more than half of the available all-cargo frequencies are available for allocation so grant of this waiver will not deter the Department from allocating frequencies to other interested cargo airlines.

By: Paul Gretch

August 10, 2004

Application for Renewal of Exemption

By Notice of Action Taken, dated October 25, 2002, the Department renewed Evergreen's authority to (a) engage in scheduled foreign air transportation of property and mail between Anchorage, Alaska, on the one hand, and Khabarovsk, Petropavlovsk, Vladivostok, and Yuzhno-Sakhalinsk, Russia, on the other, and beyond to Hong Kong, without local traffic rights between Russia and Hong Kong, and (b) integrate the Russian exemption authority with Evergreen's other exemption and certificate authority consistent with international agreements. The authorities are scheduled to expire on October 25, 2004. The Department also previously allocated to Evergreen three weekly all-cargo frequencies, which currently are the subject of a waiver of the 90-day dormancy condition.

Evergreen instituted service from the U.S. to Khabarovsk in March 1995, and utilized its frequencies in connection with its U.S.-Hong Kong B-747 operations. These services provided significant benefits to U.S. and Russian shippers and receivers. Due to the impact of the events of September 11, 2001 on air transportation, and the continuing economic uncertainties in Russia, which have depressed the wide-bodied air freight market between Russia and the United States, Evergreen currently is not offering service in the market. However, Evergreen continues to have an interest in serving the U.S.-Russia cargo market; thus, it wishes to renew its exemption and integration authority so that service may be resumed when economic conditions warrant.

Counsel: Piper Rudnick, William Evans, 202-6459

Filed January 27, 2004 | Issued March 24, 2004

Notice of Action Taken

Evergreen seeks to renew through March 31, 2005, its waiver of the 90-day dormancy condition applicable to its allocation of three weekly all-cargo frequencies for services between Anchorage, on the one hand, and Khabarovsk, Petropavlovsk, Vladivostok and Yuzhno-Sakhalinsk, Russia, on the other.

Evergreen notes that it began serving the U.S.-Russia market in 1995 and expended significant resources in an effort to develop the market. Although it is continuing those efforts, Evergreen states that the company was dealt a serious setback by the events of September 11, 2001, and the subsequent downturn in the world economy, necessitating its previous waivers of the dormancy condition. Evergreen maintains that at the time of its previous request for an extension of the dormancy waiver it anticipated that economic conditions would improve and that it could resume service in the U.S.-Russia market prior to the expiration of the dormancy waiver. Under the terms of the latest waiver Evergreen’s frequency allocation would automatically expire if Evergreen does not resume service by March 31, 2004. Evergreen states that it remains committed to resuming service when warranted by traffic demands and seeks a waiver through March 31, 2005. Evergreen states that more than half of the available all-cargo frequencies are available for allocation so grant of this waiver will not deter the Department from allocating frequencies to other interested cargo airlines.

By: Paul Gretch

December 29, 2004

Application for Waiver of Dormancy Condition

In making this renewal request, Evergreen recognizes and has taken into account the Department's admonition that renewal of this waiver authority should be not taken for granted. Evergreen understands that the dormancy policy, to be meaningful, must be fairly and reasonably enforced. However, as the Department fully recognized in the prior Notice of Action Taken in this Docket issued March 24, 2004 extending the Evergreen waiver, there may be circumstances that could justify the grant of continuing relief from the dormancy requirement. NOAT, page 2. Evergreen submits that market conditions and circumstances continue to support the grant of relief requested herein, particularly since only approximately one-third of the available all-cargo frequencies are currently allocated.

Counsel: Silverberg Goldman, Robert Silverberg

Filed December 29, 2004 | Issued February 24, 2005

Notice of Action Taken | Word

Evergreen seeks to renew through March 31, 2006, its waiver of the 90-day dormancy condition applicable to its allocation of three weekly all-cargo frequencies for services between Anchorage, Alaska, on the one hand, and Khabarovsk, Petropavlovsk, Vladivostok, and Yuzhno-Sakhalinsk, Russia, on the other.

