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Polar Air Cargo, Inc.

Polar Air Cargo, Inc. ("Polar") hereby applies for an exemption to engage in scheduled foreign air transportation of property and mail from a point of point in the United States, via intermediate points, to Manaus, Brasilia, Rio de Janeiro, Sdo Paulo, Recife, Porto Alegre, Belem, Belo Horizonte and Salvador de Bahia, Brazil, and beyond Brazil to Argentina, Uruguay, Paraguay and Chile. Polar also requests authority to integrate services under this exemption with services Polar is authorized to provide under other certificates of public convenience and necessity and exemptions, consistent with all applicable international agreements.

Counsel: Wilmer Cutler, Jeffery Manley, 202.663.6670, jmanley@wilmer.com  

Polar's subsequently filed application differs from Atlas' exemption application in several salient respects. First, Polar seeks to broaden the U.S. portion of its authority, from the coterminal points Miami and Los Angeles to "a point or point in the United States." Atlas, in contrast, has limited the U.S. gateway in its Brazil exemption application to Miami, the single U.S. point listed in its recently awarded Brazil certificate. Second, Polar seeks to expand the intermediate points it may serve, from the four listed in its Brazil certificate (Curacao, Santiago, Barranquilla and Panama City) to an unlimited number of points. Unlike Polar, Atlas has not applied for new U.S.-Brazil intermediate point authority. Third, Polar seeks new beyond-Brazil authority to Argentina, Uruguay, Paraguay and Chile, whereas Atlas has not requested additional beyond-Brazil route rights. Fourth, in contrast to Atlas, Polar fails to assert that the requested Brazil exemption authority will enhance its ability to begin using currently assigned U.S.-Brazil cargo frequencies. In these circumstances, it would be prejudicial to grant Polar's application without concurrently or first granting Atlas.

Counsel:  Verner Liipfert, Russell Pommer, 202.371.6000

UPS has no objection to the Application of Polar. However, in its Application, Polar has not disclosed whether it is currently operating all frequencies in accordance with the dormancy conditions placed on its certificate authority. To ensure that no frequency in this limited-entry market goes unused, UPS urges the Department to require Polar to make such a disclosure prior to expanding its authority to serve additional cities in Brazil.

Counsel:  Kelley Drye, David Vaughan, 202.955.9864, dvaughan@kelleydrye.com 

We have decided to grant both Atlas and Polar broad exemption authority to serve Brazil consistent with the route description in the U.S.-Brazil aviation agreement and authority to integrate these services with their other certificate and exemption authorities.

Both carriers now offer scheduled all-cargo services in the Brazil market, and both now seek additional authority in order to better meet the demand for service as market conditions warrant. The authority granted is consistent with the U.S.-Brazil aviation agreement, and the award of broad authority as set forth in the agreement will afford both carriers maximum flexibility to respond to changing market conditions and consumer demand. We, therefore, find that award of broad authority to both carriers is consistent with the public interest.

The authority is effective immediately and will remain in effect for a period of two years, subject to our standard conditions on exemption awards and route integration requests. Furthermore, as the services of both carriers are subject to frequency limitations, any services operated by the carriers using the exemption authority awarded here must be operated within the frequencies allocated to each carrier.

We see no need to impose a special reporting requirement on Polar as UPS requests. Under the terms of Polar's frequency allocation, any frequency not used for a period of 90 days automatically reverts to the Department (as would any frequency under Atlas' frequency allocation). Should Polar or Atlas seek to retain an unused frequency beyond the 90-day period, the carrier in question would first need to secure a dormancy waiver from the Department. To the extent that Polar or Atlas may seek a dormancy waiver (or Atlas a waiver from the startup provisions) with respect to any of the allocated frequencies, UPS would be served with such an application and would be free at that time to file comments to such a request.

• We grant Atlas Air, Inc., an exemption to conduct foreign scheduled air transportation of property and mail between a point or points in the United States, via intermediate points, to Manaus, Brasilia, Rio de Janeiro, Sao Paulo, Recife, Porto Alegre, Belem, Belo Horizonte, and Salvador de Bahia, and beyond Brazil to Argentina, Uruguay, Paraguay, and Chile;
• We grant Polar Air Cargo, Inc., an exemption to conduct foreign scheduled air transportation of property and mail between a point or points in the United States, via intermediate points, to Manaus, Brasilia, Rio de Janeiro, Sao Paulo, Recife, Porto Alegre, Belem, Belo Horizonte, and Salvador de Bahia, and beyond Brazil to Argentina, Uruguay, Paraguay, and Chile.

