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OST-97-3162

Polar Air Cargo - (Thailand All-Cargo Frequencies Delay of Start-Up)

OST-97-3162 | November 25, 1997

Application for Exemption

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Like Air Micronesia, Inc. and Northwest Airlines, Polar Air has been prevented by deteriorating economic conditions in Thailand from making full use of its all-cargo scheduled frequency allocation. If the Department is disposed to allow those two carriers to retain their unused allocations for an additional seven months, Polar Air is compelled to seek the same relief in order to ensure the availability of a frequency for Polar Air's use beginning in the Spring of 1998.Polar Air has been using one-weekly frequency in serving the Thailand market for many months. Inauguration of the second frequency has been set on several occasions only to be canceled due to increasingly adverse economic conditions. Polar Air's market survey indicates that a start-up during the first or second quarter of 1998 will be economically feasible. The grant of this requested exemption will allow Polar Air to expand its scheduled all-cargo service to Bangkok as soon as market conditions permit.

Service List

Counsel: Ginsgurg Feldman, Alfred Eichenlaub, 202.637.9034

Polar Air Cargo, Inc. - (New - Notice of Action Taken)

OST-97-3162 | Filed November 25, 1997 | Action Taken November 28, 1997

Notice of Action

By Order 96-9-16 the Department issued Polar Air Cargo a certificate of public convenience and necessity to provide scheduled all-cargo service between a point or points in the United States and a point or points in Thailand (Route 705), and allocated it two weekly frequencies for these services. By its terms, the certificate would expire April 1, 1997, unless Polar commences service by that date. On March 11, 1997, Polar filed for an exemption to extend the startup of its second frequency to September 1, 1997. The Department granted Polar's application by Notice of Action Taken dated March 28, 1997 (see Order 97-S 6). Polar seeks an exemption to the extent necessary to extend its proposed startup date for the second frequency to June 30, 1998. Polar states that because of existing economic conditions in Thailand, the optimum date to commence its operations for the second frequency is June 30, 1998.

Applicant Representative: Alfred Eichenlaub, 202.637.9034

Polar Air Cargo, Inc. (Thailand All-Cargo Frequencies Dormancy Condition)

OST-97-3162 | May 15, 1998

Application for Renewal and Amendment of Exemption

Increasingly adverse economic conditions have impeded Polar's continued operation of Thailand services. Polar believes that it may be able to reenter the market within the next six months. Accordingly, by this application, Polar Air seeks a renewal of its current exemption from the 90-day dormancy condition and amendment of the exemption to include its second all-cargo frequency enabling Polar to postpone operation of the frequencies until December 31, 1998.

Answers are due by May 29, 1998

Service List

Counsel:  Polar and Ginsburg Feldman, Jeffrey Manley, 202-637-9057

Polar Air Cargo, Inc. (Notice of Action Taken)

OST-97-3162 | Filed May 14, 1998 | Issued June 15, 1998

Notice of Action

Polar seeks an exemption to the extent necessary to extend its proposed startup date to December 31, 1998, for the second frequency. Polar states that because of existing economic conditions in Thailand, the optimum date commence its operations for the second frequency is December 31, 1998.  Polar also seeks an exemption from the 90-day dormancy condition so as to delay resumption of service with its first frequency until December 31, 1998. Polar has not used this frequency since October 25, 1997.

Applicant Rep:  Jeffrey Manley, 202-637-9057

U.S.-Thailand All-Cargo Frequency Allocation Case / Polar Air Cargo, Inc.

OST-96-1496 OST-97-3162	October 21, 1998	Application for Renewal of Exemption	US-Thailand Dormancy Condition
		Service List

Increasingly adverse economic conditions have impeded Polar's ability to restart its Thailand services. Polar believes that it may be able to reenter the market within the next year. Accordingly, by this application, Polar seeks a renewal of its current exemption from the 90-day dormancy condition through December 31, 1999.

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

Polar Air Cargo, Inc.

OST-97-3162

Issued November 13, 1998

Notice of Action Taken

U.S.-Thailand (All-Cargo)

Applicant Rep.:  Jeffrey Manley, 202.879.5161

By:  Paul Gretch

U.S.- Thailand All- Cargo Frequency Allocation Case and Polar Air Cargo, Inc.