Evergreen notes that it began serving the U.S.-Russia market in 1995, but that the ability of the carrier to continue those operations was made extraordinarily difficult as a result of the events of September 11, 2001, and the subsequent downturn in economic activity that was experienced in the air cargo market.  Evergreen states that it intends to resume direct service to Russia once economic conditions prevail that have the potential to sustain profitable levels of service, but that those conditions have not yet been reached in the U.S.-Russia market. Evergreen further states that only 8 of the available 23 all-cargo frequencies have been allocated by the Department for U.S.-Russia all-cargo services and, thus, grant of the relief requested herein would not preclude another U.S. carrier from commencing new all-cargo services to Russia.

We find that grant of Evergreen’s request, in the particular circumstances presented, is in the public interest. However, we are putting Evergreen on notice that, should other U.S. carriers file applications to use the frequencies at issue here, we have the right to reconsider our decision here to determine whether or not that decision continues to be in the public interest. In addition, there should be no expectation that an additional waiver request will necessarily be granted. Any future request to extend the dormancy waiver for the frequencies at issue here will have to be considered in light of any specific arguments offered and responses thereto, and in the context of the circumstances present at that time, including whether another carrier seeks to use the frequencies at issue.

By: Paul Gretch

February 14, 2006

Application for Waiver of Dormancy Condition

Evergreen first commenced operations to Russia in 1995. However, as Evergreen has explained in its previous applications for waiver of the dormancy condition, the capacity of the carrier to continue such operations was made extraordinarily difficult as a result of the events of September 11, 2001, and the immediate resulting downturn in economic activity that was experienced in the air cargo market.

Despite recent steady growth in U.S. carriers' international freight traffic, the demand for all-cargo air transportation services in the U. S.-Russia market has still not improved to the point that Evergreen believes it is economically feasible to reintroduce its services. While the market for U.S. imports from Russia has improved, exports from the U.S. to Russia still remain lower in 2004 (the last year for which data is available) than in 1997 when Evergreen was providing direct air cargo service, leaving uncertain the prospects for an improvement in economic conditions sufficient to support a resumption of service by Evergreen in the short term Nonetheless, Evergreen remains committed to reinstituting its U.S.-Russia operations once economic conditions prevail that have the potential to sustain profitable levels of service. Grant of this waiver request will facilitate the ability of Evergreen to quickly reinstitute service in the U. S.-Russia market when economic conditions warrant. Grant of this request is also in the public interest in that it is consistent with the Department's history in other cases of being flexible in its application of the dormancy condition in the face of negative economic circumstances. Evergreen also understands that the Department has allocated only 8 of the 23 available all-cargo frequencies between the U.S. and Russia.

Counsel: Silverberg Goldman, Robert Silverberg

OST-1996-2018 - FedEx - Russia All-Cargo Frequency Dormancy Condition
OST-1996-2025 - Evergreen - US-Russia All-Cargo

Filed February 9 and 14, 2006 | Issued March 29, 2006

Notice of Action Taken | Word

We grant in part the applications filed by FedEx Express and Evergreen for waivers of the dormancy condition for their U.S.-Russia all-cargo frequencies.  We have decided to grant the waivers through March 25, 2007, the expiration date of the Annexes to the October 5, 2005 Protocol Between the Government of the United States of America and the Government of the Russian Federation to Amend the January 14, 1994 Air Transport Agreement Between the Government of the United States of American and the Government of the Russian Federation.

With respect to the request for an indefinite waiver, FedEx Express and Evergreen both cite other waiver cases involving Russia. (See Notice of Action Taken, dated February 8, 2005, in Docket OST-2005-20116 and Notices of Action Taken, dated December 3, 2004 and January 3, 2005, in Docket OST-2004-19375). However, we view those cases as inapposite.  First, the requests for waiver in those cases were not based on any temporary suspension of rights scheduled to end on an established date.  Also, those other requests involved cases of partial rather than complete suspension of use of certain frequencies

By: Paul Gretch

February 22, 2007

Application for Waiver of Dormancy Condition

Evergreen International Airlines, Inc. respectfully requests a waiver of the 90-day dormancy condition with respect to the prior grant of authority to Evergreen to conduct three times weekly all-cargo air service to Russia. Evergreen respectfully requests that the Department renew the waiver of the 90-day dormancy condition applicable to its three weekly U.S,-Russia all-cargo frequencies, which is currently set to expire on March 25, 2007, for an additional two-year period, through March 25, 2009.