By:  Paul Gretch

May 23, 2003

Application for Renewal of Exemption | Word

Requests renewal of its exemption authorizing it to engage in scheduled foreign air transportation of property and mail between a point or points in the United States, via intermediate points, to Manaus, Brasilia, Rio de Janeiro, São Paulo, Recife, Porto Alegre, Belem, Belo Horizonte and Salvador de Bahia, Brazil and beyond Brazil to Argentina, Uruguay, Paraguay and Chile, as permitted by the U.S-Brazil aviation agreement, and to integrate that authority with its other certificate and exemption authorities.

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

Order 2007-5-4
OST-2007-27056 - Disclaimer of Jurisdiction Over or Approval of Transfer of Certificates and Related Authorities
OST-1998-3491 - Exemption - Route 727, US-Japan All-Cargo
OST-1999-6425 - Certificate of Public Convenience and Necessity - U.S.-Argentina; U.S.-Chile
OST-2000-8445 - Certificate of Public Convenience and Necessity - US-South America All-Cargo
OST-2001-9382 - Certificate of Public Convenience and Necessity - US-Thailand
OST-1995-877 - Exemption - US-Russia All-Cargo
OST-1997-2352 - Exemption - US-Venezuela
OST-2001-9829 - Exemption - US-Brazil
OST-2003-15447 - Exemption - US-Iraq Cargo

Issued and Served May 9, 2007

Order Transferring Exemption Authority and Reissuing Certificates

We have decided to approve the transfer of Polar's foreign certificate and other authorities to Polar Worldwide. However, we will not here transfer Polar's interstate authority. As noted above, by Order 2007-3-15, the Department issued to Polar Worldwide an interstate certificate of public convenience and necessity to conduct scheduled air transportation of property and mail. Therefore, Polar's request for the transfer of its interstate certificate to Polar Worldwide is now moot. We will cancel Polar's interstate certificate upon the effectiveness of Polar Worldwide's interstate certificate (see Order 2007-3-15).

By: Andrew Steinberg

Order 2007-6-17
OST-2007-27056 - Disclaimer of Jurisdiction Over or Approval of Transfer of Certificates and Related Authorities
OST-1998-3491 - Exemption - Route 727, US-Japan All-Cargo
OST-1999-6425 - Certificate of Public Convenience and Necessity - U.S.-Argentina; U.S.-Chile
OST-2000-8445 - Certificate of Public Convenience and Necessity - US-South America All-Cargo
OST-2001-9382 - Certificate of Public Convenience and Necessity - US-Thailand
OST-1995-877 - Exemption - US-Russia All-Cargo
OST-1997-2352 - Exemption - US-Venezuela
OST-2001-9829 - Exemption - US-Brazil
OST-2003-15447 - Exemption - US-Iraq/Afghanistan

Issued and Served June 25, 2007

Order Issuing Effective Authority

By this order, we (1) make effective the interstate and foreign certificates and authorities issued to Polar Air Cargo Worldwide, Inc., d/b/a Polar Air Cargo to engage in air transportation of property and mail, and (2) reissue the air carrier's certificates to reflect their effectiveness.

1. We make the interstate scheduled certificate of public convenience and necessity issued to Polar Air Cargo Worldwide, Inc., d/b/a Polar Air Cargo, by Order 2007-3-15, effective on June 27, 2007.
2. We make the foreign scheduled certificates of public convenience and necessity, exemption authorizations, and frequency allocations transferred to Polar Air Cargo Worldwide, Inc., d/b/a Polar Air Cargo, from Polar Air Cargo, Inc., by Order 2007-5-4, effective on June 27, 2007.
3. We reissue to Polar Air Cargo Worldwide, Inc., d/b/a Polar Air Cargo, its interstate and foreign scheduled all-cargo certificates issued by Orders 2007-3-15 and 2007-5-4, respectively, in the attached form to reflect their effectiveness.
4. We cancel the interstate certificate reissued to Polar Air Cargo, Inc., by Order 1994-7-12, effective June 27, 2007.
5. We cancel the exemption authority granted to Polar Air Cargo Worldwide, Inc., d/b/a Polar Air Cargo under 49 U.S.C. 40109 to provide foreign scheduled air transportation of property and mail between a point or points in the United States and a point or points in Colombia.

By: Todd Homan

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