Centurion Air Cargo, Inc.

OST-2008-0228 - Certificate of Public Convenience and Necessity and an Exemption - US-Brazil All-Cargo Service

July 16, 2008

Application of Certificate of Public Convenience and Necessity and an Exemption - Bookmarked

Respectfully requests a Certificate of Public Convenience and Necessity to the extent necessary to permit it to engage in scheduled foreign air transportation of property and mail between a point or points in the United States, via intermediate points, and the Brazilian co-terminal points Manaus, Brasilia, Rio de Janeiro, Sao Paulo, Recife, Porto Alegre, Belem, Belo Horizonte, Curitiba, Fortaleza, and Salvador, and beyond Brazil to Argentina, Uruguay, Paraguay and Chile. Centurion also requests, to the extent necessary or as an alternative, an exemption from the provisions of 49 U.S.C. § 41101 to permit Centurion to conduct such service for an initial period of two years or until the grant of the requested certificate authority. Centurion also requests that it be designated under the U.S.-Brazil Air Transport Agreement, that the Department allocate it seven (7) Application weekly U.S.-Brazil all-cargo frequencies, and that the Department integrate the requested authority with Centurion's existing exemption and certificate authority.

Centurion currently participates in the U.S.-Brazil market by offering cargo charters. During the year ended June 30, 2008, Centurion operated 140 cargo charters, carrying approximately 9,800 tons, between Miami and the Brazilian points Sao Paulo, Manaus, Curitiba, Belem, Rio de Janeiro, and Recife. Significantly, 102 of these charters, carrying about 7,520 tons, were operated just in the first six months of 2008. For the 2008-09 Brazil charter year DOT allotted Centurion 85 cargo charters, and the company believes it will use this allocation by the end of September 2008.

The significant increase in Centurion's U.S.-Brazil activity demonstrates that that market is expanding and that Centurion is playing an important role in its development. Clearly, the ability to offer scheduled service will increase Centurion's competitive position, which in turn, will result in better service for the public.

Counsel: Law Offices of John Mietus, William Evans, 202-747-5212

OST-2008-0228 - Centurion - Certificate of Public Convenience and Necessity and an Exemption - US-Brazil All-Cargo Service
OST-2008-0223 - UPS - Allocation of Weekly US-Brazil All-Cargo Frequencies

July 31, 2008

Answer of UPS

UPS respectfully requests that the Department immediately grant the applications of UPS and Centurion and dismiss UPS from any further proceedings in connection with the new authority available under the 2008 U.S.-Brazil Memorandum of Consultations. In particular, there is no need for UPS to participate in any combination frequency allocation proceeding.

Since the total available U.S.-Brazil all-cargo frequencies are undersubscribed, UPS believes that it would be in the public interest to immediately allocate the requested frequencies to UPS and Centurion. The Department has a history of granting applications for frequencies where such frequencies are undersubscribed and the proceeding is not contested. In addition, granting the applications of UPS and Centurion would preserve the Department's resources and allow U.S. cargo carriers to take advantage of these valuable rights immediately.

Counsel: Kelley Drye, David Vaughan, 202-342-8462

August 4, 2008

Re: Reply of Centurion Air Cargo to Answer of UPS

UPS states that it does not oppose the application of Centurion so the application stands unopposed and should be granted as expeditiously as possible. UPS also suggests that the Department go ahead and grant both the UPS and Centurion applications immediately so that the valuable rights represented by the U.S.-Brazil frequencies can be implemented sooner rather than later, and it points to precedence that clearly justifies such action. In this regard, Centurion strongly supports UPS' request.

In addition, although UPS may be able to implement new service with little delay, Centurion may not be so fortunate. Centurion faces what could be a long and drawn out process to obtain the rights from the Brazil Government to operate the all-cargo services it proposes for the U.S.-Brazil cargo market. Consequently, it is even more important to Centurion to start the licensing process in Brazil and the Department can provide assistance in that regard by granting Centurion's application expeditiously.

Counsel: Mietus Law, William Evans, 202-747-5212

OST-2008-0228 - Centurion - Certificate of Public Convenience and Necessity and an Exemption - US-Brazil All-Cargo Service
OST-2008-0223 - UPS - Allocation of Weekly US-Brazil All-Cargo Frequencies

Filed July 16, 2008 | Issued August 5, 2008

Notice of Action Taken | Word

UPS and Centurion each request weekly all-cargo frequencies to serve the U.S.-Brazil market, as follows:

Docket OST-2008-0223: UPS requests one weekly frequency for U.S.-Brazil scheduled all-cargo year-round service.

UPS states that initially it will use the frequency for once-weekly round robin all-cargo service on the routing Houston-Panama City-Sao Paulo-Bogota-Panama City-Houston, and that it will operate the Sao Paulo-Bogota and Sao Paulo-Panama City segments on a blind-sector basis.

UPS already holds the requisite authority to provide the services requested here (see Orders OST-2003-10-12 and OST-2000-6-7).

UPS states that it is prepared to begin the proposed service immediately.

Docket OST-2008-0228: Centurion requests a total of seven weekly frequencies for U.S.-Brazil scheduled all-cargo year-round service.

Centurion states that initially it will use the frequencies as follows: four weekly flights between Miami and Sao Paulo, via Bogota and/or Lima; one weekly flight between Miami, on the one hand, and Sao Paul and Curitiba, on the other hand, via Bogota and/or Lima; and two weekly flights between Miami and Manaus, via Bogota and/or Lima.

We will handle, subsequently, Centurion’s request for all-cargo certificate authority for U.S.-Brazil and beyond services.

By: Paul Gretch