Evergreen understands that the Department has allocated only 8 of the 23 available all-cargo frequencies between the U.S. and Russia. Therefore, providing Evergreen relief from the dormancy condition will not preclude another U.S. air carrier from obtaining frequencies to commence all-cargo service to Russia should such a carrier be of the view that market conditions will support freighter operations.

In light of the continuing poor economic condition of the U.S.-Russia market with respect to goods that are normally transported by air and the fact that sufficient frequencies remain available for other carriers that may desire to initiate allcargo service to Russia, Evergreen is of the view that renewal of the waiver of the Department's dormancy condition for an additional two-year period is in the public interest.

Counsel: Silverberg Goldman, Robert Silverberg, 202-944-3304

OST-1996-2018 - FedEx - Russia All-Cargo Frequency Dormancy Condition
OST-1996-2025 - Evergreen - US-Russia All-Cargo

Filed December 15, 2007 and February 22, 2007 | Issued March 19, 2007

Notice of Action Taken

We grant in part the applications filed by FedEx Express and Evergreen for waivers of the dormancy condition for their U.S.-Russia all-cargo frequencies. We have decided to grant the waivers for a one-year period. In taking this action, we find that grant of the requested waivers is in the public interest in the circumstances presented; namely, the suspension per the terms of the Annexes of the U.S. carrier fifth-freedom rights between points in Europe and points in the Russian Federation, negotiated in the revision of the Route Annex on October 2005. We have granted prior waivers for one-year periods, and in doing so here acknowledge the need to reassess these waivers within that time-frame. Moreover, no party has opposed the respective waiver requests here.

On October 5, 2005, the United States and Russia expressed their intent to implement the provisions of the Annexes on the basis of comity and reciprocity until both governments take the actions to bring the Annexes into force.

By: Paul Gretch

March 3, 2008

Application for Waiver of Dormancy Condition

Evergreen International Airlines, Inc. respectfully requests a waiver of the 90-day donnancy condition with respect to the prior grant of authority to Evergreen to conduct three times weekly all-cargo air service to Russia. Evergreen respectfully requests that the Department renew the waiver of the 90-day donnancy condition applicable to its three weekly U.S.-Russia all-cargo frequencies, which is currently set to expire on March 19, 2008, for an additional one-year period, through March 19, 2009.

In connection with the issuance of this exemption authority, as it has been expanded and renewed, the Department awarded Evergreen three of the total 23 frequencies authorized under the U.S.-Russia Air Transport Agreement for all-cargo air transportation. Due to circumstances the Department has· recognized over the years were beyond the control of Evergreen, the Department has granted the carrier relief from the requirement to use these three frequencies or subject them to withdrawal for nonuse after 90 days of dormancy. Most recently, the Department waived application of the 90-day dormancy requirement until March 19, 2008 by Notice of Action Taken, dated March 19, 2007. Evergreen hereby requests that the Department renew its dormancy waiver for an additional one-year period, through March 19, 2009.

Evergreen remains committed to reinstituting its U.S.-Russia operations once economic conditions prevail that have the potential to sustain profitable levels of service. Grant of this waiver request will facilitate the ability of Evergreen to quickly reinstitute service in the U.S.-Russia market when economic conditions warrant.

Counsel: Silverberg Goldman, Robert Silverberg, 202-944-3304

Filed March 3, 2008 | Approved March 18, 2008

Department Action on Waiver of Dormancy Condition

We will require that the carrier institute service no later than March 20, 2009.

By: Robert J. Finamore

Home | Search | Help
OST by Number | OST by Order | OST by Carrier | OST by Subject | OST by Day
OIA by Carrier/Subject | OIA by Day | FAA by Number | FAA by Subject | FAA by Day
Carrier Financials | Charter Office | Answer/Reply Calendar