Adverse economic conditions have impeded Polar's ability to restart its Thailand services, but the market is showing signs of recovery. Polar believes that it may be able to reenter the market in the upcoming year in conjunction with other service it will be restoring in the region. Accordingly, by this application, Polar seeks a renewal of the start-up exemption applicable to Polar's U.S.-Thailand all-cargo frequency for ninety days, i.e., through March 30, 2000.

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

Polar Air Cargo, Inc

By Order 96-9-16 the Department issued Polar Air Cargo a certificate of public convenience and necessity to provide scheduled all-cargo service between a point or points in the United States and a point or points in Thailand (Route 705), and allocated it two weekly all-cargo frequencies for this service. By its terms, the certificate and frequency allocation would expire April 1, 1997, unless Polar commenced service by that date. Since then, the Department has granted extensions of the startup date for Polar's second frequency through December 31,1999. (See Orders 97-5-6 and 98-1-6 and Notices of Action Taken dated June 15 and November 13, 1998.) Polar's first frequency automatically reverted to the Department after not being used for a period of 90 days. Polar seeks a further exemption to the extent necessary to extend its proposed startup date for the remaining frequency to March 30, 2000. Polar states that Thailand's increasingly adverse economic conditions have impeded Polar's ability to resume its Thailand services. Polar believes that it may be able to reenter the market in the upcoming year.

Polar's waiver from the dormancy condition is effective until March 30, 2000, or until the date on which Polar begins service with this frequency, whichever occurs earlier. Once the waiver ceases to be effective, the 90-day dormancy condition applies from that point forward.

By:  Paul Gretch

U.S.-Thailand All-Cargo Frequency Allocation Case / Polar Air Cargo, Inc.

Polar commenced Thailand service in 1997, but market conditions prevented Polar from utilizing its second frequency. Polar maintained the frequency in effect by means of an exemption from the start-up condition granted by Order 97-5-6.  Polar was forced to discontinue all service to Thailand in late 1997 due to the worsening economic situation in that country. As a result, one of Polar's two U.S.-Thailand all-cargo frequencies became dormant.  Because adverse economic conditions have continued to impede Polar's ability to restart its Thailand service, Polar seeks to renew its start-up exemption for a period of six months, i.e., through September 30, 2000. Polar will resume service to Thailand as soon as market conditions warrant.

Counsel:  Wilmer Cutler, Jeffery Manley, 202.663.6000, jmanley@wilmer.com

Polar Air Cargo, Inc.

By Order 96-9-16 the Department issued Polar Air Cargo a certificate of public convenience and necessity to provide scheduled all-cargo service between a point or points in the United States and a point or points in Thailand (Route 705), and allocated it two weekly all-cargo frequencies for this service. That award was subject to the condition that Polar must begin service with the frequencies by April 1, 1997. Once service was implemented, the frequencies were subject to a 90-day dormancy condition whereby the frequencies would expire and revert automatically to the Department if they were not used for a period of 90 days. Since then, the Department has granted extensions of the startup date for Polar's second frequency through December 31, 1999. (See Orders 97-5-6 and 98-1-6 and Notices of Action Taken dated June 15 and November 13, 1998, and November 10, 1999.) Polar's first frequency automatically reverted to the Department after not being used for a period of 90 days. Polar states that because economic conditions have continued to impede Polar's ability to restart its Thailand service, it seeks a further extension of the startup date for its one frequency to September 30, 2000. Polar indicated that it will resume service to Thailand as soon as market conditions warrant.

By Order 96-9-16 the Department allocated U.S.-Thailand all-cargo frequencies to the following U.S. carriers: United Parcel Service - 6. Air Micronesia - 5, Polar Air Cargo - 2 (one of which has reverted to the Department), Northwest - 3 (in addition to 2 previously awarded), and Federal Express - 5 (in addition to 1 previously awarded). Under the terms of the Department's order, the frequency allocations would expire automatically on April 1, 1997, and revert to the Department for Polar's extension of the startup deadline is effective until September 30, 2000, or until the date on which Polar begins service with its frequency, whichever occurs earlier. If Polar does not begin service by September 30, 2000, its frequency allocation expires automatically. The 90-day dormancy condition with respect to this frequency will begin on the date Polar inaugurates service.

By:  Paul Gretch